The World Bank has proposed $600 million in financing for Pakistan under a five-year economic reform programme aimed at reducing trade barriers, increasing private-sector participation and encouraging investment across key sectors. The proposed Pakistan Bold Reforms for Investment-Driven Growth and Employment (BRIDGE) programme includes changes to wheat and sugar trade policies, greater private-sector involvement in urea imports, improvements to export regulations and measures to simplify business approvals. According to official project documents cited in media reports, the programme has an estimated total cost of $1.193 billion, comprising $600 million in proposed World Bank financing and $593.38 million from the Pakistani government. The project is expected to be considered for approval in January 2027, subject to the applicable approval process.
The proposed programme includes $1.173 billion in results-based financing and a separate $20 million technical assistance component. Its broader objective is to address structural barriers that have limited private investment and restricted the growth of trade and export-oriented businesses in Pakistan. The World Bank’s project documents highlight that private investment in the country remains around 10% of gross domestic product (GDP), less than half the level recorded by regional peers, while foreign direct investment stands at approximately 0.6% of GDP. The proposed reforms seek to improve the conditions for domestic and foreign investors by revising regulations, increasing competition and making it easier for businesses to operate, expand and access international markets.
Agriculture-related reforms form an important part of the proposed framework. The programme calls for removing wheat and sugar from the Import/Export Order, 2022, as part of efforts to change the existing approach to regulating trade in these commodities. It also proposes expanding private-sector participation in urea imports, with the stated objective of encouraging competition and investment. These measures would affect sectors that play a significant role in Pakistan’s agricultural economy and domestic supply chains. The proposed changes are intended to reduce regulatory barriers and create greater scope for private businesses to participate in trade. Their implementation would depend on the government’s adoption of the required policy and regulatory changes under the programme.
The BRIDGE programme also includes measures to improve the business environment, strengthen export capacity and modernise regulatory systems. One proposal is to operationalise the Pakistan Business Portal as a single platform for business approvals, potentially simplifying interactions between companies and government departments. The framework also calls for a modernised Investment Act and the establishment of unified corporate insolvency and factoring laws. In addition, the government would work towards fully operationalising the Export-Import Bank of Pakistan, including securing a banking licence and introducing export credit and guarantee products aligned with international standards. Trade-related reforms would focus on reducing the time required for import and export clearances and expanding internationally recognised accreditation for Pakistani businesses, helping exporters meet the requirements of overseas markets.
Pharmaceutical exports are another area covered by the proposed financing programme. The framework aims to support the Drug Regulatory Authority of Pakistan in achieving World Health Organisation Regulatory Maturity Level 3 status and membership of the Pharmaceutical Inspection Co-operation Scheme. These steps are intended to strengthen regulatory capacity and improve the standing of Pakistan’s pharmaceutical industry in international markets. The programme also proposes establishing a unified national system for seed variety approvals, alongside improvements to regulatory standards for pharmaceutical exports. By addressing regulatory requirements across different industries, the initiative seeks to improve the ability of Pakistani businesses to compete internationally and expand their access to export opportunities.
Employment and workforce development are also central to the programme’s objectives. The proposed measures include establishing a national Labour Market Information System, improving vocational qualifications and developing international skills partnerships to facilitate overseas employment. The World Bank has highlighted that more than three million people enter Pakistan’s labour market each year, increasing pressure on the economy to generate sufficient employment opportunities. The proposed reforms aim to support job creation by improving investment conditions, strengthening workforce preparation and linking skills development more closely with employment requirements. The Ministry of Finance will coordinate the programme, which is aligned with the government’s URAAN Pakistan economic plan and its target of increasing private investment to 15% of GDP by 2035.
If approved and implemented, the BRIDGE programme would provide a multi-year framework for addressing regulatory constraints across agriculture, trade, investment, pharmaceuticals and employment. The proposed $600 million World Bank contribution would form part of a broader financing package in which the government is expected to provide $593.38 million. However, the programme remains at the proposal stage, with approval anticipated in January 2027. Its impact will depend on the completion of the approval process, the introduction of the planned policy changes and the government’s ability to implement reforms across the relevant institutions. The stated objectives include expanding private investment, improving export competitiveness and supporting employment growth through a more investment-oriented economic framework.
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