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ISLAMABAD – The World Bank is set to provide more than $2 billion in loans to Pakistan during the ongoing Fiscal Year 2025-26 to support a wide range of development projects, said the official documents released by the Economic Affairs Division (EAD).
The financing will be extended through the International Development Association (IDA) and the International Bank for Reconstruction and Development (IBRD). The funds are aimed at addressing critical development challenges and supporting projects in priority sectors.
At present, 57 projects are being financed by the World Bank across Pakistan, with a total investment portfolio of $16.6 billion. These projects span multiple sectors, including agriculture, water management, energy, finance, and revenue mobilization. In addition, the EAD noted that upcoming loans will cover areas such as communications, rural and urban development, human capital, social services, and governance reforms.
The official records reveal that over the past seven years, Pakistan has received $11.84 billion in assistance from the World Bank.
Among these, the energy sector emerged as the largest beneficiary, with $1.96 billion allocated to improve generation, transmission and distribution infrastructure. The government expected similar or increased allocations in the future as Pakistan continued to face challenges in energy security, infrastructure development and fiscal stability.
During the last fiscal year, the World Bank disbursed $1.8 billion to Pakistan.
This year’s commitment of over $2 billion indicates a significant increase in support, reflecting the Bank’s ongoing role in sustaining Pakistan’s economic development agenda.
The EAD emphasized that the new funds wuld not only help strengthen key sectors but also contribute to broader goals of poverty reduction, inclusive growth, and institutional reforms in Pakistan.
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