KARACHI: Top officials from the International Finance Corporation (IFC) are visiting Pakistan this week to explore the market and engage with key government stakeholders on identifying “viable opportunities” for investment,” the finance ministry said in a statement.

Pakistani Prime Minister Shehbaz Sharif’s government has vowed to reduce dependence on foreign loans in the coming years and seek more direct investment.

The country in 2023 nearly defaulted on the payment of its foreign debts until it was rescued by a last-gasp $3 billion bailout loan from the IMF. Last year, Islamabad secured a new $7 billion loan deal from the international lender. 

Since then, the country’s economy has started improving, with inflation dropping to 0.7 percent year-on-year in March 2025, the lowest in sixty years and a sharp contrast to the 38 percent peak experienced in May 2023. Aggressive interest rate cuts by Pakistan’s central bank, removal of energy subsidies in line with fiscal reform, increased inflows through remittances and exports and stabilization efforts under Pakistan’s economic framework supported by global partners have all come together to support the stabilization efforts. 

At Monday’s meeting with Finance Minister Muhammad Aurangzeb, Linda Rudo Munyengeterwa, IFC Global Director for Public Private Privatization & Corporate Finance, reiterated the international financial institution’s commitment to “supporting the country’s macroeconomic reform, investment, and privatization initiatives.”

“The delegation conveyed that they had come to Pakistan with an open mind, intending to explore the market and engage with key government stakeholders to identify potential areas for investment,” the finance ministry said in a statement. 

“IFC’s extensive global experience across various sectors, including infrastructure, energy, transport, public finance, and privatization, was highlighted as a valuable asset that could be leveraged to support Pakistan’s development agenda.” 

The delegation emphasized their readiness to partner with Pakistan in “exploring viable opportunities for collaboration and investment,” the statement added. 

Recognizing the fiscal challenges in managing public finances and meeting the country’s expanding development needs, Aurangzeb stressed the importance of utilizing the expertise and financial resources of international institutions like the IFC through public-private partnerships. 

“He affirmed that such collaborations could facilitate the implementation of essential reforms and enhance efforts to develop efficient energy, transport, and infrastructure systems in response to the demands of a growing population,” the statement added. 

The IFC delegation also called on Minister for Power Sardar Awais Ahmed Khan Leghari in Islamabad on Monday and discussed “promoting private investment in the energy sector through Public Private Partnership models,” Radio Pakistan reported. 

Leghari appreciated the role of the IFC in introducing modern technology for investment in the energy sector. 

“Demand and pricing are our major problems, and we are thankful for IFC’s guidance for sustainable solutions,” Radio Pakistan reported the minister as telling the IFC delegation. 

“Appreciating the IFC’s technical expertise and global experience, the Minister said the government is committed to provide a conducive environment to investors.”

The report said the IFC expressed its willingness to support the power ministry’s digital meterization policy and offered to assist in policy formulation and reforms.

The delegation presented examples of successful models in Brazil, Peru, Colombia and India where increased investment, integration of renewable energy and open access had been promoted.

“It is important for Pakistan to learn from international experiences for the right strategy,” the report said. “The meeting agreed that cooperation will be further promoted in the future and joint efforts will be implemented in various energy projects.”