As per the lender, the funds will be distributed under the bank’s Public Resources for Inclusive Development — Multiphase Programmatic Approach (PRID-MPA), which has the potential to provide up to $1.35 billion in overall financing, as reported by the Dawn newspaper.
Of this allocation, $600 million will be designated for federal programs while $100 million will be allocated to a provincial program in Sindh.
This approval follows a $47.9 million grant from the World Bank in August aimed at enhancing primary education in Punjab.
In a separate statement, Bolormaa Amgaabazar, the World Bank’s country director for Pakistan, emphasized, “Pakistan’s journey towards inclusive and sustainable growth necessitates mobilizing more domestic resources, ensuring their efficient and transparent utilization to yield results for the populace.”
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She added that through the MPA, the bank is collaborating with both federal and Sindh governments to “deliver significant impacts—providing more predictable funding for schools and clinics, fostering fairer tax systems, and enhancing data for informed decision-making— while prioritizing social and climate investments and reinforcing public trust.”
Tobias Akhtar Haque, World Bank’s lead country economist for Pakistan, noted that reinforcing Pakistan’s fiscal foundations is “crucial to restoring macroeconomic stability, achieving results, and strengthening institutions.”
“Through the PRID-MPA, we are initiating a coherent nationwide strategy to support reforms aimed at expanding fiscal space, enhancing investments in human capital and climate resilience, and improving revenue administration, budget execution, and statistical frameworks,” he stated.
“These reforms will ensure that resources efficiently reach the front line and provide better outcomes for the people across Pakistan, promoting greater accountability,” he added.
The statement indicated that the federal component would concentrate on equitably raising domestic revenues, enhancing budget planning and execution, and strengthening data systems for evidence-based policymaking.
The program will directly facilitate an increase in public resources for inclusive development, including more equitable financing for primary healthcare facilities and enhanced funding for educational institutions, it noted.
A report released in November by the IMF and World Bank, shared by the finance ministry, highlighted that the country’s fragmented regulation, unclear budgeting, and political manipulation are limiting investment and weakening revenue.
