The World Bank has approved $700 million in financing for Pakistan under a multi-year initiative aimed at supporting the country’s macroeconomic stability and service delivery, it emerged on Saturday.

The lender said the funds will be released under the bank’s Public Resources for Inclusive Development — Multiphase Programmatic Approach (PRID-MPA), which could provide up to $1.35 billion in total financing.

Of this amount, $600m will go for federal programmes and $100m will support a provincial programme in Sindh.

The approval follows a $47.9m World Bank grant in August to improve primary education in Punjab.

A separate statement issued by the lender quoted Bolormaa Amgaabazar, the World Bank’s country director for Pakistan, as saying, “Pakistan’s path to inclusive, sustainable growth requires mobilising more domestic resources and ensuring they are used efficiently and transparently to deliver results for people.”

She said that through the MPA, the bank was working with the federal and Sindh governments to “deliver tangible impacts—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”.

Tobias Akhtar Haque, World Bank lead country economist for Pakistan, said stregthening Pakistan’s fiscal foundations was “essential to restoring macroeconomic stability, delivering results and strengthening institutions”.

“Through the PRID-MPA, we are launching a coherent nationwide approach to support reforms that expand fiscal space, bolster investments in human capital and climate resilience, and strengthen revenue administration, budget execution, and statistical systems,” he said.

“These reforms will ensure that resources reach the front line and deliver better outcomes for people across Pakistan with greater efficiency and accountability,” he added.

According to the statement, the federal component will focus on raising domestic revenues more fairly, improving budget planning and execution, and strengthening data systems for evidence-based decisions.

Key actions include advancing tax policy and administration reforms; financing and scaling the Integrated Financial Management Information System and its linked e-procurement platform; undertaking targeted subsidy reforms; and strengthening the national statistical system led by the Pakistan Bureau of Statistics.

In Sindh, the programme is expected to increase provincial revenues, enhance the speed and transparency of payments, and broaden the use of data to guide provincial decision-making, it said.

The programme 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, it added.

In November, an IMF-World Bank report, uploaded by the finance ministry, said the country’s fragmented regulation, opaque budgeting and political capture are curbing investment and weakening revenue.