The Privatisation Commission has signed a Financial Advisory Services Agreement for the privatisation of Zarai Taraqiati Bank Limited (ZTBL), appointing a consortium led by Next Capital Limited as the financial advisor, The Express Tribune reported.Â
The consortium also includes Ijaz Ahmed & Associates, Baker Tilly Mehmood Idrees Qamar, Executives Network International, Bridge Public Relations, Savills Pakistan (Pvt) Limited, and Prima Global Consulting (Pvt) Limited.
Once privatised, ZTBL, which operates a network of 501 branches across the country, is expected to offer improved access to credit for small farmers and rural communities, along with modern banking technologies and digital solutions for agricultural financing, according to the Privatisation Commission.
However, concerns have emerged that the privatisation may leave a gap in financial services dedicated to small farmers, as major banks typically do not cater to this demographic. Critics argue that the central bank does not accurately track loans provided to farmers, as loans to agro-based industries are often categorized as agricultural loans.
Under the agreement, the financial advisor will conduct due diligence, engage potential investors, and ensure a transparent bidding process for the sale of ZTBL.
