The State Bank of Pakistan (SBP) has rolled out a landmark collateral-free digital agriculture financing scheme titled “Zarkhez-e”, aimed at empowering small and marginalized farmers, especially those in unserved and underserved regions.
Introduced through a circular by the Agricultural Credit and Microfinance Department, the initiative serves as the implementation framework for the National Subsistence Farmers Support Initiative (NSFSI), aligned with the Prime Minister’s vision to transform Pakistan’s agriculture sector. With the tagline “Asaan Digital Zarai Qarza”, the scheme marks a new phase in digital agricultural lending and rural development.
Under the program, 75 percent of the financing will be provided in in-kind disbursement to ensure farmers receive essential inputs such as quality seeds, fertilizers, pesticides, and diesel through registered Agri-merchants. The remaining 25 percent may be issued in cash to cover additional farming expenses. In addition, farmers will have access to Agri-advisory services to boost productivity and promote sustainable cultivation methods.
Eligibility criteria set the landholding limit at up to 12.5 acres for Punjab and Khyber Pakhtunkhwa, 16 acres for Sindh, and 32 acres for Balochistan. Financing will be available up to Rs 100,000 per acre, with maximum limits of Rs 1 million for landowners and Rs 500,000 for tenants.
To ensure efficiency and transparency, the central bank has designed a standardized process flow and digital portal in collaboration with banks and microfinance institutions. Farmers will be able to apply online for loans without visiting branches. Following verification and agronomic assessment through the Land Information Management System (LIMS), applications will be sent to the applicant’s chosen bank for processing.
The financing facility also includes 10 percent first-loss coverage, while lenders will receive an operational cost subsidy of Rs 10,000 per borrower for net increases in outstanding borrowers. Most banks and microfinance institutions have already integrated their systems with the centralized portal and LIMS and have onboarded Agri-merchants. The SBP has urged remaining institutions to complete the process promptly.
Another key feature of “Zarkhez-e” is the introduction of life and crop insurance coverage. Every farmer availing loans under the scheme will receive life insurance equivalent to the loan amount disbursed and outstanding, while Crop Loan Insurance under the Crop Loan Insurance Scheme (CLIS) will be mandatory for five major crops.
Through this initiative, the SBP aims to enhance agricultural productivity, promote financial inclusion, and support sustainable rural uplift by integrating technology into Pakistan’s farming finance ecosystem.
