World Bank drops four Pakistan projects worth $1.13 billion from lending pipeline

The World Bank has removed four proposed projects worth about $1.128 billion from Pakistan’s lending pipeline, affecting planned investments in rural water and sanitation, agriculture, flood resilience and child nutrition.

According to the bank’s official documents, the shelved projects include the $400 million Sindh Transformational Accelerated Rural Water Supply, Sanitation and Hygiene Services (STAR-WASH-1) Project, the $300 million Punjab Agri-Food Modernisation and Competitiveness Program, the $155 million Integrated Flood Resilience and Adaptation Project, and a $273 million initiative aimed at reducing child stunting in Punjab.

The documents show the projects were marked as "dropped", with some failing to progress beyond the concept review stage despite being under preparation.

Responding to the development, a World Bank spokesperson said the projects were at different stages of preparation and discussions with the government on the way forward were continuing.

The STAR-WASH-1 project was designed to improve access to safely managed water, sanitation and hygiene services in selected rural areas of Sindh under a Multiphase Programmatic Approach. 

The broader programme had an estimated cost of $2.55 billion, including $1.4 billion in International Development Association and International Bank for Reconstruction and Development financing, along with $900 million in counterpart funding and support from other development partners. It was planned for implementation between FY2026 and FY2035.

The proposed Punjab nutrition project sought to improve dietary diversity in selected rural villages, targeting households with children under two years of age, newly married women, and pregnant and lactating women. It formed part of the World Bank's multi-sectoral strategy to reduce child stunting, which affects around 40% of children under five in Pakistan.

The Integrated Flood Resilience and Adaptation Project was intended to improve livelihoods, restore essential services and strengthen flood protection in communities affected by the 2022 floods.

Meanwhile, the Punjab Agri-Food Modernisation and Competitiveness Program aimed to raise agricultural productivity, improve climate resilience and increase incomes for smallholder farmers by strengthening value chains, attracting private investment and promoting sustainable management of land and water resources.