In December 2025, the International Finance Corporation (IFC) announced its first local currency investment in Pakistan, providing an unfunded Partial Credit Guarantee of up to PKR 33.6 billion (around US$120 million) to support Standard Chartered Bank Pakistan’s long-term financing to Engro Fertilizers. This landmark financing is designed to strengthen Pakistan’s agri-value chain by mobilizing domestic capital and enhancing operational resilience in the agriculture sector. The investment also benefits from a first-loss counter guarantee under the IFC-Canada Facility for Resilient Food Systems, reinforcing its impact on food security.
This initiative allows Engro Fertilizers, one of Pakistan’s leading fertilizer producers, to make essential capital investments, maintain production facilities, and ensure an uninterrupted supply of urea and other fertilizers across the country. The financing will also support farmer-focused programs, reinforcing initiatives that sustain agricultural productivity and reliability, which are critical for the nation’s food security. By leveraging PKR-denominated funding, the project highlights the strategic importance of local currency financing in promoting economic growth and reducing reliance on foreign exchange.
Agriculture is a cornerstone of Pakistan’s economy, contributing 24 percent of GDP, 70 percent of exports, and 40 percent of employment. Despite its significance, the sector faces challenges such as inefficient supply chains, underfunded farmer programs, rising input costs, and low literacy among farmers. This investment is expected to help address these structural gaps, supporting both production and capacity-building initiatives for farmers.
Engro Fertilizers CEO, Ali Rathore, emphasized that using local capital to strengthen domestic value chains demonstrates the company’s commitment to Pakistan’s farmers, the backbone of the country’s economy. Ashruf Megahed of IFC highlighted that this project introduces new avenues for long-term local currency financing to promote growth and financial resilience in a vital economic sector. Rehan Shaikh of Standard Chartered Pakistan added that the partnership strengthens food security and builds resilience in Pakistan’s agricultural value chains, while providing a replicable model for future initiatives.
Engro Fertilizers, a subsidiary of Engro Corporation, offers a broad portfolio of fertilizers, including urea and specialty products, to support sustainable agriculture. Standard Chartered Pakistan, a leading international bank operating since 1863, provides comprehensive banking services, including Islamic banking, to corporate, commercial, and individual clients. IFC, as a member of the World Bank Group, focuses on mobilizing private sector investment in emerging markets, leveraging its capital and expertise to promote sustainable economic growth globally.
This collaboration between IFC, Standard Chartered Pakistan, and Engro Fertilizers marks a significant step toward enhancing the resilience of Pakistan’s agriculture sector, ensuring reliable fertilizer supply, and supporting farmers while fostering long-term local currency financing solutions.
