KARACHI: IFC announced its first PKR-denominated investment via an unfunded Partial Credit Guarantee of up to PKR 33.6 billion (approximately US$120 million equivalent) to support a long-term PKR-denominated financing from Standard Chartered Bank Pakistan Limited to Engro Fertilisers Limited (Engro Fertilisers). According to an announcement by Standard Chartered Bank, this financing will enable Engro Fertilisers to strengthen the agri-value chain in Pakistan by mobilising local capital. The investment, aimed at strengthening Pakistan’s agriculture sector and bolstering food security, also benefits from a first-loss counter guarantee from the IFC-Canada Facility for Resilient Food Systems. Standard Chartered, IFC launch $400m trade finance facility 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, critical for economic growth, particularly in important sectors such as agriculture and micro, small, and medium enterprises. By leveraging PKR-denominated financing, Engro Fertilisers, one of Pakistan’s leading fertiliser producers, is championing the use of domestic capital to enhance operational resilience. The financing will help Engro Fertilisers make capital investments in maintenance of facilities and turnarounds, enabling uninterrupted supply of urea and other fertilisers to meet national demand. The funding will also support farmer programmes, ensuring continuity of initiatives that complement Engro’s core mission of reliable production. The agriculture sector is contributing 24 percent of Pakistan’s GDP, 70 percent of its exports, and 40 percent of its employment, making it vital for long-term growth. Yet systemic challenges —inefficient supply chains, under-funded farmer programs, low literacy, and rising input costs persist. This investment will help address some of these gaps. “Engro has 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 fertiliser production. We are grateful to our partners, IFC and Standard Chartered Bank, for enabling us to advance this mission,” said Engro Fertilisers CEO, Ali Rathore. “This investment reflects the strength of our partnership with Engro Fertilisers and Standard Chartered Bank and our shared commitment to providing 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,” said Ashruf Megahed, Regional Industry Head, Manufacturing, Agribusiness & Services, Middle East and Central Asia at IFC. Commenting on the occasion, Rehan Shaikh, CEO & Head of Coverage, Standard Chartered Pakistan, stated, “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 Fertilisers 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.” Copyright Business Recorder, 2025