ISLAMABAD: The World Bank has approved $700 million in financing for Pakistan. The funding is aimed at supporting macroeconomic stability and service delivery, the bank said on Saturday.
The financing will be provided under the Public Resources for Inclusive Development – Multiphase Programmatic Approach (PRID-MPA). The initiative could provide up to $1.35 billion over multiple phases.
Of the approved amount, $600 million has been allocated for federal programs. Another $100 million will support a provincial program in Sindh. Funds will be released on a results-based basis. Disbursement will depend on the achievement of program targets.
The program is intended to improve domestic resource mobilization. Greater efficiency and transparency in public spending are also targeted.
The approval follows a $47.9 million World Bank grant in August. The grant was aimed at improving primary education in Punjab province.
Concerns over Pakistan’s economic governance were highlighted in an IMF-World Bank report in November. Fragmented regulation and opaque budgeting were cited as key constraints.
Regional sensitivities over international financing remain. In May, India was reported to oppose World Bank funding for Pakistan.
The PRID-MPA is designed to strengthen fiscal systems nationwide. Reforms in revenue administration and budget execution are included. Improvements in data and statistical systems are also planned.
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In Sindh, higher provincial revenues are expected. Faster and more transparent payments are targeted. Expanded use of data in decision-making is planned. Additional funding for schools and primary health care facilities is included.
