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Washington, D.C. / Karachi, December 19, 2006
—In an investment that will help expand access to university education in Pakistan, the International Finance Corporation, the private sector arm of the World Bank Group, has signed an agreement to provide a partial credit guarantee in local currency to Pakistan’s Institute of Business Management.
The partial credit guarantee will be provided on a long-term loan by ABN Amro Bank, Pakistan and involves up to PKR203 million (about $3.5 million equivalent) on a 7-year senior loan of PKR350 million (about $5.9 million equivalent).
IFC’s financing will enable the institute, a leading not-for-profit private sector institution, to increase its capacity from 3,000 to 5,400 students, including about 800 students in a future elementary, middle, and high school. The funds will be used to acquire up to 10 acres of land near the existing campus and construct a new college building, an auditorium, a residential block for staff and faculty members, and an apartment building for staff, as well as extend and improve existing facilities.
In eight years of operations, the Institute of Business Management has established a track record in providing high-quality education in Pakistan. It introduces and develops new programs in collaboration with various business management organizations and, despite economic restrictions, has built facilities at an international standard. IFC’s involvement will facilitate the institute’s further development.
Nadeem Siddiqui, IFC’s Country Representative for Pakistan, noted, “IFC’s engagement with the Institute of Business Management is a strategic step toward improving human development and promoting private sector participation in education. The project is expected to have a strong demonstration effect among local institutions, encouraging them to provide longer-term financing, currently not available in Pakistan, to the education sector.”
Guy Ellena, IFC’s Director for Health and Education, added, “With this investment, IFC aims to establish a long relationship with the Institute of Business Management that will have a significant impact on Pakistan’s education market. The project will improve access to education for a broader range of people, helping IFC fulfill its developmental mission.”
Talib Karim, the Institute’s Director, Academics and Business Support Center, said, “The Institute of Business Management appreciates IFC’s financing for the construction of new buildings as well as its technical support for curriculum development. We are fortunate to have this partnership with IFC and to be the first higher education institution in Pakistan to receive such assistance.”
The International Finance Corporation, the private sector arm of the World Bank Group, is the largest multilateral provider of financing for private enterprise in developing countries. IFC finances private sector investments, mobilizes capital in international financial markets, facilitates trade, helps clients improve social and environmental sustainability, and provides technical assistance and advice to businesses and governments. From its founding in 1956 through FY06, IFC has committed more than $56 billion of its own funds for private sector investments in the developing world and mobilized an additional $25 billion in syndications for 3,531 companies in 140 developing countries. With the support of funding from donors, it has also provided more than $1 billion in technical assistance and advisory services. For more information, visit
www.ifc.org
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