ISLAMABAD: International Finance Corporation (IFC), the commercial arm of the World Bank, on Tuesday announced its first Pakistan-rupee denominated investment through a partial guarantee worth Rs33.6 billion (around $120m) in Engro Fertilisers.

The IFC guarantee will support a long-term rupee-denominated financing from Standard Chartered Bank Pakistan Ltd to Engro Fertilisers Ltd to strengthen the agri-value chain in Pakistan by mobilising local capital, the World Bank office announced.

“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,” the statement said.

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 rupee-denominated financing, Engro Fertilisers is championing the use of domestic capital to enhance operational resilience, the statement said.

The financing will help Engro 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 programs, ensuring continuity of initiatives that complement Engro’s core mission of reliable production.

The agriculture sector is contributing 24pc of Pakistan’s GDP, 70pc of its exports, and 40pc of its employment, making it vital for long-term growth. Yet systemic challenges—inefficient supply chains, underfunded farmer programs, low literacy, and rising input costs persist. This investment will help address some of these gaps, the World Bank said.

“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 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,” said Ashruf Megahed, Regional Industry Head, Manufacturing, Agribusiness & Services, Middle East and Central Asia at IFC

“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,” commented Standard Chartered Pakistan CEO and Head of Coverage Rehan Shaikh.

Published in Dawn, December 24th, 2025