The International Finance Corporation (IFC), the private sector arm of the World Bank Group, has announced its first investment in Pakistani rupees, aimed at strengthening the agriculture sector and supporting local value chains. The move involves an unfunded partial credit guarantee of up to Rs33.6 billion, enabling long-term financing from Standard Chartered Bank Pakistan Limited to Engro Fertilisers Limited.
According to the IFC, this local currency investment expands access to long-term financing solutions in both domestic and foreign currencies, which is critical for economic growth, particularly in sectors such as agriculture and micro, small, and medium enterprises. The financing will allow Engro Fertilisers to mobilize domestic capital to bolster operational resilience and maintain uninterrupted production of urea and other fertilizers.
Engro Fertilisers will utilize the funds for capital investments, facility maintenance, and turnarounds to ensure steady fertilizer supply across Pakistan. The investment also supports farmer programs, sustaining initiatives that complement the company’s mission of reliable fertilizer production and contributing to a stronger agri-value chain.
The agriculture sector accounts for 24 percent of Pakistan’s GDP, 70 percent of its exports, and 40 percent of national employment, making it a cornerstone of the economy. However, systemic challenges such as inefficient supply chains, underfunded farmer programs, low literacy, and rising input costs continue to constrain productivity. IFC highlighted that this investment is designed to address some of these gaps while promoting financial resilience.
Engro Fertilisers CEO Ali Rathore said, “Using local capital to strengthen local value chains reflects our commitment to Pakistan and its farmers — the backbone of the economy. We are grateful to IFC and Standard Chartered Bank for enabling us to advance this mission and support food security through reliable fertilizer production.”
Ashruf Megahed, IFC’s Regional Industry Head for Manufacturing, Agribusiness, and Services in the Middle East and Central Asia, commented, “This investment demonstrates the strength of our partnership with Engro Fertilisers and Standard Chartered Bank. By opening new pathways for local currency long-term financing, we are supporting economic growth, financial resilience, and sustainable development in a sector vital to Pakistan’s economy.”
Standard Chartered CEO and Head of Coverage in Pakistan, Rehan Shaikh, added, “This partnership reflects our shared vision of strengthening food security and supporting one of the country’s most critical value chains. We are committed to replicating this model to facilitate sustainable growth across Pakistan’s private sector.”
The announcement comes two months after the State Bank of Pakistan (SBP) partnered with IFC to expand local currency financing for private companies. Under the ISDA framework agreement signed in October, the IFC can now invest in Pakistani rupees and help businesses manage exchange rate risks. Borrowing in hard currencies while earning in local currency exposes companies to significant FX risk; local currency financing addresses this mismatch, strengthening financial resilience and broader economic stability.
Through this pioneering PKR-denominated investment, IFC, Engro Fertilisers, and Standard Chartered Bank are setting a model for leveraging domestic capital, supporting agriculture, and fostering financial stability in Pakistan.
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