In a significant move to counter Pakistan’s critical foreign exchange shortages and avert potential disruptions to the nation’s food supply, Fatima Fertilizer Company Limited and the International Finance Corporation (IFC) have announced a US$60 million renewable liquidity arrangement.
According to FFC’s information today, the annual financial instrument is designed to maintain uninterrupted domestic fertilizer production by allowing Fatima Fertilizer to import essential raw materials, machinery, and technical services. It addresses a pressing market gap, providing hard currency liquidity at a time when national access to USD financing has been limited, causing delays in clearing imports and risking agricultural input shortages.
This provision enables the company to operate at full capacity, sustaining an annual output of approximately 1.46 million tons of fertilizer. The deal is also set to preserve more than 850 direct jobs at the company’s Sadiqabad complex.
Beyond the direct corporate impact, the facility is expected to ensure a steady fertilizer supply for farmers, support thousands of small businesses across the distribution network, and help protect yields for staple crops like wheat and rice.
‘This partnership represents an important milestone not only for Fatima Fertilizer but also for Pakistan’s agriculture sector,’ said Fawad Ahmed Mukhtar, CEO of Fatima Fertilizer. ‘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,’ stated Ashruf Megahed, Regional Industry Head for the 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.’
By reinforcing the company”s operational stability, the financing is anticipated to contribute to stabilizing fertilizer prices for Pakistani farmers, reducing the country”s dependency on fertilizer imports, and fostering national food security in alignment with the nation”s agricultural priorities.