The World Bank has approved a $700 million loan for Pakistan under a reform-focused program aimed at strengthening economic stability. The initiative also seeks to improve public service delivery across the country.
Of the approved financing, $600 million will be allocated to the federal government, while $100 million will go to Sindh province. The World Bank stated that the funds will be released in phases.
Disbursements will be strictly results-based. This means funds will only be released after agreed targets and outcomes are achieved. The program emphasizes accountability and measurable progress.
A key component of the program is tax reform and improved public expenditure management. The reforms are designed to enhance fiscal discipline and ensure efficient use of public resources at both federal and provincial levels.
The program also includes the introduction of digital systems to improve public service delivery. The World Bank said that digitization will make services more transparent, efficient, and accessible for citizens across Pakistan.
Officials highlighted that the broader program will provide a total of $1.35 billion in multiple stages. This phased approach ensures sustained momentum for reforms and links financial support to measurable progress.
The program aligns with Pakistan’s National Fiscal Pact and the IMF framework. Authorities said this coordination is expected to increase investor confidence and support long-term economic stability.
The reforms are also expected to boost resources for social sectors, including education, health, and social protection. Better allocation of funds is likely to improve outcomes for vulnerable communities and support inclusive development.
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The World Bank Board has formally approved the Pakistan Public Resources for Inclusive Development Program. Officials said it will strengthen governance and public service delivery in both the federation and Sindh province.
