The World Bank is preparing to approve a monumental $20 billion lending package for Pakistan, marking the first-ever 10-year partnership framework globally. The initiative, titled “Pakistan Country Partnership Framework 2025-35,” aims to safeguard projects from political transitions and focuses on six key development areas. The framework is designed to withstand government changes during the next decade, ensuring continuity and impact through Pakistan’s upcoming three general elections.
This 10-year partnership will primarily address Pakistan’s lagging sectors, including health, education, and climate change, with the goal of improving the country’s social indicators. The World Bank will provide $14 billion through its concessional lending arm, the International Development Association (IDA), while the remaining $6 billion will come from the more expensive International Bank for Reconstruction and Development (IBRD). This substantial package is set to be approved by the World Bank’s board on January 14th.
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Key target outcomes of the plan include reducing child stunting by 30% and cutting learning poverty to below 60% by 2035. The framework will also support a $20 billion private lending initiative through the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA), bringing the total package to $40 billion. However, the World Bank’s funding will focus solely on six critical sectors, phasing out less impactful areas such as transport, power transmission, and higher education.
The new strategy highlights the importance of sustained development by moving away from short-term programmes, directing resources towards larger, long-term projects. This shift is intended to provide stability in Pakistan’s volatile political landscape and prevent fragmentation of development efforts due to frequent policy changes with new governments.
