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 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.