Pakistan’s economic recovery and long-term growth, the World Bank has pledged a $20 billion loan to the country over the next decade.
This funding will be aimed at strengthening the private sector, improving education, enhancing resilience to climate change, and addressing key developmental challenges.
Pakistan, which narrowly avoided an economic default in 2023 due to a bailout from the International Monetary Fund (IMF), has seen improvements in inflation and foreign exchange reserves.
The World Bank’s funding plan, set to begin in fiscal year 2026 and extend until 2035, will focus on areas such as child nutrition, quality education, clean energy, climate resilience, and fostering inclusive development.
Prime Minister Shehbaz Sharif welcomed the commitment, describing it as a vote of confidence in Pakistan’s economic potential.
However, the World Bank has cautioned that sustained investments may be slow to materialize, given the country’s historical challenges with reform and governance.
The World Bank’s Pakistan director, Najy Benhassine, highlighted that the deal represents a long-term anchor for addressing Pakistan’s pressing developmental issues, while also emphasizing the importance of structural reforms for ensuring lasting progress.
