The Pandemic Fund and the Next Global Health Crisis

Image Source: Getty Images

The COVID-19 pandemic fundamentally reshaped the world in many ways. It exposed glaring gaps in international coordination, adaptive capabilities of health systems, inadequate emergency surge funding, infrastructural gaps, and overall pandemic prevention, preparedness and response (PPR). Recognising that disease threats in any one country are a threat for all countries, the G20 and World Health Organization (WHO) called for US$10.5 billion in additional funding annually to fortify the global pandemic PPR architecture. Consequently, in 2022, the World Bank established The Pandemic Fund as a multilateral Financial Intermediary Fund to fill critical investment gaps and finance pandemic PPR across regional, national, and global levels.

The Pandemic Fund aims to enhance coordination among all stakeholders and secure additional investments from both domestic and international sources, while promoting the long-term sustainability of resources through encouraging national-level planning. 

Unlike other institutions and financing mechanisms, The Pandemic Fund focuses only on supporting pandemic PPR activities, with a focus on low- and middle-income countries. The Fund provides grants to scale efforts across disease surveillance, diagnostics and laboratory systems, and to develop workforce capabilities. The primary underlying themes across all of the Fund’s activities include One Health, community engagement, gender equality, and health equity. Furthermore, The Pandemic Fund aims to enhance coordination among all stakeholders and secure additional investments from both domestic and international sources, while promoting the long-term sustainability of resources through encouraging national-level planning. 

First and Second Round of Funding

Soon after its launch, The Pandemic Fund approved its first round of funding in May 2023, followed by the second round in December 2023. The fund has awarded grants amounting to US$885 million in these two rounds, as detailed in Table 1. 43 percent of these funds were allocated to countries in Sub-Saharan Africa in the first round, and 50 percent in the second.

Table 1: Summary of The Pandemic Fund’s First and Second Rounds of Funding

Source: The Pandemic Fund (2025)

Additionally, The Pandemic Fund’s grants had multiplier effects, mobilising an additional US$6 billion in co-financing and co-investments. The Leverage Ratio (additional funds catalysed per dollar of The Pandemic Fund’s grant) stood at 6.4 and 7.3 in the first and second rounds, respectively. The additional resources were mobilised from multiple sources, including domestic resources, multilateral development banks, global health initiatives, development partners, the private sector, and philanthropies.

Progress So Far

Figure 1: The Pandemic Fund’s Global Reach as of 2024 during the First and Second Rounds of Funding

Source: The Pandemic Fund (2024)

As depicted in Figure 1, The Pandemic Fund has approved projects across a range of eligible countries and regions. A total of 47 projects is expected to benefit 75 countries. This can be attributed to the strategic allocation of funds to various projects across multiple countries, particularly those with benefits that extend beyond national borders. Additionally, most projects support efforts across surveillance, laboratory systems strengthening, and building workforce capacity. Funding was also prioritised for low-income countries and to support fragile and conflict-affected regions. These strategic investments promise maximum impact for the funds allocated, targeting the most vulnerable regions and the gap areas in each, while advancing the underlying themes of The Pandemic Fund.

The Pandemic Fund commissioned an independent Stockpiling review with extensive consultations with stakeholders to make improvements during the second round of funding, particularly in terms of the results framework.

However, alongside recognition for its efforts, The Pandemic Fund also received criticism from experts on its ability to sustainably meet the current financial challenges faced by the global pandemic PPR architecture, concerns over equity and inclusivity, and a lack of clarity for proposals over objectives. In response, following the first funding round, The Pandemic Fund commissioned an independent Stockpiling review with extensive consultations with stakeholders to make improvements during the second round of funding, particularly in terms of the results framework. As it continues to grow and mature, The Pandemic Fund regards regular consultations to enhance its efforts and address gap areas urgently.

Why Catalysing Global Preparedness Still Matters

Research estimates a 47-57 percent chance of another global pandemic as perilous as COVID-19 in 25 years. Global challenges, such as environmental degradation, climate change, biodiversity loss, population growth, mass migration, industrial farming, and antimicrobial resistance (AMR), can all increase the probability of outbreaks, especially in underserved regions and among marginalised populations. It has been estimated that COVID-19’s impact alone on the total Gross Domestic Product (GDP) loss was US$2.5 trillion for India – the largest loss in GDP globally – followed by the United States (US$1.7 trillion) and China (US$1.2 trillion).

Given this context, the significance of The Pandemic Fund cannot be overstated. Its role in PPR was demonstrated in September 2024, when, as a part of its second round of funding, US$129 million in allocation was fast-tracked for five projects across 10 countries in Sub-Saharan Africa, to contain the Mpox outbreak. Furthermore, in December 2024, The Pandemic Fund announced its third round of funding of US$500 million.

Financing Gaps

While the grants provided have not only been substantial in themselves, but also mobilised additional resources, considerable gaps remain. According to estimates, an additional US$2 billion is needed in international financing to fund The Pandemic Fund’s strategic plan for 2025–2027. The Fund aims to allocate US$1 billion annually over this duration, with a leverage ratio of at least 4.8, to effectively facilitate projects in high-priority areas across the pandemic PPR framework.

The Pandemic Fund is exploring medium- to longer-term pathways to sustainable financing through innovative options to mobilise non-official development assistance (ODA) funding sources, with efforts dedicated to a separate resource mobilisation strategy. 

Additionally, in 2023, the United States (US) pledged US$700 million to the Pandemic Fund and paid all contributions by September 2024, making it the largest contributor. The US’s 2023 National Defense Authorization Act authorises up to US$5 billion in contributions over a period of five years. However, there are concerns persisting over the disbursement of these funds due to political and budgetary pressures. If the contributions do not materialise, it may affect the viability of The Pandemic Fund.

Given the current climate, The Pandemic Fund is exploring medium- to longer-term pathways to sustainable financing through innovative options to mobilise non-official development assistance (ODA) funding sources, with efforts dedicated to a separate resource mobilisation strategy. 

Way Forward

As the world remains on the precipice of new and recurring pandemic threats, The Pandemic Fund stands as a global public good to strengthen pandemic PPR capacity worldwide. Its capacity to catalyse additional resources, foster cross-sectoral collaborations, and direct funding to underserved regions demonstrates its value. In the current context, its future is uncertain, which may lead to delays or interruptions in essential pandemic PPR programmes.

This requires continued and reinvigorated commitment from governments, philanthropies, and the private sector, alongside innovative financing approaches to secure the Fund’s longevity and impact. Meanwhile, as The Pandemic Fund evolves, it is imperative to continue efforts to review and improve existing mechanisms and frameworks to ensure the priority outcomes are realised. The next pandemic could arise sooner than anticipated, and the global community cannot afford underinvestment. By closing financing gaps, The Pandemic Fund can enable actions toward a safer and healthier future for all.

Nimisha Chadha is a Research Assistant at the Centre for New Economic Diplomacy, Observer Research Foundation.

The views expressed above belong to the author(s). ORF research and analyses now available on Telegram! Click here to access our curated content — blogs, longforms and interviews.