World Bank

South Africa is considering tax cuts in special economic zones (SEZs) to revive industrial growth, aligning with World Bank recommendations. The plan aims to extend a 15% corporate tax rate to all SEZs, attract foreign investors like Rio Tinto and Ardagh Group, and unlock $109 billion in corporate cash amid declining manufacturing output. Morocco recently surpassed South Africa as Africa’s most industrialized economy.

The World Bank praised Andhra Pradesh's efforts to improve school education quality. The Samagra Shiksha State Project Director presented progress on education initiatives during a three-day World Bank Group workshop.

A World Bank report on the NFC Award post-18th Amendment highlights that 80% of provincial spending in health and education goes toward salaries, with minimal improvement in service indicators. Local government funding has declined significantly, and provinces have failed to establish fair distribution mechanisms, while political parties have entrenched power in their respective provinces through patronage systems.

The World Bank's report on Pakistan's fiscal federalism is technically strong but politically naive, highlighting unresolved issues in fiscal distribution and constitutional amendments. It criticizes the federal government's delay in implementing subsequent finance commission awards and its role in creating a structural federal fiscal deficit.

The Pakistani government has allocated Rs1.6 billion to the Pakistan Meteorological Department (PMD) in FY27 to enhance weather forecasting and early warning systems, including projects like the National Centre for Rainfall Enhancement and radar installations in Multan and Sukkur. An additional Rs2.48 billion is allocated to the Ministry of Climate Change for initiatives such as afforestation, biodiversity conservation, and climate-smart agriculture.

The World Bank established an Andean Countries Division to oversee $9 billion in active lending across Bolivia, Chile, Colombia, Ecuador, Peru, and Venezuela. Ariel Yepez was appointed as the division's director, effective July 1.

Ukraine's Recovery Conference in Gdańsk secured $20 billion in financing and partnership deals across energy, banking, insurance, and drone production. The EU and World Bank provided public funding, while PrivatBank, Oschadbank, and defense manufacturers led private-sector agreements.

Kadiatou Diallo, a mother in Guinea, advocates for her autistic son Kazaliou Balde, who faced stigma and limited resources. Autism in Guinea lacks government support, with misconceptions attributing it to evil spirits and few affordable schools for affected children.

Jamaica secured a $200 million parametric hurricane bond in May 2025 through a World Bank-facilitated catastrophe bond, its largest to date. The previous bond paid out $150 million in full after Hurricane Melissa struck in October 2025 but did not pay out following Hurricane Beryl in 2024.

The US faced record-breaking heat disrupting Independence Day plans, with temperatures exceeding 100F in New York and Boston. Extreme heat caused over 2,000 excess deaths in Spain and France, while global ocean temperatures reached record levels, raising climate crisis concerns. The World Bank abandoned a climate-related lending goal, and China announced a 20tn yuan energy investment plan.

The World Bank has abandoned a 45% climate finance target for funding to developing countries under pressure from the Trump administration, but retained its climate action plan. The bank remains the largest global provider of climate finance, distributing $39.2bn in 2025, with significant investments in clean energy and emerging economies like India and Nigeria.

Vietnam and the Philippines were reclassified as upper-middle-income countries by the World Bank in 2025 based on their GNI per capita of $4,970 and $4,850, respectively. The upgrade reflects Vietnam's 8% economic growth driven by exports and foreign investment, and the Philippines' 4.4% growth despite natural disasters. Both nations now face challenges in avoiding the middle-income trap to reach high-income status.

A World Bank report highlights that Pakistan's 18th Amendment and 7th NFC Award aimed to strengthen fiscal federalism by decentralizing powers and resources to provinces. However, implementation has been ineffective, with federal deficits, provincial inefficiency in revenue mobilization, and weak local governance undermining progress. The report emphasizes incomplete devolution, governance failures, and the need for reforms like improving provincial revenue and empowering local governments.

The World Bank has abandoned its goal of allocating 45 percent of its financing to climate change projects, sparking concerns that poorer countries, particularly in Africa, may receive reduced support for adapting to climate challenges.

The World Bank is set to phase out loans to China by 2031, with China's Ministry of Finance attributing the shift to the nation's advancing economy and evolving development needs. The ministry described the declining bilateral financing cooperation as a 'natural' transition toward knowledge sharing.

Two senior officials from India and Pakistan, Dr. P.K. Saxena and Syed Mehar Ali Shah, debate the Indus Waters Treaty in a public exchange. Saxena accuses Pakistan of benefiting disproportionately from the treaty while India bears obligations, while Shah argues Pakistan's water allocation is a protected right and India's financial contribution was necessary for implementation.

The World Bank's study 'Strengthening Fiscal Federalism in Pakistan' critically evaluates the seventh NFC Award, highlighting issues like arbitrary resource distribution and increased provincial spending on wages and pensions without corresponding improvements in social services. While acknowledging some strengths, the report argues the NFC Award has contributed to a structural federal fiscal deficit and failed to align financing with public functions.

The World Bank has approved $1.25 billion in financing for Nigeria and unveiled a six-year growth strategy to support the country's development.

The World Bank acknowledges Pakistan's 'meaningful' progress in fiscal federalism since 2010 but highlights deviations from international norms, including incomplete expenditure assignments, fragmented tax systems, and flawed federal-provincial transfer arrangements. The report criticizes the 18th Constitutional Amendment for complicating tax jurisdictions and notes that local governments remain fiscally dependent and institutionally unstable.

The World Bank approved a $750 million loan to Kenya to support economic investment and fund a $37 billion budget, part of which addresses Kenya’s $100 billion debt. The lender commended Kenya’s government for financial reforms and anti-corruption efforts but emphasized the need for continued fiscal discipline. The World Bank also announced a $1.25 billion partnership with Nigeria to boost economic growth.

The World Bank has approved a $70 million loan for Pakistan’s Connected Punjab Programme (CPP) to expand broadband internet access, improve digital service delivery, and promote cashless transactions in Punjab. The initiative aligns with Pakistan’s national digital agenda and aims to reduce regulatory barriers, boost private investment in broadband, and enhance AI-enabled public services for 28.9 million people by 2031.

Pakistan accused India of 'weaponisation of water' over the suspension of the Indus Waters Treaty, warning it could threaten regional peace and security. Foreign Minister Ishaq Dar and officials made the remarks at a seminar discussing the 1960 World Bank-brokered treaty governing water sharing between the two nations.

President Trump shifted from military confrontation with Iran to seeking a ceasefire, driven by a global oil shock causing economic strain, including rising oil prices, fertilizer costs, and financial burdens on consumers and taxpayers. The conflict's economic impacts included inflation, higher mortgage rates, and risks to desalination infrastructure in the Middle East.

Pakistan's Information Minister Attaullah Tarar asserted that the country's 240 million people have an 'inalienable right' to water from the Indus River System, emphasizing the Indus Waters Treaty (IWT) as a lifeline and a cornerstone of regional stability. He highlighted the treaty's historical significance and resilience amid tensions with India, stressing that Pakistan's civilian and military leadership will not allow unilateral amendments to the IWT.

The World Bank has approved a $750 million loan to Kenya and agreed to back it. The article mentions Nairobi's commercial and residential buildings as part of the city's skyline.

Isabel Schnabel, an executive board member of the European Central Bank, noted upside inflation risks despite a peace deal, while the International Monetary Fund downgraded its growth projection due to a Middle East war-induced oil shock and potential energy infrastructure damage.

Ukraine secured over €10 billion in international support and investment agreements at the Gdańsk Recovery Conference, with 160 agreements signed across sectors like energy, defense, infrastructure, and housing. Key financial commitments included a €3.2 billion tranche from the EU’s Ukraine Support Loan and a $3.4 billion agreement with the World Bank.

Bangladesh received $1 billion in World Bank loans for fertilizer and food support amid concerns over global supply disruptions caused by the Middle East conflict involving the United States, Israel, and Iran. Rising energy and fertilizer prices threaten economic stability in import-dependent South Asian countries like India, Pakistan, and Bangladesh.

Nigeria remained among the world’s nine largest gas-flaring countries in 2025 as global gas flaring reached its highest level since 2019, according to the World Bank’s Global Gas Flaring Tracker Report.

Pakistan's education system faces a structural misalignment between education and sectors with comparative advantage, leading to shortages of skilled workers and underemployed graduates. The article argues for prioritizing technical skills and productivity in sectors where Pakistan can compete, while gradually improving universities, citing examples like South Korea, China, Vietnam, and Bangladesh to highlight the importance of workforce capabilities for economic growth.

The Climate Investment Fund (CIF) approved $500 million in catalytic financing for Brazil and Mexico to decarbonize their industrial sectors, targeting industries like iron and steel, cement, chemicals, and aluminum. The funding aims to unlock billions in additional private and institutional investment, preventing nearly 2 million metric tons of CO₂ emissions annually.

West Africa spends over $3.5 billion annually importing rice, a staple food that grows naturally in the region. The article highlights the potential of investing in the local rice value chain as a strategic economic opportunity.

Global gas flaring reached a six-year high in 2025, driven by increases in Russia and Iran, according to World Bank data. The practice rose to 167 billion cubic metres, wasting $54 billion worth of gas and undermining efforts to end routine flaring by the end of the decade.

Brazil and Mexico received a $500 million grant from a World Bank-managed climate fund to clean up their steel industries, with the goal of leveraging over $5 billion in additional financing. The initiative targets the dirtiest industries for environmental improvements.

Hillel Neuer of UN Watch, a pro-Israel NGO, detailed efforts to lobby the US to sanction UN Special Rapporteur Francesca Albanese over her comments about the 'Jewish lobby' and the October 7 attacks. Neuer also claimed his organization contributed to Albanese's husband being demoted from a World Bank position.

Japan's finance minister Satsuki Katayama addressed media during the IMF and World Bank Spring meetings in Washington, DC. The IMF downgraded its annual growth projection due to a major oil shock from the Middle East war, warning of potential economic downturn if the conflict persists and energy infrastructure is severely damaged.

Argentina authorized borrowing up to $5 billion through guaranteed loans to cover approximately $4.5 billion in debt due in early July. The World Bank and the IDB are providing partial guarantees for the loans.

Paraguay experienced 6.5% economic growth in 2025 and is projected to lead South America (excluding oil-rich Guyana) through 2028, per World Bank data. Moody’s and S&P upgraded Paraguay to investment grade in 2024 and December 2025, respectively.

Paraguay aims to join the OECD, a group of wealthy economies, with President Santiago Peña seeking rapid membership. The World Bank projects Paraguay's economy to grow 4.2 percent annually through 2028, making it the fastest-growing in South America.

South Africa will address global health aid declines at a UN HIV/AIDS meeting amid U.S. cuts to its $8 billion PEPFAR program, which has been reduced by 75% and now provides a $115 million stopgap until 2026. The funding reduction threatens HIV treatment in South Africa, the country with the world's largest HIV population, and has prompted the government to develop a self-reliance plan while seeking alternative funding at the UN meeting.