The World Bank has approved $700 million in financing for Pakistan to support macroeconomic stability, improve public resource management, and strengthen service delivery across the country. The funding is part of the Pakistan Public Resources for Inclusive Development – Multiphase Programmatic Approach (PRID-MPA), a multi-year initiative designed to back key fiscal reforms at both federal and provincial levels.
According to an official statement released on Saturday, the PRID-MPA aims to enhance the quality of public spending and make greater use of data and digital tools to improve the delivery of essential services such as health and education. The program is closely aligned with Pakistan’s ongoing economic reform agenda under the International Monetary Fund’s Extended Fund Facility as well as the National Fiscal Pact.
Under the newly approved package, the World Bank has sanctioned $600 million for federal-level programs and $100 million specifically for Sindh. The overall Multiphase Programmatic Approach is expected to provide up to $1.35 billion in total financing over multiple phases. The results-based structure of the program means that funds will be released only after agreed targets and reform milestones are achieved, ensuring accountability and measurable outcomes.
World Bank Country Director for Pakistan, Bolormaa Amgaabazar, said that Pakistan’s journey toward inclusive and sustainable growth depends on mobilising more domestic resources and using them efficiently and transparently. She noted that the PRID-MPA will help deliver predictable funding for schools and healthcare facilities, promote fairer tax systems, and strengthen data-driven decision-making, while protecting social and climate-related investments.
The federal component of the program will focus on increasing domestic revenues in a more equitable manner, improving budget planning and execution, and strengthening national data systems. Key reform areas include tax policy and administration improvements, expansion of the Integrated Financial Management Information System and its linked e-procurement platform, targeted subsidy reforms, and strengthening the national statistical system led by the Pakistan Bureau of Statistics.
Tobias Akhtar Haque, Lead Country Economist for the World Bank in Pakistan, said that strengthening fiscal foundations is critical for restoring macroeconomic stability and improving institutional performance. He added that the PRID-MPA introduces a coherent, nationwide reform approach to expand fiscal space, support investments in human capital and climate resilience, and improve revenue administration and budget execution.
At the provincial level, the Sindh component of the program is expected to boost provincial revenues, increase the speed and transparency of government payments, and expand the use of data in policymaking. The initiative will also support more equitable financing for primary healthcare facilities and increased funding for schools.
The World Bank said the program will directly contribute to improving the availability of public resources for inclusive development, ensuring that funds reach frontline services more efficiently and deliver better outcomes for citizens across Pakistan.
