Pakistan is moving ahead with plans for a new fund for entrepreneurs as the government works with the International Finance Corporation (IFC), the World Bank Group’s private-sector arm, to bring more private capital into the country.
Finance Minister Muhammad Aurangzeb and IFC officials discussed ways to increase private investment and make financing more accessible during a meeting focused on Pakistan’s private sector.
IFC officials briefed the finance minister on progress toward setting up the fund, which is expected to support the country’s startup ecosystem.
The meeting also covered financing opportunities for small and medium-sized enterprises (SMEs), agriculture, affordable housing and public-private partnership projects.
Aurangzeb said improving economic stability and investor confidence should lead to higher private investment and stronger business growth. He stressed the need for easier access to financing and better conditions for both local and foreign investors.
Affordable housing was also discussed, with the two sides looking at potential financing models for developers to help increase housing supply.
The officials reviewed IFC’s AgriConnect initiative as well. The program aims to attract more private financing by improving storage infrastructure and expanding the use of electronic warehouse receipts as collateral.
Aurangzeb said Pakistan needs to address supply-side problems and provide greater certainty to lenders and farmers to unlock more financing for agriculture.
The discussion also covered public-private partnerships in the water and power sectors. IFC officials shared updates on their engagement with provincial governments, including projects focused on improving water quality and safety and expanding metering infrastructure across distribution companies.
The two sides also discussed increasing financing in local currency and developing longer-term funding options for private-sector projects.
Aurangzeb said domestic financial resources need to be complemented by international development finance to support productive investment.
He also emphasized the need for affordable, long-term financing for SMEs, entrepreneurs, agriculture and housing, saying better access to capital could help businesses expand and encourage new private investment.
Pakistan and IFC agreed to continue cooperation on financing, investment and infrastructure projects, with a focus on bringing more domestic and international capital into the private sector.
