BII announces $75 million facility with HBL to enhance food security and farmers climate resilience in Pakistan

• Funding from the facility will be directed towards the agriculture sector, which contributes 24 per cent to Pakistan’s GDP and employs 37 per cent of its workforce.
• The facility will mainly support smallholder farmers, including those in dairy and poultry farming, who often lack access to finance.
• Farmers vulnerable to climate change impacts, will receive support to adopt sustainable practices, enhancing their resilience, yields and incomes.

British International Investment (BII), the UK’s development finance institution and impact investor, today announced a $75 million finance facility with HBL, Pakistan’s leading bank. The new facility will support farmers and agribusinesses in Pakistan by providing increased access to essential finance and enhancing their resilience to climate change.

The agriculture sector is vital for Pakistan’s economic growth, food security, and the livelihoods of many, contributing 24 per cent to the GDP and employing 37 per cent of the workforce, [1] including being the largest employer of women. However, the sector faces numerous challenges such as limited access to finance, modern machinery, and equipment, increased vulnerability to climate change, and underdeveloped value chains.

With this financing, HBL plans to expand its agriculture portfolio, dedicating 50 per cent of the funds to smallholder farmers who constitute over 90 per cent of Pakistan’s farming population. [2] Agribusinesses throughout the agricultural value chain, from production to logistics, will also be supported to strengthen the entire sector, ensuring long-term growth and stability.

Furthermore, the Bank will promote climate adaptation initiatives such as solar-powered irrigation systems, to reduce emissions and bolster farmers’ resilience to environmental challenges.

By improving access to finance and the integration of farmers and agribusinesses into value chains and markets as well as increasing their resilience to climate change, this partnership seeks to boost productivity in the agriculture sector and support food security in Pakistan.

British High Commissioner, Jane Marriott CMG OBE, said: “The agriculture sector is critical for Pakistan’s economic growth, food security, and the livelihoods of many. This UK partnership will help overcome financial barriers to investing in climate-proof farming practices and contributing to this important part of the economy.”

Habib Yousuf, Regional Director for South Asia at BII said: “BII is proud to partner with HBL to enhance the resilience and productivity of Pakistan’s agriculture sector. By increasing access to essential finance and promoting climate adaptation measures, this partnership aims to address critical challenges in the sector, ensuring sustainable growth, improved livelihoods, and food security for the nation.”

Maya Inayat Ismail, Chairperson, HBL Sustainability Forum commented: “At HBL, sustainability is a core principle embedded across our operations—from inclusive financial services to responsible supply chain management. Through climate-smart financing and yield insurance programs we are helping farmers mitigate risks from climate change, ensuring financial security and long-term resilience. Our partnership with BII strengthens these efforts, driving sustainable impact where it matters most.”

[1] Pakistan Economic Survey 2023-24

[2] FAO Agricultural mechanization for smallholder farmers in Pakistan – Policy Brief