| | | |

Govt Launches Zarkhez-E Loan Scheme to Provide Collateral-Free Financing to Small Farmers

Govt Zarkhez-E Collateral Loan Scheme for Small Farmers

The federal government has officially launched a new agricultural credit programme called Zarkhez-E, designed exclusively for small farmers who have been excluded from formal financing systems for decades. This initiative marks a significant policy shift aimed at empowering Pakistan’s farming community and improving the country’s agricultural productivity.

According to the Ministry of Finance, nearly 93% of farmers in Pakistan are smallholders, yet most of them remain outside the formal banking network. They usually depend on informal lenders, who charge extremely high interest rates, pushing farmers into long-term debt traps. Zarkhez-E has been introduced to break this cycle and provide farmers with access to fair, reliable, and structured financial support.

A Fully Digital, Collateral-Free Loan System

One of the most important features of the Zarkhez-E scheme is that it is 100% collateral-free. Farmers will not be required to mortgage land, property, or assets to avail loans. Instead, the scheme relies on digital tools and modern technology to assess eligibility.

Also read
BISP Thumb Matched but Payment Failed – How to Resolve
BISP Thumb Matched but Payment Failed – How to Resolve

The programme uses:

  • Verified digital identity systems
  • Satellite imagery to assess land and crop health
  • Digital agronomy data
  • Simplified online onboarding
  • Minimum paperwork

This approach reduces bureaucratic hurdles, eliminates traditional documentation barriers, and ensures faster loan approvals. The government believes this digital transformation will make the agricultural credit system more transparent, efficient, and accessible for every eligible farmer.

Bringing 750,000 Unbanked Farmers Into the Financial System

For years, millions of farmers in Pakistan have remained unbanked, meaning they neither possess bank accounts nor have access to financial services. Through Zarkhez-E, the government aims to change this situation and link farmers directly with formal financial institutions.

Under the scheme:

  • Around 750,000 unbanked farmers will be integrated into the formal system
  • Over Rs. 300 billion is expected to flow into the rural economy in three years
  • Farmers will gain long-term financial stability and credit history

This financial inclusion will not only support individual farmers but also boost Pakistan’s overall agricultural and rural economy, helping create employment, enhancing productivity, and improving incomes in rural areas.

Correcting Decades of Inequality in Agricultural Credit

Historically, Pakistan’s agricultural loan system has favoured big landlords. As highlighted by the Ministry of Finance, only 7% of large farmers receive about 68% of the country’s agricultural loans, leaving the majority of small farmers deprived of financial support.

Zarkhez-E has been introduced to correct this imbalance. The new framework focuses on equity instead of scale, ensuring that support reaches those who actually need it. The scheme shifts the focus of lending decisions from land ownership to productivity potential and genuine farming needs.

This policy step is expected to significantly improve fairness in the agricultural credit system and provide previously ignored farmers a chance to grow economically.

Loan Limits and Eligibility Criteria

To make the scheme effective and supportive for all categories of small farmers, the government has placed well-structured loan ceilings:

  • Up to Rs. 500,000 for tenant farmers
  • Up to Rs. 1 million for land-owning farmers

These loans can be used for various agricultural needs including:

  • Purchasing seeds and fertilizers
  • Buying or renting machinery
  • Improving irrigation
  • Enhancing crop quality
  • Supporting livestock farming
  • Covering seasonal farming expenses

The loan structure has been created to help farmers increase productivity, reduce farming costs, and adopt modern agricultural practices.

Equal Benefits Across All Provinces and Regions

Unlike many previous schemes that benefitted only certain regions, Zarkhez-E has been planned on regionally equitable lines, ensuring nationwide access. Farmers from all provinces and territories, including remote and underserved areas, will be able to benefit equally.

The scheme covers:

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

Special focus has been placed on neglected agricultural regions, including remote districts, hilly terrains, and areas with limited banking infrastructure. This strategy ensures that no farmer is left behind due to geographical disadvantage.

Zarkhez App Launched for Easy Digital Access

To provide convenience and faster access, the government has launched the Zarkhez mobile application, which is now available on the Google Play Store. Through this app, farmers can:

  • Apply for loans digitally
  • Complete onboarding
  • Track application status
  • Access guidance and support

For farmers who are not familiar with smartphones or digital systems, assistance has also been arranged at bank branches across Pakistan, where dedicated staff will help them complete their registration and loan process.

Strengthening Pakistan’s Rural and Agricultural Economy

The Zarkhez-E scheme is not just a loan programme; it is a major step toward transforming Pakistan’s agricultural sector. By making financing accessible, the government aims to improve crop production, enhance food security, and raise the income level of small farmers.

With better financial support:

  • Farmers can adopt modern farming techniques
  • Productivity is expected to increase
  • Overall rural development will accelerate
  • Dependence on informal lenders will reduce

This initiative is expected to create a positive economic cycle where empowered farmers contribute more effectively to Pakistan’s economy.

Conclusion – Govt Zarkhez-E Collateral Loan Scheme for Small Farmers

The launch of the Zarkhez-E agricultural loan scheme represents a historic milestone for Pakistan’s small farming community. By offering collateral-free, digital, and equitable financing, the government has taken a strong step toward supporting unbanked farmers, strengthening agriculture, and boosting the rural economy.

With its nationwide reach, modern digital system, and focus on fairness, Zarkhez-E is expected to bring long-term positive change to Pakistan’s agricultural landscape.

Similar Posts