ISLAMABAD, Feb 15: The International Finance Corporation (IFC), which is the private investment arm of the World Bank, is set to boost equity investments and emphasize large-scale infrastructure financing in Pakistan, as reported by the media on Saturday.
IFC Chief Makhtar Diop, currently on a visit to Pakistan, mentioned that this investment strategy could potentially unlock up to USD 2 billion each year over the next decade, according to The Express Tribune.
Diop’s visit follows the World Bank’s announcement of its USD 20 billion Country Partnership Framework, with the IFC intending to complement this financial commitment.
He pointed out that the USD 2 billion annual investment may seem modest, given Pakistan’s substantial need for infrastructure development across various sectors including energy, water, ports, and international airports.
Diop expressed optimism that progress on essential projects in the coming months would demonstrate Pakistan’s preparedness to attract large-scale financing for crucial infrastructure needs.
He underscored the IFC’s keen interest in the country’s agriculture, infrastructure, finance, and digital sectors.
Moreover, Diop mentioned that equity-based transactions will increasingly contribute to the nation’s development as the IFC broadens its equity investments not just globally, but also in Pakistan.
As per Radio Pakistan, Prime Minister Shehbaz Sharif, during a meeting with Diop on Friday, praised the IFC for its role in promoting private investments in Pakistan.
The prime minister urged the IFC to amplify its support in critical areas such as infrastructure and logistics, the outsourcing of major airports, agriculture, information technology, mining, climate resilience, healthcare, and water and sanitation.
Sharif emphasized the importance of export-led growth and highlighted the necessity for digitizing Pakistan’s overall economic ecosystem. He also pointed out the ongoing digitization initiatives of the Federal Board of Revenue.
He recognized the World Bank’s recently unveiled ten-year Country Partnership Framework (2026-2035), which includes a historic commitment of USD 40 billion, consisting of USD 20 billion in foreign lending from the International Development Association and the International Bank for Reconstruction and Development.
Furthermore, the IFC is expected to mobilize an additional USD 20 billion to stimulate private sector investments in Pakistan.
Amidst a challenging economic recovery and currently executing a USD 7 billion bailout program from the International Monetary Fund (IMF), Pakistan is grappling with economic recovery issues. The country narrowly avoided a default on its sovereign debt, with its reserves barely sufficient for a month’s worth of imports.
Diop commended Pakistan’s productive dialogue with the IMF and its successful ongoing economic reforms.
He assured Sharif of the IFC’s persistent support for Pakistan’s private sector, aligned with the government’s strategic priorities.
The IFC’s exposure in Pakistan has reached a record high of USD 2.1 billion for the 2024 fiscal year. (PTI)
