The Bank of Punjab (BOP) and InfraZamin Pakistan (IZP) have signed a strategic Memorandum of Understanding (MoU) to strengthen Pakistan’s agricultural warehousing ecosystem through a credit guarantee–backed financing framework. The partnership aims to enhance post-harvest storage capacity, drive private-sector investment, and support long-term agricultural development.
InfraZamin Pakistan — a credit enhancement institution jointly sponsored by InfraCo Asia Investments and Karandaaz Pakistan — provides local currency guarantee solutions designed to mobilize private capital for infrastructure projects. Backed by PACRA’s long-term AAA and short-term A1+ ratings, the organization plays a critical role in enabling sustainable, long-tenor funding for segments that traditionally struggle to access institutional finance.
Under the MoU, BOP and IZP will collaborate on the rollout of the Credit Guarantee–Backed Warehousing Infrastructure Financing Scheme, which will facilitate the construction, expansion, and modernization of agricultural storage facilities across Pakistan. The partnership positions BOP as a key Participating Financial Institution, capable of extending long-term, local-currency financing to warehouse operators, farmers, and broader agri-value chain participants.
Speaking at the signing ceremony, the Group Chief Consumer Banking Group at BOP stated that the collaboration will significantly enhance the banking sector’s ability to lend in previously high-risk segments. InfraZamin’s guarantee structure, he noted, will allow financial institutions to confidently extend credit for storage and warehousing infrastructure by mitigating underlying risks. This is expected to increase banks’ overall risk appetite and unlock financing for long-tenor agricultural projects that have historically faced funding constraints.
Amir Masood, Chief Investment Officer at InfraZamin Pakistan, highlighted the importance of the partnership, describing it as a major step toward expanding structured and affordable financing in the agriculture sector. “This MoU aligns with the national agenda of modernizing agriculture, improving post-harvest management, and empowering farmers through better access to finance,” he said. With InfraZamin’s credit enhancement, BOP will be positioned to scale warehousing finance and support the development of modern, accredited storage infrastructure nationwide.
BOP reiterated its commitment to supporting sustainable agricultural development and strengthening Pakistan’s food security landscape. The collaboration aims to expand access to scientific storage facilities, reduce post-harvest losses, improve commodity preservation, and encourage private-sector investment across the agriculture value chain. The initiative aligns closely with national efforts to modernize warehousing practices, with expected benefits for farmers and rural communities.
The MoU also establishes the groundwork for deeper cooperation between the two institutions, with a formal Master Guarantee Agreement to follow as the program progresses.
