ISLAMABAD: Pakistan’s national space agency said on Sunday it has signed a “landmark” memorandum of understanding (MoU) with HBL Microfinance Bank (HBL MfB) to introduce, for the first time, satellite-based agricultural analytics into the country’s lending ecosystem. 

The Pakistan Space and Upper Atmosphere Research Commission (SUPARCO) said the initiative represents a major step forward in applying space technology to support climate-smart agriculture and enhance access to finance for farmers. 

The pilot will involve remote pre-loan assessments using high-resolution satellite imagery, crop health analytics, yield estimation, risk profiling, and a scoring engine to assess farm-level creditworthiness by SUPARCO. A secure API and dashboard interface will enable HBL MfB to integrate this data into its loan decision-making processes, eliminating the need for manual field verification.

“The pilot phase will be implemented in Okara District, Punjab— one of the country’s most important agricultural regions,” the statement said. 

“SUPARCO’s secure API and dashboard interface will integrate directly with HBL MfB’s systems, eliminating the need for manual field verification and enabling remote pre-loan assessments.”

The next phase of the partnership includes post-loan satellite monitoring, enabling the bank to track crop activity and raise early alerts in case of anomalies, the space agency said. 

The development takes place as Pakistan aims to strengthen its space program. China last month launched a Pakistani remote sensing satellite (PRSS-1) from the Xichang Satellite Launch Center in southwest China’s Sichuan Province.

The satellite, being primarily used in the fields of land resource surveys and disaster prevention and mitigation, will help promote the development of Pakistan, Pakistan’s planning minister had said. 

In January, China launched Pakistan’s indigenously developed Electro-Optical (EO-1) satellite into space from its Jiuquan Satellite Launch Center, aiming to predict natural disasters and monitor resources, Chinese and Pakistani state media reported.

In November 2024, SUPARCO announced its rover will join China’s Chang’E 8 mission to explore the moon’s surface in 2028.

In May 2024, Pakistan launched its first lunar satellite aboard China’s Chang’e-6 probe, which was tasked with landing on the far side of the moon that perpetually faces away from the Earth.