Canada Global (Web News) Following key meetings with Finance Division officials, International Finance Corporation (IFC) chief Makhtar Diop stated on Thursday that a $2 billion annual investment is feasible for Pakistan, given its pressing infrastructure needs in airports, energy, water, and ports.
Diop’s visit, his first to Pakistan, comes as part of the World Bank’s broader plan to allocate up to $20 billion for the country under the Country Partnership Framework (CPF) announced in January, with IFC set to contribute the same amount.
In an exclusive interview with Reuters, Diop expressed optimism about progress on major transactions by October, signaling Pakistan’s readiness for large-scale financing in critical infrastructure.
Pakistan, currently navigating economic recovery under a $7 billion IMF bailout program, urgently requires external funding for development projects. The country’s foreign exchange reserves remain insufficient to cover even a month’s worth of controlled imports.
During the fiscal year 2024, IFC had an investment exposure of $2.1 billion in Pakistan—its highest yet in the country’s $350 billion economy, which saw minimal growth of 0.92% in the first quarter. Diop highlighted IFC’s interest in agriculture, infrastructure, financial services, and the digital sector.
The government is pushing for privatization to generate revenue, but efforts to privatize Pakistan International Airlines and outsource Islamabad’s airport have faced challenges.
Diop noted that while debt financing remains crucial, equity-based transactions will also play a greater role in Pakistan, reflecting IFC’s long-term commitment to the country.
Earlier, Diop and his delegation met with Finance Division officials to discuss strategies for industry-driven growth, particularly through export expansion. During a high-level meeting at the Ministry of Finance, he reaffirmed IFC’s commitment to supporting Pakistan in areas such as green energy, data centers, agriculture, telecom, and digitization.
Finance Minister Mohammad Aurangzeb and his team were also present at the meeting, where Diop praised Pakistan’s CPF agreement with the World Bank, calling it a model for global best practices.
Dr. Syed Tauqeer Hussain Shah, Executive Director (Pakistan) at the World Bank Group, described the recently approved $40 billion CPF as a strong vote of confidence in Pakistan’s economic reforms. He emphasized that IFC has a robust investment pipeline for the country, though continued economic and political stability will be key to sustaining investor confidence.
