Karandaaz Pakistan launches digital financing for agri challenge

KARACHI: To improve financial access for Pakistan’s smallholder farmers, Karandaaz Pakistan, an impact investment platform dedicated to driving sustainable economic growth and strengthening financial and social protection systems, has launched the Digital Financing for Agriculture Challenge (DFAC) Round 2.

This initiative aims to support innovative digital solutions that are meant to create an affordable, accessible, and sustainable formal financing ecosystem for farmers.

With only 22.1 percent of farmers currently having access to institutional loans, a vast majority remains reliant on informal sources of credit that often come with unfavourable terms and interest rates.

Smallholder farmers, who cultivate less than 12.5 acres of land, face an array of persistent barriers such as lack of formal and affordable credit, and negligible produce storage facilities that restrict their ability to deploy optimal farming practices, minimize on-farm losses, and claim a fair price for their produce leading to severely hampered financial growth.

Therefore, this challenge round focuses on digital financing solutions that offer collateral-free financing, electronic warehouse receipt financing, digitalization of the aarthi model, and input financing, enabling farmers to overcome capital constraints and achieve financial stability.

Waqasul Hasan, CEO of Karandaaz Pakistan has said that agricultural finance isn’t just about capital-it’s about systems, sustainability, and scale. Traditional lending structures fail to meet smallholder farmers’ needs, limiting their growth. DFAC Round 2 is an opportunity to disrupt this status quo with technology-driven solutions that build an inclusive, efficient, and resilient financial ecosystem, he added.

Karandaaz Pakistan is inviting fintech and agritech companies, banks, NBFCs, MFIs, and infrastructure providers with innovative financial solutions for smallholder farmers to apply. Eligible proposals must focus on disruptive financial enablement models that ensure accessibility, sustainability, and scalability for smallholder farmers.

Copyright Business Recorder, 2025