Pakistan eyes $1.5bn financing through World Bank guarantees

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MG News | October 16, 2026 at 03:53 PM GMT+05:00

October 16, 2026 (MLN): Pakistan is exploring potential financing of approximately US$1.5 billion through a combination of World Bank policy-based guarantees and Multilateral Investment Guarantee Agency (MIGA) coverage to secure funding at competitive rates.

The proposal was discussed during a meeting between Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb and Alvarez & Marsal on the sidelines of the World Bank Group–IMF Annual Meetings 2026 in Bangkok, Thailand.

The proposed financing would combine World Bank resources, budget support and guarantees to broaden investor participation, subject to the available guarantee envelope and transaction structure.

Muhammad Aurangzeb emphasized using an existing Development Policy Operation (DPO) to avoid delays associated with negotiating a new framework.

He supported further examination of the proposal through the Finance Division, Economic Affairs Division and World Bank Group.

The meeting also covered ongoing advisory work on the privatization of distribution companies (DISCOs).

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