| Islamabad: International Finance Corporation (IFC), which is a part of the World Bank Group, is going to double its USD 1.3 billion investment portfolio in Pakistan over the next three years, news sources reported on March 15.
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The information was shared by IFC Pakistan Principal Country Officer Naz Khan at a summit on infrastructure financing. Khan revealed that the investment will be part of the infrastructure development project and will support the country’s private sector. She said that the organization currently has a local portfolio of USD 1.3 billion in more than 40 companies across Pakistan with a focus on infrastructure-related firms. The group is very keen to invest in domestic infrastructure with the help of local commercial banks.
She highlighted that in order to make the investment profitable, the country’s macroeconomic indicators must be strong. Pakistan ranks low in the World Economic Forum’s (WEF) Global Competitiveness Index and Logistics Performance (GCILP) Index, which means there is significant room for improvement in the country’s infrastructure.
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It is important to note that Pakistan is facing a financial crunch amid external and internal macroeconomic and liquidity factors, including debt servicing. The government is currently undergoing 9th review with the International Monetary Fund (IMF) under its Extended Fund Facility (EFF) program. Pakistan is expected to reach a staff-level agreement with the fund in the next few weeks for USD 1.1 billion loan tranche. |
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