UK - Pakistan Development Portfolio - Strategic Approach

Description

This is a portfolio-level Early Market Engagement (EME) to apprise the market about our strategic approach to upcoming development sector work by the FCDO in Pakistan. Ministerial-level UK-Pakistan Development Talks were held in December 2025 (see press release - https://ead.gov.pk/NewsDetail/NTMwZmY2YTYtMGFlNy00NWJlLTljZDMtMDE4NDg5MGU0YjVk) - aiming to advance a partnership of mutual interest, aligning UK support with Pakistan’s development priorities. Globally, the UK is modernising its approach to international development, by focusing on four strategic shifts: 1. From Donor to Investor: partnering with countries to unlock growth, jobs and trade through innovative finance and private sector investment. 2. From Service Delivery to System Support: helping countries build their own education, health and economic systems – so they can thrive without aid. 3. From Grants to Expertise: moving from delivering programmes to leveraging global expertise to work alongside partners to solve challenges. 4. From International Intervention to Local Leadership: working increasingly alongside local partners including civil society, rather than large international interventions. Please note this will be a portfolio-level information dissemination session and the information and budgets might change, without any further notice. The UK-Pakistan Development Portfolio is set to focus on four priority themes, underpinned by a strong approach to Governance, Inclusion and Portfolio Monitoring, Evaluation and Learning (MEL): 1. Export-led Growth 2. Security & Migration 3. Climate, Nature & Humanitarian 4. Human Capital Systems Strengthening We will embed the UK’s four strategic shifts in how we work by working in a more politically informed, locally led and investment‑oriented way. • Programming will become more flexible and demand‑driven, shaped by local expertise and political strategies embedded across major areas of work. • Accountability will be mutual, with clearer expectations at federal and provincial levels and faster decisions to close failing work. • The UK will track outcomes across the whole portfolio, emphasising contribution to systemic change and expanding partnerships with non‑state actors, multilaterals and new finance players. • Technology and innovation—including AI—will be more deliberately used to strengthen evidence, efficiency and learning across the portfolio. We expect new programmes to include the following: 1. Federal Reforms for Growth (FRG) [joint FRG/PRG EME details- https://www.find-tender.service.gov.uk/Notice/057455-2025?] • Strengthens fiscal and business environment for inclusive growth. • Business Case value approx. £75m over 2026-33 2. Provincial Reforms for Growth (PRG) [EME details - https://www.find-tender.service.gov.uk/Notice/057455-2025?] • Improves economic governance and competitiveness in key provinces. • BC value approx. £85m over 2026-33 3. Jobs and Economic Transformation for Pakistan (JETPAK) [EME details- https://www.find-tender.service.gov.uk/Notice/057446-2025?] • Drive sectoral transformation by boosting competitiveness and investment. • BC value approx. £69m between 2026–2033 4. Protecting Communities (ProCom) [EME details - https://www.find-tender.service.gov.uk/Notice/086106-2025?] • Reduces GBV and strengthens Pakistan’s criminal justice system, institutional co-operation, and rule of law. • BC value approx. £15.6m for 2027-30 5. Education Systems Strengthening (TBC) 6. Health Systems Strengthening (TBC) 7. Climate Adaptation streamlining climate Technical Assistance (TBC) 8. Pakistan Portfolio Monitoring & Evaluation (PMEL) • Strengthens portfolio wide coherence, MEL systems and accountability. • BC value up to £18m over 2027-32 What are the expected results and Impact? Within each of these areas, we have prioritised the key shifts (or “big changes”) we think Pakistan needs to make to improve human development outcomes, where there is traction and alignment with UK interests and expertise. Export-led Growth • Pakistan’s federal government, and most populous provinces (KP, Punjab and Sindh) tackle policy barriers to economic growth, particularly fiscal foundations, business environment reforms. • Medium and large export-oriented firms in high-potential sectors - IT and IT-enabled services, pharmaceuticals, engineering goods and food & drink - realise export potential, including to the UK where possible. Security & Migration • Reduction in irregular migration and serious organised crime from Pakistan to the UK. Climate, Nature & Humanitarian • More Public and Private Climate Finance mobilised through our programming and policy influencing • Systemic shift by Pakistan and the UK to preparedness, anticipatory and adaptive disaster management • Practical implementation of Climate Adaptation and nature protection into the federal, provincial and district policies and practices Human Capital Systems Strengthening • Stronger health care systems to improve quality and access to essential health care. Improved health financing. • Sustainable population growth through family planning. • Inclusive and early foundational learning. Teacher professionalisation - early childhood education, primary and secondary. Education financing is more accountable.

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