World Bank plans $300 million financing package to drive investment, jobs in Pakistan

Profit reported that the World Bank is readying $300 million for Pakistan through BRIDGE, a five-year reform programme. The aim is to lift private investment, expand exports and generate jobs as the economy moves from stabilisation toward growth led by investment. BRIDGE is linked to URAAN Pakistan, the government's agenda, and the Ministry of Finance will head it using a Program-for-Results instrument.

A technical design review is due in September 2026, and Board approval is expected in January 2027. The total is split equally, with $150 million each from the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA). Of the sum, $270 million funds reforms and $30 million supports technical work. The Bank noted that the country has mostly recovered its macroeconomic footing under the ongoing IMF arrangement, yet structural barriers still limit sustainable growth.

The Bank put private investment at about 10% of GDP, under half the figure recorded by regional peers, and foreign direct investment at 0.6% of GDP. It blamed heavy regulation, tight access to finance, high trade costs, an unfavourable business climate and weak labour outcomes. Its three priorities are cutting regulatory, financial and trade hurdles, raising export competitiveness in agribusiness, digital services and pharmaceuticals, and improving how the labour market works. Disbursements will be tied to agreed reform results rather than to policy announcements alone.