Should World Bank Invest $40 billion in Pakistan?

The World Bank (WB) will invest $40 billion in Pakistan between 2026 and 2035 under its Country Partnership Framework (CPF). For the first time, the World Bank has adopted a 10-year framework instead of its usual five-year strategy, signalling a long-term commitment to Pakistan’s development. 

In the first phase, Pakistan will receive $20 billion in sovereign loans from the World Bank’s International Development Association (IDA) and International Bank for Reconstruction and Development (IBRD). These funds will be allocated to critical sectors, including education, health, climate change mitigation, clean energy, and air quality improvement. The International Finance Corporation (IFC) will facilitate an additional $20 billion in private investment to support economic growth and job creation. 

Source: https://en.wikipedia.org/wiki/World_Bank

In April, the World Bank (WB) approved additional financing for Pakistan, amounting to $108 million to execute two projects supporting access to social services, markets and jobs in Khyber Pakhtunkhwa (KP). The international lender approved $78 million in additional financing to Khyber Pakhtunkhwa Rural Accessibility Project (KPRAP); and $30 million to Khyber Pakhtunkhwa Integrated Tourism Development Project (KITE), enabling both projects to achieve their objectives in improving access to health and education services, markets and jobs, in a way that strengthens resilience to natural disasters in the province. 

The problem is whether these funds reach the projects it is intended to be in the first place or be used by the military for more drones and ammunition. Or, even more insidious is to fund terrorism. Unless, Pakistan focuses on development rather than war (or violence) it will not progress very far and may face an eventual break-up of the nation! 

The Trump administration is two-faced, court India and support Pakistan – which is incongruous with their rhetoric on China. World Bank approvals must have US’ blessings. Pakistan will never change – it’s military like most armies, love war! India and others have to be circumspect with these developments. 

Reference:

World Bank to invest $40 billion in Pakistan, by Web Desk/ARY News, 29 May 2025