The State Bank of Pakistan (SBP) has officially launched a new digital platform called Zarkhez-e, designed to transform agricultural financing for small and marginalized farmers. This initiative aims to provide collateral-free agricultural loans through a fully digital process, reducing barriers to credit and supporting rural communities.
The Zarkhez-e platform, previously known as the National Subsistence Farmers Support Initiative, is part of the government’s Risk Coverage Scheme for Small Farmers and Underserved Areas. The project reflects the Prime Minister’s vision to modernize the agriculture sector, promote financial inclusion, and increase credit flows to unserved and underserved regions of the country.
Developed in consultation with commercial banks and microfinance banks (MFBs), the platform introduces an end-to-end digital solution for subsistence farmers and tenants. Instead of visiting bank branches, applicants can now apply online through a centralized portal. Their loan applications are then verified and assessed using the Land Information Management System (LIMS) before being forwarded to their preferred bank for processing. This streamlined approach is expected to significantly reduce delays and make the process more transparent and efficient.
One of the most important features of Zarkhez-e is its in-kind financing structure. At least 75 percent of the loan amount will be provided through reputable agri-merchants, covering key inputs such as seeds, fertilizers, pesticides, and diesel. The remaining 25 percent may be disbursed in cash to help farmers meet other essential expenses. This structure not only reduces the risk of misuse of funds but also ensures that farmers have direct access to critical agricultural inputs.
In addition to financing, farmers using the platform will receive agri-advisory services aimed at improving crop yields and overall farm productivity. The advisory component is designed to help subsistence farmers adopt better farming practices and make informed decisions, supporting long-term agricultural development.
A large number of banks and MFBs have already integrated their systems with Zarkhez-e and LIMS, while others are in the process of onboarding. Agri-merchants have also been brought into the network to ensure a reliable supply chain for farming inputs. SBP has introduced a standardized process flow across the industry, ensuring consistency and efficiency in how loans are processed and disbursed.
The financing under this scheme will also benefit from risk mitigation measures, including a 10 percent first loss coverage and an operational cost subsidy of Rs. 10,000 per borrower for net increases in outstanding borrowers. This mechanism is expected to incentivize banks and microfinance institutions to actively participate in the scheme and expand their outreach to rural areas.
With Pakistan’s agriculture sector facing challenges related to productivity, financing, and access to technology, the launch of Zarkhez-e represents a major step toward digital transformation. By making financing simpler, more accessible, and better structured, SBP aims to enhance agricultural output and support economic growth at the grassroots level.
The central bank is urging all banks and microfinance institutions to fully utilize the platform to extend financial support to subsistence farmers. This initiative underscores the growing role of digital technology in shaping financial services and enabling greater inclusion for underserved communities.
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