Sun Jan 05 21:08:00 UTC 2025: ## World Bank Announces $20 Billion, 10-Year Plan for Pakistan

**Islamabad, January 6, 2025** – The World Bank is poised to approve a landmark $20 billion lending package for Pakistan, spanning the next decade. This unprecedented initiative, the “Pakistan Country Partnership Framework 2025-35,” aims to shield development projects from political instability and focus resources on key areas vital for long-term growth.

The program, slated for approval by the World Bank board on January 14th, will prioritize six sectors: reducing child stunting, combating learning poverty, enhancing climate resilience, decarbonizing the environment, expanding fiscal space, and boosting private investment. These areas enjoy broad political consensus, minimizing the risk of disruption due to frequent government changes. The plan anticipates at least three general elections within its timeframe.

According to the World Bank, this strategy addresses past issues caused by fluctuating government priorities, which led to fragmented projects and diluted impact. Pakistan has been selected as the pilot country for this 10-year partnership approach.

The $20 billion will be disbursed through the World Bank’s International Development Association ($14 billion) and the International Bank for Reconstruction and Development ($6 billion). Funding is contingent on Pakistan’s performance and adherence to the Sustainable Development Finance Policy.

Furthermore, the framework anticipates an additional $20 billion in private sector lending facilitated by the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA), bringing the total potential investment to $40 billion.

This new approach marks a departure from previous short-term, smaller-scale projects. The World Bank will focus on larger, more sustainable investments in the six priority areas, phasing out funding for 10 less impactful sectors. While supporting reforms to stimulate growth and fiscal space remains a key element, the implementation will be guided by two-year rolling business plans agreed upon by both parties. Following the board’s approval, World Bank Vice President for South Asia Martin Raiser is expected to visit Islamabad.

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