The Finance Division, in collaboration with the State Bank of Pakistan and the Pakistan Banks Association, has launched Zarkheze, a new digital platform aimed at transforming agricultural finance and expanding access to formal credit for small farmers across the country. The initiative marks a significant step toward digitising rural lending and addressing long-standing barriers faced by farmers in accessing institutional finance.
Zarkheze has been designed as a technology-driven solution to simplify the credit application process for farmers, particularly those operating at a small scale. Through the Zarkheze mobile application, farmers can apply digitally for financing of up to Rs1 million. Once an application is submitted, it undergoes verification and agronomic assessment before being forwarded to the bank selected by the farmer for further processing and approval.
A key feature of the programme is its structured financing model, which aims to ensure that credit is used productively. Under the initiative, 75 per cent of the approved financing will be disbursed in kind rather than cash. This portion of the financing will be used for the purchase of agricultural inputs through banks’ pre-approved agri-vendors. The approach is intended to improve transparency, reduce misuse of funds, and ensure that farmers gain access to quality inputs required for improved crop yields.
In addition to financing, Zarkheze integrates advisory support to enhance farm productivity. Farmers enrolled in the programme will receive advisory services through the Land Information Management System. These services are expected to support better decision-making related to crop selection, input usage, and farm management practices, aligning financial support with technical guidance.
Officials involved in the rollout of Zarkheze stated that the platform was designed not only as a credit delivery mechanism but also as a productivity-enhancing tool. By combining financing, verified input supply, and digital advisory services, the initiative seeks to address structural weaknesses in the agricultural value chain that have historically limited the impact of credit on farm output.
To incentivise banks to increase lending to small farmers, the government has introduced risk-sharing and cost-support measures. Under the programme, the government will provide a 10 per cent first-loss coverage on the net increase in banks’ outstanding borrowers. In addition, banks will receive an operational cost subsidy of Rs10,000 per borrower to offset expenses associated with onboarding and servicing small-scale agricultural clients. These measures are intended to encourage financial institutions to expand outreach to segments traditionally considered high-risk.
Finance Minister Muhammad Aurangzeb described Zarkheze as part of the government’s broader strategy to promote financial inclusion and rural development. He said the initiative would play an important role in supporting national food security goals by enabling farmers to access timely and affordable financing aligned with modern agricultural practices.
State Bank of Pakistan Governor Jameel Ahmad termed Zarkheze a pivotal step in improving small farmers’ access to finance. He noted that digitising the credit process would significantly reduce procedural hurdles and delays, making formal lending more accessible and timely for rural communities. He also highlighted the initiative’s alignment with the central bank’s objective of promoting digital payments and financial services in the rural economy.
Pakistan Banks Association Chairman Zafar Masud said the banking industry would continue to work closely with the Ministry of Finance and the State Bank to expand outreach and streamline processes for farmers nationwide. He added that by leveraging advanced technology and innovative credit assessment methods, banks aim to improve access to finance for smallholder farmers, including landless farmers operating within a largely undocumented sector.
The Zarkheze application is currently available on the Google Play Store, enabling farmers to initiate the digital onboarding process directly through their smartphones. For those requiring assistance, support is also available at nearby bank branches, where staff can help farmers complete registration and application procedures. The authorities expect the platform to play a central role in modernising agricultural finance and strengthening the rural economy through inclusive, technology-enabled solutions.
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