The World Bank (WB) has approved a $400 million loan to support the Punjab Inclusive Cities Program, a large-scale initiative designed to expand access to clean drinking water, improve sanitation systems, and strengthen local governance structures across Punjab’s rapidly growing urban centers.
According to the Bank, the program is built around three core priorities: protecting child health, enhancing resilience to floods and climate shocks, and increasing women’s participation in municipal administration. Clean water and improved sanitation, it said, are essential to tackling stunting, reducing water-borne illnesses, and easing the financial burden on households and local authorities.
Beyond physical infrastructure, the funding will help municipal governments upgrade their financial management and administrative systems. The program aims to modernise service delivery, strengthen urban planning, and equip cities to respond more effectively to climate-related risks such as extreme rainfall, drought, and flooding.
Gender inclusion is also a key component. The initiative will support targeted reforms to help women enter municipal roles, including a dedicated grievance desk for women and tailored training programs to prepare them for leadership and technical positions.
In a related development, the WB released its World Development Report 2025, highlighting the severe strain global compliance standards are placing on Pakistan’s small manufacturers.
The report finds that meeting European Union regulatory requirements can cost Pakistani small and medium enterprises (SMEs) up to €200,000 in the first year, a figure that exceeds the annual sales of many firms in sectors such as surgical instruments. Even after initial certification, recurring compliance expenses average €30,000 annually.
Most manufacturers in Sialkot’s surgical industry employ fewer than 20 people and generate yearly revenues of €20,000 to €300,000, making these obligations financially overwhelming.
Textile exporters face similar hurdles: one Pakistani firm reported paying about $5,000 per standard for each of the 15 sustainability certifications demanded by international buyers, despite considerable overlap between the requirements.
The report notes that global standards have proliferated over the past two decades and now act as major non-tariff barriers, influencing roughly 90 per cent of world trade, compared with just 15 per cent in the late 1990s.
Citing research from Pakistan, the Bank highlighted how reforms can improve governance: performance-based incentives for Punjab tax officials increased revenue by 40 per cent, while increased autonomy for procurement officers led to lower prices, fewer delays, and no rise in corruption.
World Bank Chief Economist Indermit Gill urged developing countries to engage more proactively in shaping global standards. ISO Secretary-General Sergio Mujica echoed the sentiment, stressing that broader participation in standard-setting is essential for fair and inclusive global development.
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