ISLAMABAD: The International Finance Corporation (IFC) has committed to supporting Pakistan’s growth in key sectors, including green energy, data centers, telecom, and digitization.
Makhtar Diop, the Managing Director and Executive Vice President of the IFC, made this announcement during a meeting with Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, at the Finance Division.
In his welcoming remarks, the finance minister congratulated the IFC on its recent partnerships with the private sector and praised the role of vibrant private enterprises in Pakistan’s economic development.
He also highlighted the government’s recent move to designate warehousing as an industry and emphasized its dedication to public-private partnerships (PPPs) in areas like infrastructure, IT, data centers, and agricultural technology (AgTech).
The finance minister underscored the significance of agricultural income tax as an ongoing discussion point and stressed the importance of capital mobilization, with the private sector playing a critical role. He also noted that several international partners have recognized Pakistan’s increasing investment potential.
Additionally, he shared updates on Pakistan’s macroeconomic stability, mentioning his recent discussions with Kristalina Georgieva, Managing Director of the IMF, who commended the country’s progress on economic reforms. The finance minister also pointed to improvements observed in both the debt and equity sectors since the last meeting with the IFC in Davos.
He outlined several structural reforms, including the introduction of agricultural income tax—a significant development in Pakistan’s fiscal landscape—and efforts to streamline government operations by adjusting pensions and merging various ministries and departments.
Reaffirming the government’s commitment to fostering private-sector-driven economic growth, especially in export-led industries, the finance minister expressed gratitude to the IFC for its continued support.
Makhtar Diop expressed his appreciation for the Finance Minister’s leadership and the government’s reform efforts. He also acknowledged that private sector stakeholders in Pakistan are confident in the government’s policies and the progress being made.
Diop praised Pakistan’s Country Partnership Framework (CPF) with the World Bank, calling it one of the best practices globally.
The meeting concluded with both parties reiterating their commitment to ongoing collaboration, aiming to drive economic development and investment in Pakistan.
