HBL has taken a significant step forward in digital agricultural financing by issuing the largest insurance payout in Pakistan’s history under the Area Yield Index Insurance (AYII) program. The bank disbursed over PKR 10 million to farmers in the provinces of Balochistan and Sindh, highlighting its leadership in supporting rural communities through innovative financial solutions tailored for the agriculture sector.
The AYII program is a groundbreaking initiative aimed at shielding farmers from unpredictable agricultural risks caused by natural disasters and climate variability. This insurance product is designed to protect crop yields rather than individual farms, using regional yield data to determine payouts. It offers a wide spectrum of coverage, including protection against windstorms, frost, excessive rainfall, heat waves, hailstorms, floods, droughts, and pest outbreaks. By doing so, it provides a critical financial safety net for farmers whose livelihoods depend on seasonal crops and stable weather conditions.
This record-breaking payout exemplifies how digital financial tools can empower vulnerable communities in a country where agriculture plays a pivotal role in economic sustainability and food security. With extreme weather events becoming more frequent and unpredictable, technology-driven insurance models like AYII are vital in enhancing the resilience of Pakistan’s farming sector.
The support extended through this initiative is not only a milestone for HBL but also a crucial development in the digital transformation of agricultural finance. Leveraging data, automation, and scalable financial models, programs like AYII enable broader financial inclusion while fostering innovation in how banks serve rural clients.
Commenting on the payout, Aamir Kureshi, Head Products Transactional Services and Solution Delivery at HBL, said, “This payout underscores the Bank’s commitment to supporting farmers in mitigating their losses incurred due to natural or environmental calamities. At HBL, we recognize the crucial role agriculture plays in ensuring Pakistan’s economic growth. Our goal is to continue building a stronger, more resilient farming community and their agricultural livelihoods—because when farmers thrive, Pakistan thrives.”
HBL’s strategic focus on AgriTech and digital financial services aligns with global fintech trends that prioritize data-driven, inclusive growth models. As Pakistan continues to digitize its banking and insurance sectors, initiatives like AYII set the foundation for a future where technology bridges the gap between traditional farming and modern finance.
By supporting farmers in this way, HBL is not only protecting the economic well-being of rural communities but also contributing to national objectives related to food security, poverty reduction, and sustainable development.