World Bank Approves $300 Million Loan to Support Punjab’s Smog Mitigation Action Plan

The World Bank Group Board of Directors approved a USD 300 million International Development Association (IDA) loan to support the Punjab Clean Air Program (PCAP), aimed at combating smog and air pollution in the province. This loan will directly bolster the Government of Punjab’s Smog Mitigation Action Plan (SMAP) with a series of initiatives designed to improve air quality and public health, particularly in key sectors such as transport, agriculture, industry, energy, and municipal services.

Mr. Najy Benhassine, World Bank Country Director for Pakistan, highlighted the significance of this program, stating, “The Punjab Clean Air Program supports the Province’s Smog Mitigation Action Plan and is a landmark initiative to significantly improve air quality and enhance the health and well-being of millions of residents. Cleaner air will reduce the incidence of respiratory and cardiovascular diseases and contribute to a healthier, more livable environment.”

The Punjab Clean Air Program (PCAP) aims to tackle the province’s persistent air pollution problems and reduce PM 2.5 levels by 35 percent over the next decade. This goal will significantly lower the incidence of respiratory illnesses and other health-related issues caused by pollution for the 13 million residents of Lahore Division, which is often among the most polluted areas in the world. The program is aligned with the new World Bank Country Partnership Framework (CPF) and focuses on strengthening air quality management (AQM) infrastructure, enhancing regulatory and institutional capacity, and introducing targeted sectoral abatement measures.

One of the key interventions includes the investment in 5,000 super seeders to address the prevalent issue of crop residue burning, which contributes significantly to seasonal smog. Additionally, the introduction of 600 electric buses is planned to promote a shift from private to public transport, thereby reducing vehicular emissions. The program will also expand air quality monitoring stations across Punjab and establish two new fuel testing laboratories to improve fuel quality standards.

In a move to increase public awareness and promote behavioral changes, the program emphasizes the importance of citizen engagement. Using air quality data and emissions inventories, the program will educate the public about pollution sources, health impacts, and effective reduction measures. Special efforts will be made to reach vulnerable populations, including schools and hospitals, through targeted messaging and advisories.

The PCAP has a climate co-benefit component that contributes to climate change mitigation by reducing greenhouse gas (GHG) emissions. Over the next 12 years, the program is expected to reduce 35.6 million metric tons of carbon dioxide, thus benefiting both public health and the environment. The program will also establish an integrated pollutant and GHG emissions inventory system to better track and manage emissions data.

Mr. Shyam Srinivasan, Task Team Leader for the project, emphasized that the program would also create significant opportunities for farmers by improving access to advanced crop management technologies. Additionally, it will generate job opportunities in the electric bus and depot sectors, support vehicle owners in renewing aging vehicles, and enhance the skills of government officials through training and capacity building. Ultimately, the Punjab Clean Air Program aims to foster a healthier, more sustainable environment for the people of Punjab.