PKR 7.1 Bln Social Impact Financing Facility linked to uplift critical Agri-storage infrastructure launched
InfraZamin Pakistan (IZP) is honored to announce the launch of its Agri-Storage Portfolio Financing Facility, a flagship initiative emerging from the design deliberations of the Social Impact Financing Committee chaired by the Honorable Federal Minister for Finance & Revenue, Senator Muhammad Aurangzeb and the Ministry of Finance led Task Force. The facility is aimed at strengthening the country’s agricultural value chains and addressing persistent post-harvest losses.
Once fully deployed the facility will mobilize up to PKR 7.1 billion in private sector capital in agricultural storage investment (PKR 5.0 billion debt and PKR 2.1 billion equity) across farming communities in Pakistan. The facility is supported by a PKR 2.5bn 50% principal credit guarantee coverage from InfraZamin. Funds mobilized 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 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. 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.
In addition, warehouses and silos developed under the facility will be eligible for the State Bank of Pakistan’s Electronic Warehouse Receipt (EWR) financing scheme, and augment ZARKHEZ-E (the Prime Minister’s innovative initiative of uncollateralized loans to small holders farmers) which is backed by the Ministry of Finance to further enhance financial inclusion and access to working capital for farmers.
Mr. Muhammad Aurangzeb, Federal Minister for Finance & Revenue, Government of Pakistan, 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. In this context, no Government of Pakistan guarantee is being offered, and instead InfraZamin has stepped up with a credit guarantee programme that will de-risking private sector participation and crowding in long-term investment into critical agri value chain infrastructure.”
Ms. Maheen Rahman, CEO, InfraZamin Pakistan, commented, “This facility will unlock significant private capital investment for agricultural storage in rural/semi-rural areas for all types of produce. We are pleased to offer a portfolio based approached with a 50pc guarantee coverage to our financial partners Pak Brunei, Bank of Punjab, and Faysal Bank to deepen their agri-storage lending which will enable scalable solutions that reduce losses, and strengthen the overall resilience of the agricultural ecosystem. We are grateful to the vision and unwavering support of the Ministry of Finance and our banking partners in bringing this initiative to move towards a food secure Pakistan”
Mr. Zafar Masud, CEO Bank of Punjab / Chairman Pakistan Banks Association, stated, “While such initiatives are great and my felicitations to the taskforce as the first step in this direction, however, such initiatives can only go that far in the absence of a proper EWR and Aggregator Financing (AF) ecosystem. The Governments – both provincial and federal need to get the formal EWR and AF Frameworks rolled out in order to make such initiatives to work at scale. The role of PMEX will remain vital in terms of getting the market – making activities going for the trading of EWRs and perhaps the Listed Sukuks for the AF at scale. Taskforce must work on getting the necessary frameworks done as the next step.”
Mr. Yousaf Hussain, CEO Faysal Bank Limited, stated, “Pakistan’s agriculture sector remains critical to the country’s economic resilience, food security, and rural livelihoods. Strengthening agricultural storage and warehousing infrastructure is essential for reducing post-harvest losses and improving efficiency across the agricultural value chain. Faysal Bank is pleased to support this important initiative alongside the Ministry of Finance, InfraZamin, and partner institutions to help mobilise private sector investment in critical agricultural infrastructure and contribute to the sustainable, long-term growth of Pakistan’s agricultural ecosystem.”
Mr. Amir Shamim, CEO, Pak Brunei Investment Company Limited, added, “PBICL values the opportunity to collaborate on an initiative that can reshape Pakistan’s agri-storage landscape. At PBICL, we view agri-warehousing not merely as storage infrastructure, but as a vital link in protecting farm value, reducing post-harvest losses, and strengthening national food security. Having already supported this sector through deployed SBP FFSAP facilities, PBICL remains committed to financing SMEs and Corporate agribusinesses through practical, structured solutions. This partnership with InfraZamin will help scale this impact by enabling bankable warehousing, silo, and cold storage projects that serve farmers, businesses, and the wider economy.”
InfraZamin is grateful to the support extended for the pioneering initiative by the Ministry of Finance and to the participating financial institutions.
