The World Bank plans to approve a $20 billion loan package for Pakistan under a new 10-year strategy to address key challenges in health, education, and climate resilience.
This approach marks a shift towards long-term development, aiming to shield projects from political instability and ensure progress despite expected changes in government during 2025-2035.
According to official documents, the framework will provide $14 billion in concessional loans through the International Development Association (IDA) and $6 billion through the International Bank for Reconstruction and Development (IBRD). However, these loans depend on Pakistan’s financial performance and debt indicators.
Additionally, the framework aims to facilitate $20 billion in private investment through the World Bank’s International Finance Corporation (IFC) and Multilateral Investment Guarantee Agency (MIGA), bringing the total package to $40 billion.
The World Bank board is expected to approve the plan on January 14, and Vice President for South Asia Martin Raiser is likely to visit Islamabad afterward. The framework will focus on six target areas and phase out funding for less impactful sectors like transport, higher education, and urban infrastructure.(Pakistan Today)
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