Karachi: The State Bank of Pakistan has approved HBL Zarai Services Limited as an Agricultural Services Provider under the 'Zarkhez-e', Asaan Digital Zarai Qarza Scheme. This approval allows banks to facilitate structured in-kind agricultural financing, enhancing transparency and improving farmer economics.
According to Pakistan Banks Association, the scheme replaces cash disbursement with direct access to approved agricultural services, ensuring financing is used strictly for productive farm activities. This approach minimizes leakages and enhances monitoring at the farm level. Saleem Ullah, Deputy Governor of the State Bank of Pakistan, highlighted the scheme's focus on productive deployment of agricultural financing combined with advisory services to boost farmers' productivity.
As an approved provider, HBL Zarai will offer an end-to-end agriculture services platform, allowing farmers to use financing limits for essential inputs and services. The platform includes mechanization services and a structured crop off-take mechanism, linking financing with production and market outcomes. This initiative marks HBL Zarai as the first non-financial subsidiary of a leading banking group in Pakistan to be approved under such a scheme.
Zafar Masud, Chairman of the Pakistan Banks Association, emphasized the model's potential to promote responsible financing and support farmers with essential services. With HBL Zarai's approval, participating banks are engaging to operationalize in-kind financing, focusing on system enablement and coordination to facilitate transactions.
The onboarding of HBL Zarai as an Agricultural Services Provider aims to strengthen collaboration between banks and service providers, aligning with national priorities for sustainable agriculture and financial inclusion.
The post HBL Zarai Approved as Agricultural Services Provider Under National Scheme appeared first on Pakistan Business News.