In an attempt to boost the textile industry in Pakistan, the International Finance Corporation (IFC) invested in a Pakistani textile retail giant, Khaadi.
The clothing line announced that IFC poured the equivalent of $25 million into their company. Some two days ago the Chief Executive Officer (CEO) of Khaadi Shamoon Sultan and an IFC official signed the deal.
Why did IFC do this? In attempts to create jobs, support the textile sector, and promote gender equality post-pandemic. That’s because some 30% of labor in the textiles sector are women. While, the industry provides 40% of employment and accounts for about 9% of the country’s gross domestic product.
In the past, the Pakistani clothing line has landed in hot waters regarding work ethics and treatment of paid labor.
Meanwhile, IFC has invested over $1.2 billion in Pakistan to support smaller businesses since 1956. This is why many Netizens are questioning why the body didn’t invest in small businesses with such a large investment.
Others feel this is a sign that businesses in Pakistan aren’t doing well if a textile giant like Khaadi needs support from IFC.
