IFC, Fatima Fertilizer announce $60mn renewable liquidity facility to support Pakistan’s agriculture

Fatima Fertilizer Company Limited, one of Pakistan’s leading fertiliser manufacturers, and International Finance Corporation (IFC), a member of the World Bank Group, announced a renewable liquidity facility of $60 million per year to help maintain uninterrupted domestic fertiliser production in Pakistan.

“Pakistan has faced shortages of foreign exchange and delays in clearing imports, which can disrupt access to key inputs and risk fertilizer shortages. The new Fatima Fertilizer facility addresses a critical market gap by providing hard currency liquidity when access to USD financing is limited,” IFC said in a statement on Thursday.

The new facility allows the company to import essential materials and run at full capacity.

By sustaining an annual output of approximately 1.46 million tons of fertiliser and preserving more than 850 direct jobs at the company’s Sadiqabad complex, the facility will help maintain a steady fertiliser supply, support thousands of small businesses across the distribution network, and protect yields for staple crops like wheat and rice, the IFC said.

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“This partnership represents an important milestone not only for Fatima Fertilizer but also for Pakistan’s agriculture sector,” said CEO Fatima Fertilizer, Fawad Ahmed Mukhtar.

“Access to dependable liquidity allows us to maintain operational resilience, ensure stable delivery of essential nutrients to farmers, and contribute to a more food-secure future. We value IFC’s confidence in our vision and look forward to expanding our collaboration.”

“A partnership like this helps unlock the liquidity needed to keep essential inputs flowing to Pakistan’s farmers,” said Ashruf Megahed, Regional Industry Head, Manufacturing, Agribusiness & Services, Middle East, Central Asia & Turkey at IFC.

“By providing USD financing for vital imports, we aim to support food security, preserve jobs, and strengthen the resilience of the agribusiness value chain across Pakistan.”

IFC was of the view that by strengthening Fatima Fertilizer’s operational resilience, the financing contributes to stabilising fertiliser prices for Pakistani farmers and reducing their dependency on imports of fertilisers, while fostering national food security in alignment with Pakistan’s agricultural priorities.