IFC provide Karachi Port Trust $70mln loan in parallel with up to $130mlnin World Bank financing

Karachi: International Financial Corporation IFC, a member of World Bank Group will provide $70 million loan to Karachi Port Trust, in parallel with up to $120 million in World Bank financing, to help improve its efficiency, increase Pakistan’s international trade, and create jobs.

IFC’s loan will be used to restore five non-operational berths at port under KPT Berth Rehabilitation Program, which will open up about six million tons of needed port capacity, lower shipping costs and speedy cargo handling times. It is expected to create at least 100 new jobs, an IFC statement said Tuesday.

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

“IFC’s support of Pakistan’s port sector, with this and other investments, will help the country stay internationally competitive and increase trade flows,” said Dimitris Tsitsiragos, IFC Vice President for Eastern & Southern Europe, Central Asia, Middle East & North Africa. “Supporting Pakistan’s and transportation systems is a key IFC strategy, one that helps create jobs and spurs economic growth.”

KPT is sub-national entity responsible for administering port, financially independent from Federal government, owns, maintains basic infrastructure, land, facilities of port, partners with private-sector operators on long-term basis while retaining regulatory functions.

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