In a major step towards reforming Pakistan’s agricultural financing landscape, the Privatisation Commission has signed a Financial Advisory Services Agreement (FASA) with a consortium led by Next Capital Limited for the strategic privatisation of Zarai Taraqiati Bank Limited (ZTBL).
The winning consortium, which secured the highest technical and financial score among six competing bidders, also includes Ijaz Ahmed & Associates, Baker Tilly Mehmood Idrees Qamar, Executives Network International, Bridge Public Relations, Savills Pakistan Pvt. Ltd., and Prima Global Consulting Pvt. Ltd. Competing groups included Arif Habib Ltd, AF Ferguson, AKD Securities, Bridge Factor, and JS Bank.
Founded in 1961 as the Agricultural Development Bank of Pakistan (ADBP) and renamed ZTBL in 2002, the institution remains the country’s largest public-sector agricultural lender with a nationwide network of 501 branches. The government has prioritised its privatisation as part of the ongoing reform agenda for State-Owned Enterprises (SOEs).
Government’s Reform Vision
The Ministry of Privatisation stated that the initiative reflects the government’s commitment to attracting private sector investment, modernising banking operations, and ensuring the sustainability of SOEs. The privatisation of ZTBL is expected to catalyse investment in Pakistan’s agricultural sector by combining private efficiency with the bank’s deep expertise in rural finance.
ZTBL’s Future Post-Privatisation
Post-privatisation, ZTBL will be better positioned to:
Deliver faster, more accessible credit to small farmers and rural communities
Introduce modern banking technologies and digital solutions for agriculture financing
Strengthen governance, transparency, and accountability
Expand financial products for emerging agribusiness opportunities
Enhance customer service and on-ground responsiveness
Role of the Financial Advisor
Under the FASA, the financial advisor will conduct sell-side due diligence, engage with potential investors, structure and market the transaction, and assist the Privatisation Commission in conducting a transparent bidding process.
A negotiation committee has also been formed to finalise the agreement with the selected consortium.
Concerns Raised in Parliament
The Senate Standing Committee on Privatisation had earlier voiced concerns about including ZTBL and the Pakistan Mineral Development Corporation (PMDC) in the privatisation programme, questioning the rationale behind their divestment. Despite reservations, the government has moved forward, calling ZTBL’s transformation a “critical milestone” for empowering farmers and strengthening Pakistan’s agricultural economy.
Related stories:
