Pakistan is seeking greater support from the International Finance Corporation (IFC) to accelerate private sector investment and develop its capital markets, as policymakers navigate external pressures and push for sustainable growth. Finance Minister Muhammad Aurangzeb held talks with IFC Managing Director Makhtar Diop on the sidelines of the World Bank–IMF Spring Meetings in Washington, highlighting the need to scale up private capital mobilization.
Aurangzeb pointed to risks stemming from the ongoing Middle East conflict, saying authorities are closely monitoring spillover effects on Pakistan’s economy. He emphasized the importance of strengthening collaboration with IFC to boost productivity, support job creation, and expand local-currency financing.
Key Areas of Discussion
| Focus Area | Objective |
|---|---|
| Private Capital Mobilization | Scale up financing flows into Pakistan |
| Capital Markets Development | Draw on international best practices |
| Trade Finance | Support amid challenging external environment |
| Agriculture Sector | Drive innovation and growth through task force collaboration |
| Local-Currency Financing | Expand availability to reduce currency risk |
IFC’s Originate-and-Distribute Model
The meeting also highlighted IFC’s shift toward an originate-and-distribute model to crowd in private investment, a move seen as key to scaling financing flows into emerging markets like Pakistan. This approach allows IFC to originate loans and then distribute portions to other investors, leveraging its balance sheet to mobilize larger volumes of private capital.
About the International Finance Corporation
The International Finance Corporation (IFC) is a member of the World Bank Group and the largest global development institution focused exclusively on the private sector in developing countries. The IFC provides investment, advisory, and asset management services to encourage private sector development in emerging markets.
About the Spring Meetings
The World Bank–IMF Spring Meetings bring together finance ministers, central bankers, and development leaders from around the world to discuss global economic issues, financial stability, and development priorities.
