Pakistan's prime minister on Wednesday welcomed a first-of-its-kind agreement with the World Bank for a plan to focus $20 billion in lending to the cash-strapped nation over the coming decade on development issues like the impact of climate change as well as boosting private-sector growth.

The $20 billion pledge will be critical in addressing the nation's development challenges, supporting immediate and long-term economic stability and growth goals. The World Bank has pledged to provide $40 billion to Pakistan under the 10-year Country Partnership Framework (CPF), according to sources in Ministry of Economic Affairs.

The World Bank has announced it will supply $20 billion to Pakistan over the next decade to help the country tackle climate change and development challenges that hinder growth, aiming for inclusive and sustainable development.