ISLAMABAD: The International Finance Corporation (IFC), the private investment arm of the World Bank, is ramping up equity investments and prioritizing large-scale infrastructure financing in Pakistan.
IFC Chief Makhtar Diop revealed that the investment plan could unlock up to $2 billion annually over the next decade. His visit follows the World Bank’s announcement of a $20 billion Country Partnership Framework for Pakistan, with the IFC committing a matching investment.
Diop acknowledged that while $2 billion per year is a modest sum for Pakistan’s vast infrastructure needs—spanning energy, water, ports, and airports—he remains optimistic that progress on key projects in the coming months will demonstrate Pakistan’s capacity to absorb large-scale financing.
Amid a $7 billion International Monetary Fund (IMF) bailout, Pakistan is struggling with economic recovery, having narrowly avoided a sovereign debt default. The country’s foreign reserves remain critically low, covering less than a month’s worth of imports.
The IFC’s exposure in Pakistan hit a record $2.1 billion for the fiscal year 2024. Diop underscored the corporation’s focus on agriculture, infrastructure, finance, and digital industries while highlighting the growing role of equity-based investments in Pakistan’s development.
