Pakistan has taken a significant step toward strengthening its agricultural sector with the launch of a PKR 7.1 billion Agri-Storage Portfolio Financing Facility. The initiative, led by InfraZamin Pakistan (IZP) in collaboration with Bank of Punjab (BoP), Faysal Bank, and Pak Brunei Investment Company Limited (PBICL), aims to modernize agricultural storage infrastructure and reduce post-harvest losses nationwide.
The facility emerged from the Social Impact Financing (SIF) framework developed under the guidance of the Ministry of Finance and the Social Impact Financing Committee chaired by Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb.
Once fully deployed, the programme is expected to mobilize up to PKR 7.1 billion in private-sector investment, including PKR 5 billion in debt financing and PKR 2.1 billion in equity. InfraZamin will support the initiative through a PKR 2.5 billion credit guarantee, covering 50 percent of the principal amount and helping financial institutions expand lending for agri-storage projects.
The funds will be utilized for the renovation, modernization, and construction of warehouses, silos, and cold storage facilities across Pakistan. These infrastructure improvements are expected to strengthen agricultural value chains while reducing the substantial losses farmers face after harvesting crops.
According to programme projections, more than 300,000 metric tons of storage capacity for wheat, grains, fruits, and vegetables will be created or upgraded over the next two years. Enhanced storage facilities will help preserve produce quality, improve supply chain efficiency, and provide farmers with better access to markets and stable income opportunities.
The initiative is also expected to generate employment across multiple sectors, including warehousing, transportation, logistics, agricultural processing, storage management, and trading. Additional economic benefits are anticipated for supporting industries such as packaging, cold-chain logistics, construction, financial services, and agricultural inputs.
By creating sustainable economic opportunities in rural and semi-rural areas, the programme aims to reduce migration pressures on urban centers while improving household incomes and overall community well-being. Increased earnings could contribute to higher spending on education, healthcare, and other essential services.
A key feature of the initiative is its integration with the State Bank of Pakistan’s Electronic Warehouse Receipt (EWR) financing scheme. Storage facilities developed under the programme will also complement the government’s ZARKHEZ-E initiative, which seeks to provide uncollateralized financing to smallholder farmers and improve financial inclusion within the agricultural sector.
Finance Minister Muhammad Aurangzeb described the facility as an example of innovative private-sector-led financing designed to address long-standing structural challenges in agriculture. He emphasized that the programme does not rely on government guarantees and instead leverages market-based mechanisms to attract long-term investment.
Industry leaders participating in the initiative highlighted its potential to improve food security, enhance agricultural productivity, and create a more resilient farming ecosystem. The partnership demonstrates growing collaboration between public institutions and private financial organizations to support sustainable economic development.
With agriculture remaining a cornerstone of Pakistan’s economy, the launch of the PKR 7.1 billion Agri-Storage Financing Facility marks a major effort to modernize storage infrastructure, reduce waste, and unlock new opportunities for farmers and agribusinesses across the country.
