World Bank to provide Pakistan $20 bln loan

The World Bank has agreed to provide Pakistan with a $20 billion concessional loan at a low interest rate of just 2% over a 10-year period, sources confirmed on Saturday.

The funding will be directed towards six priority sectors, including climate resilience, poverty alleviation, health, education, child stunting reduction, and inclusive development.

In addition, key areas such as clean energy, improving air quality, and promoting private investment have been identified as essential focus points.

This concessional loan is part of the Country Partnership Framework (CPF) finalized between Pakistan and the World Bank.

The implementation phase of the framework is now nearing completion, with a national plan currently being developed.

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Under the same framework, Pakistan’s private sector is expected to receive an additional $20 billion, although this portion will be offered at relatively higher interest rates.

The total volume of funding under the agreement is expected to reach $40 billion over the next decade.

The sovereign loans to Pakistan will be provided through the World Bank’s International Development Association (IDA), while private sector financing will be channeled through the International Finance Corporation (IFC), according to government officials.