WASHINGTON: The World Bank has approved a $20 billion concessional loan for Pakistan. The loan will be given over ten years at a 2 percent interest rate.

This package is part of the Country Partnership Framework (CPF) 2025–2035. The plan is designed to help Pakistan overcome major development challenges.

$40 Billion Financing Plan

Along with the World Bank loan, the International Finance Corporation (IFC) will arrange another $20 billion for Pakistan’s private sector. This will bring the total financing to $40 billion.

Key Focus Areas

The CPF will focus on six sectors:

• Climate resilience and poverty reduction
• Healthcare and education reforms
• Tackling child stunting
• Inclusive growth and sustainable development
• Clean energy transformation
• Air quality improvement

National Operational Plan

Pakistan’s national operational plan is in the final stage. It focuses on private investment, infrastructure, education, sanitation, and disaster resilience.

ADB Flood Relief

The Asian Development Bank (ADB) has also announced a $3 million emergency grant for flood-affected regions in Pakistan. The funds will be provided through the Asia Pacific Disaster Response Fund.

IMF Loan Conditions

To meet IMF loan conditions, Pakistan is working on a debt strategy. The average maturity of domestic debt will rise from 3 years 8 months to 52 months. External debt maturity will increase from 6.1 years to 76 months.

Private Sector Growth

Funding for private businesses will be handled by the IFC. This will encourage growth through private sector investment and innovation.