IFC to support Pakistan in green energy, telecom, digital transformation

February 14, 2025 (MLN): The International Finance Corporation (IFC) has committed to working closely with Pakistan and providing support in key areas such as green energy, data centers, agricultural supply chain improvements, the telecom sector, and digitization.

This was stated by Makhtar Diop, Managing Director & Executive Vice President of the IFC, during a meeting with Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, at the Finance Division today.

Welcoming the IFC delegation, the finance minister congratulated the IFC on its recently signed projects with the private sector and commended the thriving and vibrant role of private enterprises in Pakistan, according to the press release issued.

The finance minister highlighted the government’s recent declaration of warehousing as an industry and reaffirmed its commitment to public-private partnerships (PPPs) in infrastructure, IT, data centers, and AgTech.

He emphasized that agricultural income tax remains a key area of discussion, alongside the broader goal of capital mobilization, where the private sector must play a leading role.

He also noted that several international partners have publicly acknowledged Pakistan’s growing investment potential.

He also briefed the delegation on Pakistan’s macroeconomic stability, mentioning his recent meeting with Kristalina Georgieva, Managing Director of the IMF, in Dubai.

He apprised that Georgieva appreciated the progress Pakistan has made on the macroeconomic front.

He further highlighted that since the last meeting with IFC in Davos, improvements have been observed on both the debt and equity sides.

The finance minister also outlined key structural reforms, including the introduction of an agricultural income tax, an unprecedented step in the country.

Additionally, the reforms include pension adjustments and rightsizing initiatives across 43 ministries and 400 attached departments, many of which have been merged or wrapped up.

He reaffirmed the government’s commitment to fostering an environment where the private sector leads economic growth, particularly in driving export-led expansion.

He also thanked IFC for its continuous support and assistance.

Makhtar Diop appreciated the Finance Minister’s hospitality and acknowledged the government’s reform efforts.

He noted that private sector stakeholders in Pakistan have expressed confidence in the Finance Minister’s policies and are appreciative of the progress being made.

He also commended Pakistan’s Country Partnership Framework (CPF) with the World Bank, recognizing it as one of the best practices globally.

The meeting concluded with both sides reaffirming their commitment to continued collaboration and investment in Pakistan’s economic development.