FrieslandCampina Engro Pakistan Limited (FCEPL) has partnered with Citi Pakistan to introduce a digital supplier financing programme aimed at improving liquidity for suppliers and strengthening the resilience of the company’s wider supply chain.

The initiative will be delivered through Citi’s Supplier Finance digital platform, allowing eligible FCEPL suppliers to receive early payments against approved invoices while FCEPL continues to maintain its agreed payment terms.

The programme is designed to provide suppliers with greater working-capital flexibility without disrupting FCEPL’s existing payment arrangements. It is also intended to support a more sustainable financial environment for businesses operating across the company’s supply ecosystem.

FCEPL Managing Director Kashan Hasan said financial imbalances remain a significant challenge for suppliers, particularly smaller and emerging businesses that may struggle to secure sufficient capital despite having the capability to win contracts and grow.

He said the partnership would help create more equal access to capital and provide smaller suppliers with an opportunity to strengthen their businesses and realise their potential.

Hasan added that FCEPL’s “Nourishing Pakistan” purpose depends on the participation and development of stakeholders throughout its value chain. The supplier financing programme, he said, represents another step towards ensuring that businesses across the ecosystem are better equipped to contribute to that journey.

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Suppliers to gain greater financial flexibility

Under the programme, eligible FCEPL suppliers will be able to access competitive financing against invoices that have already been approved.

The early-payment mechanism can help suppliers improve cash flow, manage working capital and meet their operational requirements without having to wait for the original payment date.

The initiative is particularly significant for smaller businesses, for which predictable cash flow can play an important role in maintaining operations and supporting expansion.

Citi Pakistan Country Officer and Banking Head Habib Yousuf said the partnership demonstrated how Citi’s international capabilities could be applied to address local business requirements.

He said providing financing to suppliers could give businesses access to working capital on more favourable terms, allowing them greater flexibility to operate and expand.

Yousuf added that Citi’s network and expertise could help support businesses that form an important part of its corporate clients’ supply chains.

FCEPL to strengthen working-capital management

The collaboration is also expected to create opportunities for FCEPL to further develop its treasury and working-capital management capabilities as the programme expands.

For the company, the initiative provides a way to support suppliers while maintaining existing commercial payment terms and improving the overall efficiency of its supply-chain ecosystem.

For participating suppliers, early access to funds could provide additional financial flexibility and reduce pressure associated with longer payment cycles.

The partnership reflects a broader effort by both FCEPL and Citi Pakistan to support sustainable business growth, strengthen local enterprises and contribute to the development of Pakistan’s corporate sector.

By combining digital financing with established supplier relationships, the programme aims to create a more resilient supply network in which businesses of different sizes can access the resources needed to operate, invest and grow.