IFC pledges $2.7 billion to boost Pakistan’s private sector and infrastructure

The International Finance Corporation has committed approximately $2.7 billion for Pakistan in 2026, focusing on private sector development, infrastructure expansion, and job creation, according to an official statement from the Finance Division.

Finance Minister Senator Muhammad Aurangzeb met with Simon Andrews, Divisional Director for Pakistan, Afghanistan, and Central Asia at the IFC, alongside Bolormaa Amgaabazar, World Bank Country Director for Pakistan, and Naz Khan, IFC Country Manager, to discuss the institution’s growing engagement in the country.

The meeting highlighted IFC’s expanding portfolio, now exceeding $2 billion annually, with initiatives aimed at promoting trade and SME financing through risk-sharing and guarantee facilities, and increasing local currency lending to mitigate foreign exchange risks. Planned programs include a diversified payment rights facility and a green bond issuance with a leading Pakistani bank.

Both sides reviewed progress in urban water management and distribution efficiency projects and discussed strategies to strengthen the pipeline of bankable projects, particularly in energy, transport, and logistics. Aurangzeb emphasized a client-focused approach to financing, underscoring that local currency solutions complement foreign capital inflows and support sustainable private sector growth.

Discussions also covered entrepreneurship, job creation, and innovation, including proposals to develop a venture capital ecosystem and institutionalize dialogue between government and business stakeholders to improve policymaking. Regional economic connectivity, especially with Central Asia, and opportunities in agribusiness, infrastructure, and trade were also highlighted.

Aurangzeb briefed the delegation on Pakistan’s ongoing efforts to maintain macroeconomic stability amid global uncertainties, including energy supply management, fiscal discipline, and targeted subsidies. Both sides reaffirmed their commitment to deepening collaboration, accelerating priority initiatives, and leveraging World Bank Group instruments to promote inclusive, sustainable economic growth in Pakistan.