IFC approves first-ever PKR investment with financing for Engro Fertilizers

The International Finance Corporation (IFC) has approved its first Pakistani rupee-denominated investment via an unfunded Partial Credit Guarantee of up to PKR 33.6 billion to support long-term financing from Standard Chartered Bank Pakistan Limited to Engro Fertilizers.

The IFC, a member of the World Bank Group, provides funding to the private sector.

This financing will enable Engro Fertilizers to strengthen the agri-value chain in Pakistan by mobilizing local capital.

The investment — aimed at 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.

The financing will help Engro Fertilizers make capital investments in maintenance of facilities and turnarounds, enabling the 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 contributes 24% of Pakistan’s GDP, 70% of its exports, and 40% of its employment, making it vital for long-term growth. Yet systemic challenges like inefficient supply chains, underfunded farmer programs, low literacy, and rising input costs persist.

This investment will help address some of these gaps.

Ali Rathore, the CEO of Engro Fertilizers, said his company “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.”

Ashruf Megahed, regional industry head of manufacturing, agribusiness and services, Middle East and Central Asia at IFC, said 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,” Megahed added.

Commenting on the occasion, Rehan Shaikh, CEO & Head of Coverage, Standard Chartered Pakistan, said, “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.”