IFC, Standard Chartered Support Agri Financing Shift

IFC today announced its PKR-denominated investment in Pakistan through a partial credit guarantee to support the long-term local currency financing for Engro Fertilisers. The move was aimed at strengthening the agriculture value chain, boosting food security, and mobilizing domestic capital for sustainable growth.

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IFC – International Finance Corporation has made its first PKR-denominated investment in Pakistan by providing an unfunded Partial Credit Guarantee of up to PKR 33.6 billion to support the long-term financing provided by Standard Chartered Bank Pakistan to Engro Group Fertilisers Limited.

This landmark financing enables Engro Fertilisers to mobilize local capital for strengthening Pakistan’s Agri value chain by reducing dependence on foreign currency borrowing. The investment has been further supported through a first-loss counter guarantee provided by the IFC-Canada Facility for Resilient Food Systems, enhancing financial resilience.

The funds will be utilized for maintenance and turnaround of the plants to ensure smooth production of urea and other fertilisers to fulfill national requirements. This financing will support farmer-centric programs complementing Engro’s mission of reliable and sustainable production of fertiliser.

Agriculture remains a backbone of Pakistan’s economy, contributing significantly to its GDP, exports, and employment. This innovative collaboration between IFC, Standard Chartered, and Engro Fertilisers addresses long-standing challenges that have been critical to the sector, while paving the way for future domestic capital mobilization in Pakistan’s key industries.