The Finance Division of the Government of Pakistan, in collaboration with the State Bank of Pakistan (SBP) and the Pakistan Banks Association (PBA), has launched Zarkhez-e, a digital platform aimed at revolutionizing agricultural financing in the country. The initiative seeks to expand access to formal credit for small farmers while enhancing their productivity through quality inputs and advisory support.
Zarkhez-e allows farmers to digitally apply for financing of up to Rs1 million through the Zarkhez-e mobile application. After completing necessary verifications and agronomic assessments, applications are forwarded to the farmer’s chosen bank for processing. To ensure productive use of funds, 75 percent of the financing will be disbursed in kind for the purchase of agricultural inputs through pre-approved agri-vendors associated with participating banks. In addition, farmers will receive advisory support via the Land Information Management System (LIMS), providing guidance on crop management and input utilization.
To incentivize banks to actively provide financing to small farmers, the government has introduced a 10 percent first-loss coverage on net increases in outstanding borrowers and an operational cost subsidy of Rs10,000 per borrower. These measures aim to reduce financial risk for banks and encourage broader outreach to underserved farming communities, including landless farmers.
Commenting on the initiative, Senator Muhammad Aurangzeb, Federal Minister for Finance and Revenue, stated that Zarkhez-e exemplifies the government’s commitment to expanding financial inclusion. He emphasized that the platform supports rural development and national food security by facilitating access to formal credit for smallholder farmers.
SBP Governor Jameel Ahmad highlighted that Zarkhez-e is a pivotal step toward improving small farmers’ access to finance. “By digitising the credit journey, we are removing friction and ensuring that formal lending is accessible, timely, and productivity-enhancing,” he said. He further noted that the initiative contributes to broader efforts to promote digital payments within the rural economy.
Zafar Masud, Chairman of the Pakistan Banks Association, reaffirmed the banking sector’s commitment to Zarkhez-e, stating that the industry would continue working closely with the Ministry of Finance and SBP to expand outreach and streamline processes for farmers. He highlighted that leveraging advanced technology and innovative credit assessment methods would improve access to finance for smallholders, especially those operating in largely undocumented sectors.
The Zarkhez-e application is now available for download on the Google Play Store. Farmers requiring assistance with digital onboarding can also visit their nearest bank branch, ensuring wide accessibility and support for seamless adoption of the platform.
With this launch, Zarkhez-e aims to digitize agricultural finance, improve access to inputs and advisory services, and empower small farmers across Pakistan, contributing to long-term productivity growth and financial inclusion.
Follow the PakBanker Whatsapp Channel for updates across Pakistan’s banking ecosystem.