
IFC advances plans for a Pakistan fund supporting entrepreneurs and startups, aiming to expand private capital, financing and growth opportunities.
The International Finance Corporation (IFC) is moving forward with plans to establish a dedicated fund for entrepreneurs and startups in Pakistan, signalling a potential boost for a sector that has long faced challenges in accessing early-stage and growth capital.
The development follows a meeting between Finance Minister Muhammad Aurangzeb and Simon Andrews, IFC Director for Pakistan and several Central Asian markets. IFC officials briefed the minister on progress towards establishing the entrepreneur-focused fund, which is being developed with relevant stakeholders to strengthen Pakistan’s startup ecosystem.
The proposed fund forms part of a broader effort to mobilise private capital and increase financing available to businesses. For Pakistani entrepreneurs, greater access to capital could help startups move beyond the earliest stages, develop products, expand operations and build businesses capable of attracting further investment.
The discussions also reflect the government’s wider focus on entrepreneurship and small and medium-sized enterprises. Aurangzeb stressed that improving access to long-term and affordable financing would be important for turning improving macroeconomic stability and investor confidence into stronger private-sector investment and business growth.
Startup financing is already an area where IFC has been active in Pakistan. Through its Startup Catalyst platform, IFC invests in early-stage funds and accelerators in emerging markets. Its existing Pakistan portfolio includes investments in i2i Ventures and Sarmayacar, among others.
The meeting also covered financing for agriculture and affordable housing, as well as public-private partnerships in sectors such as water and power. IFC’s AgriConnect initiative, for example, seeks to mobilise private financing through improved storage infrastructure and electronic warehouse receipts that can be used as collateral.
For now, details such as the proposed fund’s size, launch date, investment criteria and structure have not been publicly announced. The significance lies in the direction: Pakistan and IFC are exploring mechanisms to bring more private and development capital into entrepreneurship and productive sectors.
If implemented effectively, the fund could provide another channel for Pakistani founders to access capital while helping attract more institutional investment into the country’s emerging startup ecosystem.
