IFC’s strategy in Pakistan focuses on promoting private sector growth, expanding the power supply, improving transportation infrastructure, supporting trade financing, and increasing lending to smaller businesses. During the last three years, IFC has ramped up its investments and advisory services work in Pakistan, supporting the development of the private sector.
In fiscal year 2013, IFC committed $513 million in Pakistan, including mobilizations from other investors and lenders. Our current committed portfolio stands at $852 million. In the 2013 fiscal year, IFC:
Provided $343 million in trade financing to 13 banks, helping boost cross-border trade and giving Pakistani companies access to new markets.
Helped mobilize $148 million for Star Hydro Power to support the construction of a private hydro-power project and increase the country’s supply of renewable energy.
IFC’s past initiatives include:
A $38 million investment in Zorlu Enerji to support the construction of a landmark wind-power project in Sindh Province. It is designed to increase Pakistan’s renewable-energy generation capacity and is expected to be one of the first two commercial wind-power projects in the country;
A $60 million loan to Star Hydro Power to support the construction of a private hydro-power project to increase the country’s supply of renewable energy. This is expected to help alleviate a sever power shortfall in Pakistan and reduce the country’s reliance on imported fuel for power generation;
A trade finance agreement with NIB Bank to help the private sector access global import and export markets. This agreement will support NIB Bank’s trade finance business by providing partial or full guarantees for individual trade transactions;
A $5 million equity investment in Matco Rice Processing, Pakistan’s leading basmati rice exporter, to help Matco expand its production capacity and increase its trade and export operations, supporting the country’s agriculture sector and generating new employment opportunities;
A $19 million investment to construct a state-of-the-art cargo terminal at Karachi’s Port Qasim to improve the country’s transport and logistics infrastructure and boost trade;
$100 million to support capacity expansion of the Uch Power Station, which will utilize the supply of indigenous gas in the Uch Gas Field; and
A $30 million subordinated loan to help Engro Fertilizers mitigate the impact of 2010 floods on its fertilizer business.
IFC Advisory Services
IFC Advisory Services is working to improve Pakistan's business environment, help small business owners, and support the country power sector, with an special emphasis on clean energy. We have:
Facilitated the establishment of Pakistan's first mediation center to help resolve commercial disputes quickly and amicably, lessening the burden on the country’s courts;
Worked to integrate the microfinance sector in the country’s credit reporting scheme, part of a wider effort to extend access to finance to entrepreneurs;
Worked with banks to help them expand their lending to small and medium enterprises;
Supported Habib Bank as it reached out to low-income farmers, providing them with services tailored to their needs;
Supported the integration of microfinance institutions into a national credit reporting system to expand access to finance;
Helped provide management and skills training to business people, including women and youth, through the Business Edge program;
Helped smaller business improve their corporate governance, which aids them in expanding and attracting investment;
Signed an agreement with the governments of Punjab and Sindh to explore public-private partnerships in the infrastructure sector;
Worked with the Aga Khan Rural Support Program to support the development of a business model for small, off-grid hydropower plants;
Helped banks adopt sustainable banking principles, promoting access to finance for underserved populations and encouraging lending that is more socially and environmentally responsible;
Worked with Packages, an investment client, to improve wastepaper recovery in Lahore. This allowed more local wastepaper to be recycled by Packages, generate income for local businesses, and help decrease greenhouse gas emissions; and
Assisted the Pakistan Institute of Corporate Governance to develop training programs for the board members of private and public corporations.
Signed an agreement with the Government of Punjab to simplify and streamline sales tax regulations.
Assisted the Energy Department of the Government of Punjab in reviewing a draft electricity law, in collaboration with the World Bank.
Worked in collaboration with IFC InfraVentures to support the development of an 11 mega-watt biogas project in Karachi;
In cooperation with the Cleaner Production Institute, promoted the use of energy efficient boilers in a Punjab industrial area.