SBP clears HBL Zarai as agri services provider under digital farm loan scheme

The State Bank of Pakistan (SBP) has conveyed its no-objection to onboarding HBL Zarai Services Limited as an approved Agricultural Services Provider under the Zarkhez-e, Asaan Digital Zarai Qarza Scheme, enabling banks to expand in-kind agricultural financing.

The clearance, communicated through the Pakistan Banks Association, allows participating banks to replace cash disbursements with direct access to approved agricultural services, with the aim of ensuring credit is used for productive farm activities.

Under the scheme, farmers receive financing in the form of inputs and services rather than cash, covering areas such as quality seeds, fertilisers, crop protection, agronomic advisory, mechanisation, and market linkages. The model is designed to reduce leakages, improve monitoring, and strengthen transparency at the farm level.

As an approved provider, HBL Zarai will deliver services through an end-to-end agriculture platform, allowing farmers to utilise sanctioned financing limits directly at its locations. The offering includes on-ground agronomic support, pay-per-use mechanisation, and a structured crop off-take mechanism that provides market access, quality grading, and documented payments.

Officials said the approach links financing with production and market outcomes, creating a closed-loop system for the responsible use of agricultural credit.

Following the approval, several banks participating in the scheme have initiated discussions with HBL Zarai to operationalise in-kind financing, focusing on system integration, onboarding processes, and transaction coordination.

HBL Zarai is the first non-financial subsidiary of a banking group in Pakistan to be approved as an Agricultural Services Provider under a national agricultural financing programme. The company operates through a network of Zarai Deras and Zarai Dost Shops across Punjab and Sindh.