ZTBL is The Most Used Source of Loans in Rural Areas

Zari Tarqiati Bank Limited (ZTBL) has been found to be the most used source of credit in Pakistan’s rural areas, according to the Mouza Census – 2020 published by the Pakistan Bureau of Statistics. The census revealed that 58 percent of the rural population uses ZTBL as a source of credit. The second most used source of credit was reportedly the commercial banks that finance 26 percent of the rural population. Other sources of credit include Cooperative, which contributes 14 percent of the financing; microfinance banks, which contribute 10 percent; and Commission Agents which contribute a total of 24 percent. However, 47 percent of the rural population uses other sources such as NGOs, and rural support programs. A similar pattern was observed on the provincial level as well. At least 73 percent of Punjab’s rural areas avail of ZTBL as a source of credit and loans, while 41 percent used other sources. Similarly, 63 percent of Sindh’s rural areas also use ZTBL, while the contribution of other sources made up for 38 percent. However, the percentages of other sources in Khyber Pakhtunkhwa (KP), Balochistan, and the federal capital were higher than ZTBL. ZTBL contributed a total of 35 percent in KP, while the other sources added up to 59 percent. In Baluchistan, ZTBL was used by only 28 percent of the rural population, while other sources were used by 58 percent of the rural population. In Islamabad, commercial banks made up a total of 68 percent, which positioned them as the most used source of credit or loans. ZTBL contributed 33 percent in the capital and other sources contributed a total of 46 percent.