The State Bank of Pakistan launches the ‘Zarkhez-e’ digital platform to provide collateral-free loans, helping small and marginalized farmers access agricultural financing nationwide.
SBP Introduces Digital Lending Platform for Farmers
The State Bank of Pakistan (SBP) has also launched a new digital portal called Zarkhez-e that aims to simplify collateral-free agricultural loans among the small and marginalized farmers. Its initiative, which has been called the National Subsistence Farmers Support Initiative (NSFSI) is part of the wider Risk Coverage Scheme of Small Farmers and Underserved Areas by the government. On October 14, 2025, the Agriculture Credit and Financial Inclusion Department (ACFID) issued the official circular.
Part of the Prime Minister’s Agriculture Vision
Because Zarkhez-e became a priority in response to the vision of the Prime Minister to improve the state of the agriculture sector in Pakistan, the initiative is meant to increase the bank financing available to farmers in the underserved and unserved areas. The platform is built through the consultation of banks and microfinance institutions (MFBs) to enhance digital financial inclusion and build rural economic resilience.
End-to-End Digital Loan Processing
Zarkhez-e offers an online digital loan application that will allow small farmers and tenants to apply to agricultural loans via a centralized online portal, that is, without going to bank branches. Following verification and agronomic evaluation through the Land Information Management System (LIMS), applications are submitted to the preferred bank so that they can be approved and disbursed. This integration will provide transparency and efficiency in the lending process.
75% Financing in Kind for Agricultural Inputs
The distinguishing aspect of the program is that 75 percent of the funding is in-kind whereby the basic farming supply inputs like seeds, fertilizers, pesticides, and diesel, are funded. These contributions are provided by onboarded participating banks and MFBs through vetted agri-merchants. The other 25 percent of the funding can be made in cash to fulfill other operations requirements. Agri-advisory services will also be offered to the farmers to aid in increasing crop yield and better usage of resources.
Nationwide Integration and Standardized Processes
Their systems have already been integrated with the Zarkhez-e portal and the Land Information Management System in most commercial banks and MFBs, which makes it possible to verify and monitor data effectively. Others are being motivated to have the integration done quickly. The SBP has provided a uniform process flow in every institution to facilitate uniformity in the operation and provide equal opportunities to all applicants in this country.
Risk Insurance and Business Rewards
The new scheme guarantees loans to small and marginalized farmers with a 10 percent first-loss coverage facility and operation cost subsidy of S 10 000 per borrower. This is a risk-sharing mechanism, the purpose of which is to encourage banks to offer financing to smallholders who previously found it difficult to obtain formal credit because of the collateral requirement.
SBP’s Commitment to Inclusive Growth
The SBP has encouraged all financial institutions to use the Zarkhez e platform fully to benefit the small-scale farmers of Pakistan to enhance a sustainable growth of agriculture in Pakistan. Zarkhez-e is a significant move towards creating a financially inclusive and resilient rural economy since it digitizes the credit process and reduces the barriers of entry.
