Engro Fertilizers, a major fertilizer company in Pakistan, and Bank Alfalah Limited, Pakistan’s leading commercial bank, announced a strategic partnership aimed at empowering farmers across the country through enhanced lending facilities. This collaboration will extend financing of up to PKR 1 million to farmers registered through Engro Markaz outlets and UgAi – the first integrated agricultural e-commerce platform for Pakistan.
The signing ceremony took place at Bank Alfalah’s Head Office in Karachi and was attended by senior leadership from both organizations, including Ali Rathore, CEO of Engro Fertilizers; Atif Bajwa, President and CEO of Bank Alfalah Limited; Atif Mohammad Ali, Vice President of Marketing at Engro Fertilizers; along other senior executives.
The pilot initiative will be launched with a total funding allocation of PKR 250 million (comprising both secured and unsecured components), offering average loan amounts of approximately PKR 0.6 million to 300–350 farmers. With an estimated reach of up to 2,000 beneficiaries, the program marks a critical step in forging a direct value chain between the fertilizer provider, the financing institution, and the end-user farmer, ensuring resources flow efficiently from source to soil with a robust value chain. Currently, the program will be accessible through four Engro Markaz locations across Pakistan: Sahiwal, Sargodha, Bahawalpur, and Muridke.
The project is designed to enhance financial access for farmers, providing them with clean and collateral-based lending solutions tailored to their needs. These credit facilities offer subsidized interest rates, up to 4.5% lower than market rates, enabling farmers to purchase high-quality Engro fertilizer products. This directly contributes to improved crop yields and a significant increase in their overall income and livelihood. The collaboration also features the digitization of payments and implementation of a closed-loop spending solution via P2M (Person-to-Merchant) transaction enablement.
According to the Pakistan Economic Survey 2023–24, credit facilitation played a significant role in driving improved crop yields during FY2024, resulting in a substantial impact of agricultural financing on national food security and rural productivity. According to the World Bank, access to agricultural finance can increase the effectiveness of farming by up to four times in reducing poverty, underscoring the transformative impact of inclusive credit systems on rural livelihoods.
Ali Rathore, CEO of Engro Fertilizers, stated, “At Engro Fertilizers, we remain committed to supporting Pakistani farmers, who play a vital role in sustaining our country’s economy. This collaboration with Bank Alfalah is a significant step toward enhancing farmers’ access to financial resources, enabling them to invest in quality inputs, increase productivity, and work toward a more secure future. We hope this initiative contributes to the broader goal of promoting sustainable agriculture and strengthening the resilience of farming communities”.
Atif Bajwa, President and CEO of Bank Alfalah Limited, added, “Bank Alfalah is proud to partner with Engro Fertilizers in this important initiative. We recognize the potential of Pakistan’s agricultural sector and the critical role that accessible financing plays in unlocking its full potential. By offering tailored lending solutions, we are investing in the productivity, resilience, and financial empowerment of our farmers, thereby contributing directly to food security and economic stability nationwide. This collaboration exemplifies our dedication to inclusive growth and supporting the backbone of Pakistan’s economy.”
Through this partnership, Engro Fertilizers and Bank Alfalah Limited are committed to bridging the gap between financial institutions and the agricultural community. This collaborative effort has been designed to enable a more inclusive, robust, and productive rural economy.
