Investment of $25m in PKR: IFC to invest in fashion retailer to create jobs, promote gender equality

KARACHI: The International Finance Corporation (IFC) is investing in Pakistan’s top fashion retailer to create jobs, promote gender equality, and support the country’s crucial textiles sector in the wake of Covid-19 pandemic.

IFC will invest the equivalent of $25 million in Pakistani rupees for a minority stake in Khaadi Corporation, which has 57 retail outlets spread across Pakistan and also boasts presence in the UK and GCC countries.

The funding will help the company accelerate its growth by expanding its retail footprint and online global sales. It will also indirectly support the retailer’s suppliers in Pakistan, many of whom are smaller businesses.

“We are excited to begin the next chapter of our growth transformation with IFC’s first investment in the Pakistan fashion retail sector. We envisage this investment will help us set new benchmarks in organising the retail sector in Pakistan and beyond, through strategic initiatives to drive growth, corporate governance, and diversity,” said Shamoon Sultan, the founder and CEO of Khaadi Corporation.

Investment by the World Bank Group organisation is designed to support the development of the country’s retail and textiles sectors, which provide 40 percent of employment and account for about 9 percent of the country’s gross domestic product. About 30 percent of the persons who work in the textiles sector are women and supporting the industry will help promote gender equality in the country.

“The textiles and retail industry is a core part of Pakistan’s economy and a major employer of women, especially in the garment sector,” said Zeeshan Sheikh, IFC Country Manager for Pakistan and Afghanistan.

“By channeling financing and advisory support into the industry and partnering with innovative companies like Khaadi we can help the sector grow, formalise, become more sustainable, and create greater economic employment opportunities for women.”

In addition to investing in the retailer, IFC will advise Khaadi Corporation on enhancing its corporate governance structures, sustainability, and gender diversification programmes.

The investment is part of a broader effort by IFC to support the development of Pakistan’s private sector, which is key to creating opportunities and combating poverty in the country.

Since 1956, IFC has invested over $1.2 billion in Pakistan, helping to support smaller businesses and spur the development of renewable energy, hydroelectric, and wind energy projects.

Copyright Business Recorder, 2022