The World Bank has agreed to provide Pakistan with $20 billion in loans over the next decade, with the funds expected to be directed toward areas such as nutrition, education, and renewable energy. The goal is to use these investments to stimulate private-sector growth and contribute to the country's economic development.

Pakistan has entered into an unprecedented agreement with the World Bank, committing to a ten-year plan that will provide $20 billion (€19.4 billion) in loans to support the country’s struggling economy. Pakistan, located in South Asia, has been on the brink of an economic crisis for several years and is currently benefiting from a $7 billion bailout from the International Monetary Fund.

The country’s economic challenges have been further exacerbated by political instability and catastrophic flooding in 2022, which submerged nearly a third of the nation and added pressure to its already strained financial situation.

The new “Country Partnership Framework” (CPF), announced alongside the World Bank, is expected to foster growth in private-sector investment and enhance climate resilience starting from 2026. The World Bank aims to stimulate critical investments in areas crucial for Pakistan’s long-term growth and job creation.

Zeeshan Sheikh, the World Bank’s International Finance Corporation Country Manager for Pakistan, emphasized the importance of prioritizing investment and advisory interventions to attract much-needed private capital, particularly in sectors like energy and water, agriculture, manufacturing, access to finance, and digital infrastructure.

Prime Minister Shehbaz Sharif expressed his approval of the plan, describing it as the first of its kind in a social media post. He noted that the CPF is a testament to the World Bank's faith in Pakistan's economic resilience and potential, and he highlighted the nation’s commitment to building lasting opportunities for its citizens.

However, Pakistan's political turmoil, particularly following the arrest of former Prime Minister Imran Khan and the subsequent violent protests by his supporters, poses significant hurdles. The ongoing political and economic instability presents substantial challenges in attracting foreign investment to the country.