The International Finance Corporation (IFC), a member of the World Bank Group, has committed Rs33 billion (approximately $120 million) in agricultural financing for Pakistan. This landmark deal marks the IFC’s first investment in the country denominated in the local currency.
The funds will be provided through a private bank to Engro Fertilisers Limited. The financing will take the form of an unfunded partial credit guarantee.
The primary objectives are to:
- Mobilise local capital for the agricultural sector.
- Strengthen the agricultural supply chain and ensure food security.
- Enhance operational flexibility for Engro Fertilisers.
This investment is strategically significant. Agriculture accounts for 24% of Pakistan’s GDP, 70% of its exports, and 40% of national employment.
By ensuring the uninterrupted supply of urea and other fertilisers, the initiative directly supports farmer programs and critical agricultural activities. This sustains a vital pillar of the national economy.
The transaction will benefit from the IFC Canada Facility’s First Loss Counter Guarantee. This mechanism helps broaden access to long-term financial solutions in both local and foreign currencies, de-risking the investment.
Read: State Bank of Pakistan and IFC Partner to Boost Local Currency Financing
This IFC investment aligns with recent government efforts to digitise farmer support. Earlier, Pakistan launched the Zarkhez mobile application. That platform enables farmers to access loans of up to Rs1 million, purchase inputs such as seeds and fertiliser, and receive agronomic guidance remotely.
 announces Rs33 billion local currency financing for Pakistan's agriculture, channeled to Engro Fertilizers to strengthen supply chain & food security.){kind=link}