The State Bank of Pakistan on Wednesday urged banks to expand the use of its digital agricultural lending platform, Zarkheze, to improve access to credit for small farmers and underserved areas across the country. The call was made during a meeting of the Agricultural Credit Advisory Committee held in Karachi, where the central bank reviewed the performance of farm lending and discussed future priorities.
Addressing the meeting, SBP Governor Jameel Ahmad said Pakistan’s economy has regained macroeconomic stability and is now moving towards more sustainable growth. He shared that the economy grew by 3.7% in the first quarter of FY26, while full-year growth is expected to remain between 3.75 and 4.75%. Inflation has eased to 5.8% by January 2026, giving room for policies that support growth while keeping prices under control.
The Governor said agriculture continues to play a central role in the economy, not only by supporting rural incomes but also by ensuring food security and employment. He stressed that improving access to finance is key to raising farm productivity and helping farmers move beyond subsistence-level activity.
Pakistan’s agricultural credit has shown strong growth in recent years. During FY25, banks disbursed a record Rs 2,577 billion in agricultural loans, reflecting an annual increase of 16%. This momentum continued into the current fiscal year, with Rs 1,412 billion disbursed in the first half of FY26. However, while the volume of lending has increased, the number of borrowers has grown only modestly to 2.97 million.
To address this gap, the Governor encouraged banks to make better use of SBP initiatives aimed at small farmers and unserved regions. These include the Risk Coverage Scheme for Small Farmers and Underserved Areas, as well as Zarkheze, the central bank’s flagship digital platform for agricultural lending.
Zarkheze allows farmers to be digitally onboarded, assessed through standardized credit criteria, and linked with land and crop data. It also tracks the full loan cycle and connects borrowers with approved vendors, helping ensure that credit is used for quality seeds, fertilizers, and other inputs. According to SBP officials, the platform is designed to make small-ticket loans commercially viable for banks while improving transparency and efficiency.
The Governor said Zarkheze should now be treated as a core channel for delivering agricultural finance. He asked banks to speed up loan processing, take stronger internal ownership of the platform, and expand the vendor network so farmers can access certified inputs along with advisory support.
The meeting also discussed the need for banks to fully implement their Agricultural Credit Expansion Plans for FY26. The Governor highlighted the importance of coordination with provincial governments on digitizing land records, and partnerships with fintech firms, agri-tech companies, and microfinance institutions to reach more farmers.
Another key topic was the development of an upgraded crop loan insurance scheme, CLIS+, under the Asian Development Bank’s Pakistan Insurance Transformation Program. The proposed framework aims to expand crop coverage, improve risk-sharing through an insurance consortium, and use technology for faster calamity assessment and payouts. ADB’s Solidarity Fund is also expected to support coverage for non-borrowing farmers and the creation of a national agriculture insurance policy.
In addition, the committee reviewed progress on Electronic Warehouse Receipt Financing, which allows farmers to use stored crops as collateral. The Governor said expanding accredited warehouses and increasing bank participation could help farmers avoid distress sales and improve post-harvest liquidity.
Summing up, the SBP chief outlined three priorities for banks: expanding the number of borrowers, strengthening credit support for small and subsistence farmers, and extending agricultural finance to underserved regions. He said digital platforms like Zarkheze provide the foundation to achieve all three.
