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World Bank approves $400 million financing for Punjab’s water, sanitation, and hygiene projects

The World Bank’s Board of Executive Directors has approved $400 million in financing for water, sanitation, and basic hygiene projects in Punjab. The funding will also help improve the institutional and financial performance of local municipal administrations.

According to reports, the Punjab Inclusive Cities Program (PICP) will support the improvement and rehabilitation of water supply networks, sewerage systems, and wastewater treatment plants. It will also help enhance stormwater drainage and strengthen the capacity of local governments to sustainably deliver services and increase revenue in 16 secondary cities across Punjab. The program will also contribute to improving solid waste management systems in the province.

According to sources, the World Bank’s Country Director for Pakistan, Najy Benhassine (Bolormaa Amgaabazar in earlier references), stated that reducing stunting among children is essential for Pakistan’s future. Through the Punjab Inclusive Cities Program, the World Bank is investing in safe water, sanitation, and hygiene services to break the cycle of malnutrition and illness that prevents many children from reaching their full potential. He added that with the support of the Punjab government, this program is a major step toward improving urban infrastructure and strengthening local institutions—laying the foundation for healthier communities and a more prosperous Pakistan.

The program aims to provide improved water, sanitation, hygiene, and drainage services to approximately 4.5 million people and solid waste management services to an additional 2 million people.

According to sources, the World Bank says the program will help reduce health expenditures by lowering the incidence of waterborne diseases, reduce stunting rates among children, and strengthen the capacity of urban local governments to deliver sustainable services. The global lender added that the program will also provide important gender benefits, including prioritizing the hiring of women—especially in decision-making roles—establishing gender grievance desks, and offering targeted capacity-building to help women workers gain new skills and advance professionally. The program also aims to mobilize private investment to support water and sanitation services in Punjab’s secondary cities.

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