Karandaaz Pakistan has launched the second round of its Digital Financing for Agriculture Challenge (DFAC), aiming to revolutionize financial access for Pakistan’s vital smallholder farmers. This initiative targets the critical issue of limited formal credit, with only 22.1% of farmers currently accessing institutional loans. The majority rely on informal, often exploitative, sources.
Smallholder farmers, cultivating less than 12.5 acres, face significant hurdles. Lack of affordable credit and inadequate storage facilities hinder their ability to optimize farming practices and secure fair prices for their produce. DFAC Round 2 seeks to address these challenges by supporting innovative digital solutions. The focus is on collateral-free financing, electronic warehouse receipt financing, digitalization of the aarthi model, and input financing. These solutions are designed to empower farmers, enabling them to overcome capital constraints and achieve financial stability.
Waqas ul Hasan, CEO of Karandaaz Pakistan, emphasizes the need for transformative agricultural finance. He highlights that traditional lending models fail to meet the unique needs of smallholder farmers. This challenge round is an opportunity to leverage technology and build an inclusive, efficient, and resilient financial ecosystem. Bridging the financial gap is crucial for the prosperity of Pakistan’s agricultural sector.
Sharjeel Murtaza, Chief Digital Officer at Karandaaz Pakistan, underscores the importance of financial inclusion for smallholder farmers, who constitute 90% of Pakistan’s agriculture sector. Sustainable and inclusive agricultural transformation, driven by technology and finance, is vital for the nation’s economic growth. DFAC Round 2 aims to stimulate this transformation through innovative digital solutions.
Karandaaz Pakistan invites fintech, agritech companies, banks, NBFCs, MFIs, and infrastructure providers to submit proposals. Eligible solutions must focus on disruptive financial enablement models that prioritize accessibility, sustainability, and scalability for smallholder farmers. Interested parties can submit their applications via email to dfa@karandaaz.com.pk with the subject line “Proposal Submission – DFAC Round 2”. The deadline for submissions is April 14, 2025. Further details are available on the Karandaaz Pakistan website.
