World Bank Grants $300 Million Loan for Pakistan

The World Bank Group has approved a $300 million International Development Association (IDA) loan for the Punjab Clean Air Program (PCAP) to combat air pollution and enhance air quality management in the province.

The PCAP will support Punjab’s Smog Mitigation Action Plan (SMAP) by implementing strategic initiatives across key sectors, including transport, agriculture, industry, energy, and municipal services.

World Bank Country Director for Pakistan, Najy Benhassine, emphasized the program’s significance, stating that improved air quality would lead to fewer respiratory and cardiovascular diseases, creating a healthier living environment for millions.

Key Features of the Punjab Clean Air Program

✅ Reduction of PM2.5 by 35% over the next decade, benefiting over 13 million residents of Lahore Division.
✅ Deployment of 5,000 super seeders to curb crop residue burning, a major contributor to smog.
✅ Introduction of 600 electric buses to promote eco-friendly public transport.
✅ Expansion of air quality monitoring stations across Punjab.
✅ Improvement in fuel quality testing through two new fuel testing laboratories.
✅ Reduction of greenhouse gas emissions by an estimated 35.6 million metric tons of CO₂ over the next 12 years.
✅ Public awareness campaigns and targeted advisories for schools and hospitals to educate citizens on pollution control measures.

Shyam Srinivasan, Task Team Leader for the project, highlighted that farmers, vehicle owners, and government officials will benefit from advanced technologies, job creation, and capacity-building initiatives under the program.

The Punjab Clean Air Program aligns with the World Bank’s Country Partnership Framework (CPF) and is expected to play a crucial role in climate change mitigation and sustainable environmental management in the region.