World Bank approves $20 billion concessional loan for Pakistan
- By Web Desk -
- Aug 31, 2025
WASHINGTON: The World Bank has officially announced that Pakistan will be provided a $20 billion concessional loan, to be disbursed over ten years at an interest rate of 2 percent, ARY News reported.
The World Bank loan is part of the recently finalised Country Partnership Framework (CPF) 2025–2035, planned to overcome Pakistan’s development challenges.
An additional $20 billion is likely to be organised for the private sector with the help of the International Finance Corporation (IFC). Hence, the total estimated financing volume will go to $40 billion.
The CPF will work on the six main sectors, including climate resilience and poverty mitigation, health and education improvements, child stunting reduction, inclusive development, clean energy evolution, and quality improvement of air.
A national operational plan is in its final stages, with emphasis on increasing private investment and comprehensive growth to mitigate Pakistan’s development challenges.
With support of the World Bank loan, the infrastructure will also focus on foundational education, sanitation, and disaster resilience.
In separate progress, the Asian Development Bank (ADB) has announced a $3 million donation as emergency relief for flood-affected regions in Pakistan.
ADB President Masatsugu Asakawa expressed condolences over the recent losses and confirmed the grant will be provided through the Asia Pacific Disaster Response Fund upon Pakistan’s request.
Pakistan will receive loans from different countries through the World Bank’s International Development Association (IDA).
According to the officials, funding for private businesses will be controlled by the International Finance Corporation (IFC).
Read More: Pakistan plans to ‘extend’ loan repayment period to meet IMF condition
Earlier, to fulfil another International Monetary Fund (IMF) requirement, the Pakistan government prepared a comprehensive strategy to extend the repayment period of both domestic and external loans
According to officials, the plan would increase the average maturity period for domestic debt from the current 3 years and 8 months to 52 months, while the maturity period for external debt will be extended from the current 6.1 years to 76 months.