World Bank mobilizes $3.2bn in private capital for Pakistan since 2022

October 12, 2026 (MLN): The World Bank Group has mobilized nearly $3.2 billion in private capital for Pakistan since 2022, directing investment towards energy and environmental initiatives as global private capital mobilization by the institution surged to $112bn in fiscal year 2026 from $35 billion four years earlier.

The funding has supported projects designed to increase renewable electricity generation, promote cleaner technologies and attract private-sector investment into development activities, the World Bank Group said.

The Dasu Hydropower Project is among the major initiatives benefiting from this financing approach. The project, being developed by the Water and Power Development Authority (WAPDA) with World Bank Group support, aims to increase Pakistan’s access to affordable electricity.

The project received an initial $588 million credit from the International Development Association (IDA), alongside a $460 million World Bank guarantee. This support helped secure an additional $338.5 million from international lenders and Rs144bn from a consortium of domestic banks.

The first phase of Dasu Hydropower Project is expected to contribute 2,160 megawatts of renewable power generation capacity while creating employment opportunities and stimulating economic activity in surrounding areas.

Another initiative highlighted by the World Bank Group is the Punjab Green Development Program, which seeks to promote environmentally sustainable production and encourage businesses to invest in cleaner technologies.

Backed by a $200m IDA credit, the program attracted $102.7m in green investment, including $52.7m from private investors. It also helped 98 small and medium-sized enterprises and 653 microenterprises adopt cleaner technologies, contributing to the creation of approximately 1,600 jobs.

The World Bank Group said mobilizing private capital helps channel investment towards development priorities by improving market conditions, preparing commercially viable projects, reducing investment risks and deploying financing instruments, guarantees and partnerships.

The approach is intended to address the growing financing requirements of developing economies, where public-sector resources alone are insufficient to meet investment needs.

Pakistan’s initiatives fall under the World Bank Group’s 10-year Country Partnership Framework, which prioritizes human capital development, sustainable private-sector expansion and stronger economic, social and environmental resilience.

The framework aims to generate employment and broaden economic opportunities by encouraging greater private investment and strengthening cooperation with development partners.

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