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.