Pakistan is set to receive a $20 billion loan from the World Bank over the next decade, focusing on critical sectors like health, education, and climate resilience. However,This financial assistance, part of the World Bank’s Country Partnership Framework 2025-35, aims to address long-neglected areas and drive sustainable economic growth in the country, sources revealed on Saturday.
Loan Approval and Implementation
The World Bank’s Board of Directors is expected to approve the loan on January 14. Once approved, Martin Raiser, Vice President of the World Bank, will visit Islamabad to finalize the program’s details and discuss its implementation. The agreement outlines a clear roadmap to ensure long-term stability and uninterrupted execution of development projects, regardless of political changes.
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Focus Areas for Development
The $20 billion loan will target Pakistan’s most pressing issues, including improving health and education systems, bolstering climate resilience, and upgrading infrastructure. These initiatives aim to create significant social and economic impact by addressing challenges that have hampered growth and development in recent years.
In addition to the primary loan, two World Bank subsidiaries will assist Pakistan in securing an additional $20 billion in private sector financing. This brings the total financial package to $40 billion, allowing for more comprehensive development efforts across multiple sectors.
Complementary Economic Goals
Alongside the World Bank loan, Pakistan has launched its National Economic Transformation Plan. This ambitious initiative aims to double GDP growth and cut poverty by half within five years. The plan also includes attracting $29 billion in foreign investments through the Special Investment Facilitation Council (SIFC).
Key investments expected include:
- $10 billion from the UAE
- $5 billion from Saudi Arabia
- $2 billion each from Qatar and Azerbaijan
- $10 billion from Kuwait
The government has set a GDP growth target of 6% by the fiscal year 2028-29 and aims to increase per capita income from $1,680 to $2,405.
A Step Toward Stability and Growth
The World Bank’s loan is a significant step toward stabilizing Pakistan’s economy and addressing deep-rooted structural issues. The funding ensures dedicated support to critical areas, fostering long-term development and resilience.
This decade-long financial assistance package, coupled with the National Economic Transformation Plan, signals Pakistan’s commitment to achieving sustainable growth, improving public services, and securing a stable future for its citizens. With global support and clear objectives, the country is positioned to make meaningful progress on its path to economic recovery.
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