State Bank of Pakistan Introduces Zarkhez-e Platform to Enable Collateral-Free Agricultural Loans

The State Bank of Pakistan (SBP) has officially launched Zarkhez-e, a digital platform designed to provide collateral-free agricultural loans to small and marginalized farmers across Pakistan. The platform aims to revolutionize access to agricultural credit and support the government’s broader goal of promoting financial inclusion and sustainable rural development.

Previously known as the National Subsistence Farmers Support Initiative (NSFSI), Zarkhez-e has been developed under the Risk Coverage Scheme for Small Farmers and Underserved Areas. The initiative aligns with the Prime Minister’s vision to transform Pakistan’s agricultural landscape by improving access to finance for farmers in previously unserved or underserved regions.

According to a circular issued by the Agriculture Credit & Financial Inclusion Department (ACFID) on October 14, 2025, the new platform is a major step toward digitizing agricultural finance. It offers an end-to-end online solution that enables farmers and tenants to apply for agricultural loans directly through a centralized web portal, eliminating the need to visit bank branches or navigate complex paperwork.

Applications submitted via Zarkhez-e undergo verification and agronomic assessment through the Land Information Management System (LIMS) before being forwarded to the applicant’s chosen bank or microfinance institution for approval and disbursement.

One of the most innovative aspects of Zarkhez-e is its in-kind financing model. Under the system, at least 75% of loan value is disbursed in the form of essential agricultural inputs, such as seeds, fertilizers, pesticides, and diesel, through reputable agri-merchants integrated with the platform. The remaining 25% may be provided in cash to help farmers manage additional operational expenses.

The SBP has also emphasized the platform’s advisory component, under which farmers will receive agri-advisory services to improve crop yields and productivity. This ensures that financial access is accompanied by technical guidance for better farming outcomes.

Most commercial banks and microfinance banks (MFBs) have already integrated their systems with Zarkhez-e and LIMS, with others being encouraged to complete onboarding swiftly to enable a nationwide rollout. A standardized process flow has been introduced by the SBP to maintain consistency and ensure efficient implementation across the banking industry.

Under the financing scheme, small and marginalized farmers will also benefit from a 10% first loss coverage and an operational cost subsidy of Rs. 10,000 per borrower for any net increase in outstanding borrowers.

The SBP has urged all banks and MFBs to fully leverage Zarkhez-e to extend financial support to farmers, helping bridge the gap between traditional banking and the agricultural economy. This initiative not only enhances financial inclusion but also positions Pakistan’s agri-sector for a more resilient and technology-driven future.

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