Pakistan, IFC advance discussion to establish fund for entrepreneurs, startups

Pakistan and the International Finance Corporation (IFC), the World Bank’s private sector arm, have advanced plans to establish a fund aimed at supporting entrepreneurs and startups, as part of efforts to strengthen the country’s entrepreneurial ecosystem and mobilise private-sector financing.

The development came during a high-level meeting between Finance Minister Muhammad Aurangzeb and Simon Andrews, Director, IFC Pakistan, Afghanistan, Kyrgyz Republic, Tajikistan & Turkmenistan, to discuss ongoing and potential IFC support for private-sector development, access to finance and investment in Pakistan, read a statement on Tuesday.

The finance minister welcomed the IFC representatives and appreciated its continued partnership with Pakistan, particularly in expanding private-sector financing and supporting investment-led growth. He highlighted the government’s focus on entrepreneurship, SME and agricultural finance, affordable housing and public-private partnerships as key areas for mobilising private capital.

The IFC representatives briefed the finance minister on progress towards establishing a fund for entrepreneurs, being developed in collaboration with relevant stakeholders to strengthen Pakistan’s entrepreneurial and startup ecosystem. They also shared progress on affordable housing engagement to address supply-side constraints through potential developer finance models.

On agricultural finance, the discussion focused on the IFC’s AgriConnect initiative, particularly opportunities to mobilise private financing through improved storage infrastructure and the effective use of electronic warehouse receipts as collateral.

The finance minister emphasised the importance of addressing supply-side constraints and creating greater certainty for lenders and farmers.

Public-private partnerships (PPP) were another key area of discussion. The IFC briefed the finance minister on its engagement with provincial governments on projects in the water and power sectors, including initiatives to improve water quality and safety and advance metering infrastructure across distribution companies.

The discussions highlighted the potential of PPPs to improve service delivery, reduce losses and mobilise private capital for infrastructure development.

Aurangzeb and IFC also exchanged views on expanding local-currency financing and strengthening mechanisms for longer-term financing for private-sector projects. Aurangzeb emphasised the importance of complementing domestic financial resources with international development finance to support productive investment.

He emphasised the importance of expanding financing opportunities for SMEs, entrepreneurs, agriculture and housing, noting that improved access to long-term and affordable capital would help unlock private investment, support business expansion and strengthen productive activity. He appreciated IFC’s role in developing innovative financing solutions and mobilising private capital across these sectors.

Aurangzeb highlighted Pakistan’s improving macroeconomic stability and growing investor confidence, noting that the government was focused on translating these gains into greater investment, capital formation and private-sector-led growth. He emphasised the importance of expanding access to finance and creating an enabling environment for domestic and international private capital.

Both sides reaffirmed their commitment to strengthening cooperation on private-sector financing, investment and infrastructure development.