ISLAMABAD: Finance Minister Muhammad Aurangzeb has said that the government is committed to encouraging private sector-led innovative financing solutions to address structural challenges in the agriculture sector.

He was addressing the launch of the Agri-Storage Portfolio Financing Facility on Thursday. The facility, led by InfraZamin Pakistan (IZP), aims to strengthen the country’s agricultural value chains and address persistent post-harvest losses.

The finance minister said that no government guarantee is being offered, and InfraZamin has stepped up with a credit guarantee programme that will de-risk private sector participation and crowd in long-term investment into critical agri value chain infrastructure.

Once fully deployed, the facility will mobilise up to Rs7.1 billion in private sector capital for agricultural storage investment, comprising Rs5bn in debt and Rs2.1bn in equity, across farming communities in Pakistan.

Aurangzeb launches Rs7.1bn InfraZamin facility with no sovereign guarantees

The facility is supported by Rs2.5bn or 50 per cent principal credit guarantee coverage from InfraZamin.

Funds mobilised will be used towards renovation, upgrade and new development of agri warehousing, silos and cold storage across the country.

This is being pioneered in partnership with leading financial institutions — Pak Brunei Investment Company Ltd (PBICL), Faysal Bank and Bank of Punjab — who will offer the facility to their corporate and SME customers.

The Social Impact Financing framework is outcome-linked, the programme is expected to deliver measurable economic and social outcomes by creating and upgrading over 300,000 tonnes of storage capacity for wheat, grains, fruits, and vegetables across Pakistan over the next two years.

The investment will help address critical gaps in agricultural storage infrastructure, reduce post-harvest losses, and improve farmers’ access to better market opportunities, resulting in higher and more stable incomes.

By generating sustainable livelihood opportunities closer to production areas, the programme is expected to reduce rural-to-urban migration pressures and contribute to broader social outcomes through increased household spending on health, education, and overall wellbeing.

The programme is also expected to create direct and indirect employment opportunities across the agri value chain — including warehousing, logistics, transportation, storage management, agri-processing, and trading — while stimulating growth in allied sectors such as packaging, cold-chain logistics, construction, financial services, and agricultural inputs.

InfraZamin Pakistan Chief Executive Maheen Rahman said that the facility will unlock significant private capital investment for agricultural storage in rural/semi-rural areas for all types of produce.

Bank of Punjab CEO Zafar Masud, Pakistan Banks Association Chairman Yousaf Hussain, Faysal Bank Ltd CEO Amir Shamim and others addressed the launching ceremony.

Published in Dawn, June 5th, 2026