World Bank downgrades KP tourism project implementation to ‘unsatisfactory’

Business Recorder reported that the World Bank has lowered its rating of implementation progress for the Khyber Pakhtunkhwa Integrated Tourism Development Project to moderately unsatisfactory, down from moderately satisfactory. The USD 100 million project, approved in 2019, is still rated moderately satisfactory on its development objective, with closure due on April 30, 2027. The downgrade comes even though the project has passed several key targets, according to the Bank's implementation report.

The project has nevertheless drawn in close to USD 83 million from private sources, tied to a concession signed in May 2026 for the Thandiani Integrated Tourism Zone. Beneficiaries have reached 559,773 people against a revised target of 175,000, and 3,822 direct and indirect jobs have been generated against a target of 2,500. Implementation remains uneven, however, and institutional capacity and sustainability are again rated a substantial risk.

Participation by women still lags, with 232 women entrepreneurs and workers receiving business development services against a revised target of 350. The Derajat Museum recorded 1,769 domestic visitors from January to June 2026, and the Abbottabad Museum is expected to open by October 2026. On financing, the USD 70 million IDA credit is almost fully disbursed, but only 16.81 percent of the additional USD 30 million has been drawn. The Bank has urged faster implementation as the project nears closure.