An investigation into a government-subsidised agricultural programme has revealed that Zarai Taraqiati Bank Limited (ZTBL) distributed thousands of tractors, valued at billions of rupees, without mandatory tracking devices, placing vast public funds at significant risk of misappropriation and theft.
According to a report by Zarai Taraqiati Bank Limited today, the probe uncovered that out of 6,272 tractors provided to farmers on lease, a staggering 5,239 are operating without the contractually required GPS trackers. This security lapse, in direct violation of a 2021 agreement, renders the state-owned bank unable to locate or repossess the high-value assets in the event of payment defaults.
Further scrutiny has exposed questionable financial practices between ZTBL and East West Insurance Company. A joint account maintained by the two entities, number 21271040400528 at a Lahore branch, reportedly holds approximately 42.57 million PKR.
Under the terms of this account, the insurance company was granted “unrestricted” withdrawal rights to 19.83 million PKR, an arrangement financial experts have flagged as a potential loophole for insiders that circumvents standard accountability measures.
ZTBL officials allegedly continued to release tractors and approve lease agreements despite being fully aware that the essential security devices were missing. Specialists assert that this deliberate bypassing of standard procedures undermines institutional safeguards and creates fertile ground for systemic fraud.
The selection of a mid-tier insurance provider for such a large-scale national scheme, over more established industry players, has also drawn criticism. Observers suggest the decision may have been guided by vested interests rather than considerations of efficiency or the protection of farmers.
The direct impact on the public is severe. Farmers now face potential legal and financial repercussions for untraceable tractors, while the national exchequer is exposed to potential losses running into billions of rupees.
Researchers warn the controversy could irreparably damage public confidence in government-led agricultural support initiatives and cast a long shadow over the viability of future subsidy schemes.
Authorities have been urged to conduct a thorough audit, take immediate action to recover the untracked vehicles, and review all contractual arrangements with insurance providers. ZTBL has issued a statement confirming it is investigating the allegations. East West Insurance has been approached for comment.