WASHINGTON, Oct 12 (APP):The World Bank Group has mobilized a record $112 billion in private capital for developing economies in fiscal year 2026, more than tripling the amount over four years, including nearly $3.2 billion mobilized for Pakistan since 2022. The record mobilization marks the highest annual amount in the institution’s history, with private capital mobilization rising from $35 billion in FY2022 to $112 billion in FY2026. Combined with the …
WB mobilizes record $112bln in FY26; $3.2bln private capital for Pakistan since 2022
WASHINGTON, Oct 12 (APP):The World Bank Group has mobilized a record $112 billion in private capital for developing economies in fiscal year 2026, more than tripling the amount over four years, including nearly $3.2 billion mobilized for Pakistan since 2022.
The record mobilization marks the highest annual amount in the institution’s history, with private capital mobilization rising from $35 billion in FY2022 to $112 billion in FY2026. Combined with the World Bank Group’s own financing, the total financing and mobilization in developing economies exceeded $200 billion during FY2026, a news release said.
The growth was broad-based, with private capital mobilization for lower-middle-income countries increasing from $14 billion in FY2022 to $37 billion in FY2026, while the amount for upper-middle-income countries rose from $12 billion to $50 billion. In low-income countries, where attracting private investment remains challenging, mobilization was maintained at around $3 billion.
Across Africa, private capital mobilization increased from approximately $9 billion to $22 billion during the period, representing a rise of nearly 150 per cent.
The WB attributed the results to three years of institutional changes aimed at improving engagement with the private sector, simplifying procedures, strengthening coordination between its public and private sector operations, and expanding financing and investment instruments.
It has introduced a single point of contact for its public and private sector operations in each country and begun developing integrated country strategies aligned with national needs and development priorities.
The Private Sector Investment Lab has also helped identify practical barriers to investment in developing economies and develop measures to address them. The Group’s efforts include improving the business and regulatory environment, expanding guarantees and local-currency financing, addressing foreign-exchange challenges, increasing equity financing options and enabling institutional investors to participate at scale.
The WB issued more than $25 billion in guarantees in FY2026, surpassing its target of $20 billion in annual issuance by 2030 four years ahead of schedule. The growth was led by the World Bank Group Guarantee Platform, established in 2024 to provide clients and investors with a single point of access to guarantee products across the institution.
“Three years ago, our shareholders and clients were clear: utilize World Bank Group financing and knowledge to mobilize more private capital and become a better partner to the private sector. We changed how we work to do that – faster, simpler, and as one World Bank Group,” World Bank Group President Ajay Banga said.
“The result is $112 billion mobilized this year, more than three times where we started. But the number only matters if the capital goes where it can create opportunity and jobs. That is the work ahead: keep removing barriers, keep expanding the pool of investors, and keep driving more capital into developing economies,” he added.
Job creation remains the World Bank Group’s central priority, as 1.2 billion young people in developing economies are expected to reach working age over the next 10 to 15 years, while only around 420 million jobs are projected to be created. The private sector accounts for nine out of every 10 jobs in these economies.
The Group’s jobs strategy focuses on three mutually reinforcing drivers: investment in human and physical infrastructure, business-ready regulatory environments, and support for private-sector expansion. It targets five sectors with strong employment potential: infrastructure and energy, agribusiness, healthcare, tourism, and value-added manufacturing.
During FY2026, around 55 per cent of the Group’s total financing, including its own-account financing and mobilized capital, went to these job-intensive sectors to support private investment, business growth and employment.
It said private investment was also reaching lower-income economies, where regional and local investors were increasingly complementing global capital in financing businesses and creating jobs.
To build on the progress, the World Bank Group is working to expand the range of investors participating in developing economies through its originate-to-distribute (O2D) initiative. The initiative aims to package and distribute investments to institutional investors on a larger scale, connecting long-term capital with investment opportunities in developing economies.
The Group aims to mobilize more capital from a wider range of sources and channel it into job creation and economic opportunities.
