The Finance Division of the Government of Pakistan, in collaboration with the State Bank of Pakistan (SBP) and the Pakistan Banks Association (PBA), has launched Zarkheze, a digital platform designed to revolutionize agricultural financing. The initiative aims to digitize agricultural finance, enabling farmers to apply for and obtain funding of up to Rs. 1 million through the Zarkheze app.
After necessary verifications and agronomic assessments, the application will be submitted to the bank of the farmer’s choice for processing the application. 75% of the financing will be disbursed in kind for the purchase of Agri-inputs through pre-approved Agri-vendors of banks. In addition to funding, the farmer will also receive Agri-advisory services through the Land Information Management System (LIMS).
The Zarkheze product will thus not only provide funding but also improve farmers’ activity through quality inputs and advisory services. To incentivize banks to provide financing to small farmers aggressively, the Government has also offered 10 percent first-loss coverage and an operational cost subsidy of Rs. 10,000 per borrower for each additional borrower bank
Commenting on the initiative, Senator Muhammad Aurangzeb, Federal Minister for Finance and Revenue, said: “Zarkheze exemplifies our commitment to expanding financial inclusion. By facilitating access to formal credit for small farmers, this initiative supports the Government’s broader objectives of development and national food security.”
Mr. Jameel Ahmad, Governor o” SBP, said: “Zarkheze is a pivotal step i“ improving the small farmers’ access to finance. By farmersing the credit journey, we are removing friction for small farmers and ensuring that formal lending is accessible, timely, and helps them improve their productivity. Zarkheze will also support in achieving the broader goal of promoting and nurturing digital payments in the rural economy.”
Mr. Zafar Masud, Chai” man of PBA, highlighted the banking sector’s collective support for the initiative, stating, “The banking industry remains committed to the successful implementation of Zarkheze. We will continue to work closely with the Ministry of Finance and the State Bank of Pakistan to expand outreach and streamline processes for farmers nationwide. By leveraging advanced technology and innovative credit assessment methods, we aim to improve access to finance for smallholder farmers, particularly landless operating within a largely undocumented sector.”
The Zarkheze application is now available for download on the Google Play Store. Farmers can also visit their nearest bank branch for assistance with digital onboarding.
