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Home Economy

World Bank Approves $700m Financing for Pakistan

by Anum Arif
December 20, 2025
in Economy, Main
Reading Time: 2 mins read
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World Bank New

World Bank funding aims to strengthen Pakistan’s fiscal stability, improve service delivery, and support inclusive growth through federal and Sindh-level reforms.

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According to a statement issued on Saturday, the PRID-MPA is a results-based program that will disburse funds only after agreed reform targets are achieved. Out of the approved $700 million, $600 million will support federal-level reforms, while $100 million is allocated for Sindh’s provincial program. Overall, the initiative allows for total financing of up to $1.35 billion across multiple phases.

The federal component will concentrate on increasing domestic revenues in a fair and transparent manner, improving budget planning and execution, and strengthening national data systems. Key measures include tax policy and administration reforms, expansion of the Integrated Financial Management Information System and its linked e-procurement platform, targeted subsidy reforms, and strengthening the Pakistan Bureau of Statistics.

World Bank Country Director for Pakistan, Bolormaa Amgaabazar, said the program would help mobilise domestic resources and ensure efficient use of public funds, enabling predictable financing for schools and healthcare facilities while safeguarding social and climate-related investments.

Lead Country Economist Tobias Akhtar Haque highlighted that strengthening fiscal foundations is essential for restoring macroeconomic stability and improving institutional performance. He said the PRID-MPA offers a nationwide, coordinated reform framework to expand fiscal space, strengthen human capital investment, and improve accountability.

At the provincial level, particularly in Sindh, the program aims to raise revenues, speed up and increase transparency in payments, and expand the use of data for informed decision-making. The initiative is expected to result in more equitable financing for primary healthcare and increased funding for schools.

Overall, the World Bank said the PRID-MPA represents a strategic step toward inclusive and sustainable growth by ensuring that public resources are used efficiently and reach frontline services across Pakistan.

Tags: development financingfiscal reformsIMF programpakistan economyPRID-MPASindh reformsworld bank

Anum Arif

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