The World Bank has approved $400 million in financing for the Punjab Inclusive Cities Program (PICP), a major initiative aimed at improving water, sanitation, hygiene, and urban governance in 16 secondary cities across Punjab. The program is designed to enhance safely managed water supply networks, sewerage systems, wastewater treatment plants, stormwater drainage, and solid waste management, while strengthening the capacity and financial performance of local urban administrations.
Through PICP, approximately 4.5 million residents are expected to benefit from improved water, sanitation, hygiene, and drainage services, with an additional 2 million people gaining better solid waste management services. The initiative is also expected to reduce healthcare costs by lowering incidences of waterborne diseases and addressing child stunting, thereby improving public health outcomes.
Bolormaa Amgaabazar, World Bank Country Director for Pakistan, emphasized that safe water, sanitation, and hygiene services are critical to breaking the cycle of malnutrition and disease that limits children’s potential. She noted that the program represents a collaborative effort with the Punjab Government to improve urban infrastructure, strengthen local institutions, and lay the foundation for healthier, more prosperous communities.
PICP also focuses on environmental resilience and climate adaptation. By improving stormwater drainage and upgrading water and sanitation infrastructure, the program will help Punjab’s cities better withstand floods and droughts. Additionally, gender inclusion is a key component, with initiatives to hire women in decision-making roles, establish gender complaint desks, and provide targeted capacity building for female workers. Community campaigns will further encourage better hygiene practices at the household level to support improved health outcomes.
Amena Raja, Senior Urban Specialist at the World Bank, highlighted that the program combines infrastructure investment with capacity building and revenue generation, ensuring sustainable service delivery and financial viability of local governments. The initiative is also designed to mobilize private capital to support water and sanitation services in secondary cities, complementing ongoing provincial programs such as the Punjab Development Program and the Suthra Punjab Program.
The PICP is the second phase of the World Bank-supported Pakistan Urban Water, Sanitation, and Hygiene Services Multiphase Programmatic Approach, aligning with national development priorities and the government’s commitment to improving urban service delivery. By investing in critical infrastructure and institutional capacity, the program aims to enhance quality of life, promote public health, and support sustainable, climate-resilient urban development across Punjab.
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