IFC, Fatima Fertilizer launch $60m facility to secure Pakistan’s fertilizer supply

Pakistan has faced severe foreign currency constraints and delays in clearing imports, threatening fertilizer supply chains and posing risks to agricultural productivity.

Fatima Fertilizer Company Limited and the International Finance Corporation (IFC), a member of the World Bank Group, have announced a new US$60 million per year renewable liquidity facility designed to maintain uninterrupted fertilizer production in Pakistan. The facility enables Fatima Fertilizer to reliably import critical raw materials, machinery, and technical services despite ongoing foreign exchange shortages.

Pakistan has faced severe foreign currency constraints and delays in clearing imports, threatening fertilizer supply chains and posing risks to agricultural productivity. IFC’s liquidity support fills a crucial market gap by ensuring access to hard currency when USD financing is scarce.

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Ensuring Continuous Production and Stable Fertilizer Supply

The facility allows Fatima Fertilizer to operate at full capacity, sustaining approximately 1.46 million tons of annual fertilizer output at its Sadiqabad complex. This uninterrupted production:

• Protects over 850 direct jobs

• Supports thousands of small businesses within Pakistan’s fertilizer distribution network

• Strengthens national supply chains for key nutrients

• Helps maintain yields for wheat, rice, and other staple crops

By securing essential imports, the facility reduces risk of shortages during planting seasons and shields farmers from volatile price fluctuations.

Fatima Fertilizer CEO Fawad Ahmed Mukhtar emphasized the significance of the partnership:“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.”

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Supporting Food Security and Rural Livelihoods

IFC’s Regional Industry Head for Manufacturing, Agribusiness & Services, Ashruf Megahed, highlighted the broader impact:

“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.”

The facility also contributes to stabilizing domestic fertilizer prices, reducing reliance on imported finished fertilizers, and enhancing Pakistan’s agricultural sustainability.

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Strengthening Pakistan’s Agricultural Priorities

By enhancing operational resilience at Fatima Fertilizer—the backbone of national fertilizer supply—the IFC-backed liquidity support advances several key goals:

• Food security: steady access to nutrient inputs for farmers

• Employment stability: protecting jobs at the Sadiqabad plant and across the supply chain

• Import substitution: reducing dependency on externally sourced fertilizers

• Economic resilience: mitigating foreign exchange bottlenecks that hamper production

The partnership signals continuing confidence from the World Bank Group in Pakistan’s agribusiness sector and reinforces efforts to bolster rural livelihoods and national food systems during a period of economic pressure.