The World Bank has approved $700 million in financing for Pakistan under its multi-year Public Resources for Inclusive Development — Multiphase Programmatic Approach (PRID-MPA), aimed at supporting macroeconomic stability, fiscal reforms, and improved service delivery. The program could provide up to $1.35 billion in total funding over its full implementation.
Of the approved funds, $600 million will be allocated to federal programs, while $100 million will support provincial initiatives in Sindh. The move follows a $47.9 million World Bank grant in August aimed at improving primary education in Punjab.
Bolormaa Amgaabazar, World Bank Country Director for Pakistan, said the initiative seeks to mobilize domestic resources efficiently and transparently to deliver tangible results. “Through the MPA, we are working with the federal and Sindh governments to provide predictable funding for schools and clinics, fairer tax systems, and stronger data for decision-making, while safeguarding priority social and climate investments,” she said.
Tobias Akhtar Haque, World Bank Lead Country Economist for Pakistan, emphasized the importance of strengthening fiscal foundations to restore macroeconomic stability and institutional capacity. He said the PRID-MPA aims to expand fiscal space, support human capital and climate resilience, and improve revenue administration, budget execution, and statistical systems.
The federal component will focus on reforms to increase domestic revenues fairly, enhance budget planning and execution, and strengthen data systems for evidence-based decision-making. Key actions include tax policy and administration reforms, scaling up the Integrated Financial Management Information System and linked e-procurement platform, targeted subsidy reforms, and improving the national statistical system led by the Pakistan Bureau of Statistics.
In Sindh, the program aims to increase provincial revenues, improve transparency and speed of payments, and expand the use of data to guide decision-making. Both federal and provincial initiatives are expected to ensure more equitable financing for primary healthcare facilities and schools, directly benefiting citizens.
The PRID-MPA builds on findings from a November IMF-World Bank report highlighting that fragmented regulations, opaque budgeting, and political capture have been limiting investment and weakening revenue generation in Pakistan.
