The International Finance Corporation (IFC) has pledged its support for Pakistan’s growth in key sectors such as green energy, data centers, telecom, and digitization. Makhtar Diop, Managing Director and Executive Vice President of the IFC, made this announcement during a meeting with Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, at the Finance Division in Islamabad.
The finance minister welcomed Diop’s visit and congratulated the IFC on its recent partnerships with Pakistan’s private sector, highlighting the critical role vibrant private enterprises play in driving the country’s economic development. He also mentioned the government’s recent move to designate warehousing as an industry and emphasized the importance of public-private partnerships (PPPs) in sectors such as infrastructure, IT, data centers, and agricultural technology (AgTech).
Senator Aurangzeb discussed the significance of agricultural income tax as a key point in ongoing discussions, stressing the role of capital mobilization in economic growth, with the private sector playing a central role. He also noted that international partners have increasingly recognized Pakistan’s investment potential.
The finance minister provided updates on Pakistan’s macroeconomic stability, mentioning discussions with Kristalina Georgieva, Managing Director of the IMF, who commended the country’s progress on economic reforms. Aurangzeb highlighted improvements in the debt and equity sectors since the last meeting with the IFC in Davos.
Additionally, the minister outlined several structural reforms, including the introduction of agricultural income tax, which he described as a significant step in Pakistan’s fiscal landscape. Efforts to streamline government operations, such as adjusting pensions and merging ministries, were also discussed.
Reaffirming the government’s commitment to fostering private-sector-driven economic growth, particularly in export-led industries, Aurangzeb expressed gratitude to the IFC for its continued support. Diop, in turn, praised the finance minister’s leadership and the government’s reform efforts, recognizing the confidence private sector stakeholders in Pakistan have in the country’s policies and progress.
Diop also lauded Pakistan’s Country Partnership Framework (CPF) with the World Bank, calling it one of the best practices globally. The meeting concluded with both parties reiterating their commitment to continued collaboration to drive Pakistan’s economic development and investment.
