Standard Chartered Bank Pakistan, in collaboration with the International Finance Corporation (IFC) and Engro Fertilizers Ltd, has successfully closed a landmark PKR 33.6 billion long-term local currency financing arrangement. The deal is supported by IFC’s first-ever PKR-denominated investment in Pakistan through an unfunded Partial Credit Guarantee, marking a major milestone in mobilising domestic capital and reducing reliance on foreign exchange.
The financing structure leverages the strong, long-standing relationships between Standard Chartered, IFC, and Engro Fertilizers, reflecting years of collaboration aimed at strengthening Pakistan’s agricultural sector. By denominating the facility in Pakistani rupees, the initiative not only supports Engro Fertilizers’ operational needs but also reinforces the country’s financial markets and contributes to broader economic resilience.
Under the arrangement, Engro Fertilizers will utilize the funding to invest in plant maintenance and turnarounds, ensuring uninterrupted fertilizer supply across Pakistan. In addition, the financing will support farmer programs designed to enhance productivity and resilience at the grassroots level, a critical step given that agriculture contributes nearly 24% to Pakistan’s GDP.
“Structuring this financing in PKR allows us to mobilize domestic capital effectively, strengthen the local financial system, and ensure sustainable support for the agriculture sector,” said a spokesperson from Standard Chartered Bank Pakistan. The partnership exemplifies how innovative financial solutions can unlock long-term resilience for both private sector enterprises and national supply chains.
Industry experts note that the transaction highlights the potential of locally denominated financial instruments to improve access to capital, reduce currency risk, and encourage private sector growth. By providing stable and predictable financing, such structures also contribute to the sustainability of essential services, such as fertilizer production, which are vital to national economic stability.
The signing ceremony saw the participation of senior executives from IFC, including Ashruf Megahed, Khawaja Aftab Ahmed, and Ulyana R. Dovbush, along with leaders from Standard Chartered and Engro Fertilizers. The collaboration reflects a shared commitment to leveraging global expertise for local impact, strengthening agricultural supply chains, and promoting economic development in Pakistan.
Standard Chartered Bank emphasized its continued commitment to delivering innovative solutions that combine international experience with local knowledge, aiming to replicate such financing models across Pakistan and its broader regional network.
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