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The World Bank’s Board of Executive Directors has approved $700 million for Pakistan under a large reform program called the Pakistan Public Resources for Inclusive Development – Multiphase Programmatic Approach (PRID-MPA). This is a multi-year initiative designed to help Pakistan stabilize its economy, improve tax systems, and strengthen essential public services such as health, education, and public finance.
In total, the PRID-MPA may provide up to $1.35 billion over several years. Out of this amount, the World Bank has now approved $600 million for federal-level reforms and $100 million for reforms in the Sindh province. The funding will be released only when specific goals are achieved, ensuring accountability and real progress.
Purpose of the PRID-MPA
The program supports the government’s ongoing fiscal and economic reforms. These reforms are aligned with:
- The IMF Extended Fund Facility program,
- The National Fiscal Pact, and
- The goal of strengthening economic stability and service delivery across Pakistan.
The main focus is on helping Pakistan:
- Raise more domestic revenue in a fair way,
- Improve how government money is planned and spent,
- Use digital tools and data to improve public services,
- Protect spending on social welfare and climate-related needs.
World Bank’s View
Bolormaa Amgaabazar, the World Bank’s Country Director for Pakistan, said that Pakistan needs to collect more of its own revenue and spend it efficiently to ensure long-term, inclusive growth. She added that the program will help:
- Provide predictable funding for schools and health clinics,
- Improve tax systems,
- Strengthen the use of data for government decision-making,
- Build public trust through transparency.
Federal-Level Reforms (Supported by $600 Million)
The federal part of the program will work on strengthening Pakistan’s economic foundation. This includes:
1. Fair and efficient domestic revenue collection
- Improving tax policies,
- Strengthening tax administration,
- Expanding the tax base without overburdening existing taxpayers.
2. Better government budgeting and spending
- Improving planning of budget allocation,
- Ensuring funds are used efficiently and reach frontline services.
3. Stronger digital financial systems
- Expanding the Integrated Financial Management Information System (IFMIS),
- Scaling up the linked e-procurement platform,
- Making government payments and purchases more transparent.
4. Better use of data
- Strengthening Pakistan Bureau of Statistics,
- Improving national statistical systems for evidence-based decisions.
These steps aim to improve fiscal stability so Pakistan has more space to invest in social sectors and climate resilience.
Reforms in Sindh Province (Supported by $100 Million)
The World Bank also aims to support the Sindh province in Pakistan. Sindh component focuses on improving revenue, transparency, and public service delivery within the province. Key objectives include:
1. Increasing provincial revenue
- Strengthening tax collection at the provincial level,
- Ensuring fair and efficient revenue systems.
2. Faster and more transparent payment systems
- Improving government payment processes,
- Supporting digital systems for financial transactions.
3. Better use of data for decision-making
- Using data and digital tools to guide provincial policies and development planning.
4. More funding for frontline services
Especially:
- Primary healthcare centers,
- Schools,
To ensure that public resources actually reach citizens who need them most.
Tobias Akhtar Haque, the World Bank’s Lead Country Economist for Pakistan, explained that strong public finances are essential for Pakistan’s stability. He emphasized that PRID-MPA will:
- Create more fiscal space for social and climate-related spending,
- Improve human development outcomes,
- Strengthen key government systems such as revenue administration, budgeting, and statistics,
- Ensure resources reach frontline workers and citizens with better transparency and efficiency.
