Karachi, Pakistan, May 27, 2022—IFC is investing in Pakistan’s largest fashion retailer to create jobs, promote gender equality and support the country’s crucial textile sector post-pandemic.
IFC will invest the equivalent of $25 million in Pakistani rupees for a minority stake in Khaadi Corporation, which has 57 outlets spread across Pakistan and a presence in the UK and GCC countries. The funding will help the company accelerate its growth by expanding its retail footprint and global online sales. It will also indirectly support the retailer’s suppliers in Pakistan, many of which are small businesses.
“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 this investment will help us set new benchmarks in the organization of the retail sector in Pakistan and beyond through strategic initiatives aimed at driving 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 textile sectors, which provide 40% of jobs and account for about 9% of the country’s gross domestic product. About 30 percent of those working in the textile sector are women and supporting the industry will help promote gender equality in Pakistan.
“The textile and retail industry is a central part of Pakistan’s economy and a major employer of women, particularly in the garment sector,” said Zeeshan Sheikh, IFC Country Manager for Pakistan and Afghanistan. “By channeling funding and advisory support to industry and partnering with innovative companies like Khaadi, we can help the sector grow, formalize, become more sustainable and create greater opportunities for business. economic employment for women.
Along with this investment, IFC will advise Khaadi Corporation on improving its corporate governance structures, sustainability and gender diversification programs.
This investment is part of IFC’s broader effort to support the development of Pakistan’s private sector, which is critical to creating opportunity and fighting poverty in the country. Since 1956, IFC has invested more than $1.2 billion in Pakistan, helping to support small businesses and spur the development of renewable, hydroelectric and wind energy projects.
IFC, a member of the World Bank Group, is the world’s largest development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise and influence to create markets and opportunities in developing countries. In fiscal year 2021, IFC committed a record $31.5 billion to private businesses and financial institutions in developing countries, leveraging the power of the private sector to end poverty. extreme poverty and boost shared prosperity as economies grapple with the effects of the COVID-19 pandemic. For more information, visit www.ifc.org
Khaadi is the largest fashion clothing brand in Pakistan operating in 4 countries and serving customers worldwide through its e-commerce platform. Khaadi was founded by Shamoon Sultan in 1998 in Karachi, Pakistan and currently employs a diverse workforce of over 1000 people from over 14 countries. For more information, visit corporate.khaadi.com
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