Standard Chartered & IFC Launch $400m Facility to Boost Pakistan’s Trade Growth

Pakistan’s export sector has long faced constraints in accessing affordable and timely trade finance, especially during periods of macroeconomic stress.

Standard Chartered Bank Pakistan and the International Finance Corporation (IFC), a member of the World Bank Group, have launched a major $400 million Risk-Participation Facility aimed at expanding access to short-term trade financing and working capital for Pakistan’s leading corporates and exporters. The initiative is intended to stimulate foreign exchange inflows, support export-oriented industries, and contribute to Pakistan’s sustainable economic recovery.

This landmark collaboration, formalized in September 2025, doubles the size of the previous $200 million facility committed in 2022 — a testament to the confidence both institutions have in Pakistan’s economic potential and its private sector’s ability to drive growth.

A Strategic Boost for Trade and Financial Stability

Pakistan’s export sector has long faced constraints in accessing affordable and timely trade finance, especially during periods of macroeconomic stress. The new $400 million facility is designed to tackle these challenges directly by:

• Enhancing liquidity for major corporates and exporters

• Supporting supply chain financing and other working-capital needs

• Strengthening Pakistan’s trade ecosystem

• Improving the resilience of export industries

• Encouraging international trade flows and foreign currency earnings

With ongoing global supply chain disruptions and external financing pressures affecting developing economies, the facility positions Pakistan to better withstand volatility and boost competitiveness.

Strengthening a Longstanding Partnership

Rehan Shaikh, CEO & Head of Coverage at Standard Chartered Pakistan, highlighted the importance of the new agreement in advancing the bank’s mission of supporting global trade:

“We are delighted to further solidify our enduring partnership with IFC through this groundbreaking agreement – a unique collaboration between IFC and Standard Chartered Pakistan. As a bank with a strong trade focus and a significant presence in 53 markets across Asia, Africa, and the Middle East, we are instrumental in enhancing access to capital and liquidity and promoting global trade. This collaboration with IFC empowers us to better support our clients, helping them expand their businesses and enhance their growth potential.”

Standard Chartered’s extensive global network makes it a key player in facilitating cross-border trade and financing solutions, particularly for emerging markets.

IFC’s Commitment to Export-Led Growth in Pakistan

Momina Aijazuddin, Regional Head of Industry for IFC’s Financial Institutions Group covering the Middle East, Türkiye, Central Asia, Pakistan, and Afghanistan, emphasized IFC’s long-term support for Pakistan:

“This new important milestone in our strong, longstanding partnership with Standard Chartered Bank Pakistan reflects IFC’s deep commitment to strengthening Pakistan’s financial sector and supporting its export-driven industries. By doubling the size of our Risk-Participation Facility, we are helping unlock vital trade and working capital financing for businesses that drive growth, create jobs, and contribute to the country’s long-term economic resilience.”

Aijazuddin added that the initiative aligns with IFC’s broader mission to promote sustainable, inclusive development through innovative financial solutions tailored to Pakistan’s evolving market needs.

Building on a Proven Foundation

The expanded facility leverages valuable experience accumulated through the initial $200 million partnership in 2022. That program successfully supported several large-scale exporters and manufacturers, demonstrating strong results in:

• Facilitating trade-based financing

• Enhancing the availability of working capital

• Supporting expansion of export-oriented production

• Encouraging investments in technology and modernization

The new $400 million agreement builds on these successes and is expected to have an even larger developmental impact, particularly in:

Key Sectors Expected to Benefit

• Textiles and apparel — Pakistan’s largest export sector

• Pharmaceuticals

• Agro-processing and food exports

• Automotive and parts manufacturing

• Chemicals and engineering goods

• IT hardware exports and assembly facilities

By targeting large corporates and export suppliers, the facility will help strengthen Pakistan’s supply chains and improve the country’s ability to meet international demand.

Driving Sustainable Finance and Green Growth

Beyond traditional trade financing, the initiative will also promote sustainable finance products, including green and climate-smart lending. This aligns with Pakistan’s commitments to environmental responsibility and IFC’s global push for climate-related investment.

Potential areas of green-focused financing include:

• Energy-efficient machinery

• Renewable power integration into industrial operations

• Low-carbon manufacturing practices

• Environmentally responsible supply chains

Such investments can help Pakistani exporters remain competitive as global markets increasingly require compliance with carbon-related standards.

A Critical Step for Pakistan’s Economic Resilience

Pakistan continues to face fiscal and balance-of-payments pressures. Measures that help increase foreign exchange earnings, expand exports, and stabilize the trade sector are essential for long-term economic health.

This $400 million partnership aims to:

• Improve access to credit across key industrial segments

• Strengthen private sector capacity

• Support job creation

• Improve liquidity for businesses during global economic uncertainty

• Facilitate a more stable and resilient financial landscape

By helping businesses secure the financing they need to operate, fulfill orders, and expand production, the facility plays a critical role in Pakistan’s recovery and growth trajectory.

Looking Forward

As Pakistan seeks to rebuild confidence in its economy and deepen global trade ties, strategic partnerships such as this one between Standard Chartered and IFC offer a tangible pathway to sustainable development. The initiative stands as a model of how international financial collaboration can empower local industries, fuel exports, and support long-term economic transformation.