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World Bank backs Pakistan with $700m economic support package

The World Bank has approved $700 million in new financing to help strengthen Pakistan’s macroeconomic stability and improve public service delivery.

The funding was cleared by the Bank’s Board of Executive Directors under the Pakistan Public Resources for Inclusive Development – Multiphase Programmatic Approach (PRID-MPA).

The PRID-MPA is a nationwide reform initiative designed to support both federal and provincial governments in boosting domestic revenue collection, improving the quality of public spending, and using data and digital systems to enhance government services.

This program aligns closely with Pakistan’s ongoing fiscal reform agenda, including commitments under the IMF’s Extended Fund Facility and the National Fiscal Pact. In total, the MPA framework allows for financing of up to $1.35 billion over multiple phases.

Under the newly approved package, $600 million will be allocated to federal-level reforms, while $100 million will support programs in Sindh province. The initiative follows a results-based financing model, meaning funds will be released only after agreed targets and outcomes are achieved.

World Bank Country Director for Pakistan Bolormaa Amgaabazar emphasized that sustainable and inclusive growth depends on stronger domestic revenue systems and efficient use of public funds. 

She noted that the program aims to ensure reliable financing for essential services such as education and healthcare, promote a fairer tax structure, strengthen data-driven decision-making, and protect key social and climate-related investments—ultimately helping to build greater public trust.