SBP Launches ‘Zarkhez-e’ Digital Platform to Boost Collateral-Free Loans for Small Farmers

The State Bank of Pakistan (SBP) has announced the launch of a new digital platform, “Zarkhez-e,” aimed at making collateral-free agricultural loans more accessible to small and marginalized farmers across the country. The initiative, previously known as the National Subsistence Farmers Support Initiative (NSFSI), is part of the government’s broader Risk Coverage Scheme for Small Farmers and Underserved Areas. According to a circular issued by the Agriculture Credit & Financial Inclusion Department (ACFID) on October 14, 2025, the scheme is designed in line with the Prime Minister’s vision to transform the agriculture sector and enhance bank financing for farmers in unserved and underserved regions. Developed in consultation with banks and microfinance banks (MFBs), Zarkhez-e offers an end-to-end digital solution that allows subsistence farmers and tenants to apply for agricultural loans through a centralized online portal, eliminating the need to visit bank branches. After necessary verification and agronomic assessment via the Land Information Management System (LIMS), applications are forwarded to the applicant’s chosen bank for further processing. A key feature of the platform is that at least 75% of the financing is disbursed in-kind, covering essential inputs such as seeds, fertilizers, pesticides, and diesel, through reputable agri-merchants onboarded by banks and MFBs. Up to 25% of the loan can be provided in cash to meet other farming expenses. Additionally, farmers will receive agri-advisory services to help improve crop productivity. Most banks and MFBs have already integrated their systems with the new portal and LIMS, and have onboarded agri-merchants. Others are being encouraged to complete the process promptly to ensure a seamless rollout nationwide. The SBP has also introduced a standardized process flow to maintain uniformity across the industry. Under the scheme, financing for small and marginalized farmers will benefit from a 10% first loss coverage and an operational cost subsidy of Rs. 10,000 per borrower for net increases in outstanding borrowers. The SBP is urging all banks and MFBs to fully leverage the Zarkhez-e platform to extend much-needed financial support to subsistence farmers, in line with the provided term sheet and process flow.