The State Bank of Pakistan (SBP) has launched a major digital financing initiative to enhance access to credit for small and marginalized farmers across the country. Under the National Subsistence Farmers Support Initiative (NSFSI), introduced as part of the Risk Coverage Scheme for Small Farmers and Underserved Areas, the central bank aims to modernize agricultural lending through an end-to-end digital solution that streamlines credit access and promotes financial inclusion in rural Pakistan.
Aligned with the Prime Minister’s vision to strengthen the agriculture sector, this initiative introduces a collateral-free lending model that allows farmers to apply for financing without physically visiting a bank branch. Through a centralized online portal and mobile app, farmers can submit loan applications digitally, reducing paperwork and eliminating geographical barriers that have traditionally limited their access to formal credit channels.
A key component of the system is its integration with the Land Information Management System (LIMS), which enables digital verification of land records and agronomic assessments. This integration ensures faster processing and reduces the risks typically associated with agricultural financing.
The NSFSI brings a unique financing model in which at least 75% of the loan amount is provided in-kind, covering essential farm inputs such as seeds, fertilizers, pesticides, and diesel. These inputs are supplied through verified Agri-merchants onboarded by banks and microfinance institutions (MFBs), ensuring quality and transparency in input delivery. The remaining 25% of the financing is disbursed in cash to cover other operational costs, providing farmers with both structure and flexibility to manage their farming cycles effectively.
To further support farmers, the scheme includes a 10% first-loss coverage mechanism and an operational cost subsidy of Rs10,000 per borrower. This risk mitigation approach is designed to incentivize financial institutions to extend credit to smallholders and underserved communities, who often face challenges in securing traditional loans due to lack of collateral.
In addition to financial support, the NSFSI emphasizes capacity building and knowledge dissemination. Farmers will receive advisory services on improving productivity, sustainable cultivation practices, and optimizing crop cycles. By pairing credit access with expert guidance, the program aims to boost farm yields and income levels, contributing to broader rural economic development.
The digital financing platform has been officially branded as “Zarkhez-e”, with the tagline “Asaan Digital Zarai Qarza”, symbolizing a simplified and accessible approach to agricultural credit. The portal and mobile app serve as a one-stop interface for farmers, financial institutions, and Agri-merchants, promoting efficiency and transparency throughout the credit disbursement process.
This initiative represents a major milestone in SBP’s broader strategy to digitize Pakistan’s financial ecosystem and empower rural communities. By leveraging technology to reduce barriers and streamline agricultural lending, Zarkhez-e is expected to play a key role in improving food security, supporting rural livelihoods, and driving inclusive economic growth.
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