Rs7.1 billion social impact financing facility launched for agri-storage infrastructure

InfraZamin Pakistan, in partnership with The Bank of Punjab, Faysal Bank Limited and Pak Brunei Investment Company Limited, has launched a Rs7.1 billion Social Impact Financing Facility to support the development and expansion of agricultural warehouses, silos and cold-storage infrastructure across Pakistan, according to Ministry of Finance. 

The Agri-Storage Portfolio Financing Facility will mobilise up to Rs5 billion in debt financing and Rs2.1 billion in equity, backed by a Rs2.5 billion partial credit guarantee from InfraZamin covering 50% of the principal exposure.

The initiative does not carry a sovereign guarantee from the Government of Pakistan and is designed to use private-sector financing and credit enhancement to attract investment into agricultural storage infrastructure.

Adnan Pasha, Advisor to the Federal Minister for Finance and Revenue, said at the signing ceremony that the facility marked another step in Pakistan’s emerging social impact financing market.

He said the programme was expected to support agricultural productivity, reduce post-harvest losses and improve access to formal financing for farmers.

The initiative is Pakistan’s second major social impact financing transaction following the launch of the Rs1 billion Pakistan Skills Impact Bond in December 2025.

According to the programme’s targets, more than 300,000 metric tonnes of agricultural storage capacity will be developed or upgraded over the next two years.

The financing will be used for the renovation, expansion and establishment of warehouses, silos and cold-storage facilities in different parts of the country.

The additional capacity is intended to help farmers preserve crops for longer periods, reduce wastage and avoid selling produce immediately after harvesting when market prices may be lower.

Farmers using eligible storage facilities may also be able to secure financing against stored commodities through the State Bank of Pakistan’s Electronic Warehouse Receipt system.

The facility will complement the Prime Minister’s ZARKHEZ-E programme, which provides collateral-free loans to smallholder farmers.

Pasha said access to reliable storage could allow farmers to manage the timing of sales, obtain financing against produce and generate more stable incomes.

The programme is also expected to generate employment in warehousing, transportation, logistics, storage management, agricultural processing and commodity trading.

Investment in storage infrastructure could additionally support activity in packaging, construction, cold-chain logistics, financial services and agricultural inputs.

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

In a message issued on the occasion, Muhammad Aurangzeb said the initiative supported private sector-led financing linked to measurable development outcomes in agriculture.

He said the task force had brought together government institutions, financial organisations and private-sector participants to develop market-based mechanisms for mobilising capital towards inclusive growth.

Pasha also called for further capacity-building and awareness programmes to expand impact financing in Pakistan.

He acknowledged the role of Karandaaz Pakistan, the Pakistan Banks Association and the State Bank of Pakistan in improving understanding of impact finance among banks and other market participants.

Highlighting agricultural lending trends, he said disbursements had reached around Rs3.1 trillion during the current fiscal year.

Outstanding agricultural credit stood at Rs1.2 trillion, representing annual growth of approximately 24%.

Around 3.1 million farmers are currently receiving agricultural financing, while the government aims to extend access to another 1.5 million farmers during the next fiscal year.

Pasha urged more banks and private lenders to participate in the financing structure, noting that investment in agriculture supported economic activity across production, storage, processing, packaging, transportation and trade.

InfraZamin Pakistan Chief Executive Officer Maheen Rahman said the facility would help mobilise private capital for agricultural storage projects and strengthen the agriculture supply chain.

The Bank of Punjab President and Chief Executive Officer and Pakistan Banks Association Chairman Zafar Masud said further development of the Electronic Warehouse Receipt and aggregator financing ecosystem was required to expand agricultural credit programmes.

Faysal Bank Limited President and Chief Executive Officer Yousaf Hussain said additional storage infrastructure was needed to reduce post-harvest losses and improve efficiency across the agricultural value chain.

Pak Brunei Investment Company Limited Chief Executive Officer Amir Shamim said agricultural warehousing played a role in food security and value preservation, adding that PBICL would continue supporting structured financing for the sector.