Mukhtar Diop, the Managing Director of the International Finance Corporation (IFC), is set to arrive in Islamabad on Friday, marking the first high-level visit by an IFC delegation to Pakistan in nearly ten years. His visit follows the approval of a transformative Country Partnership Strategy by the World Bank Group, which commits $20 billion in IFC investments over the next decade to strengthen Pakistan’s private sector. This is in addition to the $20 billion pledged by the World Bank through IDA and IBRD, bringing the total commitment from the World Bank Group to $40 billion over ten years.
According to Pakistan’s Executive Director to the World Bank, Dr. Tauqir Shah, the recently approved $40 billion partnership framework reflects the World Bank Group’s confidence in Pakistan’s economic reforms and stability over the past two years. He highlighted that the IFC has a robust investment pipeline for Pakistan, contingent on the country maintaining political and economic stability.
The IFC’s investment plans target key sectors such as infrastructure, renewable energy, agriculture, and small and medium enterprises (SMEs), aiming to drive job creation, innovation, and climate resilience. One of IFC’s most significant investments in Pakistan is its $2.5 billion financing package for the Reko Diq mining project, which marks IFC’s largest-ever single investment in the global mining sector.
Mukhtar Diop, a Senegalese-born economist and global development leader, has been leading IFC for over five years. With an extensive career spanning roles as the World Bank’s Vice President for Infrastructure and Africa, Senegal’s former Minister for Economy and Finance, and a prominent advocate for the Global South, Diop is known for bridging economic disparities and promoting sustainable development.
Dr. Shah emphasized that Diop’s visit signals a strategic shift in IFC’s approach toward Pakistan amid global economic uncertainties. By channeling funds into high-impact projects, IFC aims to address critical challenges in Pakistan, such as energy shortages, digital transformation, and financial inclusion. This investment aligns with the World Bank Group’s confidence in Pakistan’s ongoing reform agenda, particularly in improving the business climate and attracting foreign investment.
During his visit, Diop engaged in discussions with government officials, business leaders, and civil society to identify projects that align with Pakistan’s climate goals and socio-economic priorities. He emphasized that this partnership extends beyond financial investment—it is about fostering resilience and unlocking new opportunities for millions of people.
Dr. Shah highlighted that since 2019, IFC has committed $7.2 billion across key sectors in Pakistan. Notably, since 2022, IFC has tripled its investment in the country, reaching $1.5 billion in 2023 and $2.1 billion in 2024. Looking ahead, IFC plans to invest $2 billion annually under the World Bank’s Country Partnership Framework for the next decade.
In recent years, IFC’s investments in Pakistan have led to groundbreaking initiatives, including:
- The first-ever greenfield Sustainable Aviation Fuel project in Punjab, boosting exports.
- Pakistan’s first new tire manufacturing facility in nearly 60 years, reducing import dependency.
- The country’s first Sustainability-Linked Loan for a manufacturing company, incorporating gender and water-related performance indicators.
- The creation of a framework for Pakistan’s first Diversified Payments Rights (DPRs) investment, aimed at strengthening capital markets and improving private sector access to foreign exchange funding.
Dr. Shah emphasized that IFC’s investments have a multiplier effect by attracting additional private sector investors. IFC’s rigorous due diligence and global expertise encourage foreign direct investors to participate in IFC-led projects, significantly increasing overall investment and generating high-quality jobs.
Over the years, IFC has played a crucial role in Pakistan’s economic development, making significant investments in renewable energy, LNG terminals, private sector-led housing finance, financial inclusion, and gender-focused initiatives. IFC has also supported diverse industries such as chemicals, healthcare, retail, dairy, agribusiness, textiles, cement, and venture capital. Additionally, IFC has scaled up its trade finance program to support companies in securing USD liquidity for essential imports, including energy—making Pakistan the largest recipient of IFC’s trade finance support worldwide.
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