AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Karachi: Engro Fertilizers and Bank Alfalah Limited have announced a strategic partnership to launch a PKR 250 million financing initiative aimed at empowering farmers across Pakistan. The collaboration will offer loans of up to PKR 1 million to farmers, benefiting approximately 350 farmers and impacting nearly 2,000 lives.
The partnership was formalized during a signing ceremony at Bank Alfalah’s Head Office in Karachi, with key executives from both organizations in attendance, including Ali Rathore, CEO of Engro Fertilizers, and Atif Bajwa, President and CEO of Bank Alfalah Limited.
The pilot program is set to provide average loans of PKR 0.6 million to 300-350 farmers, leveraging both secured and unsecured funding components. It aims to create a direct value chain linking fertilizer providers, financial institutions, and farmers, ensuring efficient resource flow. Initially, the program will be offered through Engro Markaz locations in Sahiwal, Sargodha, Bahawalpur, and Muridke.
The initiative seeks to enhance financial access for farmers, offering lending solutions with subsidized interest rates up to 4.5% lower than market rates. This financial support will enable farmers to purchase quality Engro fertilizer products, leading to improved crop yields and increased income.
The project also includes digitization of payments and the implementation of a closed-loop spending solution via P2M (Person-to-Merchant) transaction enablement, aligning with findings from the Pakistan Economic Survey 2023-24 and World Bank reports on agricultural finance.
Ali Rathore emphasized Engro Fertilizers’ commitment to supporting farmers’ access to financial resources. Atif Bajwa highlighted Bank Alfalah’s dedication to enhancing productivity and financial empowerment within the agricultural sector.
This partnership between Engro Fertilizers and Bank Alfalah Limited aims to bridge the gap between financial institutions and the agricultural community, fostering a more inclusive and productive rural economy.