World Bank Approves $300 Million Loan for Smog Mitigation Project in Punjab

The World Bank has approved a $300 million (Rs. 84 billion) loan to Punjab to reduce air pollution by introducing electric buses, controlling farm residue burning, and strengthening air quality management.

The initiative will be monitored by the Punjab Clean Air Program (PCAP) and cut particulate matter (PM2.5) levels by 35 percent over the next decade. This is expected to benefit Lahore’s 13 million residents for a very long time.

The loan will finance 400 electric buses, 5,000 super seeders to curb crop burning, and the expansion of air quality monitoring stations and fuel testing labs. Of the total funds, $245 million is allocated for transport sector reforms, while $20 million will support agricultural pollution control.

Punjab’s smog mitigation efforts come amid worsening air pollution, with PM2.5 levels in Lahore often exceeding 300-400 µg/m3. The World Bank emphasized that fine particulate pollution, mainly from transport, industry, and household cooking, poses severe health risks. The program will also promote regulatory reforms and public awareness campaigns.