IFC to provide Karachi Port Trust $70m

Funds will help improve efficiency, international trade.

KARACHI: International Finance Corporation (IFC), a member of the World Bank Group, will provide $70 million to Karachi Port Trust (KPT), which is in addition to $120 million announced by the World Bank, to help improve efficiency, increase Pakistan’s international trade and create jobs.

IFC’s loan will be used to rehabilitate five non-operational berths at the port under the KPT berth rehabilitation programme, which will open about six million tons of port capacity, lower shipping costs and accelerate cargo handling. It is expected to create at least 100 new jobs, an IFC statement said on Tuesday.

“IFC’s support for Pakistan’s port sector, with this and other investments, will help the country stay internationally competitive and increase trade flows,” said IFC Vice President for Eastern and Southern Europe, Central Asia, Middle East and North Africa Dimitris Tsitsiragos.

“Supporting Pakistan’s infrastructure and transportation systems is a key IFC strategy, one that helps create jobs and spurs economic growth.”

Ports account for 95% of the country’s international trade. Karachi Port is the busiest, handling 60% of port traffic. Several berths at the port are operated by private firms and it is expected the private sector will play an important role in operation of rehabilitated berths as well.

Published in The Express Tribune, September 21^st,  2011.