ZTBL Sale Could Potentially Take Up To Nine Months

The Senate Standing Committee on Privatization was informed on Tuesday that the privatization of Zarai Taraqiati Bank Limited (ZTBL) could take up to nine months.

During a briefing chaired by Senator Afnanullah Khan, Senator Zeeshan Khanzada questioned the rationale for privatizing a profitable institution. The Privatization Advisor said the increase in bank profits in recent years is primarily due to higher interest rates.

ZTBL’s statement

In a statement, ZTBL said that it is a specialized bank primarily engaged in extension of agricultural loans to small and subsistence farmers of the country. Taking exposures on this segment of farming community is dependent on lot many risk factors including but not limited to high risk of climate change and cyclical inflation resulting in accumulation of non-performing loans, the statement said.

The bank said that it holds the highest Agri outstanding portfolio in the industry backed by highest number of Mobile Credit Officers who are providing Agri, as well as advisory services to these farmers at their door step.

The bank sustained huge accumulated losses from 2017 to 2021 amounting to Rs. 28.88 billion. However, since 2023, the present management implemented an effective transformation and restructuring strategy which resulted in profit before tax of Rs. 43.5 billion in 02 years.

The bank also subject to corporate tax of Rs. 19.5 billion in national exchequer on said profitability of last two years. An increase of Rs. 22.6 billion has been registered in the equity of bank during last 02 years.

As of June 2023, Non Performing Loans (NPL) including charged off amounts to Rs. 69.02 billion which has since been reduced to Rs. 55.57 billion as on June 2025 registering reduction of Rs. 13.45 billion (principal amounts).

Further, as of June 2025, out of these Rs. 55.57 billion, the bank had already completely taken an amount of Rs. 35.1 billion as loss in the bank’s balance sheet in previous years and any recovery from this amount shall now directly contributes towards profitability of the bank, it added.