World Bank approves $300M loan for Punjab Clean Air Program

Initiative aims to curb smog, reduce pollution, and improve public health in Punjab

to tackle Punjab’s worsening air pollution crisis, the World Bank Group Board of Directors has approved a $300 million International Development Association (IDA) loan for the Punjab Clean Air Program (PCAP). The initiative aims to strengthen air quality management and combat pollution across key sectors, aligning with the provincial government’s Smog Mitigation Action Plan (SMAP).

Punjab, particularly its capital Lahore, has consistently ranked among the most polluted cities in the world, with smog reaching hazardous levels every winter. The primary causes include vehicle emissions, industrial pollution, and the seasonal burning of crop residue by farmers. This pollution has severe consequences for public health, contributing to rising cases of respiratory and cardiovascular diseases.

World Bank Country Director for Pakistan, Najy Benhassine, called the initiative a “landmark effort” to improve air quality, stating, “Cleaner air will reduce the incidence of respiratory and cardiovascular diseases and contribute to a healthier, more liveable environment.”

The Punjab Clean Air Program aims to cut PM2.5 levels—the fine particulate matter responsible for smog—by 35% over the next decade, benefiting over 13 million residents of Lahore Division alone. The program includes:

  • Modernising agriculture: The introduction of 5,000 super seeders to curb crop residue burning, one of the biggest contributors to winter smog.

  • Cleaner transport: The launch of 600 electric buses to reduce vehicular emissions and promote public transport.

  • Enhanced air monitoring: The installation of more regulatory-grade air quality monitoring stations across Punjab.

  • Fuel quality control: The establishment of two new fuel testing laboratories to monitor and improve fuel standards.

In addition to these measures, the program emphasizes public awareness and behavioral change, equipping citizens with real-time air quality data and educational campaigns on pollution sources and health risks. Special outreach initiatives will target vulnerable groups such as schoolchildren and hospital patients.

Beyond air pollution reduction, the program is expected to lower greenhouse gas (GHG) emissions by 35.6 million metric tons of carbon dioxide over the next 12 years. Additionally, it will support farmers with modern technology, create jobs in the electric vehicle sector, and assist vehicle owners in transitioning to cleaner alternatives.

Shyam Srinivasan, Task Team Leader for the project, highlighted the program’s economic benefits, stating that it will “create job opportunities in the e-bus and depot sectors, enhance government officials’ skills, and support sustainable urban planning.”

Pakistan has been a World Bank member since 1950, receiving over $48.3 billion in assistance to date. The current World Bank portfolio in Pakistan consists of 54 projects with a total commitment of $15.7 billion.

With smog reaching critical levels in recent years, the Punjab Clean Air Program marks a crucial step in Pakistan’s fight against air pollution, aiming to deliver cleaner skies, healthier communities, and a more sustainable future.

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