Karachi, Pakistan, May 27: IFC is investing in Pakistan’s top fashion retailer to create jobs, promote gender equality, and support the country’s crucial textiles sector post-pandemic.
IFC will invest the equivalent of $25 million in Pakistani rupees for a minority stake in Khaadi Corporation, which has 57 retail outlets spread across Pakistan and presence in UK and GCC countries. The funding will help the company accelerate its growth by expanding its retail footprint and online global sales. It will also indirectly support the retailer’s suppliers in Pakistan, many of whom are smaller businesses.
“We are excited to begin the next chapter of our growth transformation with IFC’s first investment in the Pakistan fashion retail sector. We envisage this investment will help us set new benchmarks in organizing the retail sector in Pakistan and beyond, through strategic initiatives to drive growth, corporate governance, and diversity,” said Shamoon Sultan, founder and CEO of Khaadi Corporation.
IFC’s investment is designed to support the development of Pakistan’s retail and textiles sectors, which provide 40 percent of employment and account for about 9 percent of the country’s gross domestic product. About 30 percent of those who work in the textiles sector are women and supporting the industry will help promote gender equality in Pakistan.
“The textiles and retail industry is a core part of Pakistan’s economy and a major employer of women, especially in the garment sector,” said Zeeshan Sheikh, IFC Country Manager for Pakistan and Afghanistan. “By channeling financing and advisory support into the industry and partnering with innovative companies like Khaadi we can help the sector grow, formalize, become more sustainable, and create greater economic employment opportunities for women.”
Along with the investment, IFC will advise Khaadi Corporation on enhancing its corporate governance structures, sustainability, and gender diversification programs.
This investment is part of a broader effort by IFC to support the development of Pakistan’s private sector, which is key to creating opportunities and combating poverty in the country. Since 1956, IFC has invested over $1.2 billion in Pakistan, helping to support smaller businesses and spur the development of renewable energy, hydro, and wind energy projects.