The International Finance Corporation (IFC)’s portfolio in Pakistan has grown to over $2 billion annually, with commitments reaching approximately $2.7 billion this year, according to a delegation that met Finance Minister Muhammad Aurangzeb on Wednesday.
In a statement, the Finance Ministry said IFC Divisional Director for Pakistan, Afghanistan and Central Asia Simon Andrews met Aurangzeb at the Finance Division along with World Bank Country Director for Pakistan Bolormaa Amgaabazar and IFC Country Manager Naz Khan.
Welcoming Andrews on his recent appointment, the finance minister acknowledged the IFC’s expanding engagement in Pakistan, particularly in investment, trade finance and advisory support. He noted that increased senior-level presence had strengthened collaboration and improved delivery.
The IFC delegation briefed the minister on its growing portfolio, highlighting financial sector support through risk-sharing and guarantee facilities aimed at promoting trade and small and medium enterprise financing. It also outlined expansion in local currency financing to reduce foreign exchange risks, along with upcoming initiatives, including a diversified payment rights facility and a green bond issuance with a local bank.
Discussions focused on scaling private sector investment, particularly in infrastructure and public-private partnerships. While some progress was made in urban water management and distribution efficiency projects, both sides acknowledged the need to develop a stronger pipeline of bankable projects and improve coordination to unlock larger investment flows.
The finance minister stressed on the importance of adopting a client-centric approach to financing solutions, especially in facilitating local currency lending to support private sector growth and reduce exchange rate vulnerabilities. He said such initiatives complement foreign currency inflows and were critical for sustainable economic expansion.
The meeting also covered collaboration on job creation, entrepreneurship and innovation, including proposals to develop a venture capital ecosystem and strengthen private sector engagement in policy formulation. Both sides discussed mechanisms to institutionalize dialogue between the government and business stakeholders to support more responsive policymaking.
The Finance Ministry said broader discussions included regional economic connectivity, particularly with Central Asian countries, and opportunities in agribusiness, infrastructure and trade linkages. Aurangzeb also briefed the delegation on the government’s efforts to maintain macroeconomic stability amid global uncertainties, including management of energy supply chains, fiscal discipline and targeted subsidy frameworks.
Both sides reaffirmed their commitment to deepen collaboration, accelerate priority initiatives and utilize World Bank Group instruments to support Pakistan’s reform agenda and private sector development.