ISLAMABAD: The World Bank is preparing a $300 million financing package for Pakistan under a five-year reform programme aimed at increasing private investment, boosting exports and creating employment opportunities.
The proposed Pakistan Bold Reforms for Investment-Driven Growth and Employment Program (BRIDGE) will support the country’s transition from economic stabilization toward investment-led growth. The programme will be led by Pakistan’s Ministry of Finance.
According to World Bank documents, the financing will be provided through the Program-for-Results (PforR) instrument. A technical design review is scheduled for September 2026, while the World Bank Board is expected to consider the programme for approval in January 2027.
The proposed package will combine funding from two World Bank institutions. The International Bank for Reconstruction and Development (IBRD) will provide $150 million, while the International Development Association (IDA) will contribute another $150 million.
Of the total financing, $270 million will support the reform programme, while $30 million will be allocated for technical assistance.
The World Bank said Pakistan has largely restored macroeconomic stability under its ongoing IMF programme. However, it noted that significant structural barriers continue to limit sustainable economic growth.
According to the World Bank, private investment in Pakistan currently stands at around 10% of GDP, less than half the level recorded by regional peers. Foreign direct investment remains even lower at approximately 0.6% of GDP.
The Bank attributed weak investment to several challenges, including excessive regulations, limited access to financing, high trade costs and an unfavorable business environment.
Weak labor market outcomes were also identified as a major obstacle to achieving stronger investment-driven growth.
The BRIDGE programme will focus on three major areas.
The first will involve reducing regulatory, financial and trade barriers that make it difficult for businesses to invest and expand.
The second area will focus on improving competitiveness in high-potential export sectors, including agribusiness, digital services and pharmaceuticals.
The third will target labor market improvements by strengthening the recognition of vocational skills and improving systems that connect workers with industry demand.
The programme will also support reforms related to overseas employment and migration, with the aim of helping Pakistani workers access better employment opportunities both domestically and internationally.
The proposed World Bank programme will support the government’s URAAN Pakistan agenda and its longer-term objective of increasing private investment to 15% of GDP by 2035.
Through BRIDGE, the World Bank aims to help Pakistan attract additional private capital, strengthen export competitiveness and generate employment.
The programme will therefore focus on removing regulatory, financial and market barriers that currently restrict private investment and limit Pakistan’s ability to achieve sustainable, investment-led economic growth.
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