The World Bank is planning to support Pakistan’s start-up ecosystem through a proposed $50 million Fund of Funds (FoF) aimed at strengthening innovation, entrepreneurship and venture capital investment in the country.
The initiative, titled the “Pakistan Entrepreneurship and Private Investment Catalyst Project,” is expected to be presented for approval to the World Bank’s Executive Board in early 2027. The project will help the government establish and capitalise the fund to support Pakistan’s emerging innovation and venture capital sector.
According to the project document, the proposed fund will invest in professionally managed venture capital funds, increasing access to early-stage and growth financing for innovative businesses with strong expansion potential.
The initiative aims to attract investment from domestic and international private investors, addressing a longstanding funding gap faced by start-ups and other innovative enterprises in Pakistan.
The World Bank expects improved access to private capital to help businesses expand, encourage innovation, enhance productivity and generate more employment opportunities, including higher-quality jobs.
The project will have a nationwide scope, with no specific geographical focus identified at the initial concept stage. As a result, Pakistan’s environmental and social conditions will be relevant to the anticipated investment portfolio of the proposed Fund of Funds.
The initiative is intended to strengthen the foundations of Pakistan’s entrepreneurial ecosystem by encouraging private investment and expanding financing opportunities for emerging businesses.
