IFC and HBL Supporting Job Creation in Pakistan
IFC, a member of the World Bank Group, contributes to the World Bank mission of global poverty reduction by creating opportunities for people to improve their lives through private sector solutions. In Pakistan, IFC’s strategy has focused on addres...
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| Format: | Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2017
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| Online Access: | http://documents.worldbank.org/curated/en/261751489645160865/IFC-and-HBL-supporting-job-creation-in-Pakistan-case-study http://hdl.handle.net/10986/26441 |
| Summary: | IFC, a member of the World Bank Group,
contributes to the World Bank mission of global poverty
reduction by creating opportunities for people to improve
their lives through private sector solutions. In Pakistan,
IFC’s strategy has focused on addressing the key challenges
that affect private sector development, from investing in
the infrastructure sector, including energy, to enhancing
access to finance, with a view to improving the conditions
for growth and employment generation. As part of its country
program, IFC has focused on increasing access to finance for
small and medium enterprises (SMEs), which are the backbone
of Pakistan’s economy as they constitute more than 90
percent of total private enterprises in the formal
industrial sectors and employ over 70 percent of the labor
force. Often these SMEs struggle to obtain the financing
needed to grow and create jobs. For this reason, IFC has
partnered with financial institutions to improve service
provision to SMEs and stimulate economic development across
the country. Since 2007, IFC has been engaged with HBL,
Pakistan’s largest private sector commercial bank, and
provided financing to strengthen the bank’s capital
following its privatization, as well as advised on how to
scale up the bank’s SMEs portfolio in a sustainable manner.
The objective of this study is to develop an understanding
of the relationship between access to finance for small and
medium enterprises (SMEs) and job creation. IFC has analyzed
a sample of more than 100 SMEs that obtained loans from its
client, Habib Bank Ltd (HBL), in 2009 in Pakistan, at a
challenging time for the country. |
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