Fatima Fertilizer Company Limited has entered into a significant financing arrangement with the International Finance Corporation (IFC), a member of the World Bank Group, aimed at ensuring uninterrupted fertilizer production in Pakistan amid ongoing foreign exchange challenges. Under the newly announced arrangement, IFC will provide a renewable liquidity facility of up to US$60 million per year, designed to support Fatima Fertilizer’s imports of essential raw materials, machinery, and technical services required for continuous operations.
Pakistan’s manufacturing and agribusiness sectors have faced persistent pressures due to foreign exchange shortages and delays in clearing imports, conditions that have directly affected access to critical industrial inputs. In the fertilizer sector, such disruptions carry broader economic and social risks, as any interruption in production can quickly translate into shortages, price volatility, and reduced crop yields. The facility announced by IFC directly addresses this challenge by providing hard currency liquidity at times when access to US dollar financing is constrained in the domestic market.
The liquidity support will enable Fatima Fertilizer to maintain full operational capacity at its Sadiqabad complex, ensuring the continued production of approximately 1.46 million tons of fertilizer annually. This steady output is critical for meeting domestic demand, particularly for staple crops such as wheat and rice, which form the backbone of Pakistan’s food system. By securing access to essential inputs, the company will be able to reduce the risk of production slowdowns that could otherwise disrupt the agricultural supply chain.
Beyond production continuity, the facility is also expected to have a meaningful employment impact. Fatima Fertilizer employs more than 850 people directly at its Sadiqabad operations, while also supporting thousands of small and medium-sized businesses across its nationwide distribution and logistics network. Sustaining fertilizer production helps protect these jobs and preserves economic activity linked to agriculture, transport, storage, and retail.
Commenting on the development, Fatima Fertilizer Chief Executive Officer Fawad Ahmed Mukhtar described the partnership as a milestone for both the company and Pakistan’s agriculture sector. He noted that reliable access to liquidity strengthens operational resilience, allows the company to meet farmers’ needs consistently, and supports a more food-secure future. He also acknowledged IFC’s confidence in the company’s long-term vision and highlighted the potential for deeper collaboration going forward.
From IFC’s perspective, the facility reflects a targeted approach to supporting essential sectors during periods of macroeconomic stress. Ashruf Megahed, Regional Industry Head for Manufacturing, Agribusiness and Services for the Middle East, Central Asia and Turkey at IFC, said the partnership helps unlock much-needed liquidity to keep critical agricultural inputs flowing to farmers. He emphasized that providing US dollar financing for vital imports supports food security, preserves employment, and strengthens resilience across Pakistan’s agribusiness value chain.
The financing also aligns with broader national priorities aimed at reducing reliance on imported fertilizers and stabilizing input costs for farmers. By ensuring local production remains uninterrupted, the facility contributes to moderating fertilizer prices, which is especially important at a time when farmers are already facing higher costs for fuel, seeds, and other inputs. A more stable fertilizer supply ultimately supports crop productivity and helps safeguard agricultural output at the national level.
As Pakistan continues to navigate external financing constraints, partnerships between local industrial players and international development institutions are becoming increasingly important. The Fatima Fertilizer–IFC facility illustrates how targeted liquidity solutions can address immediate market gaps while delivering longer-term benefits for food security, employment, and economic stability. By reinforcing domestic production capacity, the arrangement strengthens Pakistan’s ability to meet its agricultural needs through local manufacturing, even in a challenging macroeconomic environment.
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