Agricultural Bank Headed Toward Privatization, Says Markazi Kisan League

Lahore: Chairman of the Markazi Kisan League (MKL), Chaudhry Zulfiqar Ali Olakh, and President Muhammad Ashfaq Virk have expressed serious concern over the findings of the Auditor General of Pakistan (AGP) regarding alleged financial irregularities in the Zarai Taraqiati Bank Limited (ZTBL). They called for an independent and transparent investigation into the reported irregularities and urged the government to protect the institution from privatization.
In a joint statement, the two leaders said the audit report highlighted alleged financial mismanagement, fraudulent loans issued on fake documents, unfair distribution of agricultural loans, excessive investment in government securities instead of lending to farmers, and administrative irregularities. They said the bank, established to support farmers and agricultural development, has failed to fulfill its primary objective.
They stated that while a large portion of the bank’s resources has been diverted to government securities, small farmers continue to face difficulties in obtaining agricultural credit. Farmers, they said, are already struggling with rising prices of fertilizer, seeds, pesticides, diesel, electricity, and water shortages, while also facing strict lending conditions and recovery policies.
The MKL leaders further alleged that decisions benefiting a few officials and policymakers have caused billions of rupees in losses, creating an impression that the bank is operating at a loss. They warned that this situation could be used to justify the privatization of the state-owned bank.
They also criticized the reported unequal distribution of agricultural loans, saying that giving extraordinary preference to one province while neglecting farmers in others is against the principles of fairness and national unity.
Olakh and Virk demanded a transparent inquiry into all reported financial irregularities, fake loans, questionable appointments, and misuse of authority. They urged the government to restore the bank’s original role by ensuring easy, timely, and merit-based agricultural financing for farmers and preventing any attempt to privatize the institution by deliberately portraying it as financially weak.