The World Bank has proposed a $600 million programme to help Pakistan raise private investment, improve trade competitiveness and create jobs, under a reform plan that could come up for approval in January 2027.
What happened?
The proposed Pakistan Bold Reforms for Investment-Driven Growth and Employment (BRIDGE) Programme carries a total estimated cost of $1.193 billion, comprising $600 million in proposed World Bank financing and $593.38 million from the Government of Pakistan, according to the Bank’s project document reported by Business Recorder. The package includes a $1.173 billion results-based programme and a $20 million technical assistance component, and it is proposed for approval in January 2027.
Key details
- The programme aims to raise private investment from about 10 percent of GDP to 15 percent by 2035, under Pakistan’s broader URAAN economic transformation plan; foreign direct investment currently stands at roughly 0.6 percent of GDP.
- The reform agenda proposes removing wheat and sugar from the Import/Export Order 2022, increasing private-sector participation in urea imports, and eliminating broader barriers to investment and trade.
- Other measures include operationalising the Pakistan Business Portal as a one-stop digital platform for approvals, enacting a modernised Investment Act, introducing a unified corporate insolvency law and a dedicated factoring law, and fully operationalising the Export-Import Bank of Pakistan with a banking licence and export credit and guarantee products.
- In export-oriented industries, the programme targets agribusiness and therapeutic goods, including pharmaceuticals, and supports a single national system for approving seed varieties.
- It also supports reforms intended to help the Drug Regulatory Authority of Pakistan reach World Health Organisation Regulatory Maturity Level 3 and secure membership in the Pharmaceutical Inspection Co-operation Scheme.
- The programme is to be coordinated by the Ministry of Finance and focuses on reducing regulatory, financial and trade barriers, improving competitiveness in export sectors and strengthening labour market functioning.
What it means for people in Pakistan
If approved and implemented, the reforms could make it easier to start and grow businesses, cut red tape around imports and exports, and open more job opportunities, particularly in export industries such as agriculture and pharmaceuticals. For consumers, freer trade in staples such as wheat and sugar and more competition in sectors like urea could eventually affect prices and availability, though the programme itself is still a proposal awaiting approval.
Source: https://tradersunion.com/news/institutions/show/3995464-world-bank-pakistan-financing-reforms/
