Pakistan is exploring a financing arrangement of about $1.5 billion through World Bank Group guarantees, the Finance Division said on Friday. The World Bank loan for Pakistan under discussion is still a proposal rather than a signed agreement, and the final figure depends on the guarantee limit and how the deal is structured. The government says the goal is to secure funding at competitive rates while it widens its sources of external finance.
How the proposal would work
The Finance Division said Finance Minister Muhammad Aurangzeb welcomed a plan to combine a World Bank policy-based guarantee with coverage from the Multilateral Investment Guarantee Agency (MIGA), a World Bank Group body that insures foreign investors against certain risks. The statement said the combined approach could attract financing at competitive rates, with a potential target of approximately $1.5 billion. It also said the figure is “subject to the guarantee envelope and transaction structure,” which means the amount could change once those details are settled.
Aurangzeb also favoured using an existing Development Policy Operation (DPO), a type of World Bank budget-support lending, rather than negotiating a new framework that could cause delays. The talks, held on the sidelines of the World Bank Group–IMF Annual Meetings 2026 in Bangkok, also covered combining budget support with guarantees and widening investor participation. The Finance Division, the Economic Affairs Division and the World Bank Group will explore the proposal further.
Wider borrowing plans
The same engagements touched on other funding routes. Aurangzeb pointed to Pakistan’s $3 billion Eurobond issued in September, a dollar bond sold to international investors, and to plans for Sukuk, which follow Islamic finance rules, and Panda bonds, which are sold in China in yuan. He also cited foreign exchange reserves of about $21.6 billion and three consecutive years of primary surpluses, meaning government income has exceeded spending before interest payments.
The minister described progress under the IMF programme, a lending arrangement with the International Monetary Fund, along with tax reforms. He said these support the goal of reaching a BB sovereign rating, a credit grade that signals how risky international lenders consider a country. In a separate meeting with a Lazard delegation, he welcomed proposals for blended finance, sustainability-linked loans, guaranteed Sukuk and debt swaps. It was agreed that follow-up would be coordinated through the Debt Management Office and the State Bank of Pakistan, and that Lazard would prepare a short note with its recommendations.
What is still unknown
For this World Bank loan for Pakistan, the statement gives no interest rate, no signing date and no confirmed amount. Because the $1.5 billion figure is a potential target, it should not be read as money already committed or borrowed. The sources also do not state Pakistan’s total existing World Bank borrowing, so this article cannot give that figure. Readers should watch for the final guarantee terms, which will show the cost the country would bear.
Aasan alfaaz mein
Pakistan World Bank guarantees ke zariye taqreeban $1.5 billion ka financing hasil karne ki koshish kar raha hai. Yeh abhi tajveez hai, aur is ka interest rate ya signing ka waqt nahi bataya gaya. Government ka kehna hai ke maqsad sasti funding hasil karna aur mukhtalif zarye dhoondhna hai. Aam logon ke liye abhi koi foran tabdeeli nahi, lekin agar yeh muaida hota hai to is ka asar mulk ke qarzon aur kharchon par parh sakta hai.
