The World Bank has announced a $20 billion loan for Pakistan over the next decade, aimed at fostering private sector growth and building climate resilience.

Prime Minister Shehbaz Sharif revealed that the funds will support initiatives in child nutrition, education, clean energy, and inclusive development.

Pakistan narrowly avoided default in 2023 after securing a $7 billion IMF bailout, which stabilized its economy. However, the country remains burdened by external debt and a weak tax base.

The World Bank program, starting in 2026, aligns with ongoing fiscal and energy reforms but cautions that Pakistan’s history of inconsistent reforms could hinder progress.