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Aftab Maken
ISLAMABAD: To reform the country’s agricultural financing system, the Privatization Commission has signed a Financial Advisory Services Agreement (FASA) for the strategic privatization of Zarai Taraqiati Bank Limited (ZTBL).
The agreement, inked with a consortium led by Next Capital Limited, underscores the government’s push to modernize state-owned enterprises (SOEs) and attract private investment, said an official statement released by the Privatization Commission on Friday.
Federal Minister for Privatisation and Chairman of the Privatisation Commission, Muhammad Shoaib, termed the move “the dawn of a new era” for the country’s agri-finance sector. “This is more than a sale—it’s a strategic initiative to empower farmers by bringing in private sector efficiency, modern technology, and enhanced capital,” he said.
ZTBL, with its network of 501 branches, has long struggled with high operational costs, outdated technology, and inefficient loan recovery systems. Its government-owned status has also led to slow decision-making, limiting its ability to meet the evolving needs of modern farmers. Officials believe privatization will inject fresh capital, management expertise, and agility into the bank’s operations.
Key anticipated benefits include:
- Faster, more accessible credit for small farmers, boosting agricultural productivity.
- Digital transformation through mobile banking, online loan applications, and other tech-driven solutions.
- Improved governance and transparency under private sector oversight.
- Tailored financial products for agribusiness, including financing for advanced irrigation, agri-tech, and food processing.
- Enhanced customer service with a stronger focus on farmers’ needs.
The signing of the FASA is the first major step in the process. The appointed Financial Advisor will now conduct due diligence, approach potential investors, and structure a transparent transaction aimed at maximizing national benefit and ensuring the bank’s sustainable future.
The government says the initiative blends ZTBL’s agricultural expertise with private sector efficiency to foster rural prosperity and strengthen farmers’ contribution to the national economy.
