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The World Bank has approved $700 million in fresh financing for Pakistan under a multi-year reform initiative aimed at strengthening macroeconomic stability and improving public service delivery. The approval is part of the bank’s Public Resources for Inclusive Development Multiphase Programmatic Approach (PRID-MPA), which could provide Pakistan with up to $1.35 billion in total funding over time.
According to the World Bank, $600 million of the approved amount will support federal-level programmes, while $100 million will be allocated to a provincial programme in Sindh. The financing focuses on raising domestic revenues fairly, improving budget planning and execution, and strengthening data and statistical systems to support evidence-based policymaking.
The approval follows an earlier $47.9 million World Bank grant in August aimed at improving primary education in Punjab, highlighting continued international support for Pakistan’s reform agenda.
World Bank’s View on Pakistan’s Reforms
World Bank Country Director for Pakistan Bolormaa Amgaabazar said the country’s long-term growth depends on better use of domestic resources.
“Pakistan’s path to inclusive, sustainable growth requires mobilising more domestic resources and ensuring they are used efficiently and transparently to deliver results for people,” she said.
She added that the programme would help ensure predictable funding for schools and healthcare facilities, fairer tax systems, and stronger data for decision-making while protecting social and climate-related investments.
World Bank Lead Country Economist Tobias Akhtar Haque said strengthening fiscal foundations was essential for restoring stability.
“Through the PRID-MPA, we are launching a nationwide approach to expand fiscal space, strengthen institutions, and ensure resources reach the front line with greater efficiency and accountability,” he noted.
The approval comes as Pakistan continues structural reforms under international financial support programmes. In November, an IMF-World Bank report highlighted that weak regulation, opaque budgeting, and governance challenges were limiting investment and reducing revenue collection, underscoring the need for reforms targeted by the new initiative.
