International Finance Corporation | Pakistan

A delegation from the International Finance Corporation (IFC) called on Finance Minister Muhammad Aurangzeb and discussed its “growing portfolio in Pakistan, which now exceeds $2 billion annually and approximately $2.7bn committed this year”, according to the finance ministry. IFC is the private sector arm of the World Bank Group. According to the ministry, the IFC delegation comprised IFC Divisional Director for Pakistan, Afghanistan and Central Asia Simon Andrews, World Bank Country Director for Pakistan Bolormaa Amgaabazar and IFC Country Manager Naz Khan. Key areas of engagement included financial sector support through risk-sharing and guarantee facilities to promote trade and small and medium-sized enterprises (SME) financing; expansion of local currency financing to mitigate foreign exchange risks; and upcoming initiatives such as a diversified payment rights facility and a green bond issuance with a leading local bank, the ministry said. “Discussions focused on further scaling private sector investmen...

The State Bank of Pakistan (SBP) has signed an agreement with the International Finance Corporation (IFC) — a member of the World Bank Group — to strengthen local currency financing and support private sector growth in Pakistan, according to a press release issued on Monday. According to the World Bank, borrowing in foreign currencies exposes clients to the risk that debt and debt service payments (as measured in local currency) increase when the local currency depreciates. However, by converting to local currency, clients are able to address that risk. The statement released by the central bank today said that the agreement, signed under the International Swaps and Derivatives Association (ISDA) framework, would enable the IFC to “manage currency risks more effectively” and increase its investments in Pakistani rupees. “This is an important step towards unlocking financing for critical sectors of the economy and creating jobs across the country,” the SBP statement said. It also quoted SBP Governor Jameel Ahm...