Pakistan has called on the International Finance Corporation (IFC) to expand its investment in the country’s private sector, with a focus on industries that can increase economic growth, create employment and strengthen export competitiveness. The government wants financing to be directed towards productive business activity as the country moves beyond macroeconomic stabilisation and places greater emphasis on sustainable growth. Small and medium-sized enterprises (SMEs), housing finance, agriculture and public-private partnerships have been identified as priority areas for deeper cooperation with the international development institution.
The request was raised by Federal Minister for Economic Affairs Ahad Khan Cheema during a meeting with IFC Managing Director Makhtar Diop on the sidelines of the 2026 World Bank Group and International Monetary Fund Annual Meetings in Bangkok. According to an official press release, both sides discussed ways to strengthen their partnership and increase the role of private investment in Pakistan’s economic development. Cheema said the government’s priorities now include productive investment, export expansion, innovation and employment generation, highlighting the importance of directing financial resources towards sectors that can deliver measurable economic benefits.
Cheema welcomed the IFC’s expanding presence in Pakistan and said its engagement with the government had become stronger since the appointment of Division Directors in the country. He also highlighted the growth of the corporation’s investment portfolio, which has increased fourfold since 2022 to approximately $3 billion in 2026. Pakistan wants to build on this expansion by improving coordination with the IFC and ensuring that financing supports businesses, strengthens productive capacity and creates opportunities across different parts of the economy. The government also called for clear investment criteria that would help direct funding towards sectors with strong potential for growth, employment and exports.
Small businesses were among the main areas discussed during the meeting. Cheema sought the IFC’s support in preparing a comprehensive roadmap for SMEs, strengthening the institutional capacity of the Small and Medium Enterprises Development Authority (SMEDA) and improving access to financing for businesses. Smaller enterprises often face difficulties securing funds needed to expand operations, purchase equipment, improve production and enter new markets. Better access to finance, combined with stronger institutional support, could help businesses increase their capacity and contribute more effectively to economic activity. IFC support could also help develop a clearer framework for addressing the financing and development needs of these enterprises.
Housing finance and agriculture were also highlighted as important areas for private-sector investment. Cheema stressed the need to mobilise long-term private financing and introduce risk-sharing instruments to support affordable housing. Greater participation by private investors could help expand financing options for housing projects, although the effectiveness of such measures would depend on the design of funding arrangements and the ability of projects to attract sustainable investment. In agriculture, the minister encouraged the IFC to increase its involvement in the AgriConnect initiative, particularly in farmer financing, agro-processing, export-quality standards and private-sector wheat storage. These areas could help improve agricultural productivity, strengthen supply chains and support the development of value-added products for domestic and international markets.
The government also invited the IFC to provide technical assistance to the Public Private Partnership Authority to help prepare commercially viable projects capable of attracting private capital. Developing bankable projects is important for public-private partnerships because investors require clear project structures, credible financial assessments and an appropriate allocation of risks before committing funds. Technical assistance could help public institutions improve project preparation and create a stronger pipeline of investment opportunities. During the meeting, Diop emphasised the need for a comprehensive strategy for micro, small and medium-sized enterprises to support their development and improve access to finance. Both sides also discussed the proposed Fund of Funds, which is intended to support start-ups and strengthen Pakistan’s entrepreneurial ecosystem.
Cheema said the partnership between Pakistan and the IFC should be assessed not only through the amount of capital mobilised but also through its wider economic impact. He identified job creation, export growth, stronger businesses and improved opportunities for women, young people and smaller enterprises as important measures of success. The minister also called for closer coordination across the World Bank Group so that financing, technical expertise and institutional support lead to faster implementation and practical economic results. The discussions reflect Pakistan’s effort to attract more private investment and use development financing to support productive sectors. However, the meeting announcement did not specify new investment commitments, approved funding amounts or implementation timelines for the proposed initiatives.
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