ISLAMABAD: The International Finance Corporation (IFC), the private sector arm of the World Bank Group, has committed approximately $2.7 billion in financing for Pakistan this year, signalling renewed confidence in the country’s economic outlook and reform trajectory.
The commitment was discussed during a high-level meeting between Pakistan’s Finance Minister, Senator Muhammad Aurangzeb, and an IFC delegation led by Simon Andrews, Divisional Director for Pakistan, Afghanistan and Central Asia. Also present were World Bank Country Director Bolormaa Amgaabazar and IFC Country Manager Naz Khan.
According to Pakistan’s finance ministry, the funding will be directed towards strengthening private sector development, expanding infrastructure, and generating employment across key sectors of the economy.
The IFC delegation highlighted that its annual investment portfolio in Pakistan has now exceeded $2 billion, reflecting a steady increase in engagement. This year’s commitment of $2.7 billion marks a significant step-up, with a focus on mobilising private capital and supporting long-term economic growth.
Key areas of cooperation include enhancing financial sector resilience through risk-sharing instruments and guarantee facilities aimed at boosting trade and small and medium-sized enterprise (SME) financing. Efforts are also underway to expand local currency financing, a move designed to reduce exposure to foreign exchange volatility.
Finance Minister, IFC Discuss Expanding Investment, Infrastructure and Job Creation
Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb held a meeting with Mr. Simon Andrews, Divisional Director for Pakistan, Afghanistan and Central Asia at the International… pic.twitter.com/I1Pp9EBjjK
— Ministry of Finance, Government of Pakistan (@Financegovpk) April 1, 2026
Upcoming initiatives discussed during the meeting include the introduction of a diversified payment rights facility and the issuance of a green bond in collaboration with a leading domestic bank—both aimed at broadening Pakistan’s financial ecosystem and supporting sustainable investment.
A major focus of the talks was scaling up private sector participation in infrastructure projects, particularly through public-private partnerships. While progress has been made in areas such as urban water management and distribution efficiency, both sides acknowledged the need to build a stronger pipeline of viable, investment-ready projects.
Sectors identified for further expansion include energy, transport and logistics, where increased coordination and policy support are expected to unlock larger volumes of private investment.
Aurangzeb emphasised the importance of adopting a client-focused approach to financing, particularly in facilitating lending in local currency. He noted that such measures are essential to support domestic businesses while mitigating risks associated with exchange rate fluctuations. He added that local currency financing should complement, rather than replace, foreign capital inflows.
The discussions also extended to fostering innovation, entrepreneurship and job creation. Proposals included developing a venture capital ecosystem and strengthening collaboration between the government and private sector in shaping economic policy.
Regional economic integration was another key theme, with both sides exploring opportunities to enhance connectivity with Central Asian markets, particularly in agribusiness, infrastructure and trade.
The finance minister also briefed the delegation on Pakistan’s ongoing efforts to maintain macroeconomic stability, including fiscal discipline, targeted subsidies and improved management of energy supply chains amid global uncertainties.
Both parties reaffirmed their commitment to deepening cooperation, accelerating priority initiatives and leveraging the full range of World Bank Group instruments to support Pakistan’s reform agenda and promote inclusive, sustainable growth.
