Key Takeaways
- World Bank has mobilised nearly USD3.2 billion in private capital for Pakistan since 2022.
- Major projects include the Dasu Hydropower Project and the Punjab Green Development Program.
- Private capital mobilisation aims to support energy security, industrial modernisation, and environmental protection.
The World Bank Group has successfully mobilised nearly USD3.2 billion in private capital for Pakistan since 2022, significantly contributing to the country’s development efforts. This figure is part of the Bank’s broader strategy to bridge the widening development financing gap and attract private investment beyond public funds.
One of the key projects is the Dasu Hydropower Project, being developed by the Water and Power Development Authority (WAPDA) with World Bank Group support. An initial USD 588 million credit from the International Development Association (IDA) 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 the Dasu project is expected to add 2,160 megawatts of renewable electricity generation capacity, supporting local employment, services, and economic activity. This project exemplifies the World Bank’s approach of leveraging its financing and guarantees to attract private sector investment.
Another significant initiative is the Punjab Green Development Program, which aims to strengthen environmental governance and encourage businesses to adopt cleaner production technologies. Supported by a USD 200 million IDA credit, the program mobilised USD 102.7 million in green investment, including USD 52.7 million in private capital.
This program enabled 98 small and medium enterprises (SMEs) and 653 microenterprises to adopt cleaner technologies, contributing to the creation of around 1,600 jobs. By linking environmental improvements with private-sector development, the program supports sustainable job creation and improved public services.
Private capital mobilisation has become increasingly important for developing countries, particularly those facing substantial infrastructure, climate adaptation, and social development requirements. The World Bank Group works to strengthen markets, structure viable projects, and reduce investment risks, 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. This framework prioritises human capital development, durable private-sector-led growth, and stronger economic, social, and environmental resilience.
