Spokesman Report
Karachi: IFC announced its first PKR denominated investment via an unfunded Partial Credit Guarantee of up to PKR 33.6 billion (approximately US$120 million equivalent) to support a long-term PKR-denominated financing from Standard Chartered Bank Pakistan Limited to Engro Fertilizers Limited (Engro Fertilizers). This financing will enable Engro Fertilizers to strengthen the agri-value chain in Pakistan by mobilizing local capital. The investment—aimed at strengthening Pakistan’s agriculture sector and bolstering food security—also benefits from a first loss counter guarantee from the IFC-Canada Facility for Resilient Food Systems.
This engagement marks IFC’s first local currency investment in Pakistan, thus expanding access to long-term financing solutions in both local and foreign currency, critical for economic growth particularly in important sectors such as agriculture and micro, small, and medium enterprises. By leveraging PKR-denominated financing, Engro Fertilizers, one of Pakistan’s leading fertilizer producers, is championing the use of domestic capital to enhance operational resilience. The financing will help Engro Fertilizers make capital investments in maintenance of facilities and turnarounds, enabling uninterrupted supply of urea and other fertilizers to meet national demand. The funding will also support farmer programs, ensuring continuity of initiatives that complement Engro’s core mission of reliable production.
The agriculture sector is contributing 24 percent of Pakistan’s GDP, 70 percent of its exports, and 40 percent of its employment, making it vital for long-term growth. Yet systemic challenges—inefficient supply chains, underfunded farmer programs, low literacy, and rising input costs persist. This investment will help address some of these gaps.
“Engro has always strived to solve Pakistan’s most pressing issues meaningfully. Using local capital to strengthen local value chains reflects our commitment to the country and to our farmers – the backbone of Pakistan’s economy – through reliable fertilizer production. We are grateful to our partners, IFC and Standard Chartered Bank, for enabling us to advance this mission,” said Engro Fertilizers CEO, Ali Rathore.
“This investment reflects the strength of our partnership with Engro Fertilizers and Standard Chartered Bank and our shared commitment to provide innovative solutions to address challenges in a sustainable manner. Through this project, we are opening new pathways for local currency long-term financing that support growth and financial resilience to manage country risk in a sector vital to the country’s economy,” said Ashruf Megahed, Regional Industry Head, Manufacturing, Agribusiness & Services, Middle East and Central Asia at IFC
Commenting on the occasion, Rehan Shaikh, CEO & Head of Coverage, Standard Chartered Pakistan stated, “At Standard Chartered we are committed to financing solutions that enable sustainable growth and long-term resilience across Pakistan’s economy. This partnership with IFC and Engro Fertilizers reflects our shared vision of strengthening food security and supporting one of the country’s most critical value chains. Standard Chartered is keen to continue working with IFC to replicate this successful structure across its network.”
