World Bank Authorizes Changes to PRIDE Program Financing

The World Bank has approved a restructuring of the Punjab Resource Improvement and Digital Effectiveness (PRIDE) program worth US$304 million. The Bank approved the cancellation of US$18 million and extended the loan closing date to 30 June 2026 to allow completion of critical activities.

The PRIDE Program was approved in December 2020 and became effective in January 2021. Its objectives are to increase Punjab’s revenue, improve fiscal management and expand digital public services. The loan is financed by the IBRD and aligns with the Country Partnership Framework CPF outcome on fiscal space and public spending efficiency.

The Economic Affairs Division (EAD) submitted a request on 22 July 2025 to extend the closing date by ten months. Punjab had earlier sought cancellation of US$18 million from the IPF component. The Steering Committee approved the request, and the World Bank has now formalised the restructuring. The new closing date is 30 June 2026.

The decision responds to several factors. Depreciation of the Pakistani rupee affected original financial plans. Some activities overlapped with provincial or federal systems and became redundant. The switch to the federal e-procurement system created savings and allowed reallocation of funds. Core tasks that require more time include business process reengineering and a Disaster Risk Financing strategy.

The cancellation will not affect the Program’s Disbursement Linked Indicators DLI. Most of the cancelled budget related to consultancy contracts and procurement of goods. Consultancy budgets account for 37% of the cancelled amount, and goods account for 35%. All required consultancy services are in place, and savings have already been realised.

Implementation schedules will be adjusted to reflect extended timelines and to protect the sustainability of results. The Finance Department will use the extension to finish pending work and to consolidate achieved results. EAD and Punjab authorities will finalise detailed plans and report progress to the World Bank.

The restructuring secures continued support for revenue modernization and digital services in Punjab while ensuring efficient use of remaining funds and a smooth program closure.