PKR 7.1 Billion Agri-Storage Financing Facility Launched to Strengthen Pakistan’s Agricultural Infrastructure

A landmark Rs7.1 billion social impact financing facility aimed at strengthening Pakistan’s agricultural storage infrastructure was launched on Thursday by InfraZamin Pakistan in collaboration with The Bank of Punjab, Faysal Bank Limited and Pak Brunei Investment Company Limited.

The initiative seeks to mobilize private-sector investment for the development, renovation and expansion of agricultural warehouses, silos and cold storage facilities across the country, helping reduce post-harvest losses and improve food security.

Speaking at the signing ceremony, Advisor to the Federal Minister for Finance and Revenue, Adnan Pasha, described the facility as a major milestone in Pakistan’s emerging social impact financing landscape. He said the programme would contribute to improving agricultural productivity, strengthening rural livelihoods and expanding farmers’ access to finance.

The facility will mobilize investments of up to Rs7.1 billion, including Rs5 billion in debt financing and Rs2.1 billion in equity investment. The financing package is backed by a Rs2.5 billion partial credit guarantee from InfraZamin Pakistan, covering 50 percent of principal exposure to reduce investment risks and encourage greater participation by financial institutions.

According to officials, the programme is expected to create and upgrade more than 300,000 metric tonnes of agricultural storage capacity over the next two years. Improved storage facilities will enable farmers to preserve produce more effectively, reduce wastage, secure financing against stored commodities and access better market opportunities.

Adnan Pasha noted that the initiative complements the State Bank of Pakistan’s Electronic Warehouse Receipt (EWR) financing system and supports the Prime Minister’s ZARKHEZ-E programme, which provides collateral-free loans to small farmers.

He said investments in agricultural infrastructure would generate employment opportunities in warehousing, logistics, transportation, storage management, agricultural processing and trading, while also stimulating growth in sectors such as packaging, construction, cold-chain logistics and financial services.

Highlighting recent progress in agricultural finance, Pasha said agricultural lending had reached approximately Rs3.1 trillion during the current fiscal year, while outstanding agricultural credit stood at Rs1.2 trillion, reflecting annual growth of around 24 percent. He added that nearly 3.1 million farmers were currently benefiting from agricultural finance, with the government aiming to bring another 1.5 million farmers into the formal financing network during the next fiscal year.

The facility emerged from recommendations of the Social Impact Financing Committee, chaired by Federal Minister for Finance and Revenue Muhammad Aurangzeb, and the Ministry of Finance-led Task Force on Social Impact Financing.

In a message shared on the occasion, Senator Aurangzeb said the initiative reflected the government’s commitment to promoting private sector-led innovative financing solutions linked to measurable development outcomes and inclusive economic growth.

InfraZamin Pakistan Chief Executive Officer Maheen Rahman said the facility would unlock significant private capital for agricultural storage infrastructure and strengthen the resilience of Pakistan’s agricultural ecosystem.

Meanwhile, Zafar Masud emphasized the importance of strengthening the Electronic Warehouse Receipt ecosystem to expand agricultural financing, while Yousaf Hussain said improved storage infrastructure was essential for reducing post-harvest losses and enhancing efficiency across the agricultural value chain.

Pak Brunei Investment Company CEO Amir Shamim described agri-warehousing as a key component of food security and reaffirmed his institution’s commitment to supporting innovative financing solutions for Pakistan’s agricultural sector. – ER

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