The State Bank of Pakistan has formally cleared HBL Zarai Services Limited to operate as an approved Agricultural Services Provider under the Zarkhez-e Asaan Digital Zarai Qarza Scheme, marking a significant development in the country’s push toward digitised and outcome-based agricultural financing. The approval enables participating banks to extend farm loans through in-kind services rather than conventional cash disbursements, aligning credit delivery more closely with on-ground agricultural needs.
The no-objection was conveyed to banks through the Pakistan Banks Association, allowing financial institutions participating in the scheme to onboard HBL Zarai as a service partner. Under this framework, banks can replace direct cash lending with structured access to agricultural inputs and services, ensuring that financing is utilised strictly for productive farming activities. The move is aimed at addressing long-standing challenges around credit misuse, weak monitoring, and low productivity in the agriculture sector.
The Zarkhez-e programme focuses on providing farmers with digital, collateral-light financing while reducing operational risks for banks. Instead of receiving cash, farmers obtain access to essential agricultural inputs and services, including certified seeds, fertilisers, crop protection solutions, agronomic advisory, mechanisation support, and market connectivity. By embedding financing within a service-based model, the scheme is designed to improve transparency and traceability at every stage of the crop cycle.
As an approved agricultural services provider, HBL Zarai will deliver these offerings through its end-to-end digital agriculture platform. Farmers will be able to utilise their sanctioned financing limits directly at HBL Zarai locations, without handling cash. The platform combines on-ground agronomic expertise with pay-per-use mechanisation services, enabling farmers to optimise input usage while managing costs more efficiently.
In addition to production support, the HBL Zarai model incorporates a structured crop off-take mechanism. This feature connects farmers with markets, offers quality assessment and grading, and ensures documented payment flows. By linking credit, production, and market access, the approach creates a closed-loop ecosystem that supports responsible borrowing and improves repayment capacity.
Officials familiar with the initiative noted that the integration of financing with verified agricultural services strengthens risk management for banks while supporting sustainable farming outcomes. The model also allows lenders to monitor utilisation in real time, improving confidence in agricultural portfolios that have traditionally been viewed as high-risk.
Following the regulatory clearance, several banks participating in the Zarkhez-e scheme have begun discussions with HBL Zarai to operationalise in-kind financing arrangements. These engagements are focused on system integration, onboarding workflows, transaction settlement mechanisms, and coordination between bank and service provider platforms to ensure a seamless farmer experience.
HBL Zarai’s approval carries additional significance as it becomes the first non-financial subsidiary of a banking group in Pakistan to be recognised as an Agricultural Services Provider under a national agricultural financing programme. The company currently operates through an expanding network of Zarai Deras and Zarai Dost Shops across Punjab and Sindh, providing physical access points to complement its digital platform.
The development reflects a broader shift within Pakistan’s financial sector toward technology-enabled, purpose-driven lending models. By combining digital finance with agriculture services, the Zarkhez-e framework represents a move away from cash-centric credit toward data-driven, impact-focused financing that supports both farmers and lenders in a more sustainable manner.
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