Govt Starts New Loan Scheme For Small Farmers

The federal government has launched a new agricultural credit initiative called “Zarkhez-E” to provide financing to 93% of small farmers who have long remained outside the formal financial system.

According to the Ministry of Finance, Zarkhez-E is a collateral-free, digitally powered agri-loan scheme designed specifically for these smallholders who have historically been excluded from formal credit channels.

Under the scheme, around 750,000 previously unbanked farmers will be brought into the formal financial network. Over the next three years, the government expects an injection of roughly Rs. 300 billion into the rural economy through this programme.

A key feature of Zarkhez-E is the removal of collateral requirements, so that lending decisions are based on a farmer’s potential and productivity rather than land ownership. Traditional paperwork and bureaucratic hurdles are to be replaced by digital agronomy tools, satellite imagery, and verified digital identity systems.

The Ministry of Finance notes that Pakistan’s agricultural credit framework has historically favoured scale over equity, with just 7% of farmers receiving about 68% of total farm loans. The new initiative is meant to rebalance this system and make access to finance more equitable.

Loan ceilings have been set at up to Rs. 500,000 for tenant farmers and up to Rs. 1 million for farmers who own land. The programme has been structured on regionally equitable lines, ensuring that farmers in Khyber Pakhtunkhwa, Balochistan, Gilgit-Baltistan, Azad Jammu and Kashmir, and underserved areas of Sindh and Punjab can all benefit on similar terms.

The Zarkhez app is now available for download on the Google Play Store, while farmers can also visit any nearby bank branch for assistance with digital onboarding.