Investment in new energy sources and the “vibrant private sector” are crucial for Pakistan’s growth, the head of the International Finance Corporation (IFC) said.

Part of the World Bank Group, it aims to invest around $500 million (£330m) a year in the next few years to help the nation tackle some of its most pressing challenges – from unemployment to energy shortages.

Jin-Yong Cai, CEO of the IFC said: “Private businesses, both large and small, are the backbone of Pakistan’s economy but they are often held back by power outages, excessive red tape and a shortage of credit.

“By tackling these issues, we can help companies unlock their potential and create the economic opportunities that Pakistanis are eager for.”

The IFC’s previous investments are expected to help provide electricity to more than 11 million people, boost Pakistan’s generation capacity by 15% and cut the nation’s reliance on imported fossil fuels.