ISLAMABAD:
The International Finance Corporation (IFC) is set to expand its equity investments and focus on large-scale infrastructure financing in Pakistan, with plans to unlock up to $2 billion annually over the next decade, according to IFC Managing Director Makhtar Diop.
During his visit to Pakistan, Diop stated that progress on key transactions could be achieved by October, demonstrating the country’s readiness to attract substantial infrastructure financing.
His visit comes in the wake of the World Bank’s announcement in January of a Country Partnership Framework, which aims to allocate up to $20 billion for Pakistan. The IFC, as the private investment arm of the World Bank, is expected to invest a similar amount.
Diop emphasized that a $2 billion annual investment is relatively modest given Pakistan’s infrastructure needs, particularly in areas such as airports, energy, water, and ports.
According to Reuters, the IFC had a $2.1 billion investment exposure in Pakistan by the end of the 2024 fiscal year, marking a record high for its involvement in the country’s $350 billion economy.
The IFC plans to direct investments into key sectors, including agriculture, infrastructure, finance, and digital technology. Diop also highlighted that Pakistan could see an increase in equity-based transactions.
“While debt remains a significant component of our business, we are increasing our equity investments globally, including in Pakistan,” Diop said. “This reflects our confidence in Pakistan, as equity investments are made for the long term.”
