Govt Starts New Loan Scheme for Small Farmers in Pakistan – Complete Guide to Zarkhez-E

The Government of Pakistan has launched a new agricultural loan scheme for small farmers called Zarkhez-E, aiming to transform rural financing and bring millions of unbanked farmers into the formal financial system. This historic initiative focuses on collateral-free digital loans, especially for small and tenant farmers who have been ignored for decades.

According to the Ministry of Finance, nearly 93% of Pakistan’s small farmers have remained outside the banking system due to strict collateral requirements, complicated paperwork, and limited access to banks. The Zarkhez-E agri-loan scheme is designed to solve these problems using technology, digital identity, and data-based lending.

What Is Zarkhez-E Loan Scheme?

Zarkhez-E is a government-backed digital agriculture loan program created to provide easy, collateral-free financing to small farmers across Pakistan.

Unlike traditional agricultural loans, Zarkhez-E focuses on:

• Farmer productivity
• Crop potential
• Digital land and identity verification
• Satellite and agronomy data

This means farmers do not need to mortgage land or provide heavy paperwork to get financing.

Why Zarkhez-E Is a Game Changer for Small Farmers

Pakistan’s agricultural credit system has long favored large landowners. Official data shows:

• Only 7% of farmers receive 68% of total farm loans
• The remaining 93% struggle to access formal credit

Zarkhez-E aims to rebalance this inequality by ensuring fair access to loans for:

• Tenant farmers
• Small landholders
• Farmers in remote and underdeveloped regions

This shift is expected to strengthen food security, improve productivity, and reduce rural poverty.

Key Objectives of Zarkhez-E Scheme

The government has outlined several major goals for the Zarkhez-E loan program:

Financial Inclusion

• Bring 750,000 unbanked farmers into the banking system

Rural Economic Growth

• Inject Rs. 300 billion into the rural economy over three years

Collateral-Free Lending

• Remove land ownership as a condition for loans

Digital Agriculture

• Use satellite imagery, agronomy tools, and digital identity systems

Loan Amounts Under Zarkhez-E

The scheme offers flexible loan limits based on farmer status:

Loan Limits

• Tenant farmers: up to Rs. 500,000
• Land-owning farmers: up to Rs. 1 million

These loans can be used for:

• Seeds and fertilizers
• Farm machinery
• Irrigation needs
• Crop protection
• Modern farming inputs

No Collateral Requirement – A Major Relief

One of the most revolutionary aspects of Zarkhez-E is zero collateral requirement.

Traditional agri-loans require:

• Land ownership documents
• Property mortgage
• Lengthy verification processes

Zarkhez-E replaces this with:

• Digital farmer profiles
• Crop productivity analysis
• Satellite-based land assessment
• Verified CNIC and mobile data

This opens the door for tenant farmers and sharecroppers who were previously excluded.

Regionally Equal Access Across Pakistan

The government has ensured that Zarkhez-E is regionally inclusive, offering equal access to farmers in:

• Punjab
• Sindh
• Khyber Pakhtunkhwa
• Balochistan
• Gilgit-Baltistan
• Azad Jammu & Kashmir

Special focus is given to underserved rural districts, ensuring balanced national agricultural growth.

Digital Technology Behind Zarkhez-E

Zarkhez-E uses advanced digital tools to assess and approve loans:

Satellite Imagery

• Evaluates land use and crop patterns

Digital Agronomy Tools

• Measures soil quality and crop potential

Verified Digital Identity

• CNIC-based authentication
• Mobile SIM verification

Bank Integration

• Applications routed to partner banks digitally

This system minimizes fraud and speeds up loan approval.

How to Apply for Zarkhez-E Loan

Farmers can apply through two simple methods:

1. Zarkhez App

• Available on Google Play Store
• Easy registration
• Step-by-step guidance

2. Bank Branch Assistance

• Farmers can visit nearby participating banks
• Staff will help with digital onboarding

No complicated forms or repeated visits are required.

Who Is Eligible for Zarkhez-E?

Eligibility criteria include:

• Pakistani citizen with valid CNIC
• Small or tenant farmer
• Engaged in crop or agriculture-related activity
• Willingness to use digital registration

No land ownership is mandatory for tenant farmers.

Economic Impact of Zarkhez-E

Experts believe Zarkhez-E can:

• Boost agricultural productivity
• Reduce farmer reliance on informal lenders
• Improve rural incomes
• Strengthen food supply chains
• Support sustainable farming practices

The scheme aligns with Pakistan’s broader goals of digital transformation and economic inclusion.

How Zarkhez-E Helps Pakistan’s Agriculture Sector

Pakistan’s agriculture contributes heavily to GDP and employment. Zarkhez-E strengthens this sector by:

• Providing timely financing
• Encouraging modern farming methods
• Supporting climate-resilient agriculture
• Promoting financial literacy among farmers

Comparison With Traditional Agricultural Loans

Feature	Traditional Loans	Zarkhez-E
Collateral	Required	Not Required
Paperwork	Heavy	Digital
Approval Time	Slow	Faster
Access	Limited	Nationwide
Focus	Land ownership	Productivity

Challenges and Future Outlook

While promising, Zarkhez-E will require:

• Farmer awareness campaigns
• Strong digital infrastructure
• Bank cooperation
• Continuous monitoring

If implemented effectively, it could become Pakistan’s most impactful agri-finance reform.

Conclusion

The Zarkhez-E loan scheme for small farmers marks a historic shift in Pakistan’s agricultural financing system. By using digital tools, removing collateral barriers, and prioritizing equity, the government has taken a strong step toward inclusive rural development.

If implemented efficiently, Zarkhez-E can empower millions of farmers, strengthen food security, and transform Pakistan’s agricultural economy for years to come.

Frequently Asked Questions (FAQs)