The World Bank’s Board of Executive Directors has approved $400 million in financing for a new project to provide safely managed water, sanitation and basic hygiene services, and help improve the institutional and financial performance of local urban administration in Punjab province.
The Punjab Inclusive Cities Program (PICP) would support the improvement and rehabilitation of water supply networks, sewerage systems, and wastewater treatment plants, provide stormwater drainage, and enhance the capacity of local governments to sustainably deliver services and increase revenues in 16 secondary cities in Punjab.
The program, according to a news release, would also support the improved performance of solid waste management systems in Punjab, including for sanitary disposal of waste.
“Reducing child stunting is essential for Pakistan’s future. Through the Punjab Inclusive Cities Program, we are investing in safe water, sanitation, and hygiene services to break the cycle of malnutrition and disease that holds back so many children from reaching their full potential,” said World Bank (WB) Country Director for Pakistan Bolormaa Amgaabazar said.
In collaboration with the Punjab Government, she said, the program represented a significant step forward in improving urban infrastructure and strengthening local institutions, thereby laying the foundation for healthier communities and a more prosperous Pakistan.
PICP aims to deliver improved water, sanitation, hygiene and drainage services to approximately 4.5 million people and improved solid waste management services to an additional 2 million people.
The Program would help reduce healthcare costs by lowering waterborne disease, lower child stunting rates, and strengthen the capacity of urban local governments to deliver sustainable services.
“The program complements infrastructure investments with capacity building and revenue generation, helping to ensure that service delivery is well sustained,” said Amena Raja, Senior Urban Specialist for the World Bank. “It will also help Punjab’s cities better withstand floods and droughts, ensuring urban development is both environmentally responsible and resilient to climate change.”
The program also delivers important gender benefits by prioritizing hiring women especially in decision-making roles, establishing gender complaint desks, and providing targeted capacity building to help female workers develop new skills and advance. Community campaigns also promote better hygiene practices at the household level to support improved health outcomes.
The programme aims to mobilize private capital to support water and sanitation services in secondary cities in Punjab.
The new program aligns with Pakistan’s national development priorities and provides support to ongoing provincial programs including the Punjab Development Program and the Suthra Punjab Programme. It is the second phase of the World Bank-supported Pakistan Urban Water, Sanitation and Hygiene Services Multiphase Programmatic Approach.
Separately, Pakistan and the Asian Development Bank (ADB) here on Friday signed two major financing programmes worth US$257 million aimed at improving the education and health sectors in Punjab.
The programmes include the Responsive, Ready, and Resilient Science, Technology, Engineering, Mathematics (STEM) Secondary Education in Punjab Programme amounting to USD 107 Million (including USD 7 Million grant of ADF) andii) Punjab Nursing and Health Workforce Reform Program amounting to USD 150 Million.
According to press release, Secretary, Ministry of Economic Affairs, Muhammad Humair Karim appreciated the ADB’s role as a trusted development partner and its continued support to Pakistan to complement its development initiatives.
The Secretary appreciated ADB’s financial support to these critical programs on concessional terms, which would significantly contribute to long-term and sustainable social growth, address the vital educational needs and health services requirement of the Punjab Province.
Besides, he acknowledged the efforts of the government of Punjab and emphasized on timely and effective utilization of the financing.
He said that STEM Secondary Education Program aims to transform the learning environment and ensure inclusivity across the province between 2026-2030.
Punjab Nursing Program focuses on expanding the pool of qualified nurses and improve health service delivery across the province. Three centers of excellence will also be established in Lahore, Multan, and Rawalpindi under this Program.
Speaking on the occasion, ADB Country Director, Ms. Emma Fan expressed appreciation for government of Pakistan’s strong commitment to these programs. She emphasized the significance of these two transformational programs on human development in critical sectors of education and health in Punjab.
She added that both programs are result-based and shall help in improving the ecosystem in both education and health sector.
The Secretary, School Education Department and Secretary, Specialized Healthcare and Medical Education Department Punjab highlighted benefits of the two programs and appreciated ADB.
They expressed government of Punjab’s commitment to effectively utilize the financing for successful and timely completion of the two programs.