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IFC and TRG Pakistan Sign $5 Million Equity Subscription Agreement


In Washington:
Ahmed Badawi-Malik

Phone: +1 (202) 458-7148

Fax:      +1 (202) 974-4384

Email:
Abadawi@ifc.org


WASHINGTON, D.C., June 25, 2004 — The International Finance Corporation, the private sector arm of the World Bank Group, has entered into an agreement to invest up to $5 million equivalent in the shares of TRG Pakistan Limited, the country’s largest IT-enabled services firm.

The announcement heralds IFC’s first ever investment in the IT sector in Pakistan. It is expected to catalyze higher private capital inflows into the IT enabled services and call-center sectors, which have  large untapped growth potential in the country given its abundant human capital base. TRG, which is listed on the Karachi Stock Exchange with combined group revenues of $55 million and operations in the US and Western Europe, will use the investment to expand its operations in the global business services market, and to create additional capacity in the company’s Pakistan-based service delivery operations.


Mohsen Khalil, IFC Director for Global Information & Communication Technology, said, “The IT-enabled business services industry offers great potential for Pakistan. IFC is proud to be associated with TRG, the premier business process services company in Pakistan, and to support the participation of Pakistan in the global IT industry.” Sami Haddad, IFC Director for Middle East and North Africa, added “IFC’s investment should serve to boost investor awareness of Pakistan’s business environment and opportunities.” Zia Chishti, Chairman and Chief Executive Officer of TRG, added, “We are delighted to welcome IFC as one of our core equity stakeholders. IFC’s presence provides an endorsement of  Pakistan as an emerging IT market.”


The mission of IFC (
www.ifc.org) is to promote sustainable private sector investment in developing countries, helping to reduce poverty and improve people’s lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. From its founding in 1956 through FY03, IFC has committed more than $37 billion of its own funds and arranged $22 billion in syndications for 2,990 companies in 140 developing countries. IFC’s worldwide committed portfolio as of FY03 was $16.8 billion for its own account and $6.6 billion held for participants in loan syndications.