Pakistan signs financial advisory deal to privatize state-owned agricultural bank
The move comes as Islamabad faces pressure to privatize loss-making or under-performing state-owned enterprises under International Monetary Fund loan agreements in recent years.
The government expects the sell-off drive to improve efficiency by putting such entities under competitive, corporate management.
ZTBL's privatization comes at a time when Pakistan is striving to bolster food security in the face of extreme climate patterns by modernizing agricultural finance, helping farmers adopt new technologies and practices critical for boosting yields and resilience.
'The privatization of ZTBL is designed to catalyze investment in Pakistan's agricultural future by combining private sector efficiency with the bank's long-standing expertise in agricultural finance,' the commission said in a statement. 'The goal is to ensure farmers have timely access to essential financial resources.'
It signed the financial advisory services agreement with a consortium led by Next Capital Limited.
ZTBL operates a network of more than 500 branches nationwide, providing credit to small farmers and rural communities.
Officials said private investment was expected to expand the bank's product range, introduce modern banking technologies, improve governance and strengthen customer service.
Under the newly signed agreement, advisers will conduct due diligence, market sounding and investor engagement, as well as structure and market the transaction and assist in a transparent bidding process.
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