ISLAMABAD: Pakistan will channel nearly two-thirds of the $2 billion expected annually from a new World Bank partnership into tackling population growth and its impact on children, Finance Minister Muhammad Aurangzeb told UNICEF’s representative during a meeting in Islamabad on Monday.

Earlier this year, Pakistan and the World Bank signed a Country Partnership Framework (CPF) for $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.

Officials say directing most of the funds to population-related interventions will help relieve strain on education, health care, and food systems, as well as improve long-term human capital outcomes.

“The Finance Minister highlighted the two existential challenges facing the country — climate change and population growth — particularly their impact on child stunting and learning poverty,” the Finance Division said in a statement. 

“He discussed the Country Partnership Framework signed with the World Bank, noting that nearly two-thirds of the USD 2 billion expected every year under the program over the next year would be directed toward addressing population-related challenges.”

Pakistan has one of the highest rates of child stunting in South Asia, while more than three-quarters of children cannot read or understand a simple text by age 10, according to UNICEF. These vulnerabilities are compounded by climate shocks, including devastating floods that have displaced millions and destroyed infrastructure.

Aurangzeb stressed the importance of making the best use of available resources and called for greater coordination among federal and provincial governments, UNICEF, and key ministries to identify priority areas and strengthen technical capacity. He said collaboration with partners such as UNICEF and ministries including Climate Change, Population Welfare, and National Health Services was essential for effective project delivery.

According to the statement, UNICEF Representative Pernille Ironside reaffirmed the agency’s commitment to Pakistan, saying UNICEF is “actively working with relevant ministries and stakeholders across a broad range of sectors, with a particular focus on child care and girls’ education.” 

She said the agency was following “a multi-sectoral approach to community welfare, prioritizing projects in education, health, and climate resilience,” and was exploring ways to further strengthen its role in Pakistan.

Both sides reiterated their resolve to work together to address the challenges facing children and communities and to deepen cooperation for sustainable development.