World Bank Extends Punjab PRIDE Project, Cancels $18m in Unused Funds

The World Bank has restructured Punjab’s flagship reform program, PRIDE, giving the province 10 extra months to finish pending activities while cancelling $18 million in unused funds.

The “Punjab Resource Improvement and Digital Effectiveness” PRIDE program, worth $304 million, was launched in late 2020 to help the province raise more revenue, strengthen financial management, and expand digital public services. It is financed by the International Bank for Reconstruction and Development (IBRD), part of the World Bank.

Extra Time, Reduced Funds

The Punjab PRIDE project was originally set to close in August 2025, but the provincial government asked for more time after several key reforms could not be completed as planned. The World Bank has now extended the deadline to June 2026.

At the same time, $18 million has been cancelled under the project’s investment financing component. Officials said this money was no longer needed because some activities overlapped with federal programs, while others became unnecessary. For example, Punjab adopted the federal e-procurement system instead of building its own, saving significant costs.

Punjab PRIDE Project: Why Restructuring Was Needed

The decision was influenced by three main factors:

• Currency impact: The depreciation of the rupee lowered the cost of planned contracts, creating savings.

• Redundancy: Some activities were dropped after the federal government rolled out similar systems.

• Pending work: Critical reforms, such as business process re-engineering in revenue departments and a Disaster Risk Financing Strategy, need additional time to be completed.

Most of the cancelled funds came from consultancy contracts (37%) and procurement of goods (35%), areas where savings were realized without affecting program goals.

Officials say the extension will help consolidate progress made so far and ensure reforms are implemented effectively. The cancellation of $18 million, they added, will not affect the achievement of core targets, as most consultancy services have already been secured.

By mid-2026, the PRIDE program is expected to deliver on its promise of expanding Punjab’s fiscal space and making public spending more efficient and transparent, key goals that align with the World Bank’s broader partnership framework with Pakistan.

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