The Bank of Punjab (BOP) and InfraZamin Pakistan (IZP) have formalized a strategic collaboration through a Memorandum of Understanding aimed at strengthening Pakistan’s agricultural warehousing ecosystem. The partnership introduces a credit guarantee–backed financing framework to increase post-harvest storage capacity, attract private-sector investment, and support sustainable agricultural development nationwide. This initiative is expected to enhance long-term financing availability for warehouse operators, farmers, and other participants in the agriculture value chain.
InfraZamin Pakistan, a credit enhancement institution jointly supported by InfraCo Asia Investments and Karandaaz Pakistan, provides local currency guarantee solutions that mobilize private capital for infrastructure development. Backed by PACRA’s long-term AAA and short-term A1+ ratings, InfraZamin is positioned to provide reliable, long-tenor funding for sectors that traditionally face difficulties in accessing institutional finance. The collaboration with BOP will leverage this guarantee mechanism to de-risk lending and encourage banks to extend structured credit to agricultural storage projects.
Under the MoU, BOP and IZP will jointly implement the Credit Guarantee–Backed Warehousing Infrastructure Financing Scheme, which aims to support the construction, expansion, and modernization of storage facilities across Pakistan. BOP will serve as a key Participating Financial Institution, enabling long-term, local currency financing for agri-value chain participants. According to the Group Chief of Consumer Banking at BOP, the partnership will expand the banking sector’s capacity to lend in previously high-risk segments. By mitigating underlying risks through InfraZamin’s guarantees, financial institutions can confidently extend credit to modern storage infrastructure, supporting projects that have historically faced financing constraints.
Amir Masood, Chief Investment Officer at InfraZamin Pakistan, emphasized the significance of the collaboration in advancing structured and affordable financing for the agricultural sector. He described the MoU as a pivotal step toward modernizing agriculture, improving post-harvest management, and enhancing farmers’ access to finance. With credit enhancement from InfraZamin, BOP will scale its warehousing finance portfolio, enabling the development of accredited storage infrastructure that aligns with national priorities.
The initiative is designed to reduce post-harvest losses, improve commodity preservation, and promote private-sector participation in agricultural infrastructure development. By enhancing access to scientific storage facilities, the program aims to strengthen Pakistan’s food security while supporting rural economic growth. The MoU also lays the foundation for deeper cooperation, with plans to formalize a Master Guarantee Agreement as the program advances. This partnership represents a key milestone in the effort to modernize Pakistan’s agricultural finance landscape and provide sustainable solutions to challenges in storage, logistics, and post-harvest management.
Follow the PakBanker Whatsapp Channel for updates across Pakistan’s banking ecosystem.