Pakistan is set to receive a significant financial boost from the World Bank, with over $2 billion in loans allocated for the fiscal year 2025-26 to fund a wide range of development projects. According to the Economic Affairs Division (EAD), this funding will drive progress in critical sectors, supporting Pakistan’s efforts to address economic and social challenges.

The loans will come through the World Bank’s International Development Association (IDA) and International Bank for Reconstruction and Development (IBRD). These institutions will channel funds to support 57 ongoing projects across Pakistan, with a combined investment portfolio of $16.6 billion. The EAD emphasized that these projects target key areas such as agriculture, water management, energy, finance, revenue mobilization, communications, rural and urban development, human capital, social services, and governance reforms.

Over the past seven years, the World Bank disbursed $11.84 billion to Pakistan, with $1.96 billion allocated specifically to energy projects. This focus has strengthened Pakistan’s infrastructure for power generation, transmission, and distribution. Moreover, the new $2 billion commitment for 2025-26 represents an increase from the $1.8 billion disbursed in the previous fiscal year (2024-25), signaling growing support for Pakistan’s development agenda.

The World Bank’s financing aims to tackle pressing challenges. In agriculture, projects will enhance productivity and sustainability, while water management initiatives will improve irrigation and resource conservation. Additionally, investments in human capital and social services will prioritize education, healthcare, and poverty reduction.

Meanwhile, rural and urban development projects will address infrastructure gaps, promoting inclusive growth. The communications sector will benefit from upgraded digital and connectivity systems, aligning with Pakistan’s push toward a modernized economy. Consequently, these efforts will contribute to long-term goals of economic stability and improved quality of life.