Karachi, October 20, 2025 – The State Bank of Pakistan (SBP) has entered into a strategic partnership with the International Finance Corporation (IFC), a member of the World Bank Group, to strengthen local currency lending and support private sector growth in Pakistan.
Under an International Swaps and Derivatives Association (ISDA) agreement, the collaboration will enable IFC to manage currency risks more efficiently and increase investments in Pakistani rupees. This initiative is aimed at expanding access to financing for key economic sectors, creating jobs, and enhancing overall financial stability in the country.
Governor Jameel Ahmad of the SBP emphasized the significance of the initiative, stating, “Promoting private sector growth in Pakistan is crucial for the country’s long-term and sustainable economic development. Our partnership with IFC will help broaden financing opportunities for businesses.”
Echoing this sentiment, John Gandolfo, IFC Vice President and Treasurer for Treasury & Mobilization, said, “With currency volatility posing ongoing challenges to developing economies, access to local currency financing is vital. This partnership reflects the World Bank Group’s commitment to fostering financial resilience and sustainable growth in Pakistan.”
Exchange rate fluctuations often create risks for companies that borrow in foreign currencies like the U.S. dollar while earning in local currency. This SBP–IFC partnership seeks to reduce currency mismatches, strengthen local business resilience, and improve foreign exchange liquidity in the domestic market.
By leveraging innovative financial instruments, IFC aims to expand local currency funding channels and help Pakistan’s private sector achieve greater stability and growth.