The International Finance Corporation (IFC), the private investment arm of the World Bank, is increasing equity investments and focusing on large-scale infrastructure financing in Pakistan.
According to IFC Chief Makhtar Diop, the investment plan could unlock up to $2 billion annually over the next decade. Diop’s visit to Pakistan follows the World Bank’s announcement of a $20 billion Country Partnership Framework for the country, with the IFC matching this allocation.
Diop emphasized that the $2 billion annual investment is not significant for Pakistan, which needs extensive infrastructure development in sectors like energy, water, ports, and international airports.
He expressed confidence that within a few months, progress on key projects will signal Pakistan’s readiness to receive large-scale financing for critical infrastructure.
Pakistan, currently under a $7 billion bailout program from the International Monetary Fund (IMF), is navigating a challenging economic recovery. The country narrowly avoided a sovereign debt default, with its reserves insufficient to cover even a month’s worth of imports.
The IFC’s exposure in Pakistan reached a record $2.1 billion for the fiscal year 2024. Diop highlighted the IFC’s interest in sectors like agriculture, infrastructure, finance, and digital industries in Pakistan.
Additionally, Diop noted that equity-based transactions will play a larger role in the country’s development, as the IFC increases its equity investments globally, including in Pakistan.
