Shams ul Nisa

The Habib Bank Limited (HBL) is leading a transformative push in agricultural financing, channeling vital credit to farmers while advancing rural development and financial inclusion, reports WealthPK. Agriculture remains a cornerstone of Pakistan’s economy, yet the sector continues to face major challenges, including limited access to formal credit, outdated practices, and exposure to climate and market risks.

In this context, HBL is continuously working to unlock the sector’s economic potential through timely and affordable credit, recognizing the need for targeted financial solutions. This approach is helping farmers improve productivity by investing in quality inputs and modern technology, while also driving rural job creation across related industries such as transport, processing, and retail.

HBL’s efforts are expanding financial inclusion by integrating unbanked rural populations into the formal financial system, encouraging savings, investment, and entrepreneurship. HBL is driving rural transformation through its flagship agricultural lending initiative, HBL Zarai, which now commands nearly one-third of the market share in agricultural finance.

The program offers a wide range of tailored loan products covering crop production, livestock, farm mechanization, and value chain development, while also equipping farmers with training in modern agricultural techniques, financial literacy, and sustainable practices. To enhance its outreach, HBL is leveraging its expanding digital ecosystem, including platforms like Konnect and a user base of over 4.7 million mobile and internet banking customers, to ensure efficient service delivery in rural areas.

Additionally, HBL’s agricultural support extends across the entire value chain, encompassing agri-processing units, cold storage, logistics, agri-tech startups, and export-oriented agribusinesses, thereby strengthening rural supply chains and promoting value addition. The bank places a strong emphasis on smallholder farmers by providing affordable financing to those most in need, while also developing targeted initiatives to empower women in agriculture and recognize their critical role in rural development.

HBL plans to significantly expand its agricultural lending and innovation efforts by growing its portfolio, introducing customized financial products, and deepening partnerships with government and development organizations. The bank is promoting climate-smart agriculture through water-efficient technologies, drought-resistant seeds, and renewable energy.

It is also offering agri-insurance and digital advisory services to support farmers. These efforts are boosting food security, reducing imports, and increasing agri-exports and remittances, contributing to a current account surplus in FY25. Despite progress, Pakistan’s rural economy continues to face challenges such as weak tax enforcement, limited inclusion, and inadequate infrastructure.

In response, HBL advocates for policy reforms, improved market access, and stronger legal frameworks, while promoting public-private partnerships and increased investment in fintech and agri-tech. Through these efforts, HBL aims to uplift rural communities, empower farmers, and drive inclusive growth, positioning itself as a key contributor to job creation and national development.

Credit: INP-WealthPk