IFC pledges Rs33 billion to strengthen Pakistan’s agricultural sector

The International Finance Corporation (IFC), affiliated with the World Bank, will provide Rs33 billion in agricultural financing in Pakistan, marking its first local currency investment in the country.

The funds, equivalent to approximately USD 120 million, will be channelled through a private bank to Engro Fertilizers Limited.

According to an official statement, the financing will be provided in the form of an un-funded partial credit guarantee.

The investment aims to mobilize local capital, strengthen the agricultural supply chain, and support food security while enhancing operational flexibility for Engro Fertilizers.

The initiative will also benefit from the IFC Canada Facility’s First Loss Counter Guarantee, broadening access to long-term financial solutions in both local and foreign currencies. Funds will ensure the uninterrupted supply of urea and other fertilizers to meet national demand and support farmers’ programs and agricultural activities.

Agriculture accounts for 24% of Pakistan’s GDP, 70% of its exports, and provides 40% of employment, making this investment critical for sustaining and strengthening the country’s agricultural sector.

Earlier, the Pakistan government launched Zarkhez mobile app for easy agriculture loans to farmers.

Under the Zarkhez initiative, farmers can obtain agricultural loans of up to Rs1 million through a simplified process. The scheme allows applicants to submit loan requests from home without visiting offices.

Farmers will also be able to purchase fertilisers, seeds and agricultural medicines from banks’ authorised centres.

In addition, the facility includes access to diesel for agricultural needs through Zarkhez mobile app. Farmers will also get guidance regarding the crops, availability of water and fertilisers.