IFC Increases Equity Investment in Pakistan with Focus on Infrastructure Development
The International Finance Corporation (IFC), the World Bank's private investment arm, is set to increase its equity investments in Pakistan, focusing on large-scale infrastructure financing. This move is expected to unlock up to USD 2 billion annually over the next decade, signaling a significant boost to the country’s infrastructure and economic development.
Islamabad: The International Finance Corporation (IFC), the World Bank’s private investment arm, is set to increase its equity investments in Pakistan, focusing on large-scale infrastructure financing. This move is expected to unlock up to USD 2 billion annually over the next decade, signaling a significant boost to the country’s infrastructure and economic development.
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IFC’s Strategic Investment Plan for Pakistan
Makhtar Diop, the IFC Chief, confirmed the ambitious investment plan during his visit to Pakistan. He highlighted that this annual USD 2 billion investment would support critical sectors such as energy, water, ports, and international airports. Diop further emphasized that the investment would play a key role in Pakistan’s extensive infrastructure development, which is essential for the country’s growth.
The increase in equity investments aligns with the World Bank’s recently announced USD 20 billion Country Partnership Framework for Pakistan, with the IFC matching this allocation. Diop expressed confidence that within a few months, progress on key projects will pave the way for even larger-scale financing in the future.
IFC’s Focus on Key Sectors in Pakistan
The IFC is particularly interested in supporting Pakistan’s agriculture, infrastructure, finance, and digital industries. Diop noted that equity-based transactions would play a larger role in the country’s development, as the IFC seeks to increase its global equity investments, including in Pakistan.
Prime Minister Shehbaz Sharif, in a meeting with Diop, praised the IFC’s role in fostering private investments and encouraged the institution to enhance its support in various key sectors. These include infrastructure, logistics, airports, agriculture, IT, mining, climate resilience, healthcare, and water and sanitation. Sharif also emphasized the importance of export-led growth and the need for continued digitization of Pakistan’s economy.
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IFC’s Continued Support Amid Economic Challenges
Pakistan is currently navigating a challenging economic recovery, supported by a USD 7 billion bailout program from the International Monetary Fund (IMF). Despite these challenges, the IFC’s engagement with Pakistan continues to grow, with its exposure in the country reaching a record USD 2.1 billion for the fiscal year 2024.
Diop also expressed his appreciation for Pakistan’s productive engagement with the IMF and the successful ongoing economic reforms. He assured Prime Minister Sharif of the IFC’s continued support for Pakistan’s private sector, in alignment with the country’s development priorities.
This increased investment by the IFC is expected to play a crucial role in addressing Pakistan’s infrastructure gaps and fostering long-term economic growth.
