Overhaul of ZTBL ordered: PM stresses financial inclusion of farmers

ISLAMABAD: Prime Minister Shehbaz Sharif on Tuesday ordered a fast-track overhaul of the country’s state-run agricultural bank – Zarai Taraqiati Bank Ltd (ZTBL) – and called on private banks to do more in helping farmers’ access to credit, as fears grow over the country’s slumping agricultural output.

Chairing a high-level meeting, the prime minister directed the immediate acceleration of reforms at ZTBL, a state-owned institution tasked with financing agricultural development.

The bank has faced criticism in recent years for its limited outreach and bureaucratic hurdles, particularly for small and medium-sized farmers.

To ensure the plan gains momentum, the prime minister announced he would personally oversee implementation through review meetings every three weeks, underscoring what he described as a top national priority: financial inclusion for rural farmers.

He maintained that the farmers deserve to be treated with dignity and must be given adequate support, particularly when it comes to securing financing for agricultural production.

“Providing them (farmers) with easier access to affordable credit is among the government’s top priorities,” PM Sharif said in a statement issued here by the Prime Minister’s Office.

Officials at the meeting briefed the prime minister on ZTBL’s current performance and proposed a series of measures aimed at improving the disbursement of agricultural credit.

The role of private sector banks in expanding concessional lending was also discussed, with Prime Minister Sharif urging them to broaden their footprint in the agricultural sector.

The country’s agricultural economy – which employs nearly 40 per cent of the labour force – has been under growing strain due to inflation, erratic weather patterns, water scarcity, and other climate-related disruptions.

These factors have disproportionately impacted smallholder farmers, many of whom lack collateral and face systemic barriers in accessing affordable loans.

The prime minister pledged that his administration would prioritise the financial empowerment of these farmers, calling them the backbone of the country’s economy.

He said that simplified, low-interest loans were essential to reviving the rural economy and ensuring long-term food security.

The meeting was attended by federal ministers Rana Tanveer Hussain and Ahsan Iqbal, Advisers to the Prime Minister Muhammad Ali and Haroon Akhtar, Ministers of State on Economy Bilal Azhar Kayani and Abdul Rehman Kanju, Governor State Bank of Pakistan Jameel Ahmad and

other senior officials.

Copyright Business Recorder, 2025