A delegation from the International Finance Corporation (IFC) met Finance Minister Muhammad Aurangzeb to discuss expanding investment and strengthening private sector development in Pakistan, the finance ministry said.
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During the meeting, IFC officials highlighted that their investment portfolio in Pakistan has grown to exceed $2 billion annually. The delegation included Simon Andrews, Bolormaa Amgaabazar, and Naz Khan.
Discussions focused on enhancing financial sector support through risk-sharing and guarantee facilities aimed at boosting trade and small and medium-sized enterprise (SME) financing. Both sides also explored expanding local currency financing to reduce foreign exchange risks and support sustainable business growth.
The meeting also covered upcoming initiatives, including a diversified payment rights facility and the issuance of green bonds in collaboration with a leading local bank. Officials emphasized the importance of scaling private investment, particularly in infrastructure and public-private partnership projects.
While progress has been made in areas such as urban water management and distribution efficiency, both sides acknowledged the need to develop a stronger pipeline of projects to attract larger-scale private investment in sectors including energy, transport, and logistics.
Muhammad Aurangzeb underscored the importance of adopting client-focused financing solutions, particularly local currency lending, to strengthen the private sector and reduce vulnerability to exchange rate fluctuations. He noted that such initiatives complement foreign inflows and are essential for long-term economic stability.
The meeting also explored collaboration in job creation, entrepreneurship, and innovation, including proposals to develop a venture capital ecosystem and enhance private sector participation in policymaking.
Broader discussions touched on regional connectivity, especially with Central Asia, and opportunities in agri-business, infrastructure, and trade. The finance minister briefed the delegation on the government’s efforts to maintain macroeconomic stability through fiscal discipline, energy supply management, and targeted subsidies.
Both sides reaffirmed their commitment to deepening cooperation, accelerating priority projects, and leveraging the resources of the World Bank Group to support Pakistan’s reform agenda and inclusive economic growth.
