The Bank of Punjab (BOP) and Karandaaz Pakistan have joined forces to revolutionize Pakistan’s agricultural sector through digital lending. This strategic alliance leverages Karandaaz’s “Digital Financing for Agriculture (DFA) Challenge 2023.”
A signing ceremony at Islamabad’s Marriott Hotel marked the occasion. Key figures in attendance included BOP President & CEO Zafar Masud and Karandaaz Pakistan CEO Waqas ul Hassan. Representatives from Karandaaz, BOP, the State Bank of Pakistan, Techlogix, and the FinTech sector were also present.
The signed agreement signifies a groundbreaking initiative to expand access to digital agriculture loans and promote financial inclusion for farmers across Pakistan.
BOP’s Zafar Masud emphasized the collaboration’s aim to address farmers’ financial hurdles. It seeks to increase productivity and offer collateral-free financing, easing loan securitization challenges. Innovative solutions like real-time loan disbursement based on AI assessments are planned to empower farmers, build resilience, and foster prosperity.
Karandaaz Pakistan CEO Waqas ul Hassan applauded the partnership, highlighting banks’ crucial role in improving farmers’ access to credit. He stressed the significant opportunity to enhance agricultural value chain productivity by including small farmers through digital solutions.
Masud also commended the role of Karandaaz’s DFA Challenge in driving innovation. BOP aims to disburse Rs. 5 billion in digitally processed agricultural loans, targeting crops, livestock, and dairy. This initiative seeks to boost financial inclusion, credit access, crop yields, and create employment opportunities, ultimately reducing poverty.
Supported by a Rs. 50 million grant, the project focuses on promoting sustainability, innovation, and productivity through digitalization and advisory services. Partnering with Techlogix for their digital platform and leading AgriTech companies for agronomy scores and advisory services, BOP and Karandaaz aim to revolutionize agricultural financing, empowering farming communities nationwide.
Karandaaz’s DFS Director highlighted their aim to establish a comprehensive digital lending platform with this partnership. This platform will feature a dynamic credit scoring system, instant loan approvals, and disbursement mechanisms to ensure timely access to finance for smallholder farmers across Pakistan.