Pakistan secures $22.65m World Bank climate support for digital growth
World Bank allocates $22.65 million climate funding for Pakistan
The World Bank has approved $22.65 million in climate finance for Pakistan under a digital development project that combines technology upgrades with climate-focused initiatives. The funding aims to improve digital infrastructure while supporting environmentally sustainable development across different sectors.
According to the World Bank’s International Bank for Reconstruction and Development (IBRD) and International Development Association (IDA) Climate Finance Assessment Sheet for FY2026, the project falls under the Digital Development Global Practice. It is designed to strengthen digital connectivity, modernize public services and improve government systems.
Officials said the project reflects the World Bank’s growing focus on using technology to support both economic development and climate goals.
Most funding will support climate mitigation
The World Bank has directed the majority of the climate financing towards mitigation activities. Around 97.73% of the total climate allocation will support projects that help reduce environmental impacts, while the remaining 2.27% will focus on climate adaptation measures.
The bank said the funding calculations follow the Joint Multilateral Development Banks (MDBs) Climate Finance Methodology. This internationally recognized framework helps identify climate-related investments while avoiding double counting of financial contributions.
The allocation shows that the project has been designed to promote digital transformation alongside climate resilience.
Broadband expansion receives the largest allocation
Among the seven Disbursement Linked Indicators (DLIs), broadband expansion received the highest share of climate funding.
The World Bank allocated $10 million under DLI-2 to improve access to fixed broadband internet across Pakistan. Of this amount, $9.5 million has been classified for climate mitigation activities, while $500,000 will support climate adaptation measures.
Officials believe better broadband connectivity can reduce travel requirements, improve access to online services and encourage digital solutions that lower environmental impacts.
The project also classifies broadband expansion under the Information and Communications Technology (ICT) and Digital Technologies sector.
Digital payment systems and invoice management also receive funding
The World Bank has also allocated $1.5 million for DLI-5 to establish a regulatory framework for Point-of-Sale (PoS) system providers in Punjab.
Another $5.5 million has been approved for DLI-6 to support the implementation of the Digital Invoice Management System (DIMS). The system is expected to improve tax documentation, business efficiency and financial transparency.
In addition, $5 million has been allocated for DLI-7 to expand digital payment platforms connected with DIMS. Officials believe wider digital payment adoption can improve financial inclusion while making business transactions faster and more transparent.
These components are expected to contribute to Pakistan’s broader digital transformation strategy.
Some digital projects excluded from climate financing
Although several digital initiatives received climate support, some important activities were not included in the climate finance allocation.
These include identifying urban areas for future broadband expansion under DLI-1, promoting Compute-as-a-Service solutions for artificial intelligence under DLI-3 and developing AI-powered public and private sector services under DLI-4.
The World Bank did not classify these activities as eligible climate investments under its financing methodology, although they remain part of the broader digital development project.
Investment financing also included
Apart from the main climate allocations, the project’s Investment Project Financing (IPF) component received $0.65 million in climate funding.
This amount includes approximately $0.63 million for mitigation activities and around $0.01 million for climate adaptation measures.
Officials said the combined investment aims to strengthen Pakistan’s digital infrastructure while supporting long-term sustainable development goals through technology-driven solutions.
The project is expected to improve digital public services, strengthen business systems and increase internet connectivity in different parts of the country.
