The World Bank has approved a major financing package worth $400 million to help Pakistan improve urban services, upgrade essential infrastructure, and build more resilient cities. The funding will primarily support development projects across Punjab, where rapid population growth and aging systems have created serious challenges in water supply, sanitation, drainage, and municipal management. Officials said the programme is designed to directly improve the daily lives of millions of residents living in secondary cities.
According to details shared by the World Bank, the financing falls under the Punjab Inclusive Cities Program, which will focus on expanding access to clean drinking water, enhancing sewerage systems, and modernising wastewater treatment facilities. These improvements are necessary to reduce the spread of waterborne diseases, promote better public health, and support long-term economic activity. Many cities in Punjab currently depend on outdated pipelines and inadequate disposal systems, causing recurring contamination issues and frequent urban flooding.
Another key component of the programme is strengthening the capacity and financial performance of local governments. The World Bank noted that many municipal bodies lack the resources, training, and digital tools needed to deliver services effectively. Through this project, city administrations will receive support in planning, budgeting, and climate-resilient infrastructure development. This will help cities respond better to natural disasters, including heavy rains and droughts, which have become more frequent due to climate change.
The project also places strong emphasis on gender inclusion. Dedicated initiatives will encourage the hiring of more women in local government roles, especially in decision-making positions. Gender-responsive complaint desks will be set up to make it easier for women to raise concerns about basic services. Community-level awareness campaigns will also promote good hygiene and waste management practices to improve household health standards.
Officials believe the $400 million package reflects international confidence in Pakistan’s reform efforts and development priorities. The funds will help build cleaner, healthier, and more modern urban spaces across Punjab, with long-term benefits for public health, economic growth, and climate resilience. The programme is expected to start rolling out early next year after final coordination with provincial authorities.
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