WASHINGTON: The World Bank Group has mobilised nearly $3.2 billion in private capital for Pakistan since 2022, as its total mobilisation for developing economies reached a record $112 billion in fiscal year 2026.
According to a World Bank Group press release, annual private capital mobilisation more than tripled in four years, rising from $35 billion in FY2022 to $112 billion in FY2026. This marks the highest annual total in the institution’s history.
Combined with the Group’s own financing, total financing and mobilisation for developing economies exceeded $200 billion during FY2026.
Private Investment Rises Across Income Groups
The increase extended across countries at different income levels.
Private capital mobilisation for lower-middle-income countries rose from $14 billion in FY2022 to $37 billion in FY2026. Meanwhile, upper-middle-income countries saw an increase from $12 billion to $50 billion.
In low-income countries, where attracting private investment remains difficult, mobilisation remained at around $3 billion.
Africa also recorded significant growth. Private capital mobilisation across the continent increased from approximately $9 billion to $22 billion during the same period, representing a rise of nearly 150 per cent.
World Bank Reforms Boost Private Sector Engagement
The World Bank Group attributed the growth to three years of institutional reforms designed to strengthen private sector engagement, simplify procedures and improve coordination between its public and private sector operations.
The reforms also expanded the institution’s financing and investment instruments.
As part of these efforts, the Group introduced a single point of contact for public and private sector operations in each country. It also began developing integrated country strategies aligned with national needs and development priorities.
The Private Sector Investment Lab has helped identify practical barriers to investment in developing economies and develop measures to address them.
Guarantees Exceed 2030 Target Ahead of Schedule
The Group’s initiatives include improving business and regulatory environments, expanding guarantees and local-currency financing, addressing foreign-exchange challenges and increasing equity financing options.
It is also working to enable institutional investors to participate in developing economies at a larger scale.
The World Bank Group issued more than $25 billion in guarantees during FY2026, surpassing its target of $20 billion in annual issuance by 2030 four years ahead of schedule.
The increase was led by the World Bank Group Guarantee Platform, established in 2024 to give clients and investors a single point of access to guarantee products across the institution.
