Pakistan and IFC advance talks on fund for startups and entrepreneurs

Pakistan and the International Finance Corporation, the World Bank's private-sector arm, have advanced discussions on establishing a fund to support entrepreneurs and startups, according to a finance ministry statement issued on Tuesday. Finance Minister Muhammad Aurangzeb met Simon Andrews, the IFC's director for Pakistan, Afghanistan, the Kyrgyz Republic, Tajikistan and Turkmenistan, to discuss current and potential IFC support for private-sector development, access to finance and investment in Pakistan.

According to the statement, IFC representatives briefed the minister on progress towards setting up the fund, which is being developed with relevant stakeholders to strengthen the country's entrepreneurial and startup ecosystem. They also reported progress on affordable housing work aimed at addressing supply-side constraints through potential developer finance models.

On agricultural finance, the discussion centred on the IFC's AgriConnect initiative, including opportunities to mobilise private financing through improved storage infrastructure and the use of electronic warehouse receipts as collateral. Aurangzeb was said to have stressed the importance of easing supply-side constraints and giving lenders and farmers greater certainty.

Public-private partnerships were also on the agenda. The IFC briefed the minister on its engagement with provincial governments on water and power projects, including work on water quality and safety and on advancing metering infrastructure across distribution companies. The two sides also exchanged views on expanding local-currency financing and on mechanisms for longer-term financing of private-sector projects.

The minister emphasised, in the statement, the importance of complementing domestic financial resources with international development finance, and of widening access to long-term and affordable capital for small and medium-sized enterprises, entrepreneurs, agriculture and housing. He pointed to what he described as improving macroeconomic stability and growing investor confidence, and said the government was focused on converting those gains into higher investment and private-sector-led growth. Both sides reaffirmed their commitment to continued cooperation on private-sector financing, investment and infrastructure development.