Pakistan poised to get $20b WB loan ✅

Board expected to approve 10-year 'Partnership Framework' on 14th

ISLAMABAD:

The World Bank is set to approve a $20 billion indicative lending package for Pakistan – a globally first mega 10-year envelope that will protect its funded projects from political transitions and focus only on six targeted areas.

The areas have the broader political spectrum support and are expected to be unimpacted by any changes in the government during 2025 to 2035 period—the timeframe in which at least three general elections are expected to be held.

Titled "Pakistan Country Partnership Framework 2025-35", the programme largely aims at improving social indicators in the most neglected but important areas such as health, education and climate change, according to official documents and background discussions with the Pakistani authorities, who negotiated the package.

A key Pakistani official, who was part of the framework development, said that the World Bank had picked Pakistan as the first country, where it would introduce a 10-year partnership strategy.

"The World Bank's total indicative lending envelope for fiscal year 2025 to 2035 will total around $20 billion", reads the draft of the framework. This 'Country Partnership Framework' is scheduled to be approved by the World Bank board on January 14th.

After the approval, the World Bank's Vice President for South Asian Martin Raiser is also expected to visit Islamabad.

The 10-year framework is anchored in six target outcomes, focused on critical foundations of development where Pakistan lagged the most. After 10 years, the plan will reduce child stunting by 30% and the learning poverty to below 60%.

Out of the $20 billion, the World Bank's concessional arm, the International Development Association (IDA), will lend $14 billion and the remaining $6 billion is projected to be provided through the relatively expensive window - the International Bank for Reconstruction and Development (IBRD).