The International Finance Corporation (IFC) has taken a major step in Pakistan by backing its first-ever investment in local currency, aimed at strengthening the country’s agriculture sector and improving food security.
The move supports long-term rupee financing for Engro Fertilisers through Standard Chartered Bank Pakistan.
Under the arrangement, IFC has provided a Partial Credit Guarantee of up to Rs33.6 billion, helping Standard Chartered extend long-term financing in Pakistani rupees to Engro Fertilisers.
The deal is further supported by a risk-sharing guarantee from the IFC-Canada Facility for Resilient Food Systems, making it a strong example of innovative financing.
This transaction is significant because it opens new doors for long-term local currency funding in Pakistan. Such financing reduces dependence on foreign loans and helps businesses manage currency risks more effectively.
For Engro Fertilisers, one of the country’s leading fertiliser producers, the funding will support plant maintenance, upgrades, and operational continuity to ensure a steady supply of fertilisers across Pakistan.
The financing will also allow the company to continue farmer-focused programmes that support productivity and strengthen the agricultural value chain.
Agriculture remains a backbone of Pakistan’s economy, employing millions and contributing heavily to exports and overall growth, despite facing challenges such as rising costs and weak infrastructure.
IFC officials said the project reflects their commitment to sustainable solutions and long-term economic resilience in key sectors. Standard Chartered also highlighted the partnership as a model that can be repeated in other industries.