- The visit is on the heels of approval by the WB group of the transformative strategy.
- The Country Partnership Strategy promises $ 20 billion in spending over the next decade.
- IFC Investments to strengthen the country’s private sector, with an average of $ 2 billion per year.
The director general of the International Finance Corporation (IFC), Mukhtar Diop, arrives today (Friday) in Islamabad, marking the first high -level visit of the IFC delegation in the country in almost a decade.
The visit comes on the approval by the World Bank Group (WB) of a partnership strategy from transformer countries, which promises $ 20 billion in IFC investments during the next decade to strengthen the private sector of Pakistan , on average $ 2 billion per year.
This IFC commitment is beyond 20 billion dollars committed by WB via IDA (Concessional financing window) and IBRD. Passing the cumulative investment of the WB group to $ 40 billion in the next decade.
Pakistan Executive Director with the World Bank, Dr. Tauqir Shah, while speaking to this correspondent, said that the national partnership frame of $ 40 billion recently approved for the next decade is a huge expression of confidence By the group in the Pakistan reform program and economic consolidation in the past two years, and MD IFC visits almost after a decade is more approval for this confidence. He added that IFC had a very strong investment pipeline for Pakistan, but that it remains subject to continuous economic and political stability in the country.
Shah said that IFC’s unprecedented investment pipeline aimed to catalyze growth in critical sectors in Pakistan, including infrastructure, renewable energies, agriculture and SMEs. This is aligned with the institution’s mandate to stimulate job creation, innovation and climate resilience in developing economies.
The most promising investments that IFC have in Pakistan is its substantial funding in the Reko Dig mining project. The IFC funding package planned in Reko Diq will cost around $ 2.5 billion. It will be the largest investment IFCS the most important in the mining sector in the world.
Mukhtar Diop, Muslim economist of Senegalese origin and an imposing figure in global development, leads the IFC – the arm of the private sector of the World Bank group focused on emerging markets. With more than five years as director general of IFC, Diop provides a career in a link: the former vice-president of the World Bank for infrastructure and Africa, the former Minister of Senegal for the ‘Economy and finance, and a famous defender of the world South. Recognized among the 100 most influential Africans, Diop leadership is synonymous with filling economic gaps and advancing sustainable development.
Diop’s journey, said Shah, reports a strategic pivot towards Pakistan in the world of world economic contrary. He added that by channeling funds in high impact projects, IFC seeks to meet structural challenges such as energy deficits, digital transformation and access to finance – the main obstacles described in the development program from Pakistan. The investment also highlights the confidence of the WB group in the Pakistan reform trajectory, in particular efforts to improve the commercial climate and attract foreign investments.
Diop’s visit included dialogues with government representatives, business leaders and civil society to prioritize projects that align with the climatic objectives of Pakistan and socio-economic inclusiveness.
“This partnership is not only a question of capital – it is a question of strengthening resilience and unlocking the opportunities of millions,” said Diop recently.
According to Tauqir Shah since 2019, the IFC has hired $ 7.2 billion in investments in the key sectors of the Pakistani economy. However, since 2022, IFC has increased its investments in Pakistan, 3.5 times – its investments reaching $ 1.5 billion in 2023 and $ 2.1 billion in 2024. With the economy, stabilization of ‘IFC provides $ 2 billion each year under the World Bank CPF group for the next 10 years.
The scaling of IFC investment operations in Pakistan in the past two years has included many first in the country: (i) The first Greenfield project, Sustainable Fuel aviation set up at Punjab, this which will result in a significant increase in exports; (ii) the first new tire manufacturing plant in the country in almost 60 years (near Karachi) to help replace imports; (iii) first loan linked to sustainability in the country to a manufacturing company, with KPIs of gender and water (KP province); and (iv) the development of a framework for the first investments in the diversified payment rights of Pakistan (DPR) – a breakdown of rupture to strengthen capital markets and allow cheaper access to the financing of foreign exchange for the private sector.
Shah explained that IFC Investment has an extremely positive impact because it takes advantage of other private sector investors to enter into projects sponsored by IFC. Immaculate reasonable expertise and diligence which is a strong point of IFC encourages other foreign direct investors to join projects sponsored by IFC. In this way, IFC takes advantage of four to five times more investments in the private sector, thus generate more high quality jobs.
Shah said that over the years, IFC has made several high impact investments in sectors such as low -cost renewable energies (first set of private wind and hydroelets), the first BLL terminal, the first company Funding from housing led by the private sector, the first loan linked to sustainability and multiple initiatives focused on sex, climate and financial inclusion in particular for SMEs.
In manufacturing and services, IFC supported investments in chemicals, health care, retail, dairy products and agro-industry, textiles, cement and other oriented industries Towards export, as well as to make investments at the start of the stage in the venture capital / capital-investment capital sectors.
IFC has also considerably increased its commercial financing program to help companies meet the USD liquidity needs for critical imports, including energy. Pakistan is now the largest beneficiary of the IFC commercial financing program in the world.
Originally published in The news