Pakistan and International Finance Corporation have agreed to set up Pakistan Infrastructure Bank with 20 per cent equity stake each aimed to encourage financing from the private sector in the country’s infrastructure projects
IFC’s Vice President of Portfolio Management, Ms. Saran Kebet-Koulibaly, called on the Finance Minister, Senator Mohammad Ishaq Dar, at the Prime Minister’s Office on Wednesday. Ms. Kebet-Koulibaly was accompanied by Mr. Patchamuthu Illangovan, Country Director World Bank, Mr. Mouayed Makhlouf, IFC Regional Director for Middle East and North Africa, and Ms. Shabana Khawar, Principal Country Officer, IFC.
The Finance Minister welcomed Ms. Kebet-Koulibalyto Pakistan, who is visiting Pakistan for the first time. He said that the partnership with IFC has strengthened in recent years. The Minister highlighted his meeting with the CEO of IFC, Mr. Philippe Le Houérou, in April during the spring meetings of the World Bank and IMF in Washington D.C. He said that Government of Pakistan and IFC have agreed, in principle, to set up the proposed Pakistan Infrastructure Bank (PIB), with 20% equity stake each. He said that, once established, PIB will complement the government’s infrastructure initiatives by enhancing private financing and investment for infrastructure projects in the country.
The Finance Minister also highlighted the partnership between the Government of Pakistan, KfW and DFID in the Pakistan Microfinance Investment Company (PMIC), which has been established recently.
Ms. Kebet-Koulibaly thanked the Finance Minister for his leading role in strengthening the trust and partnership between IFC and the Government of Pakistan. She apprised the Minister of the fact that IFC has been engaged with international investors and multilateral development partners, including Asian Development Bank, for participation in PIB. She highlighted that the response from investors on PIB has been very encouraging.Ms. Kebet-Koulibalyhighlighted that she has felt a strong sense of optimism regarding Pakistan’s business and economic outlook during her ongoing visit.She emphasized the commitment of IFC to further expanding its presence and investment portfolio in Pakistan. She acknowledged that participation in PIB will play an important role in this regard.
The meeting was also attended by the Finance Secretary, Secretary EAD and senior officials of the Ministry of Finance and Economic Affairs Division.