Pakistan

Since Pakistan became a member of the IFC in 1956, the Corporation has committed over $1.7 billion of its own funds in the country and has arranged about $606 million in loan participations. During fiscal year 2007, IFC committed $286 million in 12 companies, compared to $125 million during the previous fiscal year. IFC portfolio investments in Pakistan are in the financial sector, health and education, infrastructure, manufacturing, oil and gas, petrochemicals, and telecommunications. These portfolio investments represent IFC's largest country exposure in the MENA region.

IFC’s strategy in Pakistan focuses on:

• Investment in infrastructure (power, transport and telecom); the financial sector targeting housing; micro, small and medium enterprises; and supporting local hydrocarbon and petrochemical companies.

• Providing advisory services to build the capacity of financial intermediaries for housing finance, lend to MSMEs, remove obstacles for the growth of MSMEs and encourage public private partnership and privatization.

Investments		Advisory Services
During fiscal year 2007, IFC committed $286 million in 12 companies in Pakistan. Learn more...		IFC PEP-MENA is engaged in advisory services projects in several areas. Learn more...
Doing Business in Pakistan		The World Bank Group & Pakistan
Our Doing Business indicators can inform you about starting a business in the country. Learn more...		Learn more about the World Bank Group's assistance to the country. Overview... Country Assistance Strategy... Data & Statistics...
IFC's Key Contributions to Private Sector Development in Pakistan

• IFC helped set up First International Investment Bank, the first private sector investment bank in Pakistan. The bank had a significant demonstration effect, which led to the establishment of over 15 private sector investment banks within a five-year span
• IFC supported the National Development Leasing Corporation in the early stages of its development with an equity investment and a 10-year credit line, the first 10-year facility, which helped NDLC and the leasing sector extend longer-term lease finance. NDLC, the first leasing company, played a pioneering role in the development of the leasing sector in the country and substantially contributed to increased access to finance for small and medium enterprises
• IFC played an important role in establishing the Central Depository Company, which helped Pakistan's stock markets to replace manual settlement systems with electronic settlement systems. This ensured transparency and also enabled the market to settle large trading volumes. The company is now one of the most profitable in its area of business and is considered the first and single biggest initiative for capital market development in Pakistan. In addition to increasing the stock markets' efficiency, the company also significantly improved transparency
• IFC invested in the Pakistan Credit Rating Agency and was instrumental in arranging a joint venture with Fitch. The absence of credit rating in Pakistan represented a critical gap that impeded capital market development
• IFC invested equity in the first Modaraba Company (Islamic Financing Institution) and followed up with an income participation facility. The facility was the first of its kind and had a ground breaking impact
• IFC contributed to establishing the first open-end fund, Unit Trust of Pakistan--a first in the private sector. It is now among the largest and most successful funds. Its establishment was catalytic and led to the creation of many other open-end funds. IFC came in as an equity investor in the asset management company of UTP (ABAMCO Ltd.) and also invested in it. As the first open-end fund in the private sector, UTP had a significant demonstration effect and encouraged the launch of a number of other profitable open-end funds
• IFC structured and financed the Jahangir Siddiqui Private Equity Fund SPE, the first private equity fund, which is expected to develop the fund industry and capital markets in Pakistan
• The first ever foreign joint venture in equity brokerage in Pakistan, the Bear Sterns Jahangir Siddiqui Company was the first leading international equity brokerage house in Pakistan to boost the international profile of Pakistani stock markets and contribute significantly to the development of this sector. IFC brought in Bern Stern as the joint venture partner and also invested in equity. The joint venture broke new grounds and helped Pakistan’s stock market gain visibility
• An IFC investment created the International Housing Finance Company Limited, the first private sector Housing Finance Company
  

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