InfraZamin Pakistan (IZP) has announced the launch of its Agri-Storage Portfolio Financing Facility, a major initiative emerging from the Social Impact Financing Committee chaired by Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, and the Ministry of Finance-led Task Force. This facility aims to strengthen agricultural value chains and address persistent post-harvest losses in Pakistan.
Facility Overview
Once fully deployed, the facility will mobilize up to PKR 7.1 billion in private sector capital for agricultural storage investment, comprising PKR 5.0 billion in debt and PKR 2.1 billion in equity, across farming communities. It is supported by a PKR 2.5 billion 50% principal credit guarantee from InfraZamin. Funds will be used for renovation, upgrade, and new development of agri-warehousing, silos, and cold storage nationwide.
Partner Financial Institutions
The initiative is being pioneered in partnership with Pak Brunei Investment Company Limited (PBICL), Faysal Bank, and Bank of Punjab, which will offer the facility to their corporate and SME customers.
Expected Outcomes
The Social Impact Financing framework is outcome-linked, aiming to create and upgrade over 300,000 metric tons of storage capacity for wheat, grains, fruits, and vegetables within two years. This will reduce post-harvest losses, improve market access for farmers, and increase incomes. The program is also expected to generate direct and indirect employment across the agri value chain and allied sectors like packaging, cold-chain logistics, and construction, while reducing rural-to-urban migration pressures.
Statements from Officials
Muhammad Aurangzeb, Federal Minister for Finance: "This initiative reflects the government’s commitment to encourage private sector-led innovative financing solutions. The Task Force has played a pivotal role in designing market-based interventions. InfraZamin’s credit guarantee program de-risks private sector participation, with no government guarantee involved."
Maheen Rahman, CEO InfraZamin Pakistan: "This facility will unlock significant private capital for agricultural storage in rural areas. We are pleased to offer a 50% guarantee coverage to our financial partners to deepen agri-storage lending, enabling scalable solutions that reduce losses and strengthen the agricultural ecosystem."
Zafar Masud, CEO Bank of Punjab: "While this is a great first step, such initiatives require a proper EWR and Aggregator Financing ecosystem. Governments need to roll out formal frameworks for these to work at scale. The role of PMEX remains vital for trading EWRs and listed Sukuks."
Yousaf Hussain, CEO Faysal Bank Limited: "Strengthening agricultural storage is essential for reducing post-harvest losses. Faysal Bank is pleased to support this initiative to mobilize private investment and contribute to sustainable growth."
Amir Shamim, CEO PBICL: "PBICL values this collaboration to reshape agri-storage. We view warehousing as vital for protecting farm value and food security. This partnership will scale impact through bankable warehouse projects."
Additional Benefits
Warehouses and silos developed under the facility will be eligible for the State Bank of Pakistan’s Electronic Warehouse Receipt financing scheme and will augment ZARKHEZ-E, the Prime Minister’s initiative for uncollateralized loans to smallholder farmers, enhancing financial inclusion and working capital access.
