IFC doubles investments in Pakistan to $1.5 billion amid economic crisis

A man walks past a foreign currency exchange market in Islamabad on July 11, 2023. (AFP/File)
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Updated 13 September 2023
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IFC doubles investments in Pakistan to $1.5 billion amid economic crisis

  • IFC will prioritize job creation, private sector productivity and gender equality in Pakistan in 2023
  • Since 1956, IFC has invested $11 billion in energy, infrastructure, health among other sectors in Pakistan

ISLAMABAD: The International Finance Corporation (IFC) has earmarked approximately $1.5 billion in short and long-term investments for Pakistan in 2023, doubling its investments from last year as the South Asian nation braves an array of economic challenges.

Pakistan has faced one of its most severe economic crises in history in the last one year, with record inflation, diminished foreign reserves, and a significant depreciation of the national currency against the US dollar. 

In July, the International Monetary Fund (IMF) granted Pakistan a $3 billion bailout loan that helped prevent a default on its debt but came with tough reform conditions that have fueled inflation. These include the removal of energy and fuel subsidies, a shift toward a market-based exchange rate system, and an increase in tax rates. The last few weeks have been seen sporadic but nationwide protests and trader strikes against record fuel and electricity prices. 

“The IFC has committed approximately $1.5 billion in short and long-term investments in Pakistan in fiscal year 2023, doubling its investments from the previous year amidst a backdrop of economic challenges in the country,” the IFC said in a statement this week.

IFC’s projects in Pakistan aim to create jobs, increase productivity in the private sector, enhance gender inclusion, and address the impacts of climate change.

Zeeshan Sheikh, IFC Country Manager for Pakistan and Afghanistan, said in the current fiscal year, the organization wanted to increase its focus on facilitating access to finance, particularly for Micro, Small, and Medium Enterprises, sustainable and digital infrastructure, as well as support to export-oriented industries that help create jobs and are critical for economic growth.

Since 1956, IFC has invested approximately $11 billion in Pakistan and supported diverse sectors such as renewable energy, financial inclusion, infrastructure development, agribusiness, manufacturing, housing, health care, and trade, among others.


Pakistan high court pauses tree-cutting in Islamabad until Feb. 2

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Pakistan high court pauses tree-cutting in Islamabad until Feb. 2

  • Islamabad High Court asks CDA to ‘explain and justify’ tree-cutting at next hearing
  • CDA officials say 29,000 trees were cut due to allergies, deny felling in green belts

ISLAMABAD: The Islamabad High Court has ordered an immediate halt to tree-cutting in the federal capital until Feb. 2, seeking justification from civic authorities over the legality of a large-scale felling drive that has seen thousands of trees removed in recent months.

The interim order, issued by a single-judge bench led by Justice Khadim Hussain Soomro, came during proceedings on a petition challenging the Capital Development Authority’s (CDA) tree-cutting operations in Islamabad’s Shakarparian area and H-8 sector.

At the outset of the hearing, the petitioner’s counsel argued that trees were being felled in violation of the Pakistan Environmental Protection Act 1997, the Islamabad Wildlife Ordinance 1979 and the city’s master plan.

“Respondents shall not cut trees till the next date of hearing,” Justice Soomro said in the court order released on Friday while referring to CDA officials.

“Respondents are directed to come fully prepared and to file paragraph-wise comments before the next date of hearing, along with a comprehensive report explaining the justification and legal basis for the cutting of trees,” he added.

According to the court order, the petitioner maintained that the CDA had not made any public disclosure regarding the legal basis for the operation and that the felling was causing environmental harm.

The petition sought access to the official record of tree-cutting activities and called for the penalization of CDA officials responsible for the act under relevant criminal and environmental laws.

It also urged the court to impose a moratorium on infrastructure projects in Islamabad, order large-scale replanting as compensation and constitute a judicial commission headed by a retired Supreme Court judge to probe the alleged violations.

CDA officials acknowledge around 29,000 paper mulberry trees have been cut in the capital in recent months, arguing that the species triggers seasonal allergies such as sneezing, itchy eyes and nasal congestion.

They also maintain that no trees have been removed from designated green belts and that the number of replacement trees planted exceeds those felled.

Designed in the 1960s by Greek architect Constantinos Doxiadis, Islamabad was conceived as a low-density city with green belts and protected natural zones at its core.

Critics, however, say the recent felling has extended beyond paper mulberry trees and question whether authorities are adhering to the city’s master plan and the legal protections governing forested and green areas.

The court has adjourned its hearing until Feb. 2, 2026.