The Kabul Tribune (KT) — The World Bank has approved a $700 million financial assistance package for Pakistan under its multiyear program, Public Resources for Inclusive Development – Multi-Phase Programmatic Approach (PRID-MPA), the lender announced on Saturday, Dec. 20, 2025.
Under the program, financing could reach up to $1.35
billion, aiming to support macroeconomic stability and improve the delivery of
public services, the World Bank said.
According to Pakistan’s Dawn newspaper, $600 million of the
approved funds will be allocated to federal-level programs, while $100 million
will support provincial initiatives in Sindh province.
The World Bank said the assistance will help advance tax
reforms, improve debt management, increase non-tax revenues and strengthen
essential services such as education, health care and water supply.
Geo News, citing Pakistani government officials, described
the approval as “an important step toward economic stability,” saying the
funding reflects international confidence in the government’s reform agenda.
The aid package, which comes without political conditions,
is part of Pakistan’s broader efforts to recover from an economic crisis
following the 2022 floods and prolonged high inflation.
The World Bank projected Pakistan’s gross domestic product
growth to reach 3.5% in 2026, while warning that without structural reforms,
the risk of renewed economic instability remains.
