Engro, Bank Alfalah Launch PKR 1 Million Loans for Farmers

The initiative will offer financing of up to

PKR 1 million per farmer, aiming to

benefit approximately 350 farmers

Staff Reporter

Karachi: In a major step toward empowering Pakistan’s agricultural sector, Engro Fertilizers and Bank Alfalah Limited have announced a strategic partnership to provide enhanced lending solutions to small and medium-scale farmers. The initiative will offer financing of up to PKR 1 million per farmer, aiming to benefit approximately 350 farmers and positively impact over 2,000 lives.

The announcement was made during a signing ceremony held at Bank Alfalah’s Head Office in Karachi. The event was attended by senior leaders from both organizations, including Ali Rathore, CEO of Engro Fertilizers, and Atif Bajwa, President and CEO of Bank Alfalah Limited.

Key Highlights of the Partnership:

• Total funding: PKR 250 million (secured and unsecured loans)
• Loan size: Average PKR 0.6 million per farmer
• Program reach: 350 farmers through Engro Markaz outlets and UgAI, Pakistan’s first agri e-commerce platform
• Locations: Pilot rollout in Sahiwal, Sargodha, Bahawalpur, and Muridke
• Interest rate: Subsidized, up to 4.5% lower than market rates
• Features: Digitized payments and closed-loop spending via P2M (person-to-merchant) transactions

This farmer-centric lending model aims to provide clean, collateral-based credit that enables farmers to invest in high-quality Engro fertilizer products, increase crop yields, and enhance incomes. The initiative also builds a direct, transparent value chain between input providers, financiers, and farmers.

Driving Rural Transformation

According to the Pakistan Economic Survey 2023–24, improved access to credit significantly boosted crop yields and strengthened food security. The World Bank highlights that agricultural finance can be four times more effective in reducing poverty, underscoring the long-term impact of such inclusive financial programs.

Ali Rathore, CEO of Engro Fertilizers, stated:

“Our farmers are the backbone of the economy. This partnership will enable them to access the financial tools they need to thrive, promote sustainable agriculture, and secure their future.”

Atif Bajwa, President and CEO of Bank Alfalah, added:

“This collaboration reflects our commitment to inclusive growth. By enabling affordable finance, we are helping to uplift farming communities and support national food security.”

Through this initiative, Engro Fertilizers and Bank Alfalah aim to build a resilient, inclusive, and tech-enabled rural economy, setting a new benchmark for agri-finance in Pakistan.