New $600m loan tied to reform laws

Pakistan plans to borrow $600 million from the World Bank through its BRIDGE programme, with approval currently expected on January 29, 2027. The Ministry of Finance would take the loan, which forms part of a programme estimated to cost $1.2 billion; the federal government is expected to provide the other $593 million.

The financing is tied to measures including new investment and factoring laws, a unified insolvency law, operationalising the Pakistan Business Portal and changes to trade rules for wheat and sugar. The World Bank says the programme supports Pakistan’s goal of lifting private investment to 15% of GDP by 2035, while its report puts the current share at around 10% of GDP and foreign direct investment at around 0.6%. The package also covers export support, fertiliser-market participation, pharmaceutical regulation and digitised processes for overseas workers.