ZTBL and HBL to promote financial inclusion of farmers
Zarai Taraqiati Bank Limited (ZTBL)
and HBL Zarai Services Limited have signed a Memorandum of Understanding (MoU)
aimed at promoting financial inclusion and improving agricultural services for
farmers across Pakistan. This collaboration seeks to enable farmers to adopt
innovative agricultural technologies and practices, ultimately enhancing farm
productivity and the livelihoods of rural communities.
During the signing ceremony, the
President/CEO of ZTBL presented a video documentary highlighting Pakistan’s
agriculture sector and ZTBL’s vital role in supporting small and subsistence
farmers. He shared that, as part of the PM Kissan Package, ZTBL has provided
Rs. 37 billion in agricultural loans to small and subsistence farmers,
including Rs. 12 billion for farm mechanization. These efforts are supported by
ZTBL’s extensive network of over 500 branches, predominantly located in rural,
underserved, and unbanked areas. The President also spoke about initiatives
such as “ZTBL Zarai Baithak,” a platform for farmer engagement and agricultural
advisory, and the “ZTBL Mobile Van Service,” designed to increase financial
inclusion and offer agro-advisory services to remote farming communities. He
stressed the importance of expanding banking portfolios and onboarding
New-to-Bank (NTB) customers to promote financial inclusion.
Read More Farmers
from Punjab emerge as primary beneficiaries of ZTBL loans
Mr. Amer Aziz, CEO of HBL Zarai
Services, highlighted the need for a farmer-centric approach, emphasizing that
accurate needs assessments are essential for providing loans that help generate
increased cash flow for farmers. He underscored the importance of extending
banking services to farmers and moving beyond the traditional brick-and-mortar
model. In response, the President of ZTBL emphasized that digitization is key
to addressing farmers' challenges and making financial services more
accessible. ZTBL has launched several digital banking initiatives, including
Internet Banking, Mobile Banking, WhatsApp Banking, and a dedicated farmer’s
portal to bridge the gap.
Mr. Amer Aziz also shared details
about HBL Zarai’s buy-back business model, which helps address farmers' cash
flow issues. Under this model, farmers receive direct payments into their accounts
in exchange for their harvest. HBL Zarai also provides inputs, agro-advisory
services, and farm machinery to reduce post-harvest losses, which can range
from 15-20%. By managing the harvesting process, HBL Zarai ensures secure sale
proceeds, reducing financial risks for both farmers and the company. Prompt
payments allow farmers to access timely cash for sowing their next crop.
The ceremony also highlighted the
critical role of agricultural service providers in Pakistan’s agricultural
development. These service providers, with their expertise in operating modern
farming machinery, significantly contribute to enhancing farm output,
particularly for small farmers.
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ZTBL and HBL Zarai reaffirmed their
commitment to continued collaboration, working together to expand financial
solutions tailored to the needs of small farmers, improve access to farm
mechanization, modern agricultural techniques, and strengthen digital financial
services to bridge the gap between farmers and banking services.
Source: Daily Parliament Times