The International Finance Corporation (IFC) is planning to mobilise up to $2 billion annually in Pakistan over the next decade, with small and medium-sized enterprises (SMEs), public-private partnerships (PPPs) and housing finance emerging as major areas for potential cooperation. The planned mobilisation is part of the World Bank Group’s Country Partnership Framework (CPF) for Pakistan covering 2026 to 2035, as the country seeks to expand access to financing and strengthen support for development projects.
According to a government statement, Pakistan is seeking increased involvement from IFC in both financing and technical assistance as it works to develop its pipeline of public-private partnership projects and improve access to housing finance. The proposed cooperation comes as the government considers changes to the institutional framework governing PPPs, with the aim of giving relevant authorities a broader role in preparing projects, attracting investment and supporting implementation.
Federal Minister for Economic Affairs Senator Ahad Cheema said the government was preparing legislation to expand the mandate of the Public-Private Partnership Authority (P3A), which has been placed under the Privatisation Division. Under the proposed framework, P3A would have a wider role in assisting federal ministries with the development and marketing of projects, mobilisation of financing and regulation of projects implemented through the authority.
The government is also looking toward international development institutions to support its PPP pipeline. Representatives of IFC and the World Bank welcomed efforts to strengthen the institutional framework, while the proposed expansion of P3A’s responsibilities could provide a broader platform for developing projects that require private-sector participation and external financing. The planned framework is expected to support greater coordination between government institutions and development partners as projects move from preparation toward financing and implementation.
Housing finance was another major area discussed during the meeting. Cheema said the government was examining ways to strengthen the institutional framework for housing finance and improve access to funding for people seeking to build homes. He invited IFC to participate in efforts to expand housing finance in Pakistan, highlighting the potential for increased development financing and technical support in a sector where access to suitable financing remains an important consideration for prospective homeowners.
SMEs also featured prominently in the discussions, with IFC Regional Director Simon Andrews expressing interest in increasing the organisation’s engagement with the sector. Cheema said expanding financing and support for SMEs could contribute to economic growth and employment generation. Greater access to capital and technical assistance for smaller businesses could therefore form part of the broader areas of IFC engagement under the 2026–35 World Bank Group framework.
The discussions took place during a meeting between Cheema and Andrews, who was accompanied by World Bank Country Director for Pakistan Bolormaa Amgaabazar. Cheema welcomed IFC’s increased engagement in Pakistan over the past four years and acknowledged the organisation’s technical assistance and financing, alongside the broader development support provided by the World Bank Group. The planned annual mobilisation of up to $2 billion would place IFC financing and private-sector investment support among the potential components of Pakistan’s longer-term development financing strategy, particularly in areas involving businesses, infrastructure partnerships and housing.
The proposed expansion of cooperation comes as Pakistan works to strengthen mechanisms for attracting private capital into development projects while widening financing opportunities for businesses and households. The focus on SMEs, PPPs and housing finance indicates the areas being discussed for deeper engagement, while the proposed changes to P3A’s mandate could influence how federal projects are developed, financed and presented to potential private-sector partners over the coming years.
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