The World Bank is proposing a $50 million project to expand venture capital financing for Pakistani startups and innovative businesses by attracting domestic and international private investment.

The Pakistan Entrepreneurship and Private Investment Catalyst Project is expected to go before the World Bank’s Executive Board for approval in early 2027.

According to the project document, the initiative would support the government in establishing and capitalizing a Fund of Funds. Rather than financing startups directly, the fund would invest in professionally managed venture capital funds, which would provide early-stage and growth financing to innovative, high-growth companies in Pakistan.

Bringing More Private Capital Into Startups
The proposed structure aims to draw more private investors into Pakistan’s developing venture capital market and address financing constraints faced by businesses with growth potential.

By channeling investment through professional fund managers, the initiative seeks to improve access to the capital companies need to expand.

The World Bank document identifies business growth, innovation and productivity as potential benefits of improved access to private financing. It also says the initiative could support the creation of more and better-quality jobs over time.

The project would operate nationwide, with no specific geographic focus identified at the concept stage.

The proposed $50 million initiative remains subject to board approval, with consideration expected in early 2027.