HBL Zarai Services and Zarai Taraqiati Bank boost financial inclusion and agroservices for farmers in Pakistan

Pakistan is making strides in agricultural development through a collaborative initiative between its government and both public and private sector banks. A Memorandum of Understanding (MoU) was recently signed between HBL Zarai Services Limited (HZSL) and Zarai Taraqiati Bank Limited (ZTBL), marking a significant effort to boost financial inclusion and modernize agricultural services for farmers nationwide.

This strategic alliance will leverage HZSL’s ‘HBL Zarai Deras’ and ZTBL’s ‘ZTBL Zarai Baithaks’ as integrated hubs to offer farmers a comprehensive range of services, including agronomic guidance, financial support, and farm mechanization. The partnership is particularly focused on enhancing farm productivity and economic stability by providing innovative financial solutions and expert advisory services.

At the MoU signing ceremony, HZSL’s CEO, Mr. Amer Aziz, highlighted the importance of a farmer-centric approach in financial services. He detailed HZSL’s integrated model which not only helps in tackling farmers’ cash flow challenges through a buy-back scheme—ensuring immediate cash payments for harvests—but also supports farmers to reinvest promptly in their next crop cycle.

Moreover, Mr. Aziz emphasized that HZSL aims to reduce post-harvest losses by 15-20% by introducing modern and efficient harvesters, which will significantly enhance farm efficiency.

Meanwhile, Mr. Tahir Yaqoob Bhatti, President and CEO of ZTBL, showcased a documentary at the event that spotlighted the vital role of ZTBL in supporting Pakistan’s agricultural sector, particularly aiding small and subsistence farmers. He noted that under the PM Kissan Package, ZTBL has disbursed PKR 37 billion (approximately US$132 million) in agricultural loans, including significant funding for farm mechanization. ZTBL’s efforts are supported by its extensive network of over 500 branches, which predominantly serve rural, underserved, and unbanked areas.

Mr. Bhatti further introduced several of ZTBL’s initiatives aimed at enhancing farmer engagement and delivering expert advisory services, such as the ZTBL Zarai Baithak and the ZTBL Mobile Van Service. These services are designed to extend financial and agricultural advice to remote farming communities, underscoring the importance of expanding financial inclusion and diversifying banking portfolios to include more New-to-Bank (NTB) customers.

This partnership between HZSL and ZTBL exemplifies a shared commitment to empowering farmers through financial inclusion, digital transformation, and adopting sustainable agricultural practices. By combining modern banking solutions with cutting-edge farming techniques, the initiative aims to improve productivity, increase access to mechanization, and promote long-term economic growth for Pakistan’s smallholder farmers.