Pakistan, IFC discuss expanding private-sector financing and investment

Pakistan’s Finance Minister Muhammad Aurangzeb met International Finance Corporation (IFC) officials to discuss expanding private-sector financing and investment, including support for startups, affordable housing, agriculture and infrastructure.

The meeting with Simon Andrews, IFC Director for Pakistan, Afghanistan, Kyrgyz Republic, Tajikistan and Turkmenistan, was also attended by Naz Khan, IFC Principal Country Officer for Pakistan.

Aurangzeb welcomed the IFC delegation and said the government was seeking to translate improving macroeconomic stability and investor confidence into higher investment and private-sector-led growth. He highlighted entrepreneurship, small and medium-sized enterprises (SMEs), agricultural finance, affordable housing and public-private partnerships as key areas for mobilising private capital.

The IFC officials briefed the minister on progress towards establishing an entrepreneurs' fund aimed at strengthening Pakistan’s startup ecosystem. They also discussed the corporation’s work on affordable housing, including potential financing models for developers to help address supply-side constraints.

Agricultural finance was another focus, with discussions centred on the IFC’s AgriConnect initiative and ways to increase private-sector lending through improved storage infrastructure and greater use of electronic warehouse receipts as collateral.

Aurangzeb stressed the need to reduce supply-side constraints and provide greater certainty to both farmers and lenders, which could help expand financing for the agricultural sector.

The two sides also discussed public-private partnerships, including IFC engagement with provincial governments on projects in the water and power sectors. These include initiatives to improve water quality and safety and expand metering infrastructure across power distribution companies.

The discussions highlighted the potential for PPPs to improve public services, reduce losses and attract private investment into infrastructure, the Finance Ministry said.

Aurangzeb and the IFC delegation also discussed expanding local-currency financing and developing longer-term funding mechanisms for private-sector projects. The minister said international development finance could complement domestic resources and help support productive investment.

The meeting concluded with both sides reaffirming their commitment to expanding private-sector financing, supporting entrepreneurship and mobilizing domestic and international capital for investment and infrastructure development in Pakistan.