Multi-Year PRID-MPA Programme Aims to Stabilise the Economy
The World Bank has approved $700 million in financing for Pakistan under a multi-year initiative designed to support the country’s macroeconomic stability and improve delivery of key public services. The funding will be disbursed under the bank’s Public Resources for Inclusive Development — Multiphase Programmatic Approach (PRID-MPA), which has the potential to provide up to $1.35 billion in total financing over its full duration.
Out of the approved amount, $600 million has been earmarked for federal programmes, while $100 million will support a provincial programme in Sindh. The move comes at a time when Pakistan is seeking to consolidate recent stabilisation gains and strengthen its ability to fund health, education and climate-related priorities.
Focus on Fairer Taxes, Better Budgeting and Stronger Data
In a statement, the World Bank said the federal component of the programme will focus on raising domestic revenues more fairly, improving budget planning and execution, and strengthening data systems for evidence-based decisions. This includes advancing tax policy and administration reforms to broaden the revenue base while protecting vulnerable groups.
Key actions will also involve financing and scaling the Integrated Financial Management Information System (IFMIS) and its linked e-procurement platform, supporting targeted subsidy reforms, and strengthening the national statistical system led by the Pakistan Bureau of Statistics. Together, these steps are intended to make public spending more transparent, efficient and accountable.
World Bank Officials Emphasise Inclusive and Sustainable Growth
Bolormaa Amgaabazar, the World Bank’s country director for Pakistan, said the country’s path to inclusive, sustainable growth depends on mobilising more domestic resources and using them efficiently and transparently. She noted that the PRID-MPA is designed to deliver tangible impacts such as more predictable funding for schools and clinics, fairer tax systems and stronger data for decision-making, while safeguarding priority social and climate investments and strengthening public trust.
World Bank lead country economist Tobias Akhtar Haque added that strengthening Pakistan’s fiscal foundations is essential to restoring macroeconomic stability, delivering results and building stronger institutions. He said the PRID-MPA provides a coherent nationwide approach to support reforms that expand fiscal space, bolster investments in human capital and climate resilience, and improve revenue administration, budget execution and statistical systems.
Support for Sindh to Improve Revenues and Service Delivery
In Sindh, the programme is expected to help increase provincial revenues, speed up and improve the transparency of payments, and expand the use of data to guide policy and budget decisions. The provincial component will directly support the increase of public resources for inclusive development, including more equitable and responsive financing for primary healthcare facilities and more funding for schools.
By focusing on both federal and provincial levels, the PRID-MPA aims to create a more coordinated reform effort, reducing gaps between national policies and on-the-ground implementation in key sectors such as education, health and climate resilience.
Building on Earlier Support for Education in Punjab
The new financing builds on earlier World Bank support for social sectors in Pakistan. In August, the bank approved a $47.9 million grant to improve primary education in Punjab, focusing on better learning conditions and access for children in underserved communities.
Taken together, these initiatives signal continued engagement by the World Bank in Pakistan’s human development agenda, even as the country works through a challenging period of fiscal adjustment and economic reform.
Addressing Long-Standing Fiscal and Governance Challenges
An IMF–World Bank report uploaded by Pakistan’s finance ministry in November highlighted how fragmented regulation, opaque budgeting and political capture have been curbing investment and weakening revenue mobilisation. The PRID-MPA is intended, in part, to address these long-standing weaknesses by improving how public resources are raised, allocated and tracked.
By promoting clearer rules, stronger financial management systems and more reliable statistics, the programme aims to ensure that resources reach the front line and deliver better outcomes for people across Pakistan. If reforms are implemented as planned, the World Bank expects improvements in how governments plan budgets, execute spending, manage subsidies and report on results to citizens.
What the $700 Million Package Means for Ordinary Citizens
For ordinary Pakistanis, the technical language of tax and budget reforms can feel distant. However, officials argue that the ultimate goal of the PRID-MPA is to free up more resources for essential public services. More predictable funding for schools can help keep teachers in classrooms, maintain facilities and improve learning materials. Better financing for clinics and frontline health workers can support stronger primary healthcare, especially in poorer and remote areas.
If domestic revenue collection becomes fairer and more efficient, the government can rely less on short-term borrowing and create more space for social and climate investments. The success of the programme will depend not only on new financing, but also on the political will and administrative capacity to turn reform commitments into real improvements in people’s daily lives.
