Collaboration to unlock funding for critical sectors and create jobs across the country
The State Bank of Pakistan (SBP) has signed an agreement with the International Finance Corporation to strengthen local currency financing and support private sector growth in Pakistan. — Photo courtesy of SBP/X
The State Bank of Pakistan has partnered with the International Finance Corporation (IFC), the private sector arm of the World Bank Group, to expand local currency financing and support private sector growth in Pakistan.
The agreement, signed within the framework of the International Swaps and Derivatives Association (ISDA), will allow the International Finance Corporation (IFC) to manage currency risks more effectively and increase its investments in Pakistani rupees, according to a press release from the State Bank of Pakistan (SBP).
2/2 #SBP has partnered with the International Finance Corporation to expand local currency financing and support private sector growth in Pakistan. This will improve financing opportunities for the private sector and create jobs across the country. pic.twitter.com/KdnWUBJDDf
-SBP (@StateBank_Pak) October 20, 2025
SBP Governor Jameel Ahmad said: “Promoting private sector growth in Pakistan is paramount to the country’s successful and sustainable economic development. The partnership with IFC aims to enhance financing opportunities for the private sector” (SBP). He added that the collaboration would help unlock funding for critical sectors and create jobs across the country.
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John Gandolfo, Vice President and Treasurer of Treasury and Mobilization at IFC, said: “As monetary volatility poses significant risks to developing economies, access to local currency financing has never been more important. Promoting this type of financing is a strategic priority for the World Bank Group and a catalyst for economic growth in Pakistan” (SBP).
The SBP noted that foreign exchange risks pose a challenge to companies that borrow in hard currencies like the US dollar and at the same time earn income in local currencies. Addressing this mismatch is essential to strengthening the financial resilience of local businesses and supporting broader economic stability (SBP).
Through the partnership, the SBP aims to strengthen economic resilience, improve foreign exchange liquidity and promote private sector development.
The development came as Pakistan sought to stabilize its macroeconomic indicators amid IMF discussions over its loan program and a possible payment of $1.2 billion. The government also aimed to attract private sector investment and expand infrastructure financing, priorities highlighted during Finance Minister Muhammad Aurangzeb’s six-day official visit to Washington, DC, for the IMF and World Bank Annual Meetings.
During the visit, Aurangzeb met senior officials from the IFC and the Islamic Development Bank (IsDB), and highlighted the importance of strengthening private sector partnerships and investment within the framework of the World Bank Group.
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These commitments were part of broader reform and stabilization efforts, including reviews of IMF programs and measures to improve Pakistan’s economic resilience and foreign exchange liquidity.
The SBP-IFC partnership aligns with these efforts, supporting private sector development, mitigating currency risk, and enabling financing of critical sectors.
The State Bank of Pakistan is the central bank of the country, responsible for price stability, stability of the financial system and supporting the development and utilization of productive resources of Pakistan (SBP).
On the other hand, IFC is the largest global development institution focused on the private sector in emerging markets. Operating in more than 100 countries, it leverages capital, expertise and partnerships to create opportunities in developing countries and promote sustainable growth (SBP).
