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Establishment of high efficiency Irrigation System

Pakistan has an arid or sub-arid climate having an average rainfall of 240 millimeters (mm), mainly during the monsoon season (July-September). According to the benchmark water scarcity indicators, the assessed per-capita access to water was around 900 m3 per person in 2017. This positions Pakistan at the “high water stress” level, If the same conditions persist, the country will hit an absolute water scarcity border by 2025. Small water reservoirs can effectively play a role in boosting agricultural production coupled with solar pumping systems thereby decreasing the depletion of natural resources.

Renewable energy such as solar is a viable and alternate energy source. Solar energy, coupled with suitable pumps i.e. submersible energy pumps, could help to meet the irrigation requirements. Solar powered tubewell can be considered as a reliable source of irrigation as compared to electric or diesel operated tube well due to frequent load shedding and rising energy & diesel prices.

Due to finite supply of surface water, farmers make use of ground water to meet the irrigation demands of their crop. There are around 2.5 million farmers in the country that depends upon the supply of ground water extracted through tube wells for their crop water needs. Through connecting high efficiency irrigation systems with solar energy systems, farmers can achieve high water use efficiency, energy efficiency and most important to the farmer, cost-efficiency.

Terms & Conditions:

Operational Jurisdiction The scheme would be applicable across the country. However, financing may be provided on a priority basis to farmers living in underserved areas.
Eligibility Criteria
  1. The creditworthy and reputable rural populace all over the country, having the capacity to repay are eligible to get financing under the said scheme. However, old borrowers having good repayment behavior and familiarity with the above activity would also be considered for such loans.
  2. Not a defaulter of ZTBL or any other Bank.
  3. Clear e-CIB Report.
  4. Obligors Risk Rating (ORR) up to 4.
  5. The progressive borrower should possess technical know-how of Solar Energy Pumps, Drip Irrigation systems to enable them to establish and run the unit in a commercially viable manner.
  6. Quotation/estimate for installation of Solar Tube well, Drip Irrigation System from the firm/entity to be verified by respective Branch Manager, duly accepted by the prospective borrower would be required.
Maximum Loan Limit The maximum loan limit under the scheme would be up to Rs. 5.000 million per borrower/party.
Borrower Contribution The amount over & above the Bank’s maximum per borrower/party exposure of Rs. 5.000 million will be invested by the borrower in the project as equity, or 10% of the project cost if the project cost is less than Rs. 5.000 million.
Collateral The loan would be secured against tangible securities acceptable to the Bank.
Cost of Credit As per Bank’s Rules.
Rate of Mark Up Prevailing Bank’s markup rate on development loans would be applicable for the scheme. However, a 3% rebate would be allowed on timely repayment.
Items to be financed Solar Tube well, Drip Irrigation System, Small Water Reservoir/Mini dam.
Sanction of Loan Loans under the scheme would be sanctioned by Central Loan Sanctioning Department (CLSD) up to Rs. 2.500 million and over & above by the respective Head Office Credit Committee.

 of  Loan

After execution of legal documents loan would be disbursed through supply order in favor of the firms to be approved by the Head of Planning, Research & Technology Division.


Solar Tubewell The loan would be recovered within 10 years in half yearly installment with grace period of six month.
Drip Irrigation System The loan would be recovered within 10 years in half yearly installment with grace period of six month.
Small Water Reservoir/Mini dam The loan would be recovered within 05 years in half yearly installment with grace period of six month.
Insurance Insurance of assets to be created out of Bank loan will be arranged by the borrower.
Monitoring Close monitoring would be carried out on monthly basis by the respective Zonal Chief and Credit Operations Department, ZTBL Head Office Islamabad for which they would develop formats for production of required data by Information System Division, ZTBL Head Office Islamabad.