World Bank approves $700million to boost Pakistan’s economic stability

The World Bank said on Friday that it has approved $700million in financing for Pakistan under a multi-year initiative aimed at supporting the country's macroeconomic stability and service delivery.

Of this amount, $600million will go for federal programs, and $100million will support a provincial program in the southern Sindh province.

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The funds will be released under the bank's Public Resources for Inclusive Development — Multiphase Programmatic Approach (PRID-MPA), which could provide up to $1.35billion in total financing, the lender said.

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The approval follows a $47.9million World Bank grant in August to improve primary education in Pakistan's most populous Punjab province.

In November, an IMF-World Bank report, uploaded by Pakistan's finance ministry, said Pakistan's fragmented regulation, opaque budgeting, and political capture are curbing investment and weakening revenue.

Regional tensions may surface over international financing for Pakistan. In May, Reuters reported that India would oppose World Bank funding for Pakistan, citing a senior government source in New Delhi.