World Bank to give $8.7 Billion loan to Pakistan

The World Bank has pledged $8.7 billion in loans to Pakistan over the next five years, aiming to drive significant development across the nation. This substantial financial commitment will support a variety of projects designed to enhance infrastructure, education, and emergency rehabilitation efforts.

The Economic Affairs Division of Pakistan announced that these funds will be allocated to a broad array of initiatives. According to their report, approximately 58 projects, with a combined estimated cost of $14.8 billion, are currently in progress with World Bank backing. To date, Pakistan has received $6.16 billion from the World Bank to advance these development efforts.

Looking ahead to 2029, the World Bank’s planned $8.7 billion funding will include several major allocations. Notably, $1 billion will be dedicated to Phase One of the Dasu Hydropower Project. In addition, the Sindh flood emergency rehabilitation project and a housing project in Sindh are each slated to receive $500 million.

Other key allocations include $460 million for the Khyber Pass Economic Corridor Project and $400 million for development initiatives in Khyber Pakhtunkhwa. The higher education development project is also set to receive $400 million. Rural areas in Punjab will benefit from $440 million allocated for water supply improvements, while $300 million will be directed towards enhancing access to rural regions in Khyber Pakhtunkhwa. Furthermore, the Karachi Solid Waste Emergency Project will receive $100 million.

The Economic Affairs Division emphasized that these funds are crucial for addressing critical infrastructure and social needs across Pakistan. The World Bank’s support also includes reforms in the Federal Board of Revenue (FBR) and human capital development projects in Punjab.

This significant funding underscores the World Bank’s commitment to strengthening its partnership with Pakistan and supporting the country’s sustainable development and economic growth. The forthcoming projects are anticipated to make a meaningful impact on improving living standards and expanding economic opportunities for Pakistan’s population.