The World Bank has approved a $700 million loan for Pakistan under a new reform-focused program aimed at improving economic stability and public service delivery. The financing is designed to support governance reforms and strengthen fiscal management. Officials said the program will help Pakistan move toward sustainable and transparent economic practices.
Under the approved plan, $600 million will be provided to the federal government, while $100 million will be allocated to Sindh province. The World Bank clarified that the funds will be released in phases rather than as a single payment. Each disbursement will depend on the achievement of agreed targets and measurable outcomes. This results-based approach is meant to ensure accountability and effective implementation.
A major focus of the program is tax reform and better management of public spending. According to the World Bank, improvements in tax administration will help expand the tax base and increase revenue collection. Stronger expenditure controls are expected to reduce waste and ensure public funds are used more efficiently at both federal and provincial levels.
The program also emphasizes digitization to improve public service delivery. Digital systems will be introduced to make government services more transparent and efficient. These changes are expected to make services easier to access for citizens across Pakistan while reducing administrative delays.
The approved loan is part of a broader financial support package totaling $1.35 billion. This amount will be provided in stages over time to maintain reform momentum. Each phase of financing will remain linked to performance and progress on reforms, encouraging sustained policy implementation.
The reform program is aligned with Pakistan’s IMF framework and the National Fiscal Pact. This alignment ensures policy consistency and macroeconomic coordination. Officials believe this will help strengthen investor confidence and support long-term economic stability.
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In addition, the World Bank expects the reforms to increase funding for education, health, and social protection. Better resource allocation is likely to support inclusive development and improve outcomes for vulnerable communities. The World Bank Board has formally approved the Pakistan Public Resources for Inclusive Development Program, which officials say will strengthen governance and service delivery nationwide.
