World Bank has mobilised USD3.2bn in private capital since 2022
ISLAMABAD: The World Bank Group has mobilised nearly USD3.2 billion in private capital for Pakistan since 2022, including financing for major hydropower and green development projects, as the country seeks to bridge its widening development financing gap and attract investment beyond public funds.
Globally, the World Bank Group mobilised a record USD 112 billion in private capital for developing countries in fiscal year 2026, more than tripling the USD 35 billion recorded in fiscal year 2022, according to the Bank.
The Bank said that for Pakistan, the mobilisation effort includes leveraging World Bank financing and guarantees to attract international lenders and domestic banks, as well as encouraging businesses to invest in environmentally sustainable technologies.
READ MORE: World Bank boosts private capital mobilization to record $112 billion
It further stated that one of the major examples is the Dasu Hydropower Project, being developed by the Water and Power Development Authority (WAPDA) with World Bank Group support to expand the country’s supply of clean and affordable electricity.
An initial USD 588 million credit from the International Development Association (IDA), the World Bank’s concessional financing arm, and a USD 460 million World Bank guarantee helped mobilise USD 338.5 million from international lenders and Rs144 billion from a consortium of domestic banks.
The first stage of Dasu is expected to add 2,160 megawatts of renewable electricity generation capacity, while supporting local employment, services and economic activity.
Another example is the Punjab Green Development Program, under which the provincial government sought to strengthen environmental governance and encourage businesses to adopt cleaner production technologies.
Supported by a USD 200 million IDA credit, the programme mobilised USD 102.7 million in green investment, including USD 52.7 million in private capital. It enabled 98 small and medium enterprises (SMEs) and 653 microenterprises to adopt cleaner technologies and contributed to the creation of around 1,600 jobs.
The programme linked environmental improvements with private-sector development by helping businesses move towards cleaner production while creating investment and employment opportunities.
Private capital mobilisation has become increasingly important for developing countries facing substantial infrastructure, climate adaptation and social development requirements that cannot be met through government budgets and public financing alone.
Under this approach, the World Bank Group works to strengthen markets, structure viable projects and reduce investment risks through financing, guarantees and partnerships, encouraging private investors to participate alongside public and multilateral funding.
For Pakistan, greater private investment could help ease pressure on public resources while supporting energy security, industrial modernisation, environmental protection and employment generation. However, the scale of the benefits will depend on whether mobilised financing translates into productive investment, sustainable jobs and improved public services.
The investments form part of the World Bank Group’s ten-year Country Partnership Framework for Pakistan, covering fiscal years 2026 to 2035. The framework prioritises human capital development, durable private-sector-led growth and stronger economic, social and environmental resilience.
Copyright Business Recorder, 2026