Pakistan secures major funding from World Bank: sources

ISLAMABAD: The World Bank has committed to providing $20 billion to Pakistan, with 19 out of 24 directors voting in favour of the decision, ARY News reported citing sources.

Sources disclosed that under the 10-year Country Partnership Framework (CPF), the World Bank has pledged to grant $20 billion to Pakistan. To approve the framework, 19 out of 24 directors voted in favour of Pakistan.

The sources stated that the World Bank will provide approximately three-quarters of the $20 billion through the International Development Association (IDA), while the remaining amount will be provided through the International Bank for Reconstruction and Development (IBRD).

The extended framework will focus on six key development sectors, and the CPF’s completion will be supported by additional funding from the International Finance Corporation.

Read More: Poverty increases in Pakistan by 7% in 2024: World Bank report

The CPF aims to reduce child stunting, combat climate change, provide clean water, improve public resources, and boost private investment. Specific targets include increasing tax revenue to more than 15pc of GDP.

The plan also includes adding 10 gigawatts to renewable energy capacity, providing quality education to 12 million students, and offering healthcare services to 50 million people.

Sources further revealed that the CPF also aims to provide clean water and sanitation to 60 million people and strengthen food security for 30 million individuals.

Additionally, the framework includes goals such as increasing access to contraceptives for 30 million women and setting targets to tackle floods and other natural disasters, benefiting 75 million people.

On January 3, World Bank report negated the government’s tall claims of a thriving economy of Pakistan.

PML-N led government had consistently boasted in 2024 about the country’s economic progress, claiming that inflation is under control and commodity prices are decreasing. However, the World Bank’s findings tell a different story.

The report has exposed the harsh reality of poverty in the country, which has increased by 7 percent in 2024.

World Bank in its findings “Poverty Projections for Pakistan” suggested that in 2024, the poverty rate stood at 25.3 percent, an increase of seven percentage points compared to 2023.

This alarming rise in poverty has resulted in approximately 13 million more people falling into poverty, adding to the already struggling population.