World Bank Loan to Pakistan Surpasses $11.84 Billion in 7 Years

The World Bank will provide Pakistan with more than $2 billion in loans during the fiscal year 2025–26 to finance multiple development projects. According to the Economic Affairs Division, the financing will be extended through the International Development Association (IDA) and the International Bank for Reconstruction and Development (IBRD). At present, 57 projects worth $16.6 billion are being implemented with World Bank funding in Pakistan. The ongoing projects under the world bank loan to Pakistan include sectors such as agriculture, water, energy, finance, revenue, communications, rural and urban development, human capital, social services, and governance. Over the past seven years, the World Bank has disbursed $11.84 billion to Pakistan, with the largest allocation of $1.96 billion made to the energy sector. During FY 2024–25, Pakistan received $1.8 billion in loans, while future commitments include an additional $8.6 billion for upcoming projects. In January 2025, the World Bank introduced a 20 billions Country Partnership Framework (FY2026-35) with Pakistan. This long term plan is centered on education, child stunting, climate resilience, energy efficiency, growth in the private sector and inclusive development. The framework is consistent with the Uraan Pakistan economic transformation plan of Pakistan. Loans provided by the world bank to Pakistan under this framework will help give support to reforms, strengthen infrastructures, and promote climate-adaptive projects. The private-sector division of the World Bank Group, the International Finance Corporation (IFC), is also becoming more involved. It invested $300 million in the Reko Diq mining project and is developing almost 2 billion in annual infrastructure investments in energy, airports, digital services, and water management over the next decade.