World Bank Approves $600m Loan for Pakistan Reforms

This financial support aims to enhance credit accessibility and lower credit costs through the introduction of a modernized consolidated corporate insolvency law, as well as to boost receivables-based financing.

This loan is part of the "Bold Reforms for Investment-Driven Growth and Employment (BRIDGE) Programme" and follows the failure of earlier foreign-funded initiatives. The World Bank has confirmed that the loan will be approved by January 29, 2027, and will be managed by the Ministry of Finance.

In exchange for the loan, the Pakistani government has committed to enacting two new laws, the Investment Act and the Factoring Law, creating a database of Pakistanis abroad, permitting free international trade in sugar and wheat, and increasing the share of urea imports by private entities.