ISLAMABAD: The World Bank will help Pakistan mobilise private investment and broaden access to risk capital for innovative, high-growth firms.

The `Pakistan Entrepreneurship and Private Investment Catalyst Project`, expected to be approved by the World Bank Executive Board in early 2027, will help the government establish and capitalise a $50 million Fund of Funds (FoF) to catalyse Pakistan`s nascent innovation and venture capital ecosystem.

The FoF will invest in professionally managed venture capital funds, helping expand the supply of early-stage and growth capital for innovative, high-growth firms, according to the project document made available to Dawn on Wednesday.

By crowding in domestic and international private investors, the operation will address a long-standing market gap in innovation financing and strengthen the foundation of the country`s entrepreneurial ecosystem. Over time, the document says increased access to private capital is expected to support firm growth, innovation, productivity, and the creation of more and better-quality jobs.

The operation has a national scope and, at the concept stage, no fixed geographic footprint. Pakistan`s environmental and social context is therefore relevant to the anticipated FoF investment portfolio.-Amin Ahmed