ISLAMABAD: The World Bank on Wednesday rated its two loan programmes in Pakistan, worth around $670 million, as ‘moderately satisfactory’ with ‘substantial risk’. The programmes are intended to support macroeconomic stability, improve service delivery and increase the tax-to-GDP ratio to 15pc in five years.
In its public disclosure, the Washington-based lending agency rated the overall implementation of the $700 million financing for the Pakistan Public Resources for Inclusive Development — Multiphase Programmatic Approach (PRID-MPA) as ‘moderately satisfactory’. It assigned a substantial risk rating to the loan, which became effective on June 19, 2025. One of the programme’s key objectives is to increase Pakistan’s tax-to-GDP ratio from 12.3pc in June 2025 to 15pc by June 2030.
The rating is based on high political and governance risk, and moderate to substantial risks across macroeconomic, sector strategies and policies, institutional capacity, fiduciary, and environmental and social standards. Overall risks have been described as ‘substantial’.
