Islamabad: Pakistan’s central bank has approved HBL Zarai Services Limited as an Agricultural Services Provider under the ‘Zarkhez-e’, Asaan Digital Zarai Qarza Scheme, a move aimed at expanding in-kind agricultural financing and improving the effective use of farm credit.
The approval was conveyed by the State Bank of Pakistan through the Pakistan Banks Association, allowing participating banks to channel agricultural loans through approved service providers instead of cash disbursements. Regulators say the model is designed to strengthen transparency and ensure financing is used for productive farming activities.
Under the scheme, farmers receive access to verified agricultural services such as certified seeds, fertilisers, crop protection products, agronomic advice, mechanisation, and market linkages. The approach reduces misuse of funds and improves monitoring at the farm level by directly linking financing with inputs and services.
SBP Deputy Governor Saleem Ullah said the digital scheme focuses on deploying agricultural credit more transparently while improving productivity through advisory support and structured service delivery. He noted that in-kind financing backed by approved providers enhances oversight and improves outcomes for farmers.
Following its approval, HBL Zarai will offer farmers access to agricultural inputs and advisory services through its service locations, along with mechanisation on a pay-per-use basis. The company will also facilitate structured crop off-take, offering documented payments and transparent quality assessment to improve farmers’ market access.
Pakistan Banks Association Chairman Zafar Masud said the inclusion of agricultural service providers under the scheme allows banks to collaborate with execution partners, supporting responsible lending while ensuring farmers receive essential services alongside financing.
HBL Zarai Chief Executive Officer Amer Aziz said the approval would help ensure that agricultural credit translates into tangible improvements in farm productivity and incomes.
Officials said several banks have initiated discussions to operationalise in-kind financing with HBL Zarai, focusing on system integration and transaction processes. The initiative aligns with national priorities on agricultural sustainability, financial inclusion and farmer-focused development.
