KARACHI: A high-level International Finance Corporation (IFC) delegation has met Pakistan’s Finance Minister Muhammad Aurangzeb, the finance ministry said on Friday, weeks after the World Bank pledged $20 billion support to the South Asian country.
The World Bank last month announced supplying Pakistan with $20 billion of loans over the next decade, which are expected to be invested in nutrition, education and renewable energies in the hope of stimulating private-sector growth.
The IFC, a member of the World Bank group, is the largest global development institution focused on the private sector in emerging markets, and its managing-director, Makhtar Diop, is currently leading a delegation to Pakistan.
In his meeting with IFC delegates, Aurangzeb briefed the about Pakistan’s macroeconomic stability on both the debt and equity sides as well as key structural reforms undertaken by his government, according to the Pakistani finance ministry.
“The finance minister highlighted the government’s recent declaration of warehousing as an industry and reaffirmed its commitment to public-private partnerships (PPPs) in infrastructure, IT (information technology), data centers, and AgTech (agricultural technology),” the ministry said in a statement.
“He emphasized that agricultural income tax remains a key area of discussion, alongside the broader goal of capital mobilization, where the private sector must play a leading role. He also noted that several international partners have publicly acknowledged Pakistan’s growing investment potential.”
During the meeting, Diop acknowledged the government’s reform efforts and noted that Pakistani private sector stakeholders had expressed confidence in the current policies, according to the finance ministry.
He commended Pakistan’s Country Partnership Framework (CPF) with the World Bank, recognizing it as one of the best practices globally, and reiterated IFC’s commitment to working closely with Islamabad and providing support in key areas such as green energy, data centers, agricultural supply chain improvements, telecom sector, and digitization.
The World Bank’s lending for Pakistan will start in 2026 and focus on six outcomes: improving education quality, tackling child stunting, boosting climate resilience, enhancing energy efficiency, fostering inclusive development and increasing private investment.
Pakistan nearly defaulted in 2023 on the payment of foreign debts and the International Monetary Fund (IMF) rescued it by agreeing to a $3 billion bailout. Last year, Islamabad secured a new $7 billion loan deal from the IMF. Since then, the country’s economy has started improving with weekly inflation coming down from 27 percent in 2023 to 1.8 percent in January. Pakistan Prime Minister Shehbaz Sharif has vowed to reduce dependence on foreign loans in the coming years.
During the meeting, Finance Minister Aurangzeb also outlined key structural reforms, including the recent introduction of agricultural income tax along with pension reforms and rightsizing initiatives across 43 ministries and 400 attached departments.
“He reaffirmed his government’s commitment to fostering an environment where the private sector leads economic growth, particularly in driving export-led expansion,” the finance ministry added.
High-level IFC delegation in Pakistan after nearly 10 years as World Bank pledges $20 billion
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High-level IFC delegation in Pakistan after nearly 10 years as World Bank pledges $20 billion
- The IFC, a member of the World Bank group, is the largest global development institution focused on the private sector in emerging markets
- Finance Minister Muhammad Aurangzeb underscores efforts for the private sector to lead economic growth, particularly in export-led expansion
Pakistan, Indonesia sign MoUs to expand cooperation as Islamabad seeks to ease trade imbalance
- Pakistan offers to send doctors and medical experts to support Indonesia’s expanding health needs
- Indonesian president highlights close foreign policy coordination with Pakistan, including on Gaza
ISLAMABAD: Pakistan and Indonesia signed seven memoranda of understanding on Tuesday to deepen cooperation in trade, education and health, with Prime Minister Shehbaz Sharif saying Islamabad aimed to narrow a $4.5 billion bilateral trade imbalance heavily tilted in Jakarta’s favor.
The agreements were concluded during Indonesian President Prabowo Subianto’s two-day visit to Pakistan, his first trip to the country since taking office and the first by an Indonesian head of state in seven years.
Subianto, who arrived on Monday, held detailed talks with Sharif before the signing ceremony.
“Our discussion has been extremely productive,” Sharif said at a joint media appearance. “More than 90 percent of our current imports from Indonesia are palm oil. We have discussed how to take corrective measures to balance this through Pakistan’s agri-exports, IT-led initiatives and other areas.”
Sharif earlier noted Pakistan’s bilateral trade with Indonesia stood at around $4.5 billion, with the imbalance overwhelmingly in Jakarta’s favor.
Subianto thanked Pakistan for what he called an exceptionally warm welcome, noting his aircraft had been escorted by Pakistan Air Force JF-17 fighter jets.
He said the meeting had produced agreements across several fields, including trade, agriculture, education and science and technology.
The Indonesian president also welcomed Pakistan’s offer to help his country address critical shortages of medical professionals.
“Indonesia has vast needs for doctors, dentists and medical experts, and Pakistan’s support in this regard is strategic and critical,” he said.
Sharif noted Pakistan would be ready to send doctors, dentists and medical professors to assist Indonesia’s plans to expand its medical colleges and universities.
He added that Islamabad would “work closely and diligently” with Jakarta to achieve the targets set during the visit.
Subianto said both countries were also coordinating closely on foreign policy, particularly on developments in Gaza, and reaffirmed Indonesia’s support for a two-state solution.
He invited Sharif to visit Jakarta to deepen cooperation under the new agreements.
Pakistan and Indonesia marked the 75th anniversary of diplomatic ties this year, with both leaders saying the visit would help lift relations to what Sharif called “a much higher level” in trade, development and people-to-people links.
