The World Bank is ready to approve a massive $20 Billion Program for Pakistan to support its economic reforms and developmental programs. It is launching a 10-year plan to protect development projects against political volatility.

According to a report from the Pakistan-based daily newspaper The Express Tribune, the "Pakistan Country Partnership Framework 2025-35" initiative would target important areas for improvement in Pakistan's most neglected sectors, emphasising long-term, sustainable development. The announcement comes as Pakistan faces serious economic issues such as growing inflation, fiscal shortfalls, and depleting foreign reserves.

The key focus areas will be- Reducing Child Stunting; Combating Learning Poverty; Enhancing Climate Resilience; Decarbonising the Environment; Expanding Fiscal Space and Boosting Private Investment to Improve Productivity.

These areas have garnered broad political support in Pakistan, increasing the likelihood of continuity across multiple election cycles anticipated during 2025-2035.

The World Bank board is scheduled to approve the framework on January 14, 2025. Subsequently, Martin Raiser, the World Bank’s Vice President for South Asia, is expected to visit Islamabad to discuss implementation strategies. The plan is considered a long-term solution to shield development initiatives from Pakistan's turbulent political climate.

According to official papers, previous government transfers resulted in "fragmentation of the World Bank portfolio and diluted impacts." A major person involved in the framework development stated that the World Bank chose Pakistan as its first country to implement the 10-year cooperation plan.

According to a draft framework reported by the Express Tribune, the World Bank's loan limit for the fiscal year 2025-2035 is expected to be over $20 billion. The World Bank's concessional arm, the International Development Association (IDA), will give $14 billion, with the remaining $6 billion projected to come from the comparatively costly International Bank for Reconstruction and Development (IBRD). The loan depends on several factors such as the evolution of funds of IDA, the performance of Pakistan under the SDFP (Sustainable Development Finance Policy), and the country's debt vulnerability factors.

Along with the $20 billion in loans to the Pakistani government, the framework seeks an additional $20 billion in private-sector funding through the World Bank's two prominent institutions, the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA). This raises the World Bank's overall participation in Pakistan to $40 billion. The government will continue receiving official loans of $20 billion.

The 10-year framework will be implemented using two-year rolling business plans determined jointly by the World Bank and the Pakistani government. The World Bank's new approach addresses Pakistan's most critical socio-economic concerns through long-term, high-impact initiatives.