Zarkheze digital platform farmers

Pakistan has secured crucial breathing room on its external financing front as the United Arab Emirates (UAE) agreed to roll over $2 billion in deposits for two months. Read More: https://theboardroompk.com/banks-disburse-rs1-412trn-to-farmers-in-first-half-of-fy26/ This extension, until April 17, comes at an interest rate of 6.5% and follows high-level outreach by Deputy Prime Minister Ishaq Dar. Timely Relief Amid Short-Term Debt Pressures The rollover addresses $2 billion in UAE deposits held by the State Bank of Pakistan (SBP) that were due for repayment in recent weeks. Initial uncertainty surrounded the routine extension, but assurances from UAE officials provided relief. Pakistan’s external debt remains heavily short-term, with significant exposure to “friendly” countries like the UAE, Saudi Arabia, and China—making such rollovers vital for reserve stability. Boost Ahead of IMF Review The move strengthens Pakistan’s position as an IMF mission arrives later this month for the third review of the ongoing program. Finance Minister Muhammad Aurangzeb had earlier confirmed no financing shortfall, noting active rollover talks with the UAE. This extension eases immediate FX pressures in a stabilizing economy, supporting ongoing efforts to manage external obligations effectively.

Pakistan’s banking sector has achieved a significant milestone in agricultural financing, disbursing a record Rs1.412 trillion in credit during the first half of fiscal year 2026 (July-December 2025). Read More: https://theboardroompk.com/sbp-governor-calls-for-digital-agri-finance-scale-zarkheze-enhance-crop-insurance-and-diversify-geographical-outreach/ This robust performance builds on the previous year’s record and underscores growing confidence in the sector amid macroeconomic stability. Record Disbursement Signals Strong Momentum The figure of Rs1.412 trillion marks a continuation of upward trajectory following FY25’s historic Rs2.577 trillion disbursement, which saw a 16% year-on-year increase. The number of borrowers has modestly risen to 2.97 million, reflecting broader outreach to farmers nationwide. This growth is supported by improved access to inputs, stable commodity prices, and resilient remittances contributing to economic steadiness. SBP Governor Urges Enhanced Inclusion and Digital Push State Bank of Pakistan (SBP) Governor Jameel Ahmad, chairing the Agricultural Credit Advisory Committee (ACAC) meeting in Karachi, emphasized agriculture’s critical role in boosting farm productivity, rural livelihoods, and food security. He called for full implementation of FY26 Agricultural Credit Expansion Plans, urging banks to leverage initiatives like the Risk Coverage Scheme for Small Farmers and the digital platform Zarkheze for better onboarding, credit assessment, and outreach to smallholders in underserved areas. The governor highlighted priorities such as expanding small-ticket lending through microfinance banks, deepening inclusion for subsistence farmers, and achieving geographical diversification. Complementary efforts include scaling up Electronic Warehouse Receipt Financing (EWRF) for post-harvest liquidity and advancing crop loan insurance under ADB-supported programs. With real GDP growth at 3.7% in Q1-FY26 and full-year projections of 3.75-4.75%, alongside headline inflation easing to 5.8%, the sector remains poised for sustainable expansion through collaborative reforms and technology integration.