Cairo, Egypt, August 13, 2015—IFC, a
member of the World Bank Group has ramped up investments in Pakistan over
the past year, with a focus on renewable energy to address the country’s
power shortage, and loans to banks to boost financial inclusion, especially
for small and medium enterprises (SMEs).
IFC committed a total of $1.2 billion investments
in the country in fiscal year 2015 (of which $767 million was in long-term
finance projects), backing private sector investments in key projects to
strengthen the country’s private sector and boost development and growth.
“Millions of people in Pakistan lack access
to power or basic financial services,” said Nadeem Siddiqui, IFC Country
Manager for Pakistan. “Our aim is to help tackle both by providing new
cleaner energy sources to spur development and strengthen the country’s
financial sector to boost inclusion and shared prosperity.”
In one of its biggest equity investments
in the country, IFC invested $125 million in China Three Gorges South Asia,
to support a series of hydro, solar and wind projects that are expected
to provide electricity to more than 11 million people and boost generation
capacity by 15 percent.
To cut Pakistan’s reliance on imported fossil
fuels and further support lower cost energy regeneration, IFC invested
a total of $205 million, including mobilization of $155 million from MIGA
and other lenders, in the Gulpur Hydro project, a new hydropower plant,
and invested $15 million in Gul Ahmed Wind Power to help build and operate
a new 50-megawatt wind farm in Sindh Province.
To boost financial inclusion, IFC provided
a loan of up to $150 million to Pakistan’s Habib Bank Ltd, as well as
an equity investment of $75 million, to support its growth and help the
bank launch programs targeting women depositors, and agricultural and rural
IFC also invested $67 million in to help
Bank Alfalah, one of Pakistan’s largest banks, grow its operations and
increase lending to SMEs and the agri-sector, as well as explore new areas
like sustainable energy finance.
Pakistan represents IFC’s largest exposure
in the MENA region, with a current investment portfolio of about $1.2 billion
in 46 companies, in sectors including infrastructure (energy, ports, and
transport), financial markets, and general manufacturing and services.
IFC, a member of the World Bank Group, is
the largest global development institution focused exclusively on the private
sector. Working with private enterprises in about 100 countries, we use
our capital, expertise, and influence to help eliminate extreme poverty
and boost shared prosperity. In FY14, we provided more than $22 billion
in financing to improve lives in developing countries and tackle the most
urgent challenges of development. For more information, visit www.ifc.org