Islamabad, Pakistan – The World Bank has approved a $20 billion loan package for Pakistan, aimed at addressing critical development challenges and improving economic indicators. The Country Partnership Framework (CPF) for the 2025-2035 period highlights political divisions and security concerns in Balochistan and Khyber-Pakhtunkhwa as significant risks to the successful implementation of the loan.
The $20 billion package focuses on reducing learning poverty, improving health outcomes, and protecting against climate change risks. Of the total amount, $14 billion will be provided as concessional loans, with the remaining $6 billion at higher interest rates.
Najy Benhassine, World Bank Country Director for Pakistan, emphasized the importance of policy and institutional reforms to boost private sector-led growth and create fiscal space for necessary investments. The framework aligns with Pakistan’s National Economic Transformation Plan and aims to support key outcomes, including reducing child stunting, improving education, and enhancing climate resilience.
Despite the ambitious goals, the World Bank’s projections indicate modest economic growth and a budget deficit in the coming years. The framework also addresses the need for increased investment and productivity to unlock Pakistan’s long-term growth potential.