The World Bank has unveiled a bold new plan to extend a $20 billion concessional loan to Pakistan over the next decade at a highly favorable 2% interest rate. As part of the Country Partnership Framework 2025–2035, this funding aims to drive transformative progress in climate resilience, poverty reduction, health, education, child stunting, inclusive development, clean energy, and improved air quality. A parallel $20 billion financing window through the IFC ensures private-sector growth, bringing the total to $40 billion to spur broad-based development.ARY NEWS24 News HDreuters.com
In addition, the International Finance Corporation (IFC) will provide a matching $20 billion financing facility to strengthen the private sector, bringing the total financial support to $40 billion. This combined investment aims to create sustainable economic growth, improve living standards, and address Pakistan’s pressing social and environmental challenges.
The World Bank has announced a concessional loan package of $20 billion for Pakistan, aimed at supporting the country’s economic stability and long-term development. The funding will be provided under the 10-year Country Partnership Framework (2025–2035) at a favorable 2% interest rate, offering Pakistan much-needed relief in its financial planning.
According to details, the concessional loan will target key sectors including climate resilience, poverty reduction, healthcare, education, child stunting, and clean energy. These initiatives are expected to bring transformative change, especially in improving human capital and addressing environmental challenges such as air pollution and resource management.
Alongside this, the International Finance Corporation (IFC) will extend another $20 billion financing window to boost private sector growth. Together, the World Bank and IFC’s contributions will provide a total of $40 billion, ensuring both public and private development opportunities in Pakistan.
Officials say this bold financial support reflects global confidence in Pakistan’s economic reforms and future potential. The concessional loan package is expected to play a crucial role in stabilizing the economy, improving livelihoods, and driving sustainable growth over the next decade.
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