The International Finance Corporation (IFC), part of the World Bank Group, will provide Rs33 billion in financing to support Pakistan’s agricultural sector, marking its first local currency investment in the country.
The funds, equivalent to approximately USD 120 million, will be directed through a private bank to Engro Fertilizers Limited. According to an official statement, the financing will take the form of an un-funded partial credit guarantee.
This investment aims to mobilize local capital, enhance the agricultural supply chain, and support food security while improving operational flexibility for Engro Fertilizers. The initiative will also benefit from the IFC Canada Facility’s First Loss Counter Guarantee, expanding access to long-term financial solutions in both local and foreign currencies.
The funds will ensure the uninterrupted supply of urea and other fertilizers to meet national demand. They will also support farmers’ programs and broader agricultural activities, providing a significant boost to Pakistan’s agricultural sector.
Agriculture contributes 24% to Pakistan’s GDP, accounts for 70% of exports, and provides 40% of employment. Experts say this investment is critical for sustaining and strengthening the agricultural sector.
Earlier, the Pakistan government launched the Zarkhez mobile app to simplify agricultural loans for farmers. Through the initiative, farmers can apply for loans up to Rs1 million without visiting bank offices.
The Zarkhez platform also allows farmers to purchase fertilizers, seeds, and agricultural medicines from authorized bank centers. Additionally, the app provides access to diesel for agricultural needs and offers guidance on crops, water availability, and fertilizer usage.
Officials said that combining IFC financing with digital initiatives like Zarkhez will help modernize Pakistan’s agricultural sector, improve productivity, and support farmers nationwide.
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