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SBP and IFC Sign ISDA Deal to Expand Rupee Lending

An ISDA-based arrangement enables IFC to hedge currency exposure to boost rupee investments.

Overview

  • The agreement allows IFC to manage exchange-rate risk and scale rupee-denominated lending to Pakistani firms.
  • SBP says the move will help improve foreign-exchange liquidity, strengthen balance sheets facing dollar-debt mismatches, and support economic resilience.
  • SBP Governor Jameel Ahmad and IFC Vice President and Treasurer John Gandolfo signed the deal, with goals that include job creation and financing for critical sectors.
  • The announcement tracks with Pakistan’s stabilization efforts and ongoing IMFWorld Bank engagements during Finance Minister Muhammad Aurangzeb’s visit to Washington.
  • IFC, the World Bank Group’s private-sector arm, reports record FY2025 commitments globally, positioning it to mobilize additional capital for Pakistan.