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World Bank to invest $40 billion in Pakistan under 10-Year development framework

by Sub News
May 29, 2025
World Bank to invest $40 billion in Pakistan under 10-Year development framework
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Islamabad, May 29, 2025: The World Bank has announced a landmark investment of $40 billion in Pakistan from 2026 to 2035 under its newly introduced Country Partnership Framework (CPF).

This marks the first time the World Bank has adopted a 10-year strategic plan for Pakistan, extending its typical five-year cycle to demonstrate a deeper, long-term commitment to the country’s sustainable development.

The Ministry of Economic Affairs has initiated work on a comprehensive implementation framework to align the CPF with national priorities and Pakistan’s Uraan Pakistan – National Economic Transformation Plan.

In the initial phase, Pakistan will receive $20 billion in sovereign loans through the World Bank’s International Development Association (IDA) and International Bank for Reconstruction and Development (IBRD). These funds will target key sectors such as education, healthcare, climate change mitigation, clean energy, and air quality improvement.

The CPF also aims to stimulate private sector growth. The International Finance Corporation (IFC) will mobilize an additional $20 billion in private investments to support sustainable development, economic expansion, and job creation across the country.

Earlier in April, the World Bank approved $108 million in additional financing for two ongoing development projects in Khyber Pakhtunkhwa (KP). These include:

  • $78 million for the Khyber Pakhtunkhwa Rural Accessibility Project (KPRAP)
  • $30 million for the Khyber Pakhtunkhwa Integrated Tourism Development Project (KITE)

These funds are intended to improve access to social services, markets, and employment opportunities while strengthening the province’s resilience to natural disasters.

“By rehabilitating critical rural infrastructure and enhancing disaster preparedness, the KPRAP and KITE projects are not only improving access to essential services such as health and education but also bolstering climate and economic resilience while generating jobs for local communities,” said Najy Benhassine, World Bank Country Director for Pakistan.

This ambitious investment program signals renewed international confidence in Pakistan’s development agenda and underscores the importance of long-term planning in tackling economic, environmental, and social challenges.

Tags: $40 billion10 year development frameworkIBRDIDAIFCInternational Bank for Reconstruction and DevelopmentInternational Development AssociationInternational Finance CorporationIslamabadKhyber PakhtunkhwaKhyber Pakhtunkhwa Integrated Tourism Development ProjectKhyber Pakhtunkhwa Rural Accessibility ProjectKITEKPKPRAPPakistanUraan PakistanWorld Bank
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