ISLAMABAD: The Finance Division, in collaboration with the State Bank of Pakistan (SBP) and the Pakistan Banks Association (PBA), has launched Zarkheze, a digital platform aimed at digitising agricultural finance and expanding access to formal credit for small farmers.

Under the initiative, farmers will be able to apply digitally through the Zarkheze app for financing of up to Rs1 million. After verification and agronomic assessment, applications will be forwarded to the bank chosen by the farmer for processing.

The programme provides that 75 per cent of the financing will be disbursed in kind for the purchase of agricultural inputs through banks’ pre-approved agri-vendors. Farmers will also receive advisory services through the Land Information Management System (LIMS).

Officials said the product was designed not only to provide financing but also to improve productivity by ensuring access to quality inputs and advisory services.

To encourage banks to increase lending to small farmers, the government has offered 10pc first-loss coverage and an operational cost subsidy of Rs10,000 per borrower for the net increase in banks’ outstanding borrowers.

Commenting on the initiative, Finance Minister Muhammad Aurangzeb said it was part of the government’s push for financial inclusion and rural development, adding that it would support national food security goals.

SBP Governor Jameel Ahmad said Zarkheze “is a pivotal step in improving the small farmers’ access to finance”.

He stressed that digitising the credit process would reduce hurdles for small farmers and make formal lending more accessible and timely, while also supporting the goal of promoting digital payments in the rural economy.

PBA Chairman Zafar Masud said the banking industry would continue to work closely with the Ministry of Finance and the SBP to expand outreach and streamline processes for farmers across the country.

“By leveraging advanced technology and innovative credit assessment methods, we aim to improve access to finance for smallholder, particularly landless, farmers operating within a largely undocumented sector,” he added.

The Zarkheze application is available on the Google Play Store. Farmers may also visit their nearest bank branch for assistance with digital onboarding.

Published in Dawn, December 22nd, 2025