This document summarizes an initiative called the CAPP Eco-System that aims to accelerate the digital and financial transformation of Punjab's agriculture sector. The key elements of the CAPP Eco-System include providing interest-free loans to smallholder farmers, distributing smartphones to enable access to digital advisory services and markets, and establishing an integrated system for farmers to access inputs, subsidies, and selling crops online. The initiative aims to financially include currently underserved farmers, improve farm yields and incomes through access to information, and reduce inefficiencies in agricultural supply chains through digital technologies and financing. Over 300,000 farmers have benefited from loans disbursed worth 23.5 billion PKR so far through the program.

1. Accelerating Digital & Financial
Transformation of Agriculture Sector

2. Punjab: The land of five rivers
110 Million People…
11th Largest population in the
world, if it was a country
Taxila:
The Oldest University
in the world
326BC
Lahore:
Architectural &
Cultural Capital of
Mughal Empire
Harappa:
Indus valley
Civilization
2600 B.C>
South Punjab:
TheLand of Sufis
and
Nawabs

3. The challenging state of Agriculture Eco-System
Workforceemployed
in Ag
44% $3.7B
exports
$6.1B
imports
20%of GDP–$60B
Actual estimate ~$
100B*
89%
SmallholderFarmers
of which ~65% grow
forsubsistence
Agriculture Landscape
50%loweryields compared
to world averagedue to
traditional practices
Key Challenges
*As per SDPIestimates.
$34Bworth of Ag
commodities
purchased eachyear
40%wastagedue to
post-harvest
losses
Farmerslackaccessto
Finance:
Cashbasedindustry
Landbasedcollateral only
70%unmetcredit
demand 20% being
served by informal, high
interest loans (>40%
markups)
Poor Mechanization
Only 500Ktractors
for 8 millionfarms

4. Growth in rural mobile broadband users
50millionMobilebroadbandsubscribersaddedin4years–1600%growth!
Another17millionexpectedby2020(MostlyRural)

5. The Solution
A digital ecosystem that enables all
agriculture stakeholders
• E-Credit scheme (Interest free loans)
• Crop based loan allocation
• Digital advisory and subsidy
• Quality input supplies
• Access to online markets
• Leveraging ICT to Increase transparency

6. How it works?
Public Private
Partnership
Financial
Institutions
Farm Input
Suppliers
Wholesale
Buyers
Agriculture
Processors
Digital Advisory
Trainings & Farmer Incentives
Smartphones & Broadband
Department of Agriculture

7. CAPP Eco-System
Farmer
Initial focus of the E-Credit and CAPP is
on small farmers. Small farmer are 90 %
of total farming community and 64% of
agriculture land across Punjab.
• Criteria based farmer selection
• Land less farmers with land size of
approx. 2 hectare or less
• Land owner with land size of up to
10 hectare (allowed up to 4 hectare)
• Land owner with land size of up to
20.25 hectare (allowed up to 8
hectare)
• Farmers of all age group and any
gender

8. CAPP Eco-System
Financial inclusion
Priority is to attract under-bank and non-banked
farmers through E-Credit scheme
• Interest free credit
• Rabi Loan amount of $216/0.4 hectare
• Kharif loan amount $345/0.4 hectare
Five participating Financial Institution
National Bank of Pakistan (NBP)
Zarai Taraqiati Bank Limited (ZTBL)
Telenor Microfinance Bank
National Rural Support Program(NRSP)
Akhuwat

9. CAPP Eco-System
Smartphones
Smartphones to enable mobile wallet
and CAPP android applications.
• Integration of various banks to
provide branchless banking
(mobile wallet)
• Distribution of 110,000 android
smart phone
• Loan disbursement through mobile
wallet (Easypaisa)

10. CAPP Eco-System
Digital advisory
Number of applications have been
included in CAPP to introduce digital
advisory to the farmers
Kissan TV (Farmer TV)
Muqaami Mausam (Weather)
Zarai Mahir (Ask the Expert)
Agri Calculator
Zarai Jantri (Crop calendar)

11. CAPP Eco-System
Farm input supplies
An integrated system for farmers to buy
various inputs that comes with
government backed quality guarantee.
• Input supplies e.g. Seed, fertilizer
and pesticide
• Quality assurance guarantee on all
products
• Systematic option to claim
applicable subsidy
• Pay through mobile wallet
• Inputs delivered to farmers door
step

12. CAPP Eco-System
ICT based subsidy claim
An ICT based system for farmers to
claim subsidy on various inputs through
scratch voucher, barcode card and QR
code based voucher.
• Online subsidy claim processing
• Instant amount collection from
local branchless banking agents
• Claim subsidy through SMS or an
android application
• Centralized system to monitor
subsidy

13. CAPP Eco-System
E-Mandi(E-market)
Allow farmer to trade/sell their corps on
an intelligent portal called E-Mandi
• Increase farmers reach beyond
local mandies
• An intelligent digital platform

14. CAPP
ecosystem
Farmer
E-Mandi
(E-market)
ICT based
subsidy claim
Farm input
supplies
Digital
advisory
Smartphones
Financial
inclusion

15. Enablers

16. Facilitation centers & booths
Facilitation center and booths are being established to
distribute smartphone and provide comprehensive
training to farmers on CAPP.
• Total 62 facilitation centers are being established
across 36 districts for initially two years
• 100 Facilitation Booths
• 10 Facilitation mobile vans
CAPP enablers

17. Support call center
A call center to answer matters related to smartphone,
sim, training or android applications.
• Call centre will provide an ultimate connect
center where all farmer queries and complaints
related to the platform, sim and devices will be
entertained
• 09:00 am to 05:00 pm
• 7 days a week
CAPP enablers

18. Most Connected Farmer (MCF) Program
Incentivized farmers who adopt technology
• Encourage farmers to use CAPP apps for their day
to day farming activities
• Reward farmers who use these apps
CAPP enablers

19. Engage
Engage Department of Agriculture and Agriculture
industry
• Embed CAPP within services offering of Extension
wing
• Door to Door farmer campaign to educate and
generate awareness
• Engage End to End service providers
CAPP enablers

20. Youth Engagement
Youth will be engaged to assure future generation is
equipped with digital and precession Agriculture
• Comprehensive training to farmers and one
member of the family
• Awareness & educational program will be
introduced at local school and colleges
• Uplift agriculture centric ICT literacy through
global and local NGOs
CAPP enablers

21. Registered
farmers
390,720
Landless
Farmers
98,616
No. of Loans Given
315,931
Female Farmers
10,012
Credit Disbursed
PKR 23.54
B
Crop Cycles
3 Crop
Cycles
Smartphones
Distributed
31,277
New To Bank
93 %
Digital Passbook
Reduction in
Farmer Visits
Upto 85%
Ground we’ve
covered

22. Ground we’ve covered (cont)
Cash
Withdrawn
12,246,608
Videos
viewed
1,130,565
Local Weather
viewed
594,462
Crop Calendar
viewed
100,967
Questions
asked
109,756
Calculations
Done
26,750
Ads
Created
1860
Products
Viewed
17000
Subsidies
Requested
530

23. CAPP – road map
• Planning
• CAPP Phase I
• Banks Integration
2017 2019
• CAPP Phase II
• Crop Insurance
• Add more banks
• 110k smartphones
• Mobile Wallet
• TNA
2018 2020
• Add more banks
• New loan products
• 150K smartphones
• Integrations
• G2P SMART subsidy
• Climate & Agriculture
• Semi close mobile wallet
2021
• More banks and loan products
• 175k smartphones
• 80% small farmer coverage
• Targeted advisory
• Machine learning
• Intelligent credit appraisal
• Insurance consortium
• Semi close mobile wallet
• Adding new Telecom partner
• 175k smartphones
• Decision Support Systems
• End to end digital advisory
• Closed mobile wallet

24. We Thank Our Partners
Strategic
Partners Finance
Department
Punjab Land
Record Authority
Technology
Partner
Global
Partner
Financial
Partners
Punjab Information
Technology Board
State Bank
Of Pakistan