BII, HBL ink $75m deal to boost agriculture sector

KARACHI: British International Investment (BII), the UK’s development finance institution, has announced a $75 million financing facility for HBL, Pakistan’s largest bank, to strengthen the country’s agriculture sector. The funding will expand access to credit for farmers and agribusinesses while supporting climate resilience initiatives.

Agriculture is a cornerstone of the economy, contributing 24 per cent to GDP and employing 37 per cent of the workforce, including a significant share of female workers. Yet, the sector remains constrained by limited financing, outdated machinery, climate vulnerability and weak value chains.

Under the agreement, HBL will allocate half of the funds to smallholder farmers, who make up over 90 per cent of the country’s farming community. The financing will also support agribusinesses across the value chain, from production to logistics, to drive long-term sector growth.

The bank plans to promote climate adaptation measures, such as solar-powered irrigation systems, to reduce emissions and enhance farmers’ ability to withstand environmental shocks.

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

Regional Director for South Asia at BII Habib Yousuf highlighted the initiative’s impact on sustainable agriculture: “By increasing access to 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.”

HBL, which has embedded sustainability across its operations, sees the collaboration as a key step in climate-smart financing. Maya Inayat Ismail, chairperson of the HBL Sustainability Forum, noted: “Through climate-smart financing and yield insurance programmes, we are helping farmers mitigate climate risks and build long-term resilience. Our partnership with BII strengthens these efforts, driving sustainable impact where it matters most.”