World Bank Approves $300 Million Loan for Punjab’s Smog Mitigation Project

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Hassan Khan

World Bank Approves $300 Million Loan for Punjab's Smog Mitigation Project

World Bank Approves $300 Million Loan to Punjab for Air Pollution Control

The World Bank has sanctioned a $300 million (Rs. 84 billion) loan to Punjab aimed at reducing air pollution through electric buses, farm residue control, and improved air quality management.

Key Initiatives Under the Program

  • 400 electric buses to improve public transport.
  • 5,000 super seeders to reduce crop burning.
  • Expansion of air quality monitoring stations and fuel testing labs.

Read More: World Bank Cancels $500M Loan to Pakistan

Implementation & Expected Impact

  • The project will be managed under the Punjab Clean Air Program (PCAP).
  • Particulate matter (PM2.5) levels are expected to drop by 35 percent over the next decade.
  • $245 million will go toward transport sector reforms, while $20 million will support agricultural pollution control.
  • The initiative aims to protect Lahore’s 13 million residents from worsening air pollution and smog.

Addressing Lahore’s Air Crisis

Punjab’s smog mitigation efforts come as Lahore’s PM2.5 levels frequently exceed 300-400 µg/m³, posing serious health risks. The World Bank highlighted pollution from transport, industry, and household cooking as key contributors and emphasized regulatory reforms and public awareness campaigns.

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