The Privatisation Commission on Friday signed an agreement with financial advisers for the privatisation of Zarai Taraqiati Bank Limited (ZTBL), a statement from the Ministry of Privatisation said.

Founded in 1961 as the ADBP, it was renamed and incorporated as ZTBL in 2002 under the Companies Ord­inance 1984. The bank of­­fers agricultural credit and banking services to farmers nationwide and remains Pakistan’s largest public-sector agri lender.

Last month, the Board of the Privatisation Com­mission had approved the ap­­pointment of financial advisers for the divestme­nt of ZTBL, marking it as one of the government’s priority transactions in the current privatisation pipeline.

“The Privatisation Commission has signed a Financial Advisory Services Agreement (Fasa) with a consortium led by Next Capital Limited for the strategic privatisation of Zarai Taraqiati Bank Limited (ZTBL),” the statement said.

It added that the consortium also includes Ijaz Ahmed and Associates, Baker Tilly Mehmood Idrees Qamar, Executives Network International, Bridge Public Relations, Savills Pakistan Private Limited, and Prima Global Consulting Pvt Ltd.

“This initiative reflects the government’s unwavering commitment to inviting private sector investment, modernising banking operations, and ensuring the long-term sustainability of state-owned enterprises (SOEs),” the statement added.

According to the statement, post-privatisation, ZTBL, with its nationwide network of 501 branches, will be better positioned to deliver faster, more accessible credit to small farmers and rural communities.

It added that the bank will be able to “introduce modern banking technologies and digital solutions for agriculture financing as well as strengthen governance, transparency, and accountability, expand financial products tailored for emerging agribusiness opportunities and enhance customer service and on-ground responsiveness to meet farmers’ evolving needs”.

The privatisation of ZTBL is designed to catalyse investment in Pakistan’s agricultural future by combining private sector efficiency with ZTBL’s long-standing expertise in agricultural finance for fostering rural prosperity and ensuring farmers have timely access to essential financial resources.

Under the agreement, the financial advisers will conduct sell-side due diligence, carry out market sounding, engage with potential investors, structure the transaction, market it to investors, and assist the Privatisation Commission in a transparent bidding process, the ministry said.

The winning consortium had achieved the highest technical and financial score among six competing bidders, which incl­uded other leading groups headed by Arif Habib Ltd, AF Fergu­son, AKD Securities Ltd, Bri­­­­­dge Factor, and JS Bank.

The board also approved the formation of a nego­tiation committee to finalise the Fasa with the selected consortium.

Last month, the Senate Standing Committee on Privatisation had raised concerns over the government’s plans to privatise two state-owned entities — the Pakistan Mineral Development Corporation (PMDC) and ZTBL — and questioned the rationale behind their inclusion in the programme.