Zarkhez-e: Digitizing Agriculture with Seamless Credit and Smart Advisory

The Finance Division Government of Pakistan, in collaboration with State Bank of Pakistan (SBP) and the Pakistan Banks Association (PBA), has launched Zarkhez-e, a digital platform designed to revolutionize agricultural financing.

The initiative aims to digitize agriculture finance enabling farmers to digitally apply and obtain financing of upto Rs. 1 million through Zarkhez-e app. After necessary verifications and agronomic assessments, the application will be submitted to the bank of 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. Besides financing, the farmer will also be provided with Agri-advisory services through the Land Information Management System (LIMS).

The Zarkhez-e product will thus not only provide financing but will also improve the farmers’ productivity through quality inputs and advisory services. To incentivize the banks to aggressively provide financing to small farmers, the Government has also provided 10 percent first loss coverage and an operational cost subsidy of Rs. 10,000 per borrower for the net increase in outstanding borrowers of banks.

Commenting on the initiative, Senator Muhammad Aurangzeb, Federal Minister for Finance and Revenue, said: “Zarkhez-e 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 rural development and national food security.”

Mr. Jameel Ahmad, Governor SBP, said: “Zarkhez-e is a pivotal step in improving the small farmers’ access to finance. By digitising the credit journey, we are removing friction for small farmers and ensuring that formal lending is accessible, timely, and helps farmers improve their productivity. Zarkhez-e will also support in achieving the broader goal of promoting and nurturing digital payments in rural economy.”

Mr. Zafar Masud, Chairman PBA, highlighted the banking sector’s collective role in supporting the initiative, stating, “The banking industry remains committed to the successful implementation of Zarkhez-e. 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 across the country. 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 Zarkhez-e application is now available for download on the Google Play Store. Farmers can also visit their nearest bank branch for assistance with digital onboarding.