Pakistan central bank urges wider rollout of digital farm lending platform Zarkheze

Governor of the State Bank of Pakistan (SBP) Jameel Ahmad on Thursday called for scaling up the central bank’s flagship digital agricultural lending platform, Zarkheze, to expand credit access for small farmers and underserved areas across the country.

He made these remarks while chairing a meeting of the Agricultural Credit Advisory Committee (ACAC) in Karachi, where participants reviewed agricultural credit performance and discussed measures to strengthen inclusive and resilient agricultural finance.

Addressing the committee, the governor said Pakistan’s economy has regained macroeconomic stability and is now on a more durable growth path. He noted that real GDP growth reached 3.7% in the first quarter of FY26, with full-year growth projected between 3.75% and 4.75%.

Headline inflation has eased to 5.8% as of January, creating room for monetary policy to support growth while maintaining price stability. He added that the external account remains broadly contained due to prudent economic management, resilient remittances, and stable commodity prices.

Highlighting the central role of agriculture in improving farm productivity, supporting rural livelihoods, and ensuring food security, the governor stressed the need to strengthen financial intermediation in the sector.

He said that during FY25, agricultural credit disbursements reached a record PKR 2,577 billion — a 16% annual increase — due to collaborative efforts between SBP and the banking sector. In the first half of FY26 alone, disbursements stood at PKR 1,412 billion, while the number of borrowers rose to 2.97 million.

What is Zarkheze?

To further expand outreach, particularly among small farmers in underserved and unserved regions, Ahmad urged banks to fully leverage SBP’s initiatives, including the Risk Coverage Scheme for Small Farmers and Underserved Areas, and Zarkheze.

The Zarkheze platform enables digital onboarding of farmers, standardized credit assessment, integration with land and crop data, and end-to-end traceability of loans. It also links financing to certified agricultural inputs through an integrated vendor network.

The governor described the platform as a major step toward the digital transformation of agricultural credit delivery and emphasized that it must become a core channel for agricultural finance, especially for small-ticket lending.

He called on banks to ensure timely processing of applications, strengthen internal ownership of the scheme, and expand the vendor ecosystem to improve farmers’ access to certified inputs and advisory services.

Looking ahead, the governor urged banks to fully implement their Agricultural Credit Expansion Plans for FY26. He also emphasized coordination with provincial governments for land record digitization and encouraged partnerships with fintechs, agri-tech firms, and microfinance institutions to broaden outreach.

Crop scheme progress analyzed

The committee also reviewed progress on the proposed Crop Loan Insurance Scheme Plus (CLIS+), being developed under the Asian Development Bank (ADB)-funded Pakistan Insurance Transformation Program. The upgraded framework aims to expand crop coverage, establish an insurance consortium for improved risk-sharing and payouts, and introduce technology-based calamity assessments along with income-loss protection.

ADB’s Solidarity Fund is also expected to support coverage for non-borrowing farmers and contribute to the development of a National Insurance Policy for Agriculture.

In addition, members discussed scaling up Electronic Warehouse Receipt Financing (EWRF) to improve post-harvest liquidity, reduce distress sales, and strengthen agricultural market linkages. The committee underscored the need to expand accredited warehousing infrastructure and enhance bank participation in warehouse receipt-based financing.

Priorities for banking sector

Outlining three key priorities for the banking sector, the governor stressed: expanding borrower outreach through microfinance banks and small-ticket products; deepening inclusion by strengthening productivity-enhancing credit for subsistence and small farmers; and promoting geographical diversification of agricultural finance.

Concluding the meeting, Ahmad reiterated the importance of expanding the agricultural borrower base and accelerating digital delivery channels such as Zarkheze to support sustainable agricultural growth.

He noted that the ACAC continues to serve as a strategic platform under SBP’s leadership, bringing together financial institutions and stakeholders to advance agricultural finance as a driver of inclusion, productivity, and long-term economic resilience.