World Bank lines up $50m fund of funds for Pakistan's VC funds

World Bank lines up $50m fund of funds for Pakistan's VC funds

19 October 2026: The World Bank has put a US$50 million loan for Pakistan into its project pipeline that would set up and capitalise a fund of funds investing in professionally managed venture capital funds. The borrower is the Ministry of Information Technology and Telecom and the implementing agency is Ignite, the ministry's technology fund, so Pakistani founders would see the money only after it has passed through private fund managers.

Not yet independently verified. The project is in the World Bank's pipeline and has not been approved; the amount, structure and dates can change before the board meets. Fund sizes, ticket limits and how venture managers apply have not been published. We will update this when it can be confirmed, and remove this note.

The Pakistan Entrepreneurship and Private Investment Catalyst Project (P519113) was publicly disclosed on 19 October, when its concept project information document went up. Its stated objective is "to mobilize private investment and expand access to risk capital for innovative and high-growth firms in Pakistan".

A loan for funds, not a grant for startups

The financing is a US$50 million loan from the International Bank for Reconstruction and Development, with no IDA credit and no grant element. The project abstract says the fund of funds will widen the supply of early-stage and growth capital "by crowding in domestic and international private investors", and describes Pakistan's innovation and venture capital ecosystem as nascent.

That design shapes who benefits first. A fund of funds commits to venture funds that raise money from others, so the near-term opportunity is for managers who can raise a Pakistan-focused fund and meet the selection rules, which have not been published. Startups gain later, as those funds invest.

Where the project stands

The record lists the status as "Pipeline", the last stage reached as OIS sign-off, and an environmental and social risk rating of moderate. The milestones on the record give:

• Concept documents disclosed: 19 October 2026
• Board approval (planned): 24 March 2027, in the Bank's 2027 fiscal year
• Effectiveness (planned): 21 April 2027

The task team leader is Fahad Hasan. TechJuice, which reported the plan on 26 October, adds that the model draws on Jordan's Innovative Startups and SMEs Fund, which the World Bank backs.

Ignite's part

Ignite already runs Pakistan's main public programmes for technology firms and appears on TrustList as a startup funding programme. Our startup funding programme category holds 71 listings. What to watch before March is the appraisal: the fund of funds' governance, the share it may take in any single fund, and whether foreign managers can apply.

Related on TrustList:

• Most public startup money cannot be applied for directly: how co-investment works

Sources

• World Bank: Pakistan Entrepreneurship and Private Investment Catalyst Project (P519113), project record, 19 October 2026
• World Bank projects API: record P519113 (read 2026-10-26), 26 October 2026
• TechJuice: World Bank targets Pakistan startup funding gap with $50 million plan, 26 October 2026