World Bank to lend Pakistan $20bn over 10 years: sources

ISLAMABAD: The World Bank is likely to approve $20 billion for Pakistan over a 10-year period for improving the country’s key sectors, sources told Geo News on Saturday.

Sources within the Ministry of Economic Affairs have said that the loan will be part of the World Bank's support under the Country Partnership Framework 2025-35, which focuses on sustainable economic development.

The loan is expected to be approved by the WB's Board of Directors on January 14. Once approved, Martin Raiser, the lender's Vice President, is expected to visit Islamabad to discuss the loan programme and its implementation.

The agreement is part of the WB's broader initiative to assist Pakistan in addressing critical challenges, including health, education, and climate change.

This loan programme has been designed to ensure long-term stability, with specific goals set for the next 10 years with a focus on improving sectors that have been largely neglected in recent years.

According to sources, the loan will be safeguarded from political changes, allowing the projects to proceed without disruption.

In addition to the $20 billion, two subsidiary entities of the World Bank will assist Pakistan in securing another $20 billion in private loans. This would bring the total financial package to $40 billion, which will be allocated towards infrastructure development, climate resilience projects, and improving social services.

Meanwhile, the government, in its bid to achieve an economic revival, has the launched National Economic Transformation Plan which, aims to achieve ambitious economic targets, including doubling GDP growth and halving poverty over a five-year period.

It envisages attracting $29 billion anticipated investment under the supervision of the Special Investment Facilitation Council (SIFC) including $10 billion from the UAE, $5 billion from Saudi Arabia, $2 billion from Qatar, $2 billion from Azerbaijan, and $10 billion from Kuwait.

Meanwhile, the gross domestic product (GDP) target has been set at 6% of the GDP till the Fiscal Year 2028-29 whereas the per capita income in dollar term is projected to go up to $2,405 from $1,680.