Islamabad: The International Finance Corporation (IFC) has asked Pakistan to strive for political and macroeconomic stability, in addition to accelerating reforms, to unlock the growth potential of the private sector, doubleing the investment relationship to GDP and guaranteeing prosperity In the long term.
The IFC is ready to mobilize around $ 560 million in co -financing with the United Kingdom for helping the country in the fight against climate change and in the transition to a low carbon economy.
Before his two -day visit to Pakistan, who starts today (Thursday), said IFC managing director Makhtar Diop Sunrise That its organization, a commercial arm of the World Bank Group, was analyzing high -impact investment cooperation in manufacturing, services, sustainable infrastructure development and encouraging new telecommunications and technology companies.
He said the IFC would focus on high impact opportunities on several sectors. “In manufacturing and services, we will point to agriculture, aquaculture, corporate agriculture, complex manufacturing and exports. “For banks, our objective is to improve financial inclusion and strengthen agricultural loans,” he said, adding that key priorities included sustainable infrastructure, environmentally friendly buildings and digital infrastructure development, particularly in the telecommunications sector .
“We will support the risk capital for new companies with technology, especially those of women led by women, and those in health education and technology,” he said.
Makhtar Diop arrives at the two -day visit; He says that Corporation is weighing the investment in manufacturing, services, sustainable infrastructure, new IT companies and technology
In response to a question, Diop said that Pakistan had great investment potential, including foreign direct investment. “With the ninth largest labor sector in the world and two out of every three workers under 30, Pakistan has a young, dynamic and expert technology workforce. The digital transformation could add $ 60 billion in value by 2030, and the country will become the seventh largest consumer market in the world, ”he observed.
Diop said that the potential in micro -related services, small and medium -sized companies, agriculture and global value chains remained largely without exploiting.
However, realizing that this potential required a strong enabling environment. “This means consistent policies, macroeconomic and political stability, compliance with the IMF program and reforms of the financial sector to boost loans,” he said.
Climatic challenges
Addressing the climatic challenges and female participation of the workforce, currently the lowest in southern Asia with 25 percent, were also critical, he said.
In response to a question, he said that the IFC had tripled investments, promoting trade, productivity and climate resistance. This has opened opportunities for women and has created more than 50,000 jobs.
He reaffirmed the support for the Government Reform Agenda, particularly in strengthening the political environment for the growth led by the private sector. “Our priority is to advance in high impact initiatives that make a real difference, such as expanding access to finance, especially for small businesses, joining the commercial financial gap of Pakistan and deepening capital markets.”
Diop said the IFC had been a pioneer in several critical associations to mobilize capital and maximize the impact. To support the low carbon transition of $ 348 billion of Pakistan by 2030, the organization had launched the largest installation of combined finance in a single country.
“With the support of Great Britain, we are ready to mobilize £ 450 million (about $ 560 million) in private capital for resilience and climatic adaptation,” he said.
The corporation also provided advisory support with the focus on the economic inclusion of women and had been associated with the Pakistan Business Council to promote annual gender diversity awards for three years to encourage companies that defend equal payment , inclusive workplaces and women in leadership.
“To compete with other countries, Pakistan must accelerate the reforms and aim to double their investment ratio from 13pc to 25-30pc,” said Diop.
Speaking about the framework of countries of $ 20 billion, the head of the ICC Human capital, private sector growth and resistance.
This approach prioritizes specific investments for a lasting impact, with a half -period review in the fiscal year30 to reassess priorities and designed to address Pakistan’s greatest development challenges: daring children, learning poverty, change, change Climate and energy sustainability. “We remain committed to work closely with the government to support the National Economic Transformation Plan, Uraan Pakistan and the Prime Minister’s Economic Transformation Agenda,” he said.
Posted in Dawn, February 13, 2025
