World Bank approves $700 million for Pakistan’s economic stability

• Pakistan will receive $700 million from the World Bank under a multi-year program.
• Funding was approved under the PRID-MPA initiative: World Bank.
• $600 million approved for Centre, $100 million for Sindh: World Bank.
  

The World Bank said it has approved $700 million in financing for Pakistan as part of a multi-year initiative aimed at supporting the country’s macroeconomic stability and service delivery.

The funds will be released under the Public Resources Programmatic Approach for Inclusive Development-Multiphase Development (PRID-MPA), which could provide up to $1.35 billion in total funding, the lender said.

Of this amount, $600 million will go to federal programs and $100 million will support a provincial program in the southern province of Sindh.

The approval comes after a $47.9 million World Bank grant in August to improve primary education in Pakistan’s most populous Punjab province.

“Pakistan’s path to inclusive, sustainable development requires mobilizing more domestic resources and ensuring they are used efficiently and transparently to deliver results for people,” Bolormaa Amgaabazar, World Bank Country Director for Pakistan, said in a statement.

“Through this MPA, we are working with the federal and Sindh governments to deliver tangible impact, more predictable funding for schools and clinics, fairer tax systems and stronger data for decision-making, while protecting priority social and climate investments and strengthening public confidence,” he added.

The federal component will focus on raising domestic revenue more equitably, improving budget planning and execution, and strengthening data systems for evidence-based decisions.

“Strengthening Pakistan’s fiscal foundations is essential to restore macroeconomic stability, deliver results and strengthen institutions,” said Tobias Akhtar Haque, Lead Country Economist for the World Bank in Pakistan.

In Sindh, the program is expected to increase provincial revenue, enhance the speed and transparency of payments, and expand the use of data to guide provincial decision-making.

“The program will directly support increased public resources for inclusive development, including more equitable and responsive funding for primary health care facilities and more funding for schools,” the World Bank press statement said.

— With additional data from Reuters