World Bank approves $400m project to improve water, sanitation in Punjab

The World Bank has approved $400 million for a new project to improve water, sanitation, hygiene (WASH) services and urban governance in 16 secondary cities across Punjab.

The Punjab Inclusive Cities Program (PICP) will fund the rehabilitation of water supply networks, sewerage systems, wastewater treatment plants, and stormwater drainage.

It will also strengthen local governments’ capacity for sustainable service delivery, revenue generation, and solid waste management, including safe disposal systems.

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According to Bolormaa Amgaabazar, World Bank Country Director for Pakistan, “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.”

She added that the project 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 program aims to provide safe water, sanitation, hygiene, and drainage services to around 4.5 million people, while improved solid waste management services will benefit an additional 2 million people.

The project is expected to help reduce healthcare costs by lowering waterborne diseases, supporting efforts to reduce child stunting, and strengthening the capacity of urban local governments.

According to Amena Raja, Senior Urban Specialist at the World Bank, “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 environmentally responsible and climate-resilient.”

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The program includes gender-focused components, such as prioritizing the hiring of women in decision-making roles, creating gender complaint desks, and offering skill-building programs for female staff.

Community awareness campaigns on household hygiene are also part of the project. Additionally, the program aims to mobilize private investment to support water and sanitation services in secondary cities.

The PICP aligns with national development priorities and complements provincial efforts such as the Punjab Development Program and the Suthra Punjab Program. It forms the second phase of the World Bank’s Pakistan Urban Water, Sanitation, and Hygiene Services Multiphase Programmatic Approach.