Governance reforms bring Pakistan over $2b

UK-backed programme worked closely with provincial governments.

Pakistan has unlocked more than $2.5b (£1.9b) in public finance via governance reforms backed by Britain.

According to the UK, which ran the Sub-National Governance Programme in Pakistan from 2019 to 2025, the Southeast Asian country saw improvements in planning, budgeting, and revenue mobilisation during the six-year period.

"Working closely with provincial governments, the programme has helped to achieve savings to reinvest into other public services," the British High Commission in Pakistan noted. "For example, it helped the Government of Punjab to develop a comprehensive pensions reform plan.

"This included the introduction of a new pensions scheme where both the employer and employee pay in, which is expected to save the Government of Punjab PKR2.7t over the next 30 years."

The British-led initiative delivered governance reforms across the areas of Punjab and Khyber Pakhtunkhwa.

"This programme shows what is possible when strong partnerships come together to support long-term reform, changing people's lives," British High Commission Development Director Sam Waldock commented.

"We've strengthened institutions, improved service delivery, and helped Pakistan unlock more of its resources to finance its own development.

"That has led to direct improvements to the day-to-day lives of millions – from helping people to access essential cash assistance, to creating waste management systems which makes their surroundings cleaner and more hygienic."

Moving forward, the UK will continue to prioritise sustained institutional reform and improved public financial management as part of its governance work in Pakistan in collaboration with the United Nations Development Programme.