IFC invests $25 million in Pakistan’s largest fashion retailer
ISLAMABAD: The International Finance Corporation (IFC) will invest the equivalent of $25 million in Pakistani rupees in one of the country’s largest fashion retailers to create jobs, advance gender equality and support the vital textile sector after the pandemic.
The International Finance Corporation (IFC) announced on Saturday that this investment is part of a broader effort by the International Finance Corporation to support the development of the private sector in Pakistan, which is key to creating opportunity and fighting poverty in the country.
Since 1956, IFC has invested more than $1.2 billion in Pakistan, to help support small businesses and stimulate the development of renewable, hydro, and wind energy projects.
This investment is intended to support the development of Pakistan’s retail and textile sectors, which provide 40 percent of employment and represent about 9 percent of the country’s GDP. About 30% of those working in the textile sector are women and supporting the industry will help promote gender equality in Pakistan.
IFC investment of a minority stake in Khadi Corporation, which has 57 retail outlets spread across Pakistan and has a presence in the UK and GCC countries.
The funding will help the company accelerate its growth by expanding global retail and online sales. It will also indirectly support Pakistan’s retail suppliers, many of whom are small businesses, said an IFC press release.
“We are excited to begin the next chapter of our growth transformation with IFC’s first investment in Pakistan’s fashion retail sector. We envision that this investment will help us set new standards in the regulation of the retail sector in Pakistan,” said Shamoon Sultan, founder and CEO of Khaadi. And beyond, through strategic initiatives to drive growth, corporate governance and diversity.”
“The textile and retail industry is an essential part of Pakistan’s economy and a major employer of women, particularly in the apparel sector,” said Zeeshan Sheikh, IFC’s regional director for Pakistan and Afghanistan, highlighting the need to partner with innovative companies.
Posted in Dawn, May 29, 2022