Pakistan eyes more IFC backing for private-sector-led growth

October 16, 2026 (MLN): Pakistan has asked the International Finance Corporation (IFC) to deepen its private-sector investment in the country by setting clear criteria that steer financing towards sectors driving growth, job creation and export competitiveness, as Islamabad shifts from macroeconomic stabilization to sustainable growth.

SMEs, housing finance, agriculture and public-private partnerships (PPPs) were named as priority areas for closer engagement, while both sides agreed to deepen cooperation in support of private-sector-led growth.

The matter was taken up when Federal Minister for Economic Affairs Ahad Khan Cheema met IFC Managing Director Makhtar Diop on the sidelines of the 2026 World Bank Group–IMF Annual Meetings in Bangkok, said a press release issued.

Ahad Cheema said Pakistan’s focus had moved towards productive investment, stronger exports, innovation and employment generation.

He noted that IFC’s presence had become more visible, and its engagement with the government stronger, since Division Directors were placed in Pakistan.

He also welcomed the growth in IFC’s portfolio in the country, which had risen fourfold since 2022 to around US$3 bn in 2026.

On SMEs, the minister sought IFC’s help in developing a comprehensive roadmap, building SMEDA’s institutional capacity and widening businesses’ access to finance. In housing, he stressed the need to mobilize long-term private financing and risk-sharing instruments to expand affordable housing.

He urged greater IFC participation under the AgriConnect initiative, particularly in farmer financing, agro-processing, export-quality standards and private-sector wheat storage.

He also invited IFC to offer technical support to the Public Private Partnership Authority to develop bankable projects capable of attracting private capital.

Makhtar Diop stressed the need for a comprehensive strategy for MSMEs to support their growth and improve access to finance.

The two sides also discussed the proposed Fund of Funds, which is meant to support start-ups and strengthen the entrepreneurial ecosystem.

Ahad Cheema said the partnership should be judged not only by capital mobilized but also by jobs created, exports generated, businesses strengthened and opportunities opened for women, youth and smaller enterprises.

He called for closer coordination across the World Bank Group so that financing, technical expertise and institutional support translate into faster implementation and tangible economic gains.

Copyright Mettis Link News