IFC commits $2.7bn to Pakistan amid focus on private sector

International Finance Corporation (IFC), the financing arm of the World Bank, has committed around $2.7 billion for the current year for Pakistan.

The commitment, discussed during a meeting between Finance Minister Senator Muhammad Aurangzeb and IFC officials, is aimed at supporting private sector development, infrastructure expansion, and job creation across key sectors of the economy, read an official statement.

Aurangzeb held a meeting with Simon Andrews, Divisional Director for Pakistan, Afghanistan and Central Asia at the IFC, who called on the minister at the Finance Division along with Bolormaa Amgaabazar, World Bank Country Director for Pakistan, and Naz Khan, Country Manager IFC.

Aurangzeb welcomed Andrews on his recent appointment and appreciated the IFC’s enhanced engagement in Pakistan over the past few years, particularly in investment, trade finance, and advisory support.

He acknowledged the positive impact of IFC’s on-ground leadership and responsiveness, noting that increased senior-level presence has significantly strengthened collaboration and delivery.

The IFC delegation briefed the minister on its growing portfolio in Pakistan, which now exceeds $2 billion annually, with approximately $2.7 billion committed this year.

Key areas of engagement include financial sector support through risk-sharing and guarantee facilities to promote trade and SME financing, expansion of local currency financing to mitigate foreign exchange risks, and upcoming initiatives such as a diversified payment rights facility and a green bond issuance with a leading local bank, read the statement.

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Discussions focused on further scaling private sector investment, particularly in infrastructure and public-private partnerships.

While progress has been made in areas such as urban water management and distribution efficiency projects, both sides acknowledged the need to develop a stronger pipeline of bankable projects and enhance coordination to unlock larger-scale private investment in sectors including energy, transport, and logistics.

The minister emphasised the importance of adopting a client-centric approach to financing solutions, particularly in facilitating local currency lending to support private sector growth and reduce exchange rate vulnerabilities. He underscored that such initiatives complement, rather than substitute, foreign currency inflows and are essential for sustainable economic expansion.

The meeting also covered collaboration on job creation, entrepreneurship, and innovation, including proposals for developing a venture capital ecosystem and strengthening private sector engagement in policy formulation. Both sides discussed mechanisms to further institutionalise dialogue between government and business stakeholders to support effective and responsive policymaking.

Broader discussions addressed regional economic connectivity, particularly with Central Asian countries, and the importance of leveraging emerging opportunities in agribusiness, infrastructure, and trade linkages.

Aurangzeb also briefed the delegation on the government’s ongoing efforts to maintain macroeconomic stability amid global uncertainties, including proactive management of energy supply chains, fiscal discipline, and targeted subsidy frameworks.

Both sides reaffirmed their commitment to deepening collaboration, accelerating implementation of priority initiatives, and leveraging the full suite of World Bank Group instruments to support Pakistan’s reform agenda, private sector development, and sustainable, inclusive economic growth.