Pakistan to pursue full $1.7 billion World Bank loan despite slow reform progress

Pakistan intends to continue seeking the full $1.7 billion World Bank programme for tax and public-spending reforms, despite delays and questions over whether it is meeting related commitments, Profit by Pakistan Today reported. The first $700 million phase has been approved, including $600 million for the federal government and $100 million for Sindh. The World Bank rated progress on the federal portion as moderately satisfactory in both its April and October 2026 reports, and recorded an advance payment of $164.5 million in June.

The remaining programme is planned in stages, with a $200 million operation for Khyber-Pakhtunkhwa under processing and later phases intended for Punjab and Balochistan. Reforms include widening tax collection, improving public spending, and strengthening fiscal data systems. The lender's concerns include import-duty decisions and Rs87 billion approved for a Sindh project, which have prompted questions about commitments on trade policy and federal-provincial spending responsibilities.