Pakistan receives another $500 million as part of $1.3 billion Chinese rollover

Pakistani labourers arrange a welcome billboard featuring the Chinese and Pakistani national flags ahead of the forthcoming visit by Chinese President Xi Jinping in Islamabad on April 18, 2015. (AFP/FILE)
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Updated 18 March 2023
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Pakistan receives another $500 million as part of $1.3 billion Chinese rollover

  • The Industrial and Commercial Bank of China approved $1.3 rollover facility earlier this month
  • Pakistan has so far received two installments of the facility it had repaid in the recent months

ISLAMABAD: Pakistan on Friday received the second installment of $500 million as part of $1.3 billion facility from the Industrial and Commercial Bank of China (ICBC), the Pakistani finance minister said, as the South Asian country scrambles to shore up its dwindling forex reserves.

Islamabad repaid the $1.3 billion loan to ICBC in the recent months and the Pakistani finance ministry completed documentation for the release of the second installment earlier this week.

“State Bank of Pakistan has received today in its account from Chinese Bank ICBC $500 million,” Finance Minister Ishaq Dar said on Twitter.

“It will shore up forex reserves of Pakistan.”

The Chinese lender approved the rollover this month, which was to be disbursed to Pakistan in three installments. Pakistan received the first installment of $500 million on March 4 that had took the country’s foreign exchange reserves to $4 billion.

The money is crucial for the cash-strapped South Asian economy, which is facing a balance of payment crisis, with its central bank foreign exchange reserves dropping to levels barely able to cover three weeks of imports.

More external financing will only be coming to Pakistan after Islamabad signs a deal with the International Monetary Fund (IMF).

The lender has been negotiating the deal with Pakistan since early last month to clear its 9th review, which if approved by its board will issue over $1 billion tranche of $6.5 billion bailout agreed in 2019.
 


World Bank approves $400 million to expand water, sanitation services in Pakistan’s Punjab

Updated 12 December 2025
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World Bank approves $400 million to expand water, sanitation services in Pakistan’s Punjab

  • Project aims to improve access for 4.5 million people and curb waterborne diseases
  • Program to prioritize women’s participation and climate-resilient urban infrastructure

ISLAMABAD: The World Bank this week approved $400 million for a new project to expand access to safe water, sanitation and hygiene services for around 4.5 million people in Pakistan’s most populous Punjab province, aiming to curb waterborne diseases and reduce long-term public health costs.

The project, known as the Punjab Inclusive Cities Program (PICP), is the second phase of the World Bank-supported Pakistan Urban Water, Sanitation and Hygiene Services Multiphase Programmatic Approach. It will focus on rehabilitating water supply networks, sewerage systems and wastewater treatment plants, while expanding stormwater drainage infrastructure across 16 secondary cities in Punjab.

Punjab faces persistent challenges in providing safe drinking water and adequate sanitation, with many urban households relying on contaminated sources. Weak infrastructure and limited hygiene services contribute to high rates of waterborne diseases such as diarrhea, typhoid and hepatitis, which disproportionately affect children and low-income communities.

“Reducing child stunting is essential for Pakistan’s future. Through the Punjab Inclusive Cities Program, we are investing in safe water, sanitation, and hygiene services to break the cycle of malnutrition and disease that holds back so many children from reaching their full potential,” the World Bank quoted its Country Director for Pakistan, Bolormaa Amgaabazar, as saying in a statement.

“In collaboration with the Punjab Government, the program represents a significant step forward in improving urban infrastructure and strengthening local institutions, thereby laying the foundation for healthier communities and a more prosperous Pakistan.”

Child stunting, a form of chronic malnutrition that leaves children too short for their age, is often linked to repeated infections, poor sanitation and unsafe drinking water, and remains a major public health concern in Pakistan.

Beyond water and sanitation, the project will also support solid waste management systems to improve sanitary waste disposal, extending services to an additional two million people in Punjab’s urban areas. The program will strengthen the capacity of local governments, including efforts to improve revenue generation and long-term service sustainability.

“The program complements infrastructure investments with capacity building and revenue generation, helping to ensure that service delivery is well sustained,” the statement quoted Amena Raja, Senior Urban Specialist at the World Bank, as saying.

“It will also help Punjab’s cities better withstand floods and droughts, ensuring urban development is both environmentally responsible and resilient to climate change.”

The program includes a gender-focused component, prioritizing the hiring of women in decision-making roles, establishing gender-compliant service desks and supporting skills development. It also aims to mobilize private capital to support water and sanitation services in Punjab’s secondary cities.

Pakistan has been a member of the World Bank since 1950 and has received more than $48 billion in assistance since. The Bank’s current portfolio in the country comprises 54 projects with total commitments of $15.7 billion, while its private-sector arm, the International Finance Corporation, has invested about $13 billion since 1956.

Earlier this year, Pakistan and the World Bank signed a first-of-its-kind agreement for a plan to focus $20 billion in lending to the cash-strapped nation over the coming decade on development issues like the impact of climate change as well as boosting private-sector growth.