In a significant push to modernize the agricultural sector and enhance financial access for farmers, the federal government, in partnership with the State Bank of Pakistan (SBP) and the Pakistan Banks' Association (PBA), officially rolled out a new digital financing platform named Zarkheze on Sunday.
How the Zarkheze Platform Works for Farmers
The core objective of the Zarkheze initiative is to completely digitize the process of obtaining agricultural finance. Using the dedicated Zarkheze mobile application, farmers across Pakistan can now apply for and secure financing of up to one million rupees directly through their smartphones. Once a farmer submits an application, it undergoes necessary verification and agronomic assessments before being forwarded to the bank selected by the farmer for final processing.
A key feature of the scheme is that 75% of the approved loan amount will be disbursed in-kind, not in cash. This means the funds are used specifically for purchasing agricultural inputs like seeds, fertilizers, and pesticides from a network of pre-approved vendors linked with the banks. This mechanism ensures the financing is used for its intended productive purpose.
Beyond Finance: Advisory Services and Government Incentives
Zarkheze is designed to be more than just a loan disbursement tool. Through integration with the Land Information and Management System (LIMS), farmers will also receive crucial agri-advisory services aimed at improving crop yields and farming practices. This combination of timely credit and expert guidance is expected to significantly boost on-farm productivity.
To encourage banks to actively participate and lend to small-scale farmers, the government has introduced two major incentives:
- A 10 percent first loss coverage to mitigate risk for financial institutions.
- An operational cost subsidy of Rs10,000 per borrower for banks that achieve a net increase in their agricultural loan portfolios.
Leadership Hails a Pivotal Step for Rural Economy
Senior officials hailed the launch as a transformative move for rural development and food security. Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, stated that Zarkheze exemplifies the government's commitment to expanding financial inclusion. He emphasized that facilitating formal credit for small farmers supports broader national goals of rural development and food security.
Jameel Ahmad, Governor of the State Bank of Pakistan, described Zarkheze as a pivotal step in improving small farmers' access to finance. He noted that digitizing the credit journey removes traditional barriers, ensuring formal lending is accessible, timely, and productivity-enhancing. He also highlighted the platform's role in promoting digital payments in the rural economy.
Zafar Masud, Chairman of the Pakistan Banks' Association, reaffirmed the banking sector's collective commitment to the initiative's success. He pointed out that by leveraging technology and innovative credit assessment methods, the industry aims to reach landless farmers and those in the undocumented sectors, significantly expanding financial outreach.
The Zarkheze application is now available for download on the Google Play Store. Farmers who need assistance with the digital onboarding process can also visit their nearest bank branch for support.
