World Bank has approved $700 million in fresh financing for Pakistan under its multi-year Public Resources for Inclusive Development Multiphase Programmatic Approach, known as PRID-MPA, aimed at enhancing macroeconomic stability and improving public service delivery. The funding forms part of a broader initiative that could provide Pakistan with up to $1.35 billion over time, supporting both federal and provincial programmes designed to strengthen governance and boost domestic revenue mobilization.
According to the World Bank, $600 million of the approved amount will support federal-level programmes focused on raising domestic revenues fairly, improving budget planning and execution, and strengthening statistical systems to enable evidence-based policymaking. An additional $100 million has been earmarked for a provincial programme in Sindh. The financing underscores international support for Pakistan’s reform agenda, following a $47.9 million World Bank grant in August aimed at improving primary education in Punjab. These efforts reflect the continued prioritization of structural reforms to enhance service delivery across sectors such as healthcare, education, and social protection.
World Bank Country Director for Pakistan Bolormaa Amgaabazar highlighted that sustainable economic growth in Pakistan relies on the efficient and transparent use of domestic resources. She stated that the PRID-MPA programme would provide predictable funding for schools and healthcare facilities, strengthen tax systems, and ensure better data availability for informed decision-making, while protecting social and climate-related investments. The initiative is designed to create a stronger institutional framework, ensuring that resources reach frontline services more efficiently and equitably.
Lead Country Economist Tobias Akhtar Haque emphasized that strengthening fiscal foundations is critical for restoring stability and boosting investor confidence. He noted that PRID-MPA launches a nationwide approach to expand fiscal space, improve institutional capacity, and enhance accountability. The programme aligns with ongoing structural reforms under international financial support programmes. A November IMF-World Bank report highlighted that opaque budgeting, weak regulation, and governance challenges have limited investment and revenue collection, highlighting the need for reforms that the new initiative seeks to address. Through PRID-MPA, Pakistan aims to build sustainable fiscal management practices, strengthen public sector institutions, and ensure that development funds are used effectively to support inclusive growth and equitable service delivery.
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