World Bank approves $300 million loan for Punjab clean air program

The World Bank Group’s Board of Directors has approved a $300 million loan through its International Development Association (IDA) to support Punjab’s Clean Air Program (PCAP), an initiative aimed at strengthening air quality management and tackling air pollution in Pakistan’s largest province.

The program will back Punjab’s Smog Mitigation Action Plan (SMAP), targeting smog and air pollution through a series of comprehensive measures across key sectors including transport, agriculture, industry, energy, and municipal services.

“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,” Najy Benhassine, World Bank Country Director for Pakistan, said.

“Cleaner air will reduce the incidence of respiratory and cardiovascular diseases and contribute to a healthier, more livable environment.”

PCAP aligns with the World Bank’s new Country Partnership Framework (CPF) and aims to reduce PM2.5 particulate levels by 35% over the next decade, significantly curbing respiratory illnesses and other pollution-related health problems for Lahore Division’s 13 million residents.

Key interventions include introducing 600 electric buses, deploying 5,000 super seeders to reduce crop residue burning, expanding air quality monitoring stations, and establishing new fuel testing laboratories.

The program also promotes public awareness, behavioral change, and citizen engagement through air quality monitoring data and emission inventories. Vulnerable groups, including schoolchildren and hospital patients, will receive targeted messaging and advisories to mitigate the impact of air pollution.

The climate-focused initiative is expected to reduce greenhouse gas emissions by 35.6 million metric tons of carbon dioxide over 12 years. It will also implement an integrated pollutant and emissions inventory system to streamline tracking and management of environmental data.

Shyam Srinivasan, Task Team Leader for the project, highlighted additional benefits, stating, “The Punjab Clean Air Program will significantly benefit farmers by improving access to advanced crop technologies, create job opportunities in the e-bus sector, and support vehicle owners in upgrading aging fleets. Training and capacity-building measures for government officials will further contribute to a healthier and more sustainable environment.”