KARACHI: InfraZamin Pakistan (IZP) has launched its agri-storage portfolio financing facility to strengthen the country’s agricultural value chains and address persistent post-harvest losses, a statement said on Thursday.
Once fully deployed, the facility will mobilise up to Rs7.1 billion in private-sector capital in agricultural storage investment (Rs5 billion debt and Rs2.1 billion equity) across farming communities in Pakistan. The facility is supported by Rs2.5 billion, 50 percent 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 initially being pioneered in partnership with leading financial institutions -- Pak Brunei Investment Company Limited (PBICL), Faysal Bank, and the Bank of Punjab, who will offer the facility to their corporate and SME customers.
The social impact financing (SIF) framework is outcome-linked; thus, the programme is expected to deliver measurable economic and social outcomes by creating and upgrading over 300,000 metric tons 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.
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.
In addition, warehouses and silos developed under the facility will be eligible for the State Bank of Pakistan’s electronic warehouse receipt financing scheme and augment ZARKHEZ-E (the Prime Minister’s innovative initiative of uncollateralised loans to smallholder farmers), which is backed by the finance ministry to further enhance financial inclusion and access to working capital for farmers.
Finance Minister Muhammad Aurangzeb stated, “This initiative reflects the government’s commitment to encourage private sector-led innovative financing solutions linked to impactful specific outcomes that address structural challenges in Pakistan’s agriculture sector.” “The Ministry of Finance-led task force for social impact financing has played a pivotal role in bringing together stakeholders to design market-based interventions that mobilise private capital for inclusive and sustainable growth,” he added.
