Agriculture is the cornerstone of Pakistan’s economy, providing livelihoods to nearly two-thirds of the population and contributing to approximately three-fourths of the country’s export earnings. It accounts for 23 percent of the GDP and employs 37.4 percent of the labour force, yet it generates only 20 percent of national income—a reflection of untapped potential within this critical sector.
At The Bank of Punjab (BOP), we recognize the immense responsibility of nurturing this backbone of our economy.
Guided by a vision of empowerment, innovation, and sustainability, we have embarked on a transformative journey to redefine agricultural financing and uplift the farming community across Pakistan.
It is with great pride that I share BOP’s exceptional progress in agricultural financing, a success that has earned recognition at responsible forums. In a span of three years, BOP’s agricultural portfolio has grown by 3 times, with NPLs (Non-Performing Loans) way below the industry’s average.
This transformation marks the beginning of a groundbreaking journey for agricultural financing. The successful launch of the Chief Minister Punjab Kissan Card—our latest intervention — promises to revolutionize the agricultural lending landscape, with an anticipated disbursement exceeding Rs. 75 billion for a single crop cycle.
This initiative has already set new benchmarks in the industry, enabling farmers to access agri-inputs seamlessly through a digital onboarding process and addressing critical needs during both Rabi and Kharif seasons.
To date, BOP has approved an impressive PKR 50.33 billion under the Kissan Card Programme alone, benefiting almost 500,000 farmers—a scale unmatched in Pakistani Banks’ Agricultural History.
The swift processing and timely disbursement of Kissan Card applications underscore the efficiency of BOP’s completely digital on-boarding process, solidifying BOP’s leadership role in Financial Inclusion and Digital Lending.
As a result, 57 percent of Kissan Card holders are availing credit facility for the first time, with 70 percent of these new borrowers owning land less than 5 Acres. The overall ratio of less-than-5 acres farmers in the entire portfolio is 67 percent.
Female participation in Kissan Card programme is also impressive at an unprecedented scale – out of 18,347 female borrowers, 75 percent are availing credit facilities for the first time with average land holding of 3.7 acres only!
Complementing this progress, our targeted financing initiatives have facilitated the purchase of 3,114 agri vehicles (PKR 4.193 billion) and 4,262 tractors (PKR 6.05 billion), driving mechanization and economic advancement in the agricultural sector.
As a result, the long-declining trend of number of farmers availing credit facilities has been finally reversed!
In addition, BOP is also running the equally revolutionary CM Punjab Livestock Card scheme, which is designed to support the meat exports sector through providing interest-free loans to small livestock farmers for fattening. The scheme envisages supporting up to 100,000 livestock farmers for fattening of up to 400,000 animals in three cycles, with the first cycle already underway.
Another intervention in the livestock sector is the Asset Transfer scheme, where 5–10 animals shall be provided to 11,000 women in the Punjab over the next two years. BOP is helping open bank accounts for these women to increase gender participation in the financial inclusivity drive, and also contributing up to PKR 5,000/beneficiary under CSR activities.
To increase agricultural mechanization, the Chief Minister Punjab Green Tractor Scheme is underway where 9,500 farmers shall purchase tractors with the help of a PKR 1 million subsidy from GoPb. BOP is providing completely digital cash management services for this scheme.
Our achievements had also been acknowledged by the State Bank of Pakistan. BOP had been declared as the Best Agri Mid-Tier Bank for two consecutive fiscal years (2021–22 and 2022–23) and is ranked second among large banks viz-a-viz Agriculture Scorecard of SBP.
Under BOP’s collateral-free lending focus, we have facilitated above 8,000 borrowers, besides a special emphasis on women’s economic empowerment, providing PKR 1,370 million to 1,031 female farmers, thus promoting our agenda of gender diversification.
With over 200 agri-designated branches and an overall network of approximately 900 branches, we have ensured consistent growth in advances, deposits, and financial inclusion, firmly establishing BOP as a leader in sustainable agricultural development in Pakistan.
We can proudly say that BOP today is the top bank, which alone serves the largest number of farmers in the country.
Our Electronic Warehouse Receipt Financing (EWRF) programme has revolutionized the sector by enabling farmers to secure funds using stored commodities as collateral.
This year, we expanded EWRF to include maize, paddy/rice, wheat, and cotton seeds, a groundbreaking achievement that underscores BOP’s commitment to pioneering financial solutions.
In parallel, under our Climate Smart Financing initiative, we funded more than 200 solar tube-wells and renewable energy solutions, advancing sustainable agriculture.
Winning the Karandaz Digital Challenge Fund, further cemented our position as a leader in digital agri-financing. This state-of-the-art platform streamlines farm and non-farm financing with minimal human intervention, demonstrating our dedication to financial inclusion through technology.
Moreover, incorporating Punjab Land Records Authority (PLRA) integration, we have streamlined Fard issuance and land mutation processes, ensuring seamless access for farmers.
As the Champion Bank for South Punjab, designated by the State Bank of Pakistan, BOP continues to focus on regional growth through its non-financial Advisory piece.
Additionally, BOP has introduced Area Yield Index Insurance, enhancing farmer welfare and promoting Crop Security. Collaboration with corporate giants such as Haleeb, Nestle, Engro Foods, and prominent sugar mills has enabled financing for suppliers, while integrating supply chains with BOP’s financial ecosystem.
Leading this transformation alongside a dedicated team has been an incredible privilege.
Together, we have made a meaningful impact on Pakistan’s agricultural landscape, empowering farmers and fostering economic growth. Our success is a testament to BOP’s relentless pursuit of excellence and our commitment to overcoming the unique challenges of the agricultural sector.
As we look to the future, our journey of innovation and sustainability will continue to inspire and uplift the heart of Pakistan’s economy.
Our ongoing partnership with government bodies and corporate allies will continue to foster rural development, improving access to credit and financial literacy for small-scale farmers.
As we look ahead, BOP envisions becoming a key driver of rural economic growth, supporting infrastructure, entrepreneurship, and job creation. Our commitment to transforming the agriculture sector into a resilient and globally competitive industry ensures a prosperous future for Pakistan’s farmers.
At BOP, we are proud to be a pillar of progress, empowering Pakistan’s agricultural community for years to come.
Copyright Business Recorder, 2024
The writer is a development and social-impact focused banker and a public sector specialist professional. He’s presently serving as President and CEO of The Bank of Punjab
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