$2bn investment ‘not a large number’ for Pakistan’s infrastructure, says IFC chief

#2bn #investment #large #number #Pakistans #infrastructure #IFC #chief

The Chief of the International Finance Corporation (IFC) said Thursday after key policy meetings with Finance Division officials, saying, “The annual investment of $ 2 billion for Pakistan is” not in large numbers “, which airports, energy , Development of infrastructure in water and ports is needed. In Islamabad.

IFC Managing Director and Executive Vice President Makatar Divpe’s first visit to Pakistan follows World Bank plans to allocate $ 20 billion to Pakistan under the Country Partnership Framework (CPF) announced in January. , Which was also sent to the IFC to invest the same amount.

“Now and perhaps between October, we will be able to make considerable progress in a two -transactions that will indicate that it is a country that has widespread financial support for critical and important infrastructure,” Dip told Reuters. Ready to do. “

Pakistan, which defines the default of independent loans, is currently under the $ 7 billion International Monetary Fund Bailout Program and is on a difficult path to recover.

Foreign exchange reserves are not enough to meet a month’s valuable imports, the country is in dire need of external financing for development projects.

The IFC had an exhibition of 1 2.1 billion in Pakistan during the financial year 2024, which ended in June, which identified the country’s record investment in the country’s $ 350 billion economy, the first of the financial year. The quarter increased by 0.92 %.

The IFC is looking for agriculture, infrastructure, the “very important” financial sector and the digital sector.

The government is trying to get taxes by speeding up the pressure of privatization, but the national flag carrier, efforts to privatize Pakistan International Airlines, and efforts to outsource the capital’s airport fell flat.

According to the IFC’s global shock, Dip said that equity -based transactions should be expected in Pakistan.

He said, “Loan will still be a very important part in our business, but our equity will grow in the world, but also in Pakistan. This means that we are really believed in Pakistan because we have a long time because we Can take the equity. ” .

Earlier in the day, the IFC delegation, headed by the DIOP, met with the Finance Division officials to discuss policies to promote industry -driven development, especially the expansion of export -led expansion. Through.

The DIOP said at a high -level meeting in the Finance Ministry, “Working with IFC Pakistan and helping in key sectors such as Green Energy, Data Centers, Improvement in Agricultural Supply China, Telecom Sector and Digitalization. Depending on providing. “

During a meeting with Finance Minister Mohammed Aurangzeb and his team, Dup praised Pakistan’s CPF deal with the World Bank, and called it the best process globally.

Speaking to the news a day ago, Executive Director (Pakistan) World Bank Group, Dr Syed Tafir Hussain Shah said that the country’s $ 40 billion partnership framework for the next decade has been reform of Pakistan. The agenda was a great expression of the group’s confidence. And over the past two years, economic stability, and the MDIFC visit, was more validated after a decade.

Shah added that the IFC has a very strong investment pipeline for Pakistan, but it is subject to constant economic and political stability in the country.

Last month, the World Bank, which is currently committed to about $ 17 billion for Pakistan for 106 projects, said the financial space for promoting the private sector and making public investment in key areas. Policy and institutional reforms will also be important for enhancing.

Since 1950, the World Bank has provided more than $ 60 billion to Pakistan. However, the new program represents a long -term strategy than previous contracts, which usually covers four to six years.