Records show that under a 2021 agreement, all tractors released on lease were required to be equipped with GPS trackers to allow ZTBL to monitor usage and recover vehicles in case of payment defaults. However, it was found that out of 6,272 tractors leased, 5,239 are operating without trackers. This security lapse effectively leaves the bank unable to locate or repossess assets if farmers default or if the tractors are stolen
DNA
ISLAMABAD (Jan 27-2026)
A major scandal has emerged implicating Zarai Taraqiati Bank Limited (ZTBL) and East West Insurance Company, raising serious concerns over the management of billions of rupees in government-subsidized tractor leases. An investigation has found that thousands of tractors were distributed to farmers without mandatory GPS tracking devices, leaving public funds vulnerable to misuse and theft.
Records show that under a 2021 agreement, all tractors released on lease were required to be equipped with GPS trackers to allow ZTBL to monitor usage and recover vehicles in case of payment defaults. However, it was found that out of 6,272 tractors leased, 5,239 are operating without trackers. This security lapse effectively leaves the bank unable to locate or repossess assets if farmers default or if the tractors are stolen.
The probe also highlights concerning monetary practices. A joint account maintained by ZTBL and East West Insurance reportedly holds approximately 42.57 million PKR. Under the joint account number 21271040400528, held at a Lahore branch, the insurance company has specific “unrestricted” withdrawal rights to 19.83 million PKR.
The account’s structure allows the insurance company unrestricted access to withdraw funds, generating questions about monitoring and accountability. Experts have described this arrangement as a potential loophole benefiting a small network of insiders at the expense of the national exchequer.
ZTBL officials reportedly continued releasing tractors and approving lease documentation despite being aware of the missing security devices. Specialists point out that bypassing standard procedures undermines institutional safeguards and creates opportunities for systemic fraud.
The decision to award the contract to a mid-tier insurance company rather than established industry players has also drawn scrutiny. Observers suggest that the move may have been motivated by vested interests rather than efficiency or farmer protection.
Public impacts are direct and major. Farmers risk legal and financial problems if stolen or missing tractors cannot be traced, while taxpayers face potential losses running into billions of rupees. Researchers warn that the scandal could damage public confidence in government-led agricultural support programs and cast doubt on the effectiveness of future subsidy schemes.
Authorities have been urged to conduct a thorough audit, recover untracked tractors, and review the contractual arrangements with insurance providers. ZTBL says it has stated that it is investigating the allegations, while East West Insurance has been approached for comment.
