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World Bank Group BoD okays $300m IDA loan for Punjab Clean Air Programme

By Staff Reporter | The Nation Apr 1, 2025

 The World Bank Group Board of Directors has approved a $300 million International De­velopment Association (IDA) loan for the Punjab Clean Air Programme (PCAP) to strengthen air quality manage­ment and combat air pollution.

PCAP will support the gov­ernment of Punjab’s Smog Mitigation Action Plan (SMAP) in tackling the pressing issue of smog and air pollution with the launch of several compre­hensive initiatives aimed at im­proving air quality and public health across the province par­ticularly in key sectors such as 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,” said Najy Benhassine, World Bank Country Director for Pakistan. “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) aligns with the new World Bank Country Part­nership Framework (CPF) and aims to reduce PM2.5 levels by 35% over the next decade, significantly decreasing the in­cidence of respiratory illnesses and other pollution-related health issues for the 13 million residents of Lahore Division. The program focuses on the continuation of strengthening air quality management (AQM) infrastructure, enhancing reg­ulatory and institutional ca­pacity, targeted sectoral abate­ment measures and promoting public awareness.

Key interventions include the investment of 5000 super seeders to reduce the main is­sue of the excessive seasonal fog -crop residue burning, the introduction of 600 electric buses to foster a modal shift to public transport, the expansion of regulatory-grade air qual­ity monitoring stations across Punjab, and the enhancement of fuel quality testing through the establishment of two new fuel testing laboratories.

Recognizing the impor­tance of public participation in achieving cleaner air, the program promotes behavioral change and active citizen en­gagement, utilizing air quality monitoring data and emissions inventories to educate stake­holders about air pollution sources, health impacts, and reduction measures. Special attention will be given to vul­nerable populations through targeted messaging and advi­sories, including schools and hospitals.

The PCAP’s climate co-bene­fit of reducing PM 2.5 includes a reduction in greenhouse gas emissions (GHGs). The esti­mated reduction in GHGs for the program is 35.6 million metric tons of carbon dioxide over the next 12 years, signifi­cantly benefiting the environ­ment and contributing to cli­mate change mitigation. The program will also develop an integrated pollutant and GHG emissions inventory system to provide a comprehensive ap­proach to tracking and manag­ing emissions data.

“The Punjab Clean Air Pro­gram will significantly benefit farmers by improving access to advanced technologies for bet­ter crop management, create job opportunities in the e-bus and depot sectors, and support vehicle owners in renewing ag­ing vehicles,” said Shyam Srini­vasan, Task Team Leader for the Project. “Additionally, it will enhance the skills and knowl­edge of government officials through training and capacity building, ultimately contrib­uting to a healthier and more sustainable environment.”

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