World Bank Approves USD 300 Million Loan for Punjab Clean Air Program

ISLAMABAD – The World Bank Group’s Board of Directors has approved a USD 300 million International Development Association (IDA) loan for the Punjab Clean Air Program (PCAP), aimed at strengthening air quality management and combating air pollution in the province.

PCAP will support the Government of Punjab’s Smog Mitigation Action Plan (SMAP), addressing the growing concern of air pollution, particularly in critical sectors like transport, agriculture, industry, energy, and municipal services. The program focuses on improving air quality and public health, specifically in regions suffering from severe pollution, including the Lahore Division.

Najy Benhassine, World Bank Country Director for Pakistan, emphasized the significance of the initiative, stating, “Cleaner air will reduce the incidence of respiratory and cardiovascular diseases, contributing to a healthier, more livable environment.”

The program is aligned with the World Bank’s Country Partnership Framework (CPF) and has set an ambitious target of reducing PM2.5 levels by 35% over the next decade. This reduction is expected to significantly lower the rate of pollution-related health issues for over 13 million residents in Lahore Division.

Key interventions under the program include the introduction of 600 electric buses to promote public transport, the use of 5000 super seeders to reduce crop residue burning, expansion of air quality monitoring stations, and the establishment of fuel quality testing laboratories.

The program also focuses on engaging the public in improving air quality through behavioral changes, using air quality data to raise awareness about pollution and its health impacts. Special attention will be given to vulnerable populations, including schools and hospitals.

In addition to environmental benefits, the program aims to reduce greenhouse gas emissions, contributing to climate change mitigation. It is estimated that the program will reduce 35.6 million metric tons of carbon dioxide over the next 12 years.

Shyam Srinivasan, Task Team Leader for the Project, highlighted the program’s broader impact, including providing farmers with access to advanced technologies, creating job opportunities, and supporting vehicle owners in renewing aging vehicles.

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Pakistan has been a member of the World Bank since 1950, with over $48.3 billion in assistance provided to the country. The current portfolio includes 54 projects, with a total commitment of $15.7 billion.