By Arooj Zulfiqar

The HBL's "Zarai" subsidiary is a pioneering initiative aimed at uplifting the agricultural sector, particularly focusing on small and medium-size farmers. The establishment of this subsidiary will help them enhance their output and overall productivity, Azeem Tariq, an expert at the National Agricultural Research Centre (NARC), tells WealthPK. "Agriculture remains the backbone of Pakistan's economy, providing livelihood to millions and contributing significantly to the country's GDP. However, the small farmers, making up a substantial portion of this sector, often encounter numerous obstacles that hinder their productivity and growth. These challenges range from limited access to modern farming equipment and quality seeds to insufficient storage facilities and a lack of expert guidance on optimal farming practices," he said.

"Zarai" will address these challenges and offer the farmers a range of facilities and services that can lead to increased yields and improved farming practices. "The incorporation of storage solutions into the subsidiary's offerings will undoubtedly alleviate the problem of crop spoilage. This initiative will help small farmers maintain the quality of their produce and reduce the post-harvest losses. "Additionally, the provision of modern farming equipment to enhance productivity and efficiency will not only address the problem of labour shortages but also empower the farmers for higher yields. Moreover, the availability of crucial crop production inputs like quality seeds and fertilizers reflects the Habib Bank Limited's understanding of the small farmers' needs and dedication to their growth," Azeem said.

"With initiatives like these, Pakistan's agriculture sector can look forward to a brighter and more prosperous future. Kudos to the HBL for their foresight and commitment to making a lasting impact." In a significant step towards achieving a sustainable agronomy in Pakistan, the HBL has announced the establishment of an agriculture-specialised company aimed at building the production capacity of small and medium-size farmers.

Despite establishing a unique subsidiary, the bank will continue to provide loans to the customers for agricultural endeavors. According to the bank's CEO, "Zarai" will provide non-financial services, while the farm financing will be handled on the HBL balance sheet. It is evident that this will not be a corporate social responsibility (CSR), according to Aurangzeb. He explained that the bank's top priority was agricultural financing, which is why the portfolio in 2022 hit an all-time high of Rs50.6 billion. The HBL has contributed over Rs4 billion - spread over a decade - to the social uplift of Pakistan. In 2022 alone, the bank contributed over Rs580 million.

Credit: INP-WealthPk