Islamabad, December 12, 2025 – The World Bank has approved $400 million in financing for a major new initiative aimed at expanding access to safe drinking water, sanitation, and hygiene services across Punjab. The project, known as the Punjab Inclusive Cities Program (PICP), will also strengthen the financial and institutional capacity of local urban administrations in 16 secondary cities.
According to the World Bank, PICP will focus on upgrading critical urban infrastructure, including the rehabilitation of water supply systems, sewerage networks, wastewater treatment facilities, and stormwater drainage. The project also aims to significantly enhance the efficiency and sustainability of local governments responsible for delivering these services, enabling them to improve revenue generation and long-term service management.
The program will further support improvements in solid waste management, including measures for sanitary waste disposal to ensure cleaner and healthier cities.
World Bank Country Director for Pakistan, Bolormaa Amgaabazar, emphasized the urgency of addressing malnutrition and waterborne diseases. She noted that investing in water and sanitation is essential for reducing child stunting and improving overall public health outcomes in Pakistan. Strengthening urban infrastructure, she added, will contribute to building resilient and prosperous communities.
The project is expected to deliver improved water, sanitation, hygiene, and drainage services to 4.5 million people, with an additional 2 million residents set to benefit from enhanced solid waste management systems. By improving access to clean water and reducing disease, the program is projected to help lower healthcare costs and support long-term human development.
Senior Urban Specialist Amena Raja said the initiative combines infrastructure development with capacity building and revenue enhancement to ensure sustainable service delivery. She added that the program would help cities better withstand floods and droughts, advancing climate resilience.
The PICP also includes strong gender components, promoting the hiring of women in leadership roles, establishing gender complaint desks, and offering training to support women’s professional growth. Community-based campaigns will promote improved hygiene practices to strengthen household health.
In addition, the program aims to mobilize private investment to further improve water and sanitation services in Punjab’s secondary cities. The initiative aligns with Pakistan’s national development agenda and complements ongoing provincial programs such as the Punjab Development Program and the Suthra Punjab Program.
The newly approved financing marks the second phase of the World Bank’s broader Pakistan Urban Water, Sanitation and Hygiene Services Multiphase Programmatic Approach, reinforcing its long-term commitment to modernizing Pakistan’s urban services and improving quality of life across the province.