KARACHI: A landmark PKR 7.1 billion social impact financing facility aimed at strengthening Pakistan\u2019s critical agricultural storage infrastructure was launched Thursday by InfraZamin Pakistan (IZP) in partnership with The Bank of Punjab (BoP), Faysal Bank Limited, and Pak Brunei Investment Company Limited (PBICL). The initiative seeks to mobilise private sector investment to address longstanding gaps in agricultural warehousing, silos, and cold storage facilities across the country.<\/p>\n\n\n\n
Speaking at the signing ceremony, Adnan Pasha, Advisor to the Federal Minister for Finance & Revenue, described the initiative as an important milestone in Pakistan\u2019s evolving social impact financing landscape and a significant step towards improving agricultural productivity, reducing post-harvest losses, and expanding financial inclusion for farmers.<\/p>\n\n\n\n
Pasha noted that the facility represents Pakistan\u2019s second major social impact financing transaction following the successful launch of the inaugural PKR 1Bln Pakistan Skills Impact Bond in December 2025.<\/p>\n\n\n\n
He highlighted that the new facility demonstrates growing confidence in innovative financing models that leverage private sector participation to achieve measurable development outcomes.<\/p>\n\n\n\n
\u201cThis is a very important opportunity for Pakistan,\u201d Pasha said. \u201cThe launch of a PKR 7.1 billion facility linked to social impact reflects the growing momentum behind innovative financing solutions that address real economic challenges while improving livelihoods and creating opportunities across the country.\u201d<\/p>\n\n\n\n
He emphasized that the initiative is being led by the private sector and does not involve any sovereign guarantee from the Government of Pakistan. Instead, InfraZamin is providing a partial credit guarantee mechanism that will help de-risk investments and encourage greater participation from financial institutions.<\/p>\n\n\n\n
The Agri-Storage Portfolio Financing Facility will mobilize up to PKR 7.1 billion in investment, including PKR 5.0 billion in debt financing and PKR 2.1 billion in equity, supported by a PKR 2.5 billion credit guarantee from InfraZamin covering 50 percent of principal exposure. The financing will support the renovation, expansion, and development of agricultural warehouses, silos, and cold storage facilities across Pakistan.<\/p>\n\n\n\n
Pasha noted that the programme is expected to create and upgrade more than 300,000 metric tons of storage capacity over the next two years, helping farmers preserve produce more effectively, reduce wastage, and access better market opportunities.<\/p>\n\n\n\n
\u201cThe focus is on strengthening agricultural infrastructure and value chains,\u201d he said. \u201cWhen farmers have access to safe and reliable storage facilities, they can better manage their produce, access financing against stored commodities, and ultimately earn higher and more stable incomes.\u201d<\/p>\n\n\n\n
The Advisor highlighted the complementary role of the State Bank of Pakistan\u2019s Electronic Warehouse Receipt (EWR) financing system, under which eligible warehouses and silos can facilitate access to formal financing. He also noted that the facility will support and complement the Prime Minister\u2019s ZARKHEZ-E programme, which provides uncollateralized loans to smallholder farmers.<\/p>\n\n\n\n
Pasha underlined the broader economic and social benefits expected from the initiative, including job creation across warehousing, logistics, transportation, storage management, agricultural processing, and trading. He added that investments in agricultural infrastructure would stimulate growth in allied sectors such as packaging, construction, cold-chain logistics, financial services, and agricultural inputs while improving livelihoods in rural communities.<\/p>\n\n\n\n
\u201cThe ultimate objective is to create positive social impact,\u201d he said. \u201cImproved storage infrastructure will reduce losses, strengthen rural incomes, enhance food security, and contribute to the overall uplift of farming communities.\u201d-PR<\/p>\n\n\n\n
He also stressed the importance of capacity building and awareness to scale impact financing in Pakistan, acknowledging efforts by institutions such as Karandaaz Pakistan, the Pakistan Banks Association, and the State Bank of Pakistan in promoting understanding of impact finance among financial institutions and market participants.<\/p>\n\n\n\n
Highlighting recent progress in agricultural finance, Pasha noted that agricultural lending disbursements had reached approximately PKR 3.1 trillion during the current fiscal year, with outstanding agricultural credit standing at PKR 1.2 trillion, reflecting annual growth of around 24 percent. He added that approximately 3.1 million farmers are currently benefiting from agricultural finance and expressed the government\u2019s ambition to expand outreach by an additional 1.5 million farmers in the next fiscal year.<\/p>\n\n\n\n
He called upon additional banks and private sector lenders to join the initiative and support investment in Pakistan\u2019s real economy.<\/p>\n\n\n\n
\u201cThis is only the beginning,\u201d he said. \u201cWe encourage more financial institutions to participate in this structure. Investment in agriculture creates a multiplier effect across the economy\u2014from production and storage to processing, packaging, transportation, and trade.\u201d<\/p>\n\n\n\n
The facility is a flagship initiative emerging from the deliberations of the Social Impact Financing Committee, chaired by Federal Minister for Finance & Revenue Senator Muhammad Aurangzeb, and the Ministry of Finance-led Task Force on Social Impact Financing.<\/p>\n\n\n\n
In a message shared on the occasion, Senator Muhammad Aurangzeb stated that the initiative reflects the government\u2019s commitment to encouraging private sector-led innovative financing solutions linked to measurable development outcomes.<\/p>\n\n\n\n
\u201cThis initiative reflects the government\u2019s commitment to encourage private sector-led innovative financing solutions linked to impactful outcomes that address structural challenges in Pakistan\u2019s agriculture sector,\u201d the Finance Minister said. \u201cThe 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 mobilize private capital for inclusive and sustainable growth.\u201d<\/p>\n\n\n\n
Maheen Rahman, Chief Executive Officer of InfraZamin Pakistan, said the facility would unlock significant private capital investment for agricultural storage infrastructure and strengthen the resilience of Pakistan\u2019s agricultural ecosystem.<\/p>\n\n\n\n
Zafar Masud, President& CEO of The Bank of Punjab and Chairman of the Pakistan Banks Association, emphasized the importance of strengthening the Electronic Warehouse Receipt and Aggregator Financing ecosystem to enable agricultural financing initiatives to scale effectively.<\/p>\n\n\n\n
Yousaf Hussain, President& CEO of Faysal Bank Limited, said strengthening agricultural storage infrastructure is essential for reducing post-harvest losses and improving efficiency across the agricultural value chain.<\/p>\n\n\n\n
Amir Shamim, Chief Executive Officer of Pak Brunei Investment Company Limited, noted that agri-warehousing is a critical component of food security and value preservation and reaffirmed PBICL\u2019s commitment to supporting structured financing solutions for the agricultural sector.<\/p>\n","protected":false},"excerpt":{"rendered":"
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