World Bank approves $700 million to support Pakistan’s macroeconomic stability

The World Bank has approved $700 million in financing for Pakistan under a multi-year programme aimed at strengthening the country’s macroeconomic stability and improving public service delivery.

According to the lender, the funding will be provided under the Public Resources for Inclusive Development – Multiphase Programmatic Approach (PRID-MPA), which could extend up to $1.35 billion in total financing over multiple phases, Dawn reported.

Of the approved amount, $600 million will support federal-level programmes, while $100 million is earmarked for a provincial initiative in Sindh. The approval follows a $47.9 million World Bank grant in August to improve primary education in Punjab.

In a statement, Bolormaa Amgaabazar, the World Bank’s Country Director for Pakistan, said inclusive and sustainable growth requires stronger mobilisation and efficient use of domestic resources. She added that the programme aims to deliver tangible outcomes such as more predictable funding for schools and clinics, fairer tax systems, and improved data for decision-making, while safeguarding social and climate-related investments.

Tobias Akhtar Haque, the World Bank’s Lead Country Economist for Pakistan, said strengthening fiscal foundations is critical to restoring macroeconomic stability and improving institutional performance. “Through the PRID-MPA, we are launching a coherent nationwide approach to support reforms that expand fiscal space, strengthen human capital and climate resilience, and improve revenue administration, budgeting, and statistical systems,” he said.

The federal component of the programme will focus on raising domestic revenues in a more equitable manner, improving budget planning and execution, and strengthening data systems to support evidence-based policymaking. The initiative will also support increased and more responsive financing for primary healthcare facilities and schools.

The approval comes amid concerns flagged in a recent IMF–World Bank report, which noted that Pakistan’s fragmented regulation, opaque budgeting processes, and political capture continue to hinder investment and weaken revenue generation.