The World Bank’s Board of Executive Directors has approved $700 million in financing for Pakistan under the Public Resources for Inclusive Development Multiphase Programmatic Approach (PRID-MPA), a multi-year initiative aimed at strengthening macroeconomic stability, improving public spending quality and enhancing service delivery across the country.
According to a statement issued on Saturday, the PRID-MPA is designed to support Pakistan’s ongoing fiscal reforms by leveraging data, digital systems and institutional strengthening to ensure more efficient and transparent use of public resources.
The programme is aligned with key national reform frameworks, including the International Monetary Fund’s Extended Fund Facility (EFF) and the National Fiscal Pact, underscoring its role in supporting broader efforts to stabilise the economy and restore fiscal sustainability.
Under the approved package, the World Bank has allocated $600 million for federal-level programmes and $100 million for Sindh’s provincial reforms. The overall MPA framework allows for total financing of up to $1.35 billion over multiple phases. The financing follows a results-based approach, meaning funds will be disbursed only once agreed programme milestones and outcomes are achieved.
Pakistan’s path to inclusive, sustainable growth requires mobilising more domestic resources and ensuring they are used efficiently and transparently to deliver results for people, said Bolormaa Amgaabazar, World Bank Country Director for Pakistan.
She added that through the PRID-MPA, the Bank is working with the federal and Sindh governments to deliver tangible improvements, including more predictable funding for schools and healthcare facilities, fairer tax systems, stronger data for policymaking, and the protection of priority social and climate-related investments.
The federal component of the programme will focus on raising domestic revenues in a more equitable manner, improving budget planning and execution, and strengthening data systems to support evidence-based decision-making.
Key reform measures include advancing tax policy and tax administration reforms; scaling up the Integrated Financial Management Information System (IFMIS) and its linked e-procurement platform; undertaking targeted subsidy reforms; and strengthening the national statistical system led by the Pakistan Bureau of Statistics.
Strengthening Pakistan’s fiscal foundations is essential to restoring macroeconomic stability, delivering results and strengthening institutions, said Tobias Akhtar Haque, Lead Country Economist for the World Bank in Pakistan.
He noted that the PRID-MPA represents a coherent, nationwide reform effort aimed at expanding fiscal space, boosting investments in human capital and climate resilience, and improving revenue administration, budget execution and statistical capacity.
These reforms will help ensure that public resources reach the frontline and deliver better outcomes for people across Pakistan with greater efficiency and accountability, he said.
At the provincial level, the Sindh programme is expected to increase revenue mobilisation, enhance the speed and transparency of government payments, and expand the use of data to guide decision-making.
The World Bank said the initiative would directly support inclusive development by increasing public resources for priority sectors, including more equitable and responsive financing for primary healthcare facilities and increased funding for schools.
The approval comes at a time when Pakistan is grappling with fiscal constraints, weak revenue mobilisation and growing demands for social spending, placing the PRID-MPA at the centre of efforts to strengthen public finances while safeguarding essential services.