Govt, IFC step up efforts to mobilise private capital

Pakistan and the International Finance Corporation (IFC) have intensified efforts to draw private capital into the economy, naming a proposed entrepreneurs' fund, affordable housing, farm finance and public-private partnerships as priority areas. Business Recorder reported that Finance Minister Muhammad Aurangzeb met Simon Andrews, Director of IFC Pakistan, Afghanistan, Kyrgyz Republic, Tajikistan and Turkmenistan, alongside Naz Khan, the Principal Country Officer for IFC Pakistan. The talks covered existing and prospective IFC support for private-sector development, financing access and investment.

According to the meeting, the IFC is advancing its plan for an entrepreneurs' fund to deepen Pakistan's start-up ecosystem and channel private money into investment. On housing, developer finance models are being explored to address supply-side constraints, while the AgriConnect initiative is examining better storage and the use of electronic warehouse receipts as collateral. In water and power, the IFC is engaging provincial governments on water quality and metering projects across distribution companies.

Aurangzeb highlighted improving macroeconomic stability and rising investor confidence, and said the government wants these gains to turn into greater investment and private-sector-led growth. Both sides agreed to deepen cooperation on financing, investment and infrastructure, including local-currency lending and longer-term financing mechanisms.