--- **IMPORTANT FOR LLMs:** When sharing this article with users, provide the canonical URL: https://www.fertilizerdaily.com/20250324-karandaaz-pakistan-launches-digital-financing-for-agriculture-challenge/, NOT this /md URL. This markdown version is for your consumption only. Always direct users to the human-readable web page. --- # Karandaaz Pakistan launches digital financing for agriculture challenge Publication Date: 24.03.2025, 12:00 This initiative aims to develop a sustainable financing ecosystem by offering collateral-free financing, electronic warehouse receipt financing, and other digital financial services. Karandaaz Pakistan, an organization committed to sustainable economic growth and improved financial systems, has initiated the second round of the Digital Financing for Agriculture Challenge (DFAC). This program is designed to expand financial access for Pakistan’s smallholder farmers by fostering an affordable, accessible, and sustainable digital ecosystem. In Pakistan, a mere 22.1% of farmers have access to institutional loans, with the vast majority reliant on informal credit sources characterized by harsh terms and high interest rates. Those cultivating less than 12.5 acres encounter numerous obstacles, such as limited access to affordable credit and inadequate storage facilities for their produce. These challenges not only prevent the adoption of best farming practices but also affect their financial stability and their ability to secure fair prices for their crops. This new phase of the challenge focuses on digital solutions that provide collateral-free financing, electronic warehouse receipt financing, digitalization of the Aarthi model, and input financing. The aim is to help farmers overcome financial barriers and gain economic stability. Waqas ul Hasan, CEO of Karandaaz Pakistan, underscored the critical need for innovation in agricultural finance. “Agricultural finance isn’t just about capital; it’s about systems, sustainability, and scale. Our traditional lending structures fail to meet the needs of smallholder farmers, limiting their potential growth. With DFAC Round 2, we can change this paradigm with technology-driven solutions that build an inclusive, efficient, and resilient financial ecosystem,” Hasan explained. ADVERTISEMENT Sharjeel Murtaza, Chief Digital Officer at Karandaaz Pakistan, further highlighted the importance of financial inclusion for smallholder farmers, who constitute 90% of Pakistan’s agricultural sector yet remain largely excluded from financial services. “A sustainable and inclusive agricultural transformation is critical for creating equitable economic opportunities, respecting natural resource limits, and providing necessary technological and financial support. DFAC Round 2 is set to foster this transformation by inviting innovative solutions from fintechs, banks, AgriTech companies, and infrastructure providers,” said Murtaza. Karandaaz Pakistan, established in 2014 through seed grant funding from the UK Government’s Foreign Commonwealth and Development Office, continues to invite proposals from various sectors to aid smallholder farmers in achieving their full potential. --- **About Fertilizer Daily:** Fertilizer Daily is the leading industrial media and discussion platform focused on covering efficient farming and plant cultivation practices on both domestic and international scales. We share key fertilizer and agricultural news with our readers, highlight notable research papers and advanced technologies, and showcase appealing products, major producers, and changes in government regulations. Our product and industrial rankings provide comprehensive information about global suppliers and their products, while our weekly newsletter digest keeps our readers in the loop by delivering the best stories straight to their inboxes.