Pakistan is set to receive a major financial support package from the World Bank worth $40 billion over the next ten years.
The loan package is divided into two parts. The first half, $20 billion, will be provided at a very low interest rate of just 2%. This concessional financing will come from the World Bank’s soft-loan arms, the IDA and IBRD.
The second $20 billion will be offered through the International Finance Corporation (IFC) to boost private investment in the country, though this portion will carry a higher interest rate.
According to officials, this money will be used for critical development projects. Key areas include tackling climate change risks (like floods and unexpected rains), reducing poverty, fighting malnutrition and child stunting, improving education, and developing the agriculture sector.
Additional funds will be directed towards clean energy projects, cutting greenhouse gas emissions, controlling air pollution, and modernizing transport, industry, and construction.
The Economic Affairs Division stated that the national plan to use these funds, known as the “Country Partnership Framework,” is almost ready. The World Bank will begin disbursing the funds once this plan is finalized.
This loan package is seen as a crucial economic breakthrough for Pakistan that will significantly aid its long-term development goals.
