International Finance Corporation increasing equity investment in Pakistan: Media

Islamabad, Feb 15 (PTI) The World Bank's private investment arm, the International Finance Corporation (IFC), is increasing equity investments and focusing on large-scale infrastructure financing in Pakistan, a media report said on Saturday.

According to IFC Chief Makhtar Diop, who is visiting Pakistan, the investment plan could unlock up to USD 2 billion annually over the next decade, reported The Express Tribune.

His visit to Pakistan follows the World Bank's announcement of a USD 20 billion Country Partnership Framework, with the IFC matching this allocation.

Diop emphasised that the USD 2 billion annual investment is not significant for Pakistan, which needs extensive infrastructure development in sectors such as energy, water, ports, and international airports.

Diop expressed confidence that within a few months, progress on key projects will signal Pakistan’s readiness to receive large-scale financing for critical infrastructure.

Diop highlighted the IFC’s interest in Pakistan's agriculture, infrastructure, finance, and digital industries.

Additionally, Diop noted that equity-based transactions will play a larger role in the country’s development as the IFC increases its equity investments globally, including in Pakistan.

According to Radio Pakistan, Prime Minister Shehbaz Sharif while talking to Diop, who called on him here on Friday, lauded the IFC's role in fostering private investments in Pakistan.

The prime minister encouraged the IFC to enhance its support in key areas, including infrastructure and logistics, outsourcing of large airports, agriculture, information technology, mining, climate resilience, healthcare and water and sanitation.

Sharif stressed export-led growth and underlined the need for digitization of the entire ecosystem of Pakistan's economy. Ongoing digitization efforts of the Federal Board of Revenue were also highlighted.

The prime minister appreciated the WB's recently launched new decade-long Country Partnership Framework (2026-2035) with its unprecedented commitment of USD 40 billion, including foreign lending of USD 20 billion by the International Development Association and International Bank for Reconstruction and Development.

The IFC will mobilise another USD 20 billion to foster private sector investments in Pakistan.

Pakistan, currently under a USD 7 billion bailout programme from the International Monetary Fund (IMF), is navigating a challenging economic recovery. The country narrowly avoided a sovereign debt default, with its reserves insufficient to cover even a month's imports.

Diop in his remarks appreciated Pakistan's productive engagement with the IMF and successful ongoing economic reforms.

He assured Sharif of IFC's continued support to the private sector in Pakistan duly aligned with the government's priorities.

The IFC's exposure in Pakistan reached a record USD 2.1 billion for the fiscal year 2024. PTI SH PY PY PY

Source: PTI