Headline:
Bank of Punjab and Karandaaz Pakistan Forge Strategic Alliance to Transform Pakistan’s Agriculture Sector
Subheadline:
Landmark Agreement Signed to Propel Digital Financing for Agriculture, Promising Financial Inclusion and Innovation
Body:
In a groundbreaking move aimed at revolutionizing Pakistan’s agriculture sector, The Bank of Punjab (BOP) and Karandaaz Pakistan have joined forces in a strategic alliance under Karandaaz’s inaugural Digital Financing for Agriculture (DFA) Challenge 2023. The landmark agreement, signed on April 1, 2024, marks the commencement of a pioneering initiative geared towards enhancing digital agriculture loans and fostering financial inclusion nationwide.
The agreement signing ceremony, held at the Marriott Hotel Islamabad, was attended by key figures including Mr. Zafar Masud, President & CEO of The Bank of Punjab, and Mr. Waqas ul Hassan, CEO of Karandaaz Pakistan. Notable attendees also included Mr. Sharjeel Murtaza, Director DFS at Karandaaz, Mr. Asif Riaz, Group Head Consumer Banking, Mr. Nadeem Khanzada, Senior Joint Director of SBP, and Mr. Qasim Javed, representing Techlogix, alongside other senior management from BOP, Karandaaz, and the Agri and Fintech sectors.
Mr. Zafar Masud, President & CEO of The Bank of Punjab, emphasized that the collaboration aims to overcome financial hurdles faced by farmers. It not only seeks to enhance productivity but also addresses the challenge of loan securitization by offering collateral-free financing. Leveraging innovative solutions such as real-time loan disbursement based on predictive AI assessments, the initiative is poised to empower farming communities across the country, fostering resilience and prosperity among marginalized agriculturists. Mr. Masud extended gratitude to Karandaaz Pakistan, the State Bank of Pakistan, Techlogix, and all other stakeholders for their unwavering support.
Mr. Waqas ul Hassan, CEO of Karandaaz Pakistan, expressed his enthusiasm about the collaboration, stating, “Banks are one of the most suited partners to address farmers’ access-to-credit challenges. The collaboration between Karandaaz Pakistan and Bank of Punjab represents a significant opportunity for demonstrating an increase in the productivity of agricultural value chains through digital inclusion of small farmers.”
Mr. Masud highlighted how Karandaaz’s Digital Agriculture Finance Challenge 2023 spurred innovation. Utilizing technology, the bank will provide digitally processed crops, livestock, and dairy loans aggregating approximately Rs 5 billion. The aim is to enhance financial inclusion, access to credit, increase yield, reduce poverty, and create employment. This initiative, supported by a Rs 50 million grant, shall promote sustainability, innovation, and productivity through advisory services and digitalization. Partnering with Techlogix for their Digital Platform and the country’s top AgriTechs for Agronomy scores and advisory, BOP and Karandaaz are poised to revolutionize agricultural financing, benefiting farming communities across Pakistan.
The Director of Digital Financial Services (DFS) at Karandaaz apprised, “Through this partnership with Bank of Punjab, Karandaaz aims to establish a comprehensive digital lending platform, featuring a dynamic credit scorecard complemented by instant approval and disbursement mechanisms for timely access to finance. This platform will act as the rails for delivering a range of financial products currently out of reach for smallholder farmers across the country.”
