Bank Alfalah Limited, one of Pakistan’s leading commercial banks, has partnered with Engro Fertilizers, a prominent name in the country’s agriculture sector, to launch a strategic financing initiative aimed at empowering farmers across Pakistan. Through this collaboration, farmers registered via Engro Markaz outlets and UgAI—Pakistan’s first integrated agri e-commerce platform—will now have access to financing of up to PKR 1 million.
The official signing ceremony was held at Bank Alfalah’s Head Office in Karachi, attended by top leadership from both organizations. Key attendees included Ali Rathore, CEO of Engro Fertilizers; Atif Bajwa, President and CEO of Bank Alfalah; Atif Mohammad Ali, Vice President of Marketing at Engro Fertilizers, along with other senior executives.
As part of the pilot, the program allocates a total funding pool of PKR 250 million, combining both secured and unsecured lending. The initiative will initially support around 300 to 350 farmers, with an average loan size of PKR 0.6 million. With an eventual outreach target of up to 2,000 beneficiaries, this project establishes a direct value chain between Engro Fertilizers, Bank Alfalah, and the farmers—ensuring a seamless flow of financing and agricultural resources from provider to end-user.
The program kicks off in four Engro Markaz locations: Sahiwal, Sargodha, Bahawalpur, and Muridke. It introduces both clean and collateral-based loans tailored to the financial needs of farmers. Additionally, these loans come with subsidised interest rates, up to 4.5% lower than the prevailing market rates. This structure helps farmers invest in high-quality Engro fertilizers, improve crop productivity, and ultimately increase their income.
What sets this initiative apart is the integration of digitized payments and a closed-loop spending model enabled through person-to-merchant (P2M) transactions, ensuring transparency and effective fund utilization.
According to the Pakistan Economic Survey 2023–24, agricultural credit has significantly boosted crop yields, playing a crucial role in strengthening national food security and enhancing rural livelihoods. The World Bank also reports that agricultural financing can be up to four times more effective in reducing poverty, underlining the importance of accessible credit systems in rural areas.
Ali Rathore, CEO of Engro Fertilizers, commented, “Our farmers are the backbone of Pakistan’s economy. By expanding their access to finance, we’re enabling them to invest in better inputs, increase their productivity, and improve their overall well-being. This partnership with Bank Alfalah aligns with our vision to foster sustainable agriculture and resilient rural communities.”
Atif Bajwa, President and CEO of Bank Alfalah, remarked, “We see immense potential in Pakistan’s agricultural sector. Through this partnership with Engro Fertilizers, we’re offering customized financing that directly supports the needs of our farmers. Our goal is to strengthen food security, uplift rural communities, and accelerate inclusive economic growth across the country.”
Together, Bank Alfalah and Engro Fertilizers are taking a bold step toward building a more inclusive and productive rural economy by closing the gap between financial services and the farming community.
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