Summary
- Documents and financial statements reviewed by Minute Mirror show that between June 2023 and June 2026, the bank recorded a cumulative profit before tax (PBT) of Rs83.22 billion, compared with only Rs18.3 billion accumulated during the previous 21 years from 2002 to 2022.
- ZTBL’s accumulated profit also turned positive, reaching Rs29.1 billion by June 2026, compared with an accumulated loss of Rs6.04 billion in December 2021.
- Its regular loan portfolio increased by 71pc, rising from Rs73.5 billion in June 2023 to Rs126.1 billion by June 2026.
ISLAMABAD, September 6, 2026: Zarai Taraqiati Bank Limited (ZTBL), once weighed down by years of losses and a large portfolio of non-performing loans, has reported a dramatic financial turnaround, posting billions of rupees in profit while significantly improving loan recoveries and expanding agricultural lending.
Documents and financial statements reviewed by Minute Mirror show that between June 2023 and June 2026, the bank recorded a cumulative profit before tax (PBT) of Rs83.22 billion, compared with only Rs18.3 billion accumulated during the previous 21 years from 2002 to 2022.
The bank’s PBT reached Rs26.58 billion in 2025, a sharp reversal from the Rs26.35 billion loss recorded in December 2019.
ZTBL’s accumulated profit also turned positive, reaching Rs29.1 billion by June 2026, compared with an accumulated loss of Rs6.04 billion in December 2021.
Major recovery of troubled loans
One of the most significant elements of the reported turnaround has been the recovery of loans from the bank’s infected portfolio.
ZTBL recovered Rs114.37 billion, comprising Rs66.53 billion in principal and Rs47.84 billion in markup. The infected portfolio declined from Rs69 billion in June 2023 to Rs47.4 billion in June 2026.
During the same period, the bank’s non-performing loan ratio fell from 32 per cent to 15pc.
Under the LACIP Act, Rs11.6 billion in long-outstanding loans were also recovered.
The IMF’s November 2025 Technical Assistance Report on Pakistan’s governance and corruption diagnostic assessment had noted ZTBL’s historically high share of non-performing loans while acknowledging steps taken by new management to recover problem loans.
Farmers remain at the centre
The reported financial recovery has been accompanied by a substantial expansion in agricultural financing.
ZTBL disbursed Rs298 billion in agricultural loans nationwide, including Rs45.4 billion under the Prime Minister’s Kissan Package.
The bank says more than 67,000 new borrowers were added, while over 700,000 agricultural loans were provided to small farmers.
Its regular loan portfolio increased by 71pc, rising from Rs73.5 billion in June 2023 to Rs126.1 billion by June 2026.
With more than 500 branches across Pakistan, including Azad Jammu and Kashmir and Gilgit-Baltistan, the bank remains one of the country’s key institutions for agriculture financing.
Rising contribution to national revenues
The bank’s reported turnaround has also translated into a larger contribution to the national exchequer.
ZTBL paid Rs10.4 billion in taxes during 2025, compared with around Rs0.4 billion annually during 2019-2021. Its cumulative tax contribution from 2023 to June 2026 stood at Rs30.88 billion.
According to the bank’s data, ZTBL ranked as the eighth-largest tax-paying state-owned enterprise in fiscal year 2025. It also ranked fourth among 15 financial-sector SOEs and 15th among 77 SOEs in terms of profitability.
The bank’s total equity increased to Rs99.4 billion by June 2026 from Rs53.9 billion in 2021, while more than 1,800 employment opportunities were reportedly generated.
Sustainability will be the real test
ZTBL has described the period as a “Transformation & Historic Turnaround Performance”, saying it has moved from a loss-sustaining institution to a productive and profitable entity.
Banking sector analysts, however, say the next challenge will be maintaining the momentum.
“The scale of NPL recovery and the jump in tax contribution shows governance intervention has worked,” a banking sector expert told Minute Mirror. “The real test now is sustaining asset quality and expanding to small farmers without repeating past lending mistakes.”
As Pakistan seeks to increase agricultural productivity, strengthen food security and promote agriculture-led economic growth, ZTBL’s ability to maintain loan quality while reaching underserved farmers is likely to remain under close scrutiny.
The reported transformation therefore represents not only a financial recovery for the bank, but also a test of whether institutional reforms can produce lasting benefits for Pakistan’s agriculture sector.
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