State Bank rolls out Zarkhez-e digital agriculture financing for farmers

October 14, 2025 (MLN): The State Bank of Pakistan's Agricultural Credit and Microfinance Department (ACFID) has directed all banks and microfinance banks to implement a digital agriculture financing platform for small and marginalized farmers.

The Agricultural Credit and Microfinance Department issued Circular, introducing the implementation framework for the National Subsistence Farmers Support Initiative (NSFSI), now branded as "Zarkhez-e" with the tagline "Asaan Digital Zarai Qarza." The initiative is in line with the Prime Minister's vision of transforming the agriculture sector.

The platform enables subsistence farmers and tenants to obtain collateral-free financing from banks and microfinance banks. Farmers can apply for agriculture loans through a centralized portal without visiting bank branches.

Applications undergo verification and agronomic assessment through the Land Information Management System (LIMS) before being forwarded to the bank chosen by the applicant.

At least 75% of financing is disbursed in-kind to ensure provision of quality inputs including seed, fertilizers, pesticides and diesel from reputed agri-merchants onboarded by banks and microfinance banks.

Up to 25% can be disbursed in cash for other farming expenses. Farmers will also receive agri-advisory services for improving crop productivity.

Financing extended to small and marginalized farmers under NSFSI will have 10% first loss coverage in line with the Risk Coverage Scheme for small farmers.

Additionally, participating banks and microfinance banks will be entitled to operational cost subsidy of Rs. 10,000 per borrower for net increase in the number of outstanding borrowers.

Most banks and microfinance banks have already integrated their systems with the centralized portal and LIMS and have onboarded agri-merchants. A standardized process flow has been developed in consultation with banks and microfinance banks to ensure seamless and uniform rollout across the industry.

Financial institutions that have not completed integration are encouraged to complete their integrations and agri-merchant onboarding processes at the earliest.

The circular highly encourages all banks and microfinance banks to fully leverage the end-to-end digital solution for providing financing to subsistence farmers. Banks are required to acknowledge receipt of the circular.

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