KARACHI: Standard Chartered Bank Pakistan and the International Finance Corporation (IFC) on Tuesday announced a $400 million Risk-Participation Facility to support short-term trade and working capital facilities for major local corporates and exporters based in the country, said a statement, to help boost foreign exchange inflows and drive sustainable economic growth.
The IFC is a member of the World Bank Group that mobilizes private capital to support businesses in developing nations, create employment, reduce poverty and help the economy in general.
Its decision to offer a Risk-Participation Facility, whereby it shares a portion of the risk on a portfolio of assets with banks, helps these financial institutions extend more trade finance to clients.
“We are delighted to further solidify our enduring partnership with IFC through this groundbreaking agreement – a unique collaboration between IFC and Standard Chartered Pakistan,” Rehan Shaikh, CEO & Head of Coverage, Standard Chartered Pakistan, said in a statement.
“As a bank with a strong trade focus and a significant presence in 53 markets across Asia, Africa, and the Middle East, we are instrumental in enhancing access to capital and liquidity and promoting global trade,” he added. “This collaboration with IFC empowers us to better support our clients, helping them expand their businesses and enhance their growth potential.”
IFC officials also maintained the arrangement reflected their organizational commitment to strengthening Pakistan’s financial sector and supporting its export-driven industries.
“By doubling the size of our Risk-Participation Facility, we are helping unlock vital trade and working capital financing for businesses that drive growth, create jobs and contribute to the country’s long-term economic resilience,” Momina Aijazuddin, Regional Head of Industry of IFC’s Financial Institutions Group for the Middle East, Türkiye, Central Asia, Pakistan and Afghanistan, said.
“Together, we are advancing inclusive and sustainable development through innovative financial solutions tailored to Pakistan’s evolving needs,” she added.
The initiative, which was formalized in September 2025, builds on the previous joint $200 million facility that was committed in December 2022.
It capitalizes on the experience of IFC and Standard Chartered in terms of export-oriented and large-scale manufacturing industries in Pakistan and aims to boost foreign exchange inflows.
It is expected to drive sustainable economic growth in the country by enhancing the availability of trade and working capital loan facilities, including supply chain financing and sustainable finance products.
