HBL Zarai Services Limited (HZSL) and Zarai Taraqiati Bank Limited (ZTBL) have entered into a strategic partnership to enhance financial inclusion and provide modern agricultural services to farmers across Pakistan. This collaboration, formalized through a Memorandum of Understanding (MoU), aims to deliver innovative financial solutions, mechanization support, and expert advisory services to help improve farm productivity, economic stability, and the overall growth of Pakistan’s agricultural sector.
The partnership leverages both organizations’ strengths and platforms to offer integrated services designed to address the unique needs of farmers. HZSL will utilize its platform, ‘HBL Zarai Deras,’ while ZTBL will operate ‘ZTBL Zarai Baithaks’ to create integrated hubs that combine agronomic guidance, financial services, and farm mechanization support. These hubs will serve as centers for farmers to receive advisory services and access financing options. Additionally, ZTBL will refer farmers who could benefit from HBL Zarai’s agricultural services, ensuring a seamless process for modernizing agriculture across the country.
Speaking at the ceremony, Mr. Amer Aziz, CEO of HBL Zarai Services Limited, emphasized the importance of placing farmers at the heart of financial services. He explained that HBL Zarai’s integrated model addresses challenges faced by farmers in managing their cash flow by offering a buy-back business model. Under this model, farmers receive immediate cash payments for their harvests, which enables them to reinvest in their next crop cycle without facing delays. In addition, HBL Zarai provides essential services like farm inputs, mechanization support, and agro-advisory. This helps reduce post-harvest losses by 15-20% through the use of modern and efficient harvesting equipment, ultimately boosting farm efficiency.
Mr. Tahir Yaqoob Bhatti, President & CEO of ZTBL, presented a documentary during the signing ceremony that showcased the agricultural sector in Pakistan and highlighted ZTBL’s pivotal role in supporting small and subsistence farmers. He noted that, under the Prime Minister’s Kissan Package, ZTBL has provided Rs. 37 billion in agricultural loans, including Rs. 12 billion allocated for farm mechanization. These funds were distributed through ZTBL’s extensive network of over 500 branches, which are strategically located in rural, underserved, and unbanked areas, ensuring that financial support reaches farmers in remote regions.
ZTBL has also introduced key initiatives to engage with farmers more effectively. These include the ‘ZTBL Zarai Baithak,’ a platform designed for expert advisory services, and the ‘ZTBL Mobile Van Service,’ which brings financial services and agro-advisory directly to remote farming communities. Mr. Bhatti emphasized the significance of expanding financial inclusion, particularly for New-to-Bank (NTB) customers, and the need for diversifying the banking sector’s portfolio to cater to the agricultural community’s evolving needs.
The collaboration between HZSL and ZTBL reflects both institutions’ shared commitment to empowering farmers through financial inclusion, digital transformation, and sustainable agricultural practices. By combining modern banking solutions with innovative farming techniques, the partnership aims to significantly boost farm productivity, increase access to mechanization, and ensure long-term economic growth for Pakistan’s smallholder farmers. This initiative not only improves the financial and operational efficiency of farmers but also contributes to the country’s broader agricultural development goals.
Through this partnership, HZSL and ZTBL are setting the stage for a new era of agricultural growth in Pakistan, one that is driven by technology, financial inclusion, and sustainable farming practices. As both institutions continue to support the modernization of agriculture, this collaboration will undoubtedly have a lasting impact on the livelihoods of farmers and the overall economy of the country.