In a major step towards advancing agricultural financing and digital inclusion in Pakistan’s farming sector, Engro Fertilizers and Bank Alfalah Limited have announced a strategic partnership to launch a pilot financing program worth PKR 250 million. This initiative aims to provide accessible, affordable, and tailored credit solutions to farmers across the country through digital channels and physical agri-touchpoints.
The collaboration will allow registered farmers—via Engro Markaz outlets and the UgAI platform, Pakistan’s first integrated agri e-commerce ecosystem—to access loans of up to PKR 1 million. The program is expected to offer average financing of PKR 0.6 million per applicant, initially targeting 300 to 350 farmers with a broader outreach potential of 2,000 beneficiaries.
The official signing ceremony was held at Bank Alfalah’s Head Office in Karachi and was attended by senior executives from both organizations. Prominent figures included Ali Rathore, CEO of Engro Fertilizers, and Atif Bajwa, President and CEO of Bank Alfalah Limited, who both emphasized the transformative impact of accessible credit on Pakistan’s farming communities.
Structured to enhance financial access for smallholder farmers, the project includes both secured and unsecured lending facilities. These loans are offered at subsidized interest rates—up to 4.5% below standard market rates—making it easier for farmers to invest in quality inputs such as Engro fertilizers. The outcome is expected to result in improved crop yields, enhanced agricultural productivity, and a stronger financial outlook for rural households.
Currently, the financing solution will be rolled out through four key Engro Markaz hubs in Sahiwal, Sargodha, Bahawalpur, and Muridke. These locations will serve as the foundation for testing and scaling the integrated value chain model, ensuring seamless coordination between fertilizer supply, financing, and digital payments.
A key innovation of the partnership lies in the digitization of the entire process. The program integrates P2M (person-to-merchant) transaction mechanisms to support closed-loop digital spending, streamlining how funds are disbursed and spent, and ensuring that they are directed towards purchasing approved agricultural inputs.
The Pakistan Economic Survey 2023–24 highlights the critical role that agricultural credit plays in improving crop performance and food security. The World Bank reinforces this view, noting that access to agricultural finance can make farming four times more effective in reducing poverty. This partnership is a clear step towards realizing that potential.
Ali Rathore of Engro Fertilizers remarked that the initiative aims to foster sustainable agriculture and support the financial inclusion of Pakistan’s rural economy. Atif Bajwa of Bank Alfalah emphasized the bank’s commitment to supporting farmers by delivering financial tools that are aligned with their unique needs and challenges.
Together, Engro Fertilizers and Bank Alfalah aim to build a more resilient agricultural sector by bridging the longstanding gap between financial institutions and farming communities. By leveraging fintech, rural outreach, and digital payments, this partnership sets a new benchmark for inclusive growth in Pakistan’s agritech and finance landscape.