The World Bank has approved $400 million in financing for a new initiative aimed at improving urban services and resilience in Punjab, Pakistan. The Punjab Inclusive Cities Program (PICP) is designed to provide safe water, sanitation, and basic hygiene services while also strengthening the capacity of local urban administrations.
The project will focus on upgrading water supply networks, sewerage systems, wastewater treatment plants, and stormwater drainage in 16 secondary cities across Punjab. Additionally, it aims to enhance solid waste management by supporting sanitary disposal methods.
Bolormaa Amgaabazar, World Bank Country Director for Pakistan, stated: “Reducing child stunting is essential for Pakistan’s future. Through the Punjab Inclusive Cities Program, we are investing in safe water, sanitation, and hygiene services to break the cycle of malnutrition and disease that holds back so many children from reaching their full potential. In collaboration with the Punjab Government, the program represents a significant step forward in improving urban infrastructure and strengthening local institutions, thereby laying the foundation for healthier communities and a more prosperous Pakistan.”
The PICP intends to improve water-related services for about 4.5 million people and enhance solid waste management for an additional 2 million residents. The project aims to reduce healthcare costs by lowering instances of waterborne diseases and child stunting rates while boosting the ability of local governments to deliver sustainable services.
Amena Raja, Senior Urban Specialist at the World Bank said: "The program complements infrastructure investments with capacity building and revenue generation, helping to ensure that service delivery is well sustained. It will also help Punjab’s cities better withstand floods and droughts, ensuring urban development is both environmentally responsible and resilient to climate change."
Gender benefits are included as part of the program by prioritizing women’s hiring—especially in decision-making roles—and setting up gender complaint desks. Training opportunities will be provided for female workers to develop new skills. Community campaigns are planned to encourage improved hygiene practices at home.
The initiative supports national priorities set by Pakistan's government as well as ongoing provincial efforts such as the Punjab Development Program and Suthra Punjab Program. This marks the second phase under the World Bank-supported Pakistan Urban Water, Sanitation and Hygiene Services Multiphase Programmatic Approach.
Pakistan has been a member of the World Bank since 1950; since then it has received over $48 billion in assistance from the institution. Currently there are 54 active projects with total commitments amounting to $15.7 billion.