KARACHI: Pakistan has launched ‘Zarkheze,’ a government-backed digital platform, to expand farmers’ access to agricultural financing and advisory services, allowing up to Rs1 million loans through a mobile app as part of efforts to boost productivity and formalize farm lending.
Pakistan’s agriculture sector accounted for 24 percent of the gross domestic product (GDP) and employed more than 37 percent of the nation’s labor force last year, according to the Economic Survey 2024-25.
The Zarkheze initiative aims to digitize agriculture finance enabling farmers to digitally apply and obtain financing through Zarkheze app. After necessary verifications and agronomic assessments, the application will be submitted to the bank of farmer’s choice for processing, according to the State Bank of Pakistan (SBP).
Seventy-five percent of the financing will be disbursed in kind for the purchase of agri-inputs through pre-approved agri-vendors of banks. Besides financing, farmers will also be provided with agri-advisory services through a Land Information Management System (LIMS).
“The Zarkheze product will thus not only provide financing but will also improve the farmers’ productivity through quality inputs and advisory services,” the SBP and and the Pakistan Banks Association (PBA) said in a joint statement.
“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 Rs10,000 per borrower for the net increase in outstanding borrowers of banks.”
The Zarkheze application is available for download on Google Play Store, while farmers can visit their nearest bank branch for assistance with digital onboarding, according to the statement.
Finance Minister Muhammad Aurangzeb said Zarkheze exemplifies their 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,” he said.
SBP Governor Jameel Ahmad called the launch of the digital platform a “pivotal step” in improving 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,” he said.
“Zarkheze will also support in achieving the broader goal of promoting and nurturing digital payments in rural economy.”
PBA Chairman Zafar Masud highlighted the banking sector’s collective role in supporting 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 across the country,” he said.
“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.”
