Pakistan

World Bank greenlights $400 million loan for new infrastructure, public health projects in Punjab

Islamabad: The World Bank’s Board of Executive Directors has approved a $400 million investment to launch an ambitious initiative aimed at enhancing water supply, sanitation, and basic hygiene services in Punjab, while simultaneously boosting the capacity and financial effectiveness of local urban administrations.

The initiative, known as the Punjab Inclusive Cities Program (PICP), will focus on upgrading critical infrastructure, including water supply networks, sewage systems, and wastewater treatment plants. Additionally, the program will work to improve stormwater drainage infrastructure and enhance local governments’ ability to provide sustainable services while increasing revenue in 16 secondary cities across the province.

According to a statement released by the World Bank, the program will also address solid waste management, ensuring proper disposal and creating cleaner, healthier urban environments.

“Addressing child stunting is crucial for Pakistan’s future. Through the Punjab Inclusive Cities Program, we are investing in essential services like water, sanitation, and hygiene to break the cycle of malnutrition and disease that holds back so many children from reaching their potential,” said Bolormaa Amgaabazar, World Bank Country Director for Pakistan.

She noted that the program, in close collaboration with the Punjab Government, marks a significant milestone in modernizing urban infrastructure and strengthening local institutions, ultimately paving the way for healthier communities and fostering national prosperity.

The PICP is expected to provide improved water, sanitation, hygiene, and drainage services to approximately 4.5 million residents, while better waste management will benefit an additional 2 million people.

The primary goals of the program include reducing healthcare costs by curbing waterborne diseases, addressing child stunting, and empowering local governments to deliver more effective and sustainable services.

“This program combines infrastructure upgrades with capacity-building and revenue growth, ensuring long-term benefits for urban residents,” said Amena Raja, Senior Urban Specialist at the World Bank. “It will also help Punjab’s cities become more resilient to floods and droughts, fostering urban growth that is environmentally sustainable and climate-adaptive.”

Gender inclusion will be a core focus, with the program aiming to promote women in leadership positions, establish gender complaint desks, and provide specialized training to help female employees develop new skills and advance in their careers. In addition, community awareness campaigns will encourage improved hygiene practices at the household level to enhance overall public health.

The PICP is also designed to attract private sector investment to enhance water and sanitation services in Punjab’s secondary cities, aligning with Pakistan’s broader development agenda.

In addition to complementing existing provincial initiatives such as the Punjab Development Program and the Suthra Punjab Program, the PICP marks the second phase of the World Bank-supported Pakistan Urban Water, Sanitation, and Hygiene Services Multiphase Programmatic Approach.

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