Pakistan, IFC eye wider private-sector financing, investment

October 06, 2026 (MLN): Pakistan and the International Finance Corporation (IFC) discussed measures to expand private-sector financing and investment, with a focus on entrepreneurship, SMEs, agriculture, affordable housing and public-private partnerships.

The discussions also covered efforts to mobilise greater domestic and international private capital and strengthen access to long-term and affordable financing for productive sectors.

Finance Minister Senator Muhammad Aurangzeb highlighted the Government’s focus on entrepreneurship, SME and agricultural finance, affordable housing and public-private partnerships to increase private-sector participation and investment-led growth.

He noted Pakistan’s improving macroeconomic stability and growing investor confidence, saying the focus was now on converting these gains into higher investment, capital formation and private-sector-led growth.

He also stressed the need to improve access to finance and create an enabling environment for domestic and international private capital.

The IFC briefed the Finance Minister on progress toward establishing a fund for entrepreneurs in collaboration with relevant stakeholders to strengthen the country’s entrepreneurial and start-up ecosystem.

The sides also discussed affordable housing, particularly potential developer financing models aimed at addressing supply-side constraints.

On agricultural finance, the discussion focused on IFC’s AgriConnect initiative and opportunities to mobilise private financing through improved storage infrastructure and greater use of electronic warehouse receipts as collateral.

The Finance Minister stressed the need to address supply-side constraints and provide greater certainty to lenders and farmers.

Public-private partnerships were also discussed, with the IFC sharing updates on its engagement with provincial governments on projects in the water and power sectors. These include initiatives aimed at improving water quality and safety and advancing metering infrastructure across distribution companies.

The discussions highlighted the potential of PPPs to improve service delivery, reduce losses and mobilise private capital for infrastructure development.

The two sides also exchanged views on expanding local-currency financing and strengthening mechanisms for longer-term financing of private-sector projects.

Senator Muhammad Aurangzeb emphasised the importance of complementing domestic financial resources with international development finance to support productive investment.

The Finance Minister stressed the need to broaden financing opportunities for SMEs, entrepreneurs, agriculture and housing, noting that greater access to long-term and affordable capital could support private investment, business expansion and productive activity.

Both sides reaffirmed their commitment to strengthening cooperation in private-sector financing, investment and infrastructure development, with a focus on expanding access to finance, supporting entrepreneurship and mobilising greater domestic and international capital for Pakistan’s investment-led growth.

Copyright Mettis Link News