Zarkhez-e: Pakistan Launches Digital Agriculture Financing Platform for Small Farmers
Introduction: A New Digital Era for Agriculture in Pakistan
Agriculture is the backbone of Pakistan’s economy, supporting millions of livelihoods and contributing significantly to national food security. However, for decades, small and marginal farmers have struggled to access formal financing, quality agricultural inputs, and reliable advisory services. To address these long-standing challenges, the Government of Pakistan, in collaboration with the State Bank of Pakistan (SBP) and the Pakistan Banks Association (PBA), has launched Zarkhez-e, a revolutionary digital agriculture financing platform.
Zarkhez-e is designed to digitize agricultural credit, simplify loan access, and provide smart agri-advisory services, all through a single digital ecosystem. With financing of up to Rs. 1 million, this initiative is expected to transform how small farmers fund, manage, and grow their agricultural activities.
What Is Zarkhez-e? – A Digital Agriculture Financing Platform Explained
Zarkhez-e is a government-backed digital platform that enables farmers to apply for agriculture loans online using a mobile application. The platform connects farmers with banks, approved agri-input vendors, and advisory services, reducing paperwork, delays, and dependency on informal lenders.
The platform has been developed under the supervision of the Finance Division, with technical and regulatory support from SBP and operational collaboration with commercial banks under PBA.
Key Objectives of Zarkhez-e Initiative
The launch of Zarkhez-e focuses on solving multiple issues faced by farmers:
- Expanding financial inclusion for small and landless farmers
- Digitizing agriculture credit and loan disbursement
- Improving crop productivity through quality agri-inputs
- Providing smart agri-advisory services using data and technology
- Promoting digital payments in rural Pakistan
- Reducing reliance on informal and exploitative lending
How Zarkhez-e Works – Step-by-Step Process
1. Digital Application Through Zarkhez-e App
Farmers can download the Zarkhez-e app from the Google Play Store and digitally submit their financing request. Assistance is also available at nearby bank branches for farmers unfamiliar with digital tools.
2. Verification and Agronomic Assessment
Once the application is submitted, necessary verifications are conducted, including:
- Farmer identity verification
- Land and crop assessment
- Agronomic evaluation using available data systems
3. Bank Selection by Farmer
Farmers have the freedom to choose their preferred bank, ensuring competition and better service delivery.
4. Financing Approval and Disbursement
After approval:
- Up to Rs. 1 million financing is provided
- 75% of the loan is disbursed in kind for agri-inputs
- Remaining amount is available for other farming needs
In-Kind Financing – Ensuring Quality Agricultural Inputs
A unique feature of Zarkhez-e is in-kind financing, which ensures that most of the loan amount is used strictly for farming purposes.
Approved Agricultural Inputs Include:
- Certified seeds
- Fertilizers
- Pesticides and crop protection products
- Other essential farm inputs
These inputs can only be purchased from pre-approved agri-vendors associated with participating banks, ensuring transparency and quality control.
Smart Agri-Advisory Services via LIMS
Beyond financing, Zarkhez-e offers digital agri-advisory services through the Land Information Management System (LIMS).
Benefits of LIMS-Based Advisory
- Crop-specific recommendations
- Weather-based farming guidance
- Soil and water management advice
- Improved yield and productivity
This integration helps farmers make data-driven decisions, reducing risks and increasing profitability.
Government Incentives to Encourage Bank Participation
To motivate banks to extend financing aggressively to small farmers, the Government of Pakistan has introduced attractive incentives:
1. 10% First Loss Coverage
The government will cover 10% of the first loss, reducing risk for banks and encouraging lending to underserved farmers.
2. Rs. 10,000 Operational Cost Subsidy
Banks will receive a Rs. 10,000 subsidy per borrower for the net increase in outstanding agricultural borrowers.
These incentives are critical for expanding formal credit in rural and undocumented sectors.
Statements from Key Stakeholders
Finance Minister Senator Muhammad Aurangzeb
He emphasized that:
“Zarkhez-e exemplifies our commitment to expanding financial inclusion. By facilitating access to formal credit for small farmers, this initiative supports rural development and national food security.”
SBP Governor Mr. Jameel Ahmad
He highlighted:
“Zarkhez-e is a pivotal step in improving small farmers’ access to finance by digitizing the entire credit journey and promoting digital payments in the rural economy.”
PBA Chairman Mr. Zafar Masud
He noted:
“The banking industry is committed to expanding outreach and improving access to finance for smallholder and landless farmers through innovative credit assessment methods.”
Why Zarkhez-e Is a Game-Changer for Small Farmers
Zarkhez-e addresses core challenges faced by Pakistan’s agricultural sector:
- Eliminates middlemen and informal lenders
- Reduces loan processing time
- Ensures responsible use of financing
- Improves productivity and income stability
- Encourages digitization in rural areas
This initiative aligns with Pakistan’s broader goals of economic inclusion, food security, and digital transformation.
Impact on Rural Economy and Food Security
By improving access to finance and advisory services, Zarkhez-e is expected to:
- Increase crop yields
- Stabilize farmer incomes
- Reduce rural poverty
- Strengthen national food supply chains
- Support sustainable agricultural practices
Availability and Farmer Support
- Zarkhez-e app is available on Google Play Store
- Farmers can also visit nearest bank branches for onboarding
- Support is available for digitally inexperienced users
Future Outlook of Zarkhez-e Platform
With continued government backing and banking sector participation, Zarkhez-e has the potential to:
- Expand financing limits
- Include livestock and fisheries sectors
- Integrate insurance and climate-risk tools
- Become Pakistan’s largest digital agriculture ecosystem
Conclusion
Zarkhez-e marks a historic step in transforming Pakistan’s agriculture sector by combining digital financing, quality inputs, smart advisory services, and government risk-sharing mechanisms. This initiative not only empowers small farmers but also strengthens rural economies and national food security.
By embracing technology and collaboration, Zarkhez-e sets a new benchmark for inclusive and sustainable agricultural development in Pakistan.
Frequently Asked Questions (FAQs) – Zarkhez-e Digital Agriculture Platform
1. What is Zarkhez-e in Pakistan?
Zarkhez-e is a government-backed digital agriculture financing platform that allows farmers to apply for loans online, receive quality agri-inputs, and get smart farming advisory services.
2. How much loan can a farmer get through Zarkhez-e?
Farmers can apply for financing of up to Rs. 1 million through the Zarkhez-e app, subject to verification and bank approval.
3. How is the Zarkhez-e loan disbursed?
Under Zarkhez-e, 75% of the loan is disbursed in kind for purchasing agricultural inputs from approved vendors, while the remaining amount can be used for other farming needs.
4. Who is eligible to apply for Zarkhez-e financing?
Small farmers, including landless farmers operating in the informal sector, can apply for Zarkhez-e financing if they meet the bank’s basic verification requirements.
5. Which banks are participating in Zarkhez-e?
Multiple commercial banks under the Pakistan Banks Association (PBA) are participating. Farmers can choose their preferred bank while submitting the application.
