The International Finance Corporation (IFC) is moving ahead with plans to establish a fund for entrepreneurs in Pakistan, aimed at strengthening the country’s start-up ecosystem and mobilising private capital for investment and development.
The progress was shared during a meeting between Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb and Simon Andrews, Director, IFC Pakistan, Afghanistan, Kyrgyz Republic, Tajikistan and Turkmenistan. He was accompanied by Naz Khan, Principal Country Officer, IFC Pakistan.
The meeting focused on ongoing and potential IFC support for private-sector development, expanding access to finance and promoting investment-led growth in Pakistan.
The IFC representatives briefed the finance minister on the entrepreneur fund, which is being developed in collaboration with relevant stakeholders. They also updated him on affordable housing, where the IFC is engaging on potential developer-finance models to address supply-side constraints.
Senator Aurangzeb welcomed the delegation and appreciated the IFC’s continued partnership with Pakistan, particularly in expanding private-sector financing and supporting investment-led growth.
The finance minister said the government was focusing on entrepreneurship, small and medium enterprises (SMEs), agricultural finance, affordable housing and public-private partnerships (PPPs) as key areas for mobilising private capital. He said improving macroeconomic stability and growing investor confidence needed to be translated into higher investment, capital formation and private-sector-led growth.
He also stressed the importance of expanding access to finance and creating an enabling environment for domestic and international private capital.
On agricultural finance, the meeting discussed the IFC’s AgriConnect initiative, particularly opportunities to mobilise private financing through improved storage infrastructure and effective use of electronic warehouse receipts as collateral. Senator Aurangzeb said supply-side constraints must be addressed and greater certainty created for lenders and farmers to expand agricultural financing.
PPPs were another key area of discussion. The IFC briefed the minister on its engagement with provincial governments on projects in the water and power sectors. These include measures to improve water quality and safety, and to advance metering infrastructure across distribution companies. The discussions highlighted the potential of PPPs to improve service delivery, reduce losses and mobilise private capital for infrastructure development.
The two sides also discussed expanding local-currency financing and strengthening mechanisms for longer-term financing for private-sector projects. Senator Aurangzeb emphasised the importance of complementing domestic financial resources with international development finance to support productive investment.
The finance minister said greater availability of long-term and affordable capital for SMEs, entrepreneurs, agriculture and housing could unlock private investment, facilitate business expansion and strengthen productive economic activity. He appreciated the IFC’s role in developing innovative financing solutions and mobilising private capital across key sectors.
Both sides reaffirmed their commitment to strengthening cooperation on private-sector financing, investment and infrastructure development. The focus will remain on expanding access to finance, supporting entrepreneurship and mobilising greater domestic and international capital for Pakistan’s sustainable and investment-led growth.
