Fatima Fertilizer Company Limited and the International Finance Corporation, a member of the World Bank Group, have announced a renewable liquidity facility of US $60 million per year aimed at ensuring uninterrupted domestic fertilizer production in Pakistan. The facility is designed to support Fatima Fertilizer in importing essential raw materials, machinery, and technical services, helping the company maintain full operational capacity amid ongoing foreign exchange challenges.
Pakistan has experienced persistent pressure on foreign exchange reserves, resulting in delays in clearing imports and restricted access to US dollar financing. These constraints have posed risks to the timely availability of critical inputs required for industrial production, including fertilizer manufacturing. Disruptions in fertilizer supply can have significant downstream effects on agricultural output, crop yields, and food prices. The newly announced facility directly addresses this challenge by providing hard currency liquidity when conventional USD financing is limited.
The financing arrangement fills a critical gap in the market by enabling Fatima Fertilizer to sustain operations without interruption. By ensuring continued access to essential inputs, the facility allows the company to operate at full capacity and maintain an annual fertilizer output of approximately 1.46 million tonnes. This level of production plays a key role in meeting domestic demand and reducing reliance on imported fertilizers, which can be vulnerable to global price volatility and supply chain disruptions.
Beyond production continuity, the facility also supports employment and economic stability. More than 850 direct jobs at Fatima Fertilizer’s Sadiqabad complex are expected to be preserved through sustained operations. In addition, the company’s extensive distribution network supports thousands of small businesses across Pakistan, including dealers, transporters, and service providers who rely on consistent fertilizer supply for their livelihoods.
The impact of uninterrupted fertilizer availability extends directly to farmers and national food security. Stable access to crop nutrients helps protect yields for staple crops such as wheat and rice, which form the backbone of Pakistan’s food system. By contributing to price stability and reliable supply, the financing supports farmers’ planning cycles and reduces uncertainty during critical sowing seasons.
Commenting on the development, Fawad Ahmed Mukhtar, Chief Executive Officer of Fatima Fertilizer, said the partnership represents a significant milestone for both the company and Pakistan’s agriculture sector. He noted that dependable liquidity strengthens operational resilience, ensures stable delivery of essential nutrients to farmers, and contributes to a more food-secure future. He also highlighted the company’s appreciation for IFC’s confidence and expressed interest in expanding collaboration over time.
From IFC’s perspective, the partnership reflects its broader mandate to support essential sectors in emerging markets. Ashruf Megahed, Regional Industry Head for Manufacturing, Agribusiness and Services for the Middle East, Central Asia and Turkey at IFC, stated that access to USD financing is critical for keeping essential inputs flowing to Pakistan’s farmers. He emphasized that the facility aims to support food security, preserve jobs, and strengthen the resilience of the agribusiness value chain across the country.
By reinforcing Fatima Fertilizer’s operational stability, the financing contributes to stabilizing fertilizer prices for farmers and reducing dependency on imports. The initiative aligns with Pakistan’s agricultural priorities and broader economic objectives, where ensuring reliable access to inputs is central to sustaining productivity, rural livelihoods, and national food security in a challenging macroeconomic environment.
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