This document provides an overview of the Interest-free Agriculture E-Credit Scheme in Punjab, Pakistan, which aims to provide 500,000 small farmers with loans of up to PKR 100 billion over 5 years. Akhuwat has been allocated PKR 2 billion to disburse loans in selected districts. As of October 2017, Akhuwat had disbursed over 41,000 loans totaling PKR 2.292 billion with a 100% recovery rate. The scheme offers digital financial services and training to promote financial and digital inclusion among farmers.

1. 1

2. Interest-free Agriculture E-Credit Scheme
“Empowerment of Kissan through
Financial & Digital Inclusion”
(An initiative by Government of the Punjab)
An Overview of Project Progress

3. Brief Description of Project
Project Initiator Government of the Punjab
Budget PKR 100 billion
Duration 05 years (2016-17 to 2020-21)
Target group 500,000 small farmers with landholding
of up to 12.5 acres
Participating Financial Institutions
(PFIs)
Akhuwat, NBP,NRSP, Tameer Bank &
ZTBL
Date of MoU Signing b/w GoPb
and Akhuwat
8th December,2016
Funds allocated to Akhuwat PKR 2.0 billion
Transfer of funds 30th December,2016
Progress of Akhuwat as of 31st
October, 2017
41,976 loans Disbursed

4. Salient Features
• A unique initiative for agriculture lending in Punjab
• The scheme is for entire province however Akhuwat has
to provide loans in selected districts to:
• Farmers having land holding of up to 2.5 acres with preference
to the landless
• Tenants and sharecroppers are also eligible subject to their
tenancy agreement
• Loans are provided for Rabi and Kharif crops (all six
months crops are covered under this scheme)
• Loans are awarded on social collateral or personal
guarantees
• Farmers must be registered in Land Records
Management & Information System (LRMIS)

5. Digital Inclusion
• Opening of bank accounts of farmers
• Cashless disbursement
• Use of ATM card for cash withdrawal
• Use of mobile wallet account for cash withdrawal and
vendor payments
• Inclusion of smart phones for:
• Agriculture advisory
• Weather forecast
• Knowledge about latest machinery
• Market information
• Helpline number
• Agriculture news

6. Progress Report
as of 31st October,2017
%age Recovery
100%
No. of
Districts
23
No. of
Branches
86
Total
Benefitting
Farmers
41,976Amount
Disbursed
2.292
Billion
Active Loans
23,482
Outstanding
Loan Portfolio
1.4
Billion

7. No. of Loans Disbursed-Ownership
as of 31st October,2017
28,796
13,000
Tenants Owners
69%
31%

8. Significant Achievements
• Disbursement through Asaan Accounts: 34,150 Asaan
Accounts opened and farmers will receive loans through
these accounts for Rabi 2017-18
• Benchmark survey of all farmers completed though it
was not required under the agreement
• Farmers’ facilitation and capacity building: 20,000 farmer
got training on latest techniques and 90% farmers will
get training before coming cropping season (It was also
not a part of agreement)
• All farmers are availing Water & Soil test services (so far
4,320 farmers have conducted these tests)
• Laser leveling campaign was launched and this activity
will be completed before next crop (so far 6,180 farmers
have conducted laser leveling)

9. Farmers’ Road to Success
Increased crop
production
Access of Interest Free
Financial Services
Crop
Seeds &
Fertilizers
Start
Technology
Trainings about
latest tools and
techniques
Farmer is free to
sale crop in market
Improved
Income
Land

10. THANK YOU

11. AlHuda CIBE FZ LLE - U.A.E |
P.O Box. 120867, Dubai - U.A.E |Cell: +971 55 938 9900 |
AlHuda Center of Islamic Banking & Economics - Pakistan
Ph: (92-42) 35913096 - 98, Fax: (92-42) 35913056
Email: info@alhudacibe.com Website: www.alhudacibe.com