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World Bank approves $400M for Punjab water upgrades

Published on: December 12, 2025 3:09 PM

The World Bank has approved $400 million for the Punjab Inclusive Cities Program (PICP) to improve water, sanitation, and hygiene services. The program aims to strengthen local governments and upgrade urban infrastructure across 16 secondary cities in Punjab. Officials say the project will benefit millions and support sustainable urban development.

PICP will rehabilitate water supply networks, sewerage systems, and wastewater treatment plants while improving stormwater drainage. It will also enhance local governments’ capacity to deliver services, increase revenues, and improve solid waste management, including sanitary disposal.

The program targets approximately 4.5 million people for water and hygiene services and an additional 2 million for waste management improvements.

Read more: World Bank backs US draft UN resolution for Gaza reconstruction

World Bank Country Director Bolormaa Amgaabazar said the program will help reduce child stunting and waterborne diseases. She emphasized that investing in safe water, sanitation, and hygiene is critical to breaking cycles of malnutrition and disease. The project also supports healthier communities and stronger local institutions, laying a foundation for long-term urban prosperity.

The program includes capacity-building measures and revenue-generation strategies to sustain service delivery. It will help cities better withstand floods and droughts, ensuring development is environmentally responsible and resilient to climate change. Gender-focused initiatives will prioritize women in decision-making roles, establish complaint desks, and provide skill development opportunities.

Read more: Pakistan set to receive $2B from World Bank in FY25

PICP aligns with Pakistan’s national development goals and complements ongoing provincial programs such as the Punjab Development Program and the Suthra Punjab Program. This initiative represents the second phase of the World Bank-supported Pakistan Urban Water, Sanitation, and Hygiene Services Multiphase Programmatic Approach, mobilizing both public and private resources for sustainable urban infrastructure.

Filed Under: Pakistan Tagged With: climate resilience, gender-focused initiatives, Latest, Lead4, Punjab Inclusive Cities Program, urban infrastructure, water and sanitation, World Bank funding

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