Overview

• Pakistan’s central bank and the World Bank Group’s IFC formalized the agreement on October 20 to back private-sector lending in Pakistani rupees.
• The ISDA-based arrangement enables currency swaps and other hedges that reduce exchange-rate exposure for IFC’s Pakistan portfolio.
• SBP says the partnership targets greater foreign-exchange liquidity, stronger economic resilience, and job-creating finance for critical sectors.
• Governor Jameel Ahmad and IFC treasurer John Gandolfo said access to local-currency financing is crucial given volatility and can catalyze growth.
• The announcement coincided with Pakistan’s IMF programme engagements in Washington, with IFC noting record FY2025 commitments of $71.7 billion.