International Atomic Energy Agency chief arrives in Pakistan to discuss nuclear cooperation

ISLAMABAD: The World Bank’s private investment arm is increasing equity investments and eyeing large-scale infrastructure financing in Pakistan, in an investment plan that could unlock $2 billion annually over a decade, the institution’s chief told Reuters on Friday.
International Finance Corporation chief Makhtar Diop’s maiden visit to Pakistan follows the World Bank’s plans to allocate up to $20 billion for Pakistan under a Country Partnership Framework announced in January, with the IFC also slotted to invest the same amount.
“Between now and maybe October we will be able to progress enough on a couple of transactions that will signal that this is a country ready to receive large-scale financing for critical and important infrastructure,” said Makhtar Diop, the corporation’s managing director.
Diop said a $2 billion annual investment “is not a large number” for Pakistan, which needs infrastructure development in international airports, energy, water and ports.
Cash-strapped Pakistan is currently under a $7 billion International Monetary Fund bailout program and navigating a tricky path to recovery.
The South Asian nation narrowly averted a sovereign debt default, with reserves not sufficient enough to meet a month’s worth of controlled imports.
The IFC had an exposure of $2.1 billion in Pakistan during the fiscal year 2024, ending in June, marking its record investment in the South Asian country’s $350 billion economy.
Pakistan’s economy grew by a meagre 0.92 percent in the first quarter of the fiscal year.
Diop said the IFC is looking into agriculture, infrastructure, the “very important” financial sector, and the digital sector.
Pakistan is looking to generate revenue by speeding up a privatization push, but efforts to privatise the national flag carrier, Pakistan International Airlines, and outsource the capital’s airport have fallen flat.
In line with the IFC’s global push, Diop said equity-based transactions were to be expected in Pakistan too.
“Debt will still be a very important part in our business, but our equity will increase in the world, but also in Pakistan. It means we are believing really in Pakistan because we can take equity for a long, long time,” he said.

KARACHI: Prime Minister Shehbaz Sharif on Friday urged the International Finance Corporation (IFC) to enhance its support in key sectors during a high-level delegation visit, weeks after the World Bank pledged $40 billion in assistance to the South Asian country.
The IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets.
The World Bank last month announced a decade-long Country Partnership Framework (CPF) for Pakistan, marking the unprecedented commitment, including $20 billion in sovereign lending through the International Development Association and the International Bank for Reconstruction and Development. The IFC will mobilize an additional $20 billion to spur private sector investments in Pakistan.
“The Prime Minister lauded IFC’s role in fostering private sector investments and expanding its portfolio in Pakistan,” said a statement circulated by Sharif’s office after the meeting with IFC Managing Director Makhtar Diop, who is leading the delegation. “He encouraged IFC to enhance its support under key areas including infrastructure and logistics, outsourcing of large airports, agriculture, information technology, mining, climate resilience, health care, and water & sanitation.”

“He also encouraged IFC to enhance collaboration with the private sector arms of other multilateral institutions for maximizing private sector participation in the development process and achieving greater impact,” the statement added.
The prime minister emphasized the need for export-led growth and called for the digitization of Pakistan’s economic ecosystem. He also highlighted ongoing digitization efforts within the Federal Board of Revenue (FBR) to streamline financial and economic processes.
Diop agreed with Sharif, according to the statement, by stressing the need for increased private sector investment in Pakistan’s road and power sector infrastructure, particularly transmission lines, airport services and wheat storage facilities such as silos to strengthen exports.
He also underscored the importance of private investment in water, health care and sanitation, with necessary social safeguards, to ensure sustainable economic growth.
The IFC official commended Pakistan’s engagement with the International Monetary Fund (IMF) and ongoing economic reforms. He noted that the government’s efforts to create an enabling environment for private sector operations had boosted investor confidence. He assured Sharif of the IFC’s continued support, aligned with Pakistan’s development priorities.
Earlier in the day, Diop and his team met with Finance Minister Muhammad Aurangzeb, who briefed them on Pakistan’s macroeconomic stability in terms of both debt and equity, as well as key structural reforms undertaken by the government, according to the finance ministry.
The World Bank’s lending program for Pakistan, set to commence in 2026, will focus on six core outcomes: improving education quality, tackling child stunting, boosting climate resilience, enhancing energy efficiency, fostering inclusive development, and increasing private investment.