The State Bank of Pakistan (SBP) and the International Finance Corporation (IFC), the World Bank Group’s private sector arm, signed an agreement under the International Swaps and Derivatives Association (ISDA) framework. The deal aims to enhance local currency financing, mitigate currency risks, and drive private sector development in Pakistan
SBP Governor Jameel Ahmad emphasised, “Private sector growth is key to sustainable economic development. This partnership will unlock financing for critical sectors and create jobs.” IFC Vice President John Gandolfo added, “Local currency financing counters currency volatility, a priority for economic growth in Pakistan.”
1/2 Promoting private sector growth in Pakistan is paramount to successful, sustainable economic development of the country; says Governor #SBP Mr. Jameel Ahmad while signing agreement with IFC to strengthen local currency lending in Pakistan🇵🇰.https://t.co/Ty5iCenX7L pic.twitter.com/xoeHDH6yJ6
— SBP (@StateBank_Pak) October 20, 2025The SBP noted that exchange rate risks challenge businesses borrowing in foreign currencies while earning in rupees. The partnership seeks to strengthen financial resilience, improve foreign exchange liquidity, and support economic stability.
The agreement aligns with Pakistan’s macroeconomic stabilisation efforts, highlighted during Finance Minister Muhammad Aurangzeb’s Washington, DC, visit for the IMF-World Bank Annual Meetings. Discussions focused on a $1.2 billion IMF payout and infrastructure financing. Aurangzeb met IFC and Islamic Development Bank officials, reinforcing private sector investment goals.
The SBP-IFC partnership bolsters Pakistan’s economic resilience, supporting businesses and job creation. It’s a step toward sustainable growth amid global financial talks.
