The State Bank of Pakistan (SBP), through the Pakistan Banks Association (PBA), has conveyed its no objection to onboarding HBL Zarai Services Limited (HBL Zarai) as an approved Agricultural Services Provider (ASP) under the ‘Zarkhez-e’, Asaan Digital Zarai Qarza Scheme. The approval enables participating banks to facilitate structured in-kind agricultural financing, thereby strengthening transparency and improving farmers’ economic outcomes through productive service delivery.
Under the scheme, in-kind financing replaces cash disbursements with direct access to approved agricultural services. This ensures financing is used strictly for productive farm activities, such as quality inputs, agronomic advisory, mechanisation, and market linkage, reducing leakages and improving monitoring effectiveness at the farm level.
Commenting on the significance of structured in-kind financing, Saleem Ullah, Deputy Governor, State Bank of Pakistan, said: “The ‘Zarkhez-e’, Asaan Digital Zarai Qarza Scheme is designed to ensure that agricultural financing is deployed productively and transparently along with Agri-advisory services to enhance farmers’ productivity. In-kind financing, supported by approved service providers, strengthens oversight, improves outcomes for farmers, and enhances the effectiveness of agricultural credit.”
As an approved ASP, HBL Zarai willoperationalisee this model through a comprehensive end-to-end agriculture services platform. Farmers will be able to utilise their financing limits directly at HBL Zarai locations for high-quality seeds, fertilisers, and crop protection products, supported by continuous on-ground agronomic advisory. In addition, farmers will have access to mechanisation services on a pay-per-use basis and a structured crop off-take mechanism uniquely offered by HBL Zarai, providing transparent market access, objective quality grading, and prompt documented payments. Together, these services form a closed-loop system linking financing with production and market outcomes, ensuring the responsible use of agricultural credit.
Zafar Masud, Chairman Pakistan Banks Association, added: “The onboarding of integrated Agricultural Services Providers under the scheme enables banks to collaborate with credible execution partners. This model promotes responsible financing while supporting farmers with access to essential agricultural services through structured delivery mechanisms.”
HBL Zarai is the first-ever non-financial subsidiary of a leading banking group in Pakistan to be approved as an Agricultural Services Provider under a national agricultural financing scheme. It is also the largest ASP in terms of service breadth and operational scale, offering all major agricultural services under one roof through its network of Zarai Deras and Zarai Dost Shops across Punjab and Sindh.
Commenting on the approval, Amer Aziz, Chief Executive Officer of HBL Zarai, said: “Approval as an Agricultural Services Provider under the ‘Zarkhez-e’, Asaan Digital Zarai Qarza Scheme reflects confidence in HBL Zarai’s integrated and execution driven model. Our role is to ensure that agricultural finance translates into real productivity, transparency, and improved farmer incomes through services delivered on the ground.”
Following approval, several participating banks have initiated engagement with HBL Zarai to operationalise in-kind financing under the scheme. These discussions are focused on system enablement, onboarding processes, and coordination mechanisms to facilitate seamless in-kind transactions at HBL Zarai locations.
The onboarding of HBL Zarai as an Agricultural Services Provider strengthens collaboration between banks and service providers and supports national priorities for sustainable agriculture, financial inclusion, and farmer-centric development.
