Islamabad, Feb 14: International Finance Corporation (IFC) Chief Makhtar Diop has announced plans to ramp up equity investments and large-scale infrastructure financing in Pakistan, aiming to unlock $2 billion in annual investments over the next decade. Speaking during his visit to Pakistan, Diop highlighted the country’s potential to attract significant funding for critical infrastructure projects, signaling a shift towards long-term investment commitments.
Diop expressed optimism about Pakistan’s readiness for major financial inflows, stating that progress on key transactions is expected between now and October. He emphasized that large-scale financing would play a crucial role in transforming the country’s infrastructure, including international airports, energy, water, and ports. With Pakistan’s pressing need for development in these sectors, he noted that $2 billion annually is not a substantial amount in the broader context of the country’s economic requirements.
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His visit comes in the wake of the World Bank’s announcement in January regarding a $20 billion allocation for Pakistan under its Country Partnership Framework. As the private investment arm of the World Bank, the IFC is also expected to invest a similar amount, reinforcing its commitment to Pakistan’s economic growth.
According to Reuters, the IFC’s exposure in Pakistan reached a record $2.1 billion during the fiscal year 2024, underscoring its growing involvement in the country’s $350 billion economy. Moving forward, Diop revealed that the IFC is particularly interested in expanding its footprint in agriculture, infrastructure, the financial sector, and the digital economy sectors that are key to Pakistan’s long-term development.
Additionally, he indicated that equity-based transactions will be a major component of the IFC’s investment strategy in Pakistan. While debt financing will continue to play an important role, he stressed that equity investments reflect the IFC’s confidence in Pakistan’s economic potential. By taking equity positions, the corporation is committing to long-term partnerships, signaling trust in the country’s future.
With Pakistan striving to attract foreign investment and bolster economic stability, the IFC’s increased focus on equity and infrastructure projects is expected to provide much-needed financial support and expertise. As the corporation moves ahead with its investment strategy, the coming months could see major announcements that solidify Pakistan’s position as a destination for large-scale global financing.
