ISLAMABAD: The World Bank has pledged $20 billion in financial support to Pakistan, with 19 out of 24 directors voting in favor of the decision.
Under the 10-year Country Partnership Framework (CPF), the World Bank has committed this funding to Pakistan. Sources reveal that nearly three-quarters of the amount will be disbursed through the International Development Association (IDA), while the remaining funds will come from the International Bank for Reconstruction and Development (IBRD).
The extended framework will prioritize six critical development areas and receive additional support from the International Finance Corporation to ensure its completion.
Focus Areas of the CPF:
The CPF aims to tackle significant challenges, including reducing child stunting, addressing climate change, providing clean water, improving public resources, and enhancing private investment. Specific targets include:
- Increasing tax revenue to exceed 15% of GDP.
- Expanding renewable energy capacity by 10 gigawatts.
- Providing quality education to 12 million students.
- Offering healthcare services to 50 million individuals.
- Ensuring access to clean water and sanitation for 60 million people.
- Strengthening food security for 30 million individuals.
- Increasing contraceptive access for 30 million women.
- Addressing floods and natural disasters to benefit 75 million people.
Read More: Poverty rises by 7% in Pakistan in 2024: World Bank report
The CPF’s ambitious goals align with the broader development agenda, though the economic challenges remain daunting.
Rising Poverty in Pakistan
On January 3, the World Bank contradicted government claims of economic progress in Pakistan. The PML-N-led government had asserted in 2024 that inflation was under control and commodity prices were declining. However, the World Bank’s “Poverty Projections for Pakistan” report paints a different picture.
The report highlights a 7% increase in poverty in 2024, raising the poverty rate to 25.3%, up from 18.3% in 2023. This surge has pushed an estimated 13 million additional people into poverty, exacerbating the country’s economic struggles.
