The World Bank on Saturday (December 20, 2025) has approved financial assistance of US $ 700 million (about $ 700 million) under a multi-year initiative aimed at supporting Pakistan’s macroeconomic stability and improving the delivery of public services.
According to a report in Pakistani newspaper Dawn, the amount of financial assistance given by the World Bank will be released under Public Resources for Inclusive Development-Multiphase Programmatic Approach (PRID-MPA). This is a framework under which a total funding of up to US $ 1.35 billion can be made available.
Where will Pakistan use this money?
According to the report, out of the $700 million approved by the World Bank, $600 million will be allocated for federal level schemes, while $100 million will be allocated for a provincial initiative of Sindh. This approval comes after the World Bank granted a $47.9 million grant in August to improve primary education in Punjab.
What was said in the statement issued by the World Bank?
In a separate statement issued by the World Bank, the bank’s country director for Pakistan, Bolorma Amghabazar, was quoted as saying, “Pakistan’s path to inclusive and sustainable development requires greater mobilization of domestic resources and ensuring that their use is effective, transparent and delivering results for the people.”
“Through the MPA, the Bank is working closely with the Federal Government and the Government of Sindh to deliver tangible outcomes such as more predictable funding for schools and clinics, a more equitable tax system and stronger data for decision-making, while safeguarding priority, social and climate investments and strengthening public trust,” he said.
Investment affected by political interference
World Bank Chief Economist for Pakistan Tobias Akhtar Haq said strengthening Pakistan’s fiscal foundation is essential to restore macroeconomic stability, deliver results and strengthen institutions. He said, “Through PRID-MPA, we are introducing a coherent, national-level approach that will support reforms to expand the fiscal space, boost investment in human capital and climate resilience, and strengthen revenue administration, budget execution and statistical systems. These reforms will ensure that resources reach the grassroots directly and deliver better outcomes for people across Pakistan with greater efficiency and accountability.”
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