Engro Fertilizers is one of Pakistan's leading fertilizer producers. Its main products include urea, di-ammonium phosphate (DAP) and specialty fertilizer blends. It is the second largest urea producer and second largest distributor of DAP in Pakistan. It operates three manufacturing plants with a combined production capacity of 2.38 million tons per annum.

Engro Fertilizers is a subsidiary of Engro Corporation (56.3% ownership), one of the largest conglomerates in Pakistan. Engro Corporation has a significant presence in various sectors including fertilizers, petrochemicals, energy, food, and telecommunications infrastructure. Engro Fertilizers' other shareholders include financial institutions (12.3%), general public (20.9%), and others (10.5%). 

The total Project cost is estimated to be US$190 million, which will be financed through a PKR-denominated loan of PKR33.6 billion (equivalent to approximately US$120 million) from a commercial bank.

The proposed IFC investment comprises of an unfunded PCG of up to PKR33.6 billion (equivalent to approximately US$120 million), to be issued by IFC in favor of the commercial bank. The proposed PCG will cover 100% of the principal portion of the commercial bank's loan to Engro Fertilizers. 

The proposed investment will support the Company in Pakistan, where all its operations are based. 

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 This investment is classified as a Category B project according to IFC’s 2012 Policy on Environmental and Social Sustainability as Engro Fert’s fertilizer production and mixing activities present limited and site-specific E&S risks and impacts related to the financing of working capital, maintenance CAPEX, EnVen turnaround, and farmer outreach program. These risks and impacts can be avoided or mitigated through adherence to IFC Performance Standards (PSs) and Good International Industry Practices (GIIPs), such as the World Bank Group (WBG) General EHS Guidelines (2007), WBG EHS Guidelines for Nitrogenous Fertilizer Production and WBG EHS Guidelines for Phosphate Fertilizer Production. Engro Fert has worked with IFC on two previous projects (#30186 and #27933). Key E&S risks and impacts of this proposed investment include: (i) the implementation effectiveness of Engro Fert’s E&S management system at the Daharki and Zarkhek plants; (ii) ensuring fair treatment and safe working conditions for employees and third-party contractor workers, including implementation of Human Resources (HR) policies/procedures aligned with PS2 requirements; (iii) emergency preparedness and response, including management of ammonium leaks and potential explosion risks from natural gas; (iv) resource efficiency, including key performance indicators (KPIs) for water/energy usage and efficiency, pollution prevention and control of air emissions, noise, solid/hazardous waste, and wastewater aligned with GIIPs; (v) community safety, traffic, and use of security forces; and (vii) stakeholder engagement, community grievance mechanism near the production plants, and gender-based violence grievance and referral mechanism.