- Loan approval expected from the World Bank on January 14.
- Focus on neglected sectors over the next decade.
- The total amount could reach $40 billion with private loans.
ISLAMABAD: Pakistan is set to receive a $20 billion loan from the World Bank over the next 10 years, aimed at improving the country’s key sectors, sources said Geo News SATURDAY.
According to sources in the Ministry of Economic Affairs, the loan will be part of the World Bank’s support under the Country Partnership Framework 2025-35, focused on sustainable economic development.
The loan is expected to be approved by the WB Board of Directors on January 14. Once approved, Martin Raiser, vice chairman of the lender, is expected to visit Islamabad to discuss the loan program and its implementation.
The agreement is part of a broader World Bank initiative to help Pakistan address critical challenges, including health, education and climate change.
This loan program was designed to ensure long-term stability, with specific objectives 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 protected from political changes, allowing projects to proceed without interruption.
In addition to the $20 billion, two World Bank subsidiaries will help Pakistan secure an additional $20 billion in private loans. This would bring the total budget to $40 billion, which will be allocated to infrastructure development, climate resilience projects and improving social services.
Meanwhile, The News reported that the government, in its bid for economic recovery, launched the National Economic Transformation Plan which aims to achieve ambitious economic targets including doubling GDP growth and halving poverty over a period of five years.
It plans to attract $29 billion in planned investments under the supervision of the Special Investment Facilitation Council (SIFC), including $10 billion from the UAE, $5 billion from Saudi Arabia, $2 billion from dollars from Qatar, $2 billion from Azerbaijan and $10 billion from Kuwait.
At the same time, the gross domestic product (GDP) target has been set at 6% of GDP until fiscal year 2028-29, while per capita income in dollars is expected to fall from $1,680 to $2 $405.