Finance Division in collaboration with State Bank of Pakistan and Pakistan Banks Association has introduced Zarkheze, a digital platform designed to digitize agricultural finance and broaden access to formal credit for small farmers across Pakistan. The initiative allows farmers to apply for financing of up to Rs1 million directly through the Zarkheze mobile application. Once submitted, applications undergo verification and agronomic assessment before being forwarded to the bank selected by the farmer for processing. This digital framework aims to simplify access to credit while ensuring transparency and timely decision-making.
Under the programme, 75 percent of the financing will be disbursed in kind for purchasing agricultural inputs through banks’ pre-approved vendors. Farmers will also benefit from advisory services provided through Land Information Management System, offering guidance on crop planning, input usage, and productivity improvement. Officials emphasized that the product is structured not only to provide financial support but also to enhance agricultural productivity by ensuring access to quality inputs and professional advice. This combination of financial and advisory services is expected to help farmers optimize their output while making informed decisions.
To encourage banks to increase lending to small farmers, the government has introduced incentives, including a 10 percent first-loss coverage and an operational cost subsidy of Rs10,000 per borrower for net increases in banks’ outstanding borrowers. Finance Minister Muhammad Aurangzeb highlighted that Zarkheze is part of broader efforts to promote financial inclusion and rural development, noting that the initiative will support national food security objectives. SBP Governor Jameel Ahmad added that the digital platform represents a pivotal step in improving access to formal credit for small farmers. He noted that digitizing the credit process reduces procedural hurdles, allows for faster approvals, and supports the broader goal of promoting digital payments within rural economies.
PBA Chairman Zafar Masud said the banking sector will continue collaborating with Ministry of Finance and SBP to extend the programme’s outreach and streamline processes for farmers nationwide. He stressed that by leveraging technology and innovative credit assessment methods, the programme aims to serve smallholder and landless farmers, including those operating in largely undocumented segments of the agricultural sector. Farmers can access the Zarkheze application through Google Play Store, or visit their nearest bank branch for assistance with digital onboarding. This initiative reflects a coordinated effort to integrate technology, finance, and advisory services, enhancing efficiency and accessibility in Pakistan’s agricultural ecosystem while promoting a more inclusive financial system.
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