The World Bank has raised its aid contribution to Pakistan to $1 billion to help the country recovery from the worst floods in its history.
The bank had originally pledged $900 million for the current fiscal year. World Bank President Robert Zoellick reaffirmed the bank's commitment to help the country recover over the long-term, but urged the Pakistani government not to lose sight of economic reforms.
"As the surging Indus river devastates Pakistan, the country needs the world's support to meet urgent humanitarian needs: food, clean water, sanitation facilities, medical and nutrional supplies, and vaccines," he said after a meeting with Pakistan finance minister Hafeez Shaikh in Washington.
"We need to respond strongly to the crisis at hand, but we need to do it without losing sight of important economic reforms," said Zoellick. "The disaster underscores Pakistan's fiscal vulnerability and dependence on foreign aid.
"Renewed commitment to governance and fiscal reforms will be important to mobilize domestic revenues and ensure that funds reach the poor people it is intended for."
The World Bank announcement came as the UN Food and Agriculture Organization raised calls for urgent global assistance to avert food insecurity in the South Asian country.
Nearly 20 million people have been affected by the massive floods, which began a month ago. Entire rural communities have been wiped out and more than 1,600 have been confirmed dead from the disaster.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.