Islamabad: In a major move for Pakistan’s agriculture sector, the State Bank of Pakistan (SBP) has approved the use of digital survey reports as an alternative to traditional khusra gardavari for agricultural loans. The decision is set to revolutionize the way banks evaluate farming activities and lend to farmers.
The Khasra Girdavari, a revenue department document, traditionally provides details about land ownership and harvest dates. With the new State Bank directive, banks will now be able to use digital survey reports, which leverage satellite imaging and geo-fencing technology to verify farming activities in real time.
This shift towards digital transformation is expected to streamline the loan approval process. By reducing reliance on manual land assessments, farmers will experience faster loan processing times, enabling them to access the financial assistance they need.
Moreover, this initiative will strengthen risk management strategies for agricultural credit. Using digital tools to continuously monitor forms will allow for more data-driven decisions, increase the accuracy of loan assessments and reduce the risk of default.
Financial inclusion is also a key focus. With the new system, more farmers, especially those in remote areas, will be able to access credit, helping to bridge the gap between traditional banking services and less agrarian communities.
The approval opens up significant opportunities for fintech and agritech companies to collaborate with banks. Data analytics and AI-powered credit scoring systems will play an important role in improving lending decisions, while partnerships between banks and fintech firms will drive innovation in agriculture finance.
By adopting technology, the initiative aims to increase the productivity of farmers and consequently boost the overall agricultural economy of Pakistan.
