In a major development, the World Bank has announced a long-term financial support plan of $40 billion for Pakistan, to be disbursed between 2026 and 2035. The Ministry of Economic Affairs has begun working on the implementation framework of this plan, which is part of the newly launched Country Partnership Framework (CPF).
For the first time, the World Bank has designed a 10-year strategy, instead of its typical 5-year cycle, signaling a deeper and more stable engagement with Pakistan. According to official documents, the plan is aimed at strengthening public services and enabling private investment to foster inclusive and sustainable development.
In the first phase, Pakistan will receive $20 billion in public sector loans. These funds will support vital areas including education, healthcare, clean energy, air quality, and climate resilience. A further $20 billion in private investment will be mobilized through the International Finance Corporation (IFC), focusing on enhancing the role of the private sector in Pakistan’s economic growth.
The CPF has been designed in alignment with Pakistan’s national development priorities and the ‘Uraan Pakistan’ (Flight Pakistan) plan. It emphasizes climate-smart policies, improving service delivery, and expanding opportunities for private enterprise.
However, the World Bank has also voiced concerns over Pakistan’s inefficient and inequitable tax system, calling for urgent reforms to ensure fiscal sustainability and effective use of international support.