ZTBL Privatization Has Complicated Recovery of Rs. 58 Billion From Defaulters

The federal government’s plan to privatize Zarai Taraqiati Bank Limited (ZTBL) by December 2025 has disrupted the bank’s restructuring and transformation, sources informed ProPakistani. So far, 174 employees have resigned, the future of 7,229 remains uncertain, and the recovery of Rs. 58 billion from defaulters looks in jeopardy. The uncertainty due to ZTBL’s complicated privatization exercise is hampering recovery efforts, with the amount now classified as a loss or non-performing loans. New hiring and procurement including IT systems, treasury upgrades, and infrastructure, have been halted, sources added. ZTBL recovered from a loss of roughly Rs. 6 billion in 2021 to a profit of Rs. 15.34 billion in 2024. Despite this, the government has decided to proceed with the bank’s privatization. In FY2023-24, the bank disbursed Rs. 163 billion in loans, including Rs. 37 billion under the Prime Minister’s Scheme at a 7 percent markup. Over 611,000 farmers received loans by December 2024, with 40,000 new borrowers added in the past year. ZTBL posted profits of Rs. 10.98 billion in 2023 and Rs. 12.96 billion in 2024, totaling Rs. 23.9 billion in two years, with Rs. 16.7 billion paid in taxes. The bank operates 501 branches across 31 regions but has only 49 ATMs, highlighting infrastructure gaps amid stalled reforms.