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 touts investment potential for US businesses in tech, energy and minerals
- The country’s envoy says both sides was committed to anchoring relations in economic cooperation
- He describes Pakistan’s tech-savvy youth as a competitive asset for businesses needing skilled labor
ISLAMABAD: Pakistan’s ambassador to the United States said on Sunday the country offered profitable opportunities for American businesses in information technology, energy and minerals, according to an official statement.
The comments come months after the US and Pakistan reached a trade deal in July, with officials on both sides signaling interest in expanding cooperation into energy, mining, digital infrastructure and other sectors.
Pakistani Finance Minister Muhammad Aurangzeb at the time said the aim was to move “beyond the immediate trade imperative,” adding that the two countries had “come a long way” in their broader strategic partnership.
“Pakistan presents profitable opportunities for US entrepreneurs, particularly in the fast-growing and lucrative IT, energy and minerals sectors,” Ambassador Rizwan Saeed Sheikh said, according to the statement.
Sheikh made the remarks during a meeting at the embassy in Washington with a delegation from the Yale School of Management, which plans to visit Pakistan.
He said the leadership in both countries was committed to anchoring relations in economic cooperation and providing an investor-friendly environment for American firms looking to enter a market of more than 250 million people.
The ambassador noted Pakistan was strategically located at the crossroads of South Asia, Central Asia and the Middle East, adding that it served as a vital trade corridor offering US businesses connectivity to energy-rich Central Asian states and Gulf markets.
Sheikh highlighted opportunities in tourism, agriculture, manufacturing and information technology, pointing to Pakistan’s large, tech-savvy youth population as a competitive asset for businesses needing skilled labor.
“The success of over 80 US companies already operating profitably in Pakistan bears testimony to the country’s vast economic potential,” he said.
The statement added the delegation thanked the ambassador for the briefing and said it looked forward to the embassy’s support during the visit.
