Industrial Development Bank of Pakistan is a Pakistani state-owned

development bank Development finance institution (DFI), also known as a Development bank, is a financial institution that provides risk capital for economic development projects on a non-commercial basis. DFIs are often established and owned by governments or ...

located in

Karachi Karachi is the capital city of the Administrative units of Pakistan, province of Sindh, Pakistan. It is the List of cities in Pakistan by population, largest city in Pakistan and 12th List of largest cities, largest in the world, with a popul ...

Sindh Sindh ( ; ; , ; abbr. SD, historically romanized as Sind (caliphal province), Sind or Scinde) is a Administrative units of Pakistan, province of Pakistan. Located in the Geography of Pakistan, southeastern region of the country, Sindh is t ...

Pakistan Pakistan, officially the Islamic Republic of Pakistan, is a country in South Asia. It is the List of countries and dependencies by population, fifth-most populous country, with a population of over 241.5 million, having the Islam by country# ...

. It is among the oldest

financing Funding is the act of providing resources to finance a need, program, or project. While this is usually in the form of money, it can also take the form of effort or time from an organization or company. Generally, this word is used when a firm use ...

institutions in Pakistan.

History

The Industrial Development Bank of Pakistan (IDBP) was established on July 29, 1961, through the transformation of the Pakistan Industrial Finance Corporation (PIFCO). PIFCO, founded in February 1949 with a

share capital A corporation's share capital, commonly referred to as capital stock in the United States, is the portion of a corporation's equity that has been derived by the issue of shares in the corporation to a shareholder, usually for cash. ''Share ...

of Rs. 20 million, was primarily funded by the Central Government (51 percent) and various institutional and individual investors (40 percent). Over its 12-year tenure, PIFCO allocated financial assistance of Rs. 293 million, directing a major portion (56 percent) to the

jute Jute ( ) is a long, rough, shiny bast fibre that can be Spinning (textiles), spun into coarse, strong threads. It is produced from flowering plants in the genus ''Corchorus'', of the mallow family Malvaceae. The primary source of the fiber is ...

and

cotton Cotton (), first recorded in ancient India, is a soft, fluffy staple fiber that grows in a boll, or protective case, around the seeds of the cotton plants of the genus '' Gossypium'' in the mallow family Malvaceae. The fiber is almost pure ...

industries, with the remainder distributed across 33 other sectors such as

shipping Freight transport, also referred to as freight forwarding, is the physical process of transporting commodities and merchandise goods and cargo. The term shipping originally referred to transport by sea but in American English, it has been ...

cement A cement is a binder, a chemical substance used for construction that sets, hardens, and adheres to other materials to bind them together. Cement is seldom used on its own, but rather to bind sand and gravel ( aggregate) together. Cement mi ...

, and

glass Glass is an amorphous (non-crystalline solid, non-crystalline) solid. Because it is often transparency and translucency, transparent and chemically inert, glass has found widespread practical, technological, and decorative use in window pane ...

. PIFCO primarily facilitated loans exceeding Rs. 1 million but was constrained by its focus on existing enterprises and lacked the capability to support new ventures or lend against future assets. Prompted by these limitations, the Credit Enquiry Commission was convened in 1959 to devise a more inclusive credit system for Pakistan’s evolving economic landscape. The commission recommended transforming PIFCO into an entity geared towards supporting medium-scale industries, with a revised upper lending limit of Rs. 1 million and new provisions for short-term industry credits and loans against prospective assets. Additionally, it suggested the provision of foreign exchange resources to the revamped institution. Following these recommendations, the IDBP was created under the Industrial Development Bank of Pakistan Ordinance, inheriting PIFCO’s assets and liabilities. Initially, the IDBP had a share capital of Rs. 30 million, with the government holding a minimum stake of 51 percent. The bank's lending ceiling was established at Rs. 1 million for limited companies and Rs. 0.5 million for other enterprises, though certain sectors like mining and inland transport were exempt from these limits. Over time, the lending ceiling was adjusted to Rs. 2.5 million, with foreign exchange loans capped at Rs. 1.5 million. The bank began its operations in early 1961. Credit facilities were extended to existing small industries and to new industrial units as outlined in the Small Industries Investment Schedule, which was issued by the government in November 1960. Over the years, however, the bank has become an institution fostering the growth of

Small and Medium Enterprises Small and medium-sized enterprises (SMEs) or small and medium-sized businesses (SMBs) are businesses whose personnel and revenue numbers fall below certain limits. The abbreviation "SME" is used by many national agencies and international organizat ...

in the rural/less developed regions of the country.

Shareholding pattern

Industrial Development Bank of Pakistan is wholly owned by Pakistani Government entities with 57 percent of its shares held by the

Federal Government A federation (also called a federal state) is an entity characterized by a political union, union of partially federated state, self-governing provinces, states, or other regions under a #Federal governments, federal government (federalism) ...

, 36 percent by the

State Bank of Pakistan The State Bank of Pakistan (SBP) is the central bank of Pakistan. Its Constitution, as originally laid down in the State Bank of Pakistan Order 1948, remained basically unchanged until 1 January 1974, when the bank was nationalised and the scope ...

and 7 percent by Provincial Governments and other public sector corporations. Its board of directors consists of representatives of the private sector appointed by the

Ministry of Finance A ministry of finance is a ministry or other government agency in charge of government finance, fiscal policy, and financial regulation. It is headed by a finance minister, an executive or cabinet position . A ministry of finance's portfoli ...

Financials

The IDBP has suffered from significant losses due to loan defaults. By the mid-2000s, the IDBP had accumulated a loss of about Rs27 billion and was insolvent. The Pakistani government merged IBDP with the Profitable ''Investment Corporation of Pakistan'' in 2006 in part to improve IBDP's financial performance. The bank continued to struggle commercially and by end of 2009 the accumulated deficit had risen to Rs28 billion. The Pakistani government continued to explore ways to make IDBP economically viable.

Functions

Development banking business

* Provides guarantee, loans * Provides medium and long term finances

Commercial banking business

* Bills *

Deposits A deposit account is a bank account maintained by a financial institution in which a customer can deposit and withdraw money. Deposit accounts can be savings accounts, current accounts or any of several other types of accounts explained below. ...

* Foreign Exchange accounts * Guarantees *

Letter of Credit A letter of credit (LC), also known as a documentary credit or bankers commercial credit, or letter of undertaking (LoU), is a payment mechanism used in international trade to provide an economic guarantee from a creditworthy bank to an exp ...

Remittances A remittance is a non-commercial transfer of money by a foreign worker, a member of a diaspora community, or a citizen with familial ties abroad, for household income in their home country or homeland. Money sent home by migrants competes ...

* Short term advances

Merchant banking business

* Bridge Financing *

Leasing A lease is a contractual arrangement calling for the user (referred to as the ''lessee'') to pay the owner (referred to as the ''lessor'') for the use of an asset. Property, buildings and vehicles are common assets that are leased. Industrial ...

* Underwriting of public issue of shares

Collection of utility bills

* Gas bills at branches in

* Telephone bills at all branches

Administers of the equity participation fund

Equity investment/trading

Branch Network

The Head Office of Industrial Development Bank of Pakistan is situated at

. The Bank currently operates with following 13 branches: * ''In Capital Territory'';

Islamabad Islamabad (; , ; ) is the capital city of Pakistan. It is the country's tenth-most populous city with a population of over 1.1 million and is federally administered by the Pakistani government as part of the Islamabad Capital Territory. Bu ...

and

Rawalpindi Rawalpindi is the List of cities in Punjab, Pakistan by population, third-largest city in the Administrative units of Pakistan, Pakistani province of Punjab, Pakistan, Punjab. It is a commercial and industrial hub, being the list of cities in P ...

Branch (Part of the province of

Punjab Punjab (; ; also romanised as Panjāb or Panj-Āb) is a geopolitical, cultural, and historical region in South Asia. It is located in the northwestern part of the Indian subcontinent, comprising areas of modern-day eastern Pakistan and no ...

) * ''In the province of

''; Main branch

Hyderabad Hyderabad is the capital and largest city of the Indian state of Telangana. It occupies on the Deccan Plateau along the banks of the Musi River (India), Musi River, in the northern part of Southern India. With an average altitude of , much ...

and

Larkana Larkana (; ) is a city located in the Sindh province of Pakistan. It is the 15th largest city of Pakistan by population. It is home to the Indus Valley civilization site Mohenjo-daro. The historic Indus River flows in east and south of the ci ...

Branch * ''In the province of

'';

Faisalabad Faisalabad, formerly known as Lyallpur, is the List of cities in Punjab, Pakistan by population, second-largest city and primary List of cities in Punjab, Pakistan by population, industrial center of the Pakistani province of Punjab, Pakistan ...

Lahore Lahore ( ; ; ) is the capital and largest city of the Administrative units of Pakistan, Pakistani province of Punjab, Pakistan, Punjab. It is the List of cities in Pakistan by population, second-largest city in Pakistan, after Karachi, and ...

and

Multan Multan is the List of cities in Punjab, Pakistan by population, fifth-most populous city in the Punjab, Pakistan, Punjab province of Pakistan. Located along the eastern bank of the Chenab River, it is the List of cities in Pakistan by populatio ...

Branch * ''In the province of

Khyber Pakhtunkhwa Khyber Pakhtunkhwa (; ; , ; abbr. KP or KPK), formerly known as the North West Frontier Province (NWFP), is a Administrative units of Pakistan, province of Pakistan. Located in the Northern Pakistan, northwestern region of the country, Khyber ...

'';

Abbottabad Abbottabad is a city in the Hazara Division of Khyber Pakhtunkhwa province, Pakistan. It is the 40th largest city in the country and 6th largest in the province by population, and serves as the headquarter of its namesake tehsil and district ...

and

Peshawar Peshawar is the capital and List of cities in Khyber Pakhtunkhwa by population, largest city of the Administrative units of Pakistan, Pakistani province of Khyber Pakhtunkhwa. It is the sixth most populous city of Pakistan, with a district p ...

Branch * ''In the province of

Balochistan Balochistan ( ; , ), also spelled as Baluchistan or Baluchestan, is a historical region in West and South Asia, located in the Iranian plateau's far southeast and bordering the Indian Plate and the Arabian Sea coastline. This arid region o ...

'';

Quetta Quetta is the capital and largest city of the Pakistani province of Balochistan. It is the ninth largest city in Pakistan, with an estimated population of over 1.6 million in 2024. It is situated in the south-west of the country, lying in a ...

Branch * ''In the province of

Gilgit-Baltistan Gilgit-Baltistan (; ), formerly known as the Northern Areas, is a region administered by Pakistan as an administrative units of Pakistan, administrative territory and consists of the northern portion of the larger Kashmir region, which has b ...

'';

Gilgit Gilgit (; Shina language, Shina: ; ) is a city in Pakistani-administered Gilgit-Baltistan, Gilgit–Baltistan in the disputed Kashmir region.The application of the term "administered" to the various regions of Kashmir and a mention of the Kas ...

Branch * ''In

Azad Kashmir Azad Jammu and Kashmir (), abbreviated as AJK and colloquially referred to as simply Azad Kashmir ( ), is a region administered by Pakistan as a nominally self-governing entitySee: * * * and constituting the western portion of the larger ...

''; Mirpur

Branch

References

External links

Official site
{{authority control Banks of Pakistan Government-owned companies of Pakistan Companies based in Karachi

History

Shareholding pattern

Financials

Functions

Development banking business

Commercial banking business

Merchant banking business

Collection of utility bills

Administers of the equity participation fund

Equity investment/trading

Branch Network

See also

References

External links