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ISLAMABAD: The International Finance Corporation (IFC) announced on Tuesday its first Pakistani rupee-denominated investment in the country, a Partial Credit Guarantee of up to PKR33.6 billion (approximately US$120 million), to support the agriculture sector. The financing arrangement involves Standard Chartered Bank Pakistan providing long-term local currency funding to Engro Fertilizers Limited, one of Pakistan&#39;s leading fertilizer producers, according to a press release issued by IFC. The investment aims to strengthen Pakistan&#39;s agricultural value chain while addressing food security concerns in a country where the sector accounts for 24% of GDP, 70% of exports, and employs 40% of the workforce, IFC said. Strengthening agricultural resilienceThe financing will enable Engro Fertilizers to maintain continuous production of urea and other fertilizers through capital investments in facility maintenance and turnarounds, ensuring uninterrupted supply to meet national demand. The funding will also support farmer programs that complement the company&#39;s core operations. &quot;Using local capital to strengthen local value chains reflects our commitment to the country and our farmers &mdash; the backbone of Pakistan&#39;s economy &mdash; through reliable fertilizer production,&quot; said Ali Rathore, CEO of Engro Fertilizers. &quot;We are grateful to our partners, IFC and Standard Chartered Bank, for enabling us to advance this mission.&quot; Agriculture remains a cornerstone of Pakistan&#39;s economy but faces systemic challenges, including inefficient supply chains, rising input costs, and underfunded farmer programs. The financing from IFC and Standard Chartered is expected to address these gaps while leveraging rupee-denominated capital to improve operational resilience and long-term sustainability. Opening new financing pathwaysThe transaction marks a significant shift in development finance strategy by mobilizing domestic capital rather than relying on foreign currency, helping companies better manage currency and country risk. &quot;This investment reflects the strength of our partnership with Engro Fertilizers and Standard Chartered Bank and our shared commitment to provide innovative solutions in a sustainable manner,&quot; said Ashruf Megahed, Regional Industry Head, Manufacturing, Agribusiness &amp; Services, Middle East and Central Asia at IFC. &quot;Through this project, we are opening new pathways for local currency long-term financing that support growth and financial resilience in a sector vital to Pakistan&#39;s economy.&quot; The financing is backed by a first-loss counter guarantee from the IFC-Canada Facility for Resilient Food Systems, adding an additional layer of security to the investment. Rehan Shaikh, CEO &amp; Head of Coverage at Standard Chartered Pakistan, said the bank is committed to financing solutions that enable sustainable growth. &quot;This partnership reflects our shared vision of strengthening food security and supporting one of the country&#39;s most critical value chains,&quot; he said, adding that Standard Chartered is keen to replicate this structure across its network. By championing domestic currency financing, the project sets a precedent for future investments that strengthen key sectors while mitigating exposure to currency and country risk.

A farmer harvests wheat in a field on the outskirts of Lahore on April 15, 2025. (FILE/AFP)

Economy

IFC has announced its first PKR-denominated investment in Pakistan, supporting Engro Fertilizers with PKR33.6 billion through Standard Chartered. The funding strengthens fertilizer production, farmer programs, and the country’s agricultural value chain, enhancing food security.

IFC, Engro launch Pakistan’s first local-currency investment

ISLAMABAD: The Green Climate Fund (GCF) has approved $250 million for a regional adaptation programme supporting nine countries, including Pakistan, to manage the rising risks of glacial melt and water stress linked to climate change. The initiative, titled &ldquo;Glaciers to Farms,&rdquo; will be implemented by the Asian Development Bank (ADB). It aims to strengthen climate resilience in Armenia, Azerbaijan, Georgia, Kazakhstan, the Kyrgyz Republic, Pakistan, Tajikistan, Turkmenistan, and Uzbekistan, with an emphasis on the four primary glacier-fed basins &mdash; the Naryn, Pyanj, Kura, and Swat rivers &mdash; where temperature increases have accelerated snow and ice loss. The program aims to strengthen irrigation, watershed management, early warning systems, and data sharing to reduce the likelihood of glacial lake outburst floods (GLOFs) and droughts.&nbsp; According to the ADB, over 13 million people will benefit directly from climate-resilient infrastructure and agricultural practices established through this initiative. &ldquo;Rapid glacial retreat is one of the most complex development challenges faced by our region,&rdquo; says Yasmin Siddiqi, ADB Director for Agriculture, Food, Nature, and Rural Development. &nbsp;&ldquo;We need practical, scalable, and science-based solutions to help communities adapt. With catalytic support from GCF, Glaciers to Farms will help move the region beyond fragmented projects toward systemic, long-term resilience that protects lives and livelihoods.&rdquo; According to the UNDP Pakistan project brief, the initiative in Pakistan expands on existing national efforts led by the Ministry of Climate Change, specifically the Glacial Lake Outburst Flood (GLOF-II) project, which was implemented in Gilgit-Baltistan and Khyber Pakhtunkhwa in collaboration with the United Nations Development Programme (UNDP). The initiative was approved at the GCF&#39;s 43rd Board Meeting on Monday. Funding will be distributed primarily through grants, with an additional $3.25 billion in ADB investments expected over the next decade.

Climate

The initiative aims to address rapid glacial retreat by improving water systems, early warnings, and agriculture resilience across nine Asian countries, aiming to protect 13 million people from increasing flood and drought risks caused by climate change. 

Articles tagged with "Agriculture"

IFC, Engro launch Pakistan’s first local-currency investment

Pakistan among nine nations to benefit from $250m glacial adaptation fund

IFC, Engro launch Pakistan’s first local-currency investment