$20 Billion Loan
ISLAMABAD: Pakistan is poised to receive a $20 billion loan from the World Bank over the next decade as part of a comprehensive effort to address the country’s key developmental challenges.
According to sources in the Ministry of Economic Affairs, the loan is structured under the World Bank’s Country Partnership Framework (CPF) 2025-35, which prioritizes sustainable economic development.
The loan, expected to be approved by the World Bank’s Board of Directors on January 14, marks a significant financial commitment to Pakistan.
Following the approval, Martin Raiser, the World Bank’s Vice President, is scheduled to visit Islamabad to discuss the programme’s implementation and its strategic objectives.
This initiative is part of the World Bank’s broader agenda to assist Pakistan in overcoming pressing challenges, including improvements in health and education, addressing climate change, and fostering long-term economic stability.
The framework sets specific goals for the next decade to rejuvenate critical sectors that have suffered from neglect in recent years.
Notably, the loan programme is designed to be resilient against political transitions, ensuring that ongoing projects remain undisturbed by changes in government.
Alongside the $20 billion loan, two subsidiary entities of the World Bank will help Pakistan secure an additional $20 billion in private loans.
Together, these funds amount to a $40 billion financial package earmarked for infrastructure development, climate resilience initiatives, and enhancements to social services.
Simultaneously, Pakistan’s government has launched the National Economic Transformation Plan, an ambitious roadmap aimed at doubling GDP growth and halving poverty within five years.
The plan includes attracting $29 billion in investments under the Special Investment Facilitation Council (SIFC). Key contributions include $10 billion from the UAE, $5 billion from Saudi Arabia, $2 billion each from Qatar and Azerbaijan, and another $10 billion from Kuwait.
The government aims to achieve a GDP growth rate of 6% by Fiscal Year 2028-29, with the per capita income projected to rise from $1,680 to $2,405.
This combination of international financial support and domestic economic initiatives signals a robust strategy for Pakistan’s sustainable development and economic recovery.
