World Bank Links $600 Million Loan to Wheat and Sugar Market Overhauls

The World Bank has offered a $600 million financing package to Pakistan tied to major regulatory and trade reforms.

NationPulse Desk

Oct 28, 2026 · 10:07 AM 3 min read

Key takeaways

The World Bank proposed a $600 million financing package for Pakistan tied to regulatory and trade reforms.

The total cost of the BRIDGE Programme is estimated at $1.193 billion, including $593.38 million from the government.

The plan involves removing wheat and sugar from the Import/Export Order, 2022.

Private investment currently sits at around 10 percent of gross domestic product, while foreign direct investment is approximately 0.6 percent of GDP.

Pakistan faces a proposed $600 million financing package from the World Bank that requires extensive modifications to trade policies, investment rules, and business regulations, such as taking wheat and sugar off the Import/Export Order, 2022, alongside permitting higher private sector involvement in urea imports.

The initiative, named the Pakistan Bold Reforms for Investment Driven Growth and Employment (BRIDGE) Programme, tackles structural hurdles that leave private investment near 10 percent of gross domestic product (GDP), falling below half of regional competitors, while foreign direct investment (FDI) sits around 0.6 percent of GDP.

World Bank Proposes $1.19 Billion Reform Programme

Official records state that the five year plan intends to draw in private investment, boost credit availability, enhance export competition, and match worker abilities with industry needs.

Total estimated expenses reach $1.193 billion, split into $600 million from the World Bank and $593.38 million provided by the government, featuring a $1.173 billion results based section and $20 million dedicated to technical support, with approval targeted for January 2027.

The Ministry of Finance will manage the scheme as Pakistan shifts from economic stabilization toward sustained growth driven by investments and exports, following World Bank findings that pointed to burdensome rules, sparse financing, expensive trade, and skills gaps as productivity blocks.

Business Regulations and Trade Barriers Targeted

Part one focuses on cutting regulatory and trade limits by launching the Pakistan Business Portal as a single digital hub for permits and passing a new Investment Act to boost transparency and investor safety.

Additional plans feature a single corporate insolvency rule, a factoring law, and full operations for the Export Import Bank of Pakistan with a banking license plus global export credit offerings, alongside faster customs clearance and wider accreditation for local firms.

Wheat, Sugar and Urea Markets Face Changes

Part two targets agribusiness and pharmaceuticals, featuring a unified national system for seed approvals, private sector urea imports, and the removal of wheat and sugar from the Import/Export Order, 2022.

Such adjustments aim to deregulate those agricultural markets and drive private funds, while pharmaceutical exports would grow by helping the Drug Regulatory Authority of Pakistan reach World Health Organization Regulatory Maturity Level 3 status and join the Pharmaceutical Inspection Co-operation Scheme.

These steps should allow local drug exporters to enter regulated global markets and multilateral supply tenders.

Pakistan Plans Workforce and Skills Reforms

Part three targets labor efficiency by bridging worker qualifications and job demands through a national Labour Market Information System connecting state databases, enhanced vocational credentials, and digital migration tools.

The plan also includes Global Skills Partnership agreements for structured overseas jobs for certified workers, with the World Bank pointing out that over three million citizens join the job market yearly, while women remain a priority group across every section.

The financing matches the official URAAN Pakistan economic transformation strategy, which targets raising private investment to 15 percent of GDP by 2035.

Success will be tracked using metrics on business signups, credit access, trade clearance speeds, certifications, and vocational skills to eliminate obstacles holding back private investment and spur economic growth.

Questions and answers

What is the total estimated cost of the BRIDGE Programme?

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 government.