The World Bank has pledged $20 billion to Pakistan as part of a 10-year Country Partnership Framework (CPF), on Wednesday.
“Our decade-long partnership framework reflects our joint commitment with Pakistan’s government to tackle critical issues like child stunting, learning poverty, vulnerability to climate change, and the energy sector’s sustainability,” stated Najy Benhassine, the World Bank Country Director.
According to an official statement, the $20 billion will be provided through the International Development Association (IDA) and the International Bank for Reconstruction and Development (IBRD).
The framework outlines priorities that include improving access to clean water and sanitation to combat child stunting. It also include reducing learning poverty through enhanced education, and bolstering resilience against climate-related disasters like floods.
The framework also aims to create fiscal space through improved public expenditure management and expand inclusive private investment to strengthen external trade balances.
Key objectives of the CPF include raising the tax-to-GDP ratio above 15% and adding 10 gigawatts of renewable energy capacity. In the energy sector, the plan focuses on achieving financial sustainability by introducing reforms and investing in transmission and distribution infrastructure to minimize losses and address regional consumption disparities.
The framework also prioritizes Sustainable Development Goals (SDGs), such as delivering quality education to 12 million students and healthcare services to 50 million citizens. Additionally, it seeks to provide safe drinking water and sanitation to 60 million people, improve food security for 30 million individuals, and ensure access to family planning services for 30 million women.
The CPF includes measures to mitigate flood and disaster risks, benefiting an estimated 75 million people nationwide. These initiatives align with the National Economic Transformation Plan, Uraan Pakistan, and the Prime Minister’s Economic Transformation Agenda.
Notably, Pakistan has received $48.3 since joining the World Bank in 1950. The current portfolio of the IBRD, IFC, and MIGA includes 106 projects with a combined commitment of $17 billion, focusing on energy, private sector growth, inclusion, and service delivery.
