ISLAMABAD: In a groundbreaking move for Pakistan’s agricultural sector, the State Bank of Pakistan (SBP) has approved the use of digital survey reports as an alternative to the traditional Khasra Girdawri for agricultural loans. This decision is set to revolutionize the way banks assess farming activities and grant credit to farmers.
The Khasra Girdawri, a revenue department document, traditionally provided details about land ownership and crop history. With the SBP’s new directive, banks will now be able to use digital survey reports, which leverage satellite imaging and geo-fencing technology to verify farming activities in real time.
This shift towards digital transformation is expected to streamline the loan approval process. By reducing the reliance on manual land assessments, farmers will experience quicker loan processing times, enabling them to access the financial support they need in a timely manner.
Moreover, this move will strengthen risk management strategies for agricultural lending. The use of digital tools for ongoing monitoring of farms will allow for more data-driven decisions, enhancing the accuracy of loan assessments and reducing the risk of defaults.
Financial inclusion is also a key focus. With the new system, more farmers, especially those in remote areas, will gain access to credit, helping to bridge the gap between traditional banking services and underserved agricultural communities.
The approval opens up significant opportunities for fintech and agri-tech companies to collaborate with banks. Data analytics and AI-driven credit scoring systems will play a crucial role in improving lending decisions, while partnerships between banks and fintech firms will drive innovation in agriculture finance.
By embracing technology, this initiative aims to enhance the productivity of farmers and, in turn, boost the overall agricultural economy of Pakistan.
