Press Releases

IFC Finances Market Study to Develop Student Loan Facility for Higher Education in Pakistan

In Washington, D.C.:
Ludi Joseph
Tel: 202-473-7700

WASHINGTON, D.C. June 30, 2006—The International Finance Corporation and the National Bank of Pakistan have signed a memorandum of understanding to develop an initiative to finance higher education in Pakistan. IFC will work with the National Bank of Pakistan to jointly develop new loan products for students seeking higher education.

IFC will arrange the hiring and funding of an international consultant who will conduct a market study on higher education in Pakistan and analyze the demand for student loans. The consultant, who will be funded by the Netherlands Technical Assistance Trust Fund, will research the current status and market risk for student financing as well as the unsecured and secured lending for personal financing.

Michael Essex, IFC Director for the Middle East and North Africa, noted, “A successful student loan program will facilitate access to higher education and help IFC fulfill its developmental mission. We hope this initial work will result in a long-term partnership with the National Bank of Pakistan to develop an attractive and viable student loan program,” he said.

Guy Ellena, IFC Director for Health and Education, added, “Student loans will not only provide access to higher education and more job opportunities to a broader range of people but may also encourage similar initiatives in other countries of the region.”

About IFC

IFC's Health and Education department provides project financing for capital expenditures on hospitals, health clinics, schools, universities, colleges, and curriculum and ICT assisted education services. IFC supports institutions that introduce innovations, demonstrate best practices, or are directly aligned with public sector objectives. Technical assistance remains a critical component of IFC’s work. Through its experience in private health and education, IFC has also established itself as a center for networking and information dissemination among private institutions and investors worldwide. Since 2001, the department has committed 43 projects in 22 countries. The size of its committed portfolio as of June 30, 2006 was $313 million.

The mission of IFC ( is to promote sustainable private sector investment in emerging markets, helping to reduce poverty and improve people’s lives. IFC finances private sector investments in developing countries, 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 FY05, IFC has committed more than $49 billion of its own funds and arranged $24 billion in syndications for 3,319 companies in 140 developing countries. IFC’s worldwide committed portfolio as of FY05 was $19.3 billion for its own account and $5.3 billion held for participants in loan syndications.