Pakistan’s agricultural sector has seen a notable increase in credit disbursements during the first six months of the current fiscal year, signaling stronger financial support for farmers and greater outreach to rural borrowers.
According to the latest data shared by the State Bank of Pakistan (SBP), commercial banks and financial institutions disbursed approximately Rs1.412 trillion in agricultural loans by the end of December 2025, marking a significant expansion in farm lending compared with recent years.
The number of individual borrowers also rose to nearly 2.97 million, underscoring broader inclusion in agri-finance.
The figures were discussed at a recent meeting of the Agricultural Credit Advisory Committee (ACAC) in Karachi, where SBP Governor Jameel Ahmad reviewed the performance of farm credit and set strategic directions for the rest of FY26.
Last year, total agricultural credit reached a record Rs2.577 trillion, representing a 16 percent annual increase.
Officials highlighted the importance of strengthening lending to small and underserved farmers. Initiatives such as the Risk Coverage Scheme for Small Farmers and Underserved Areas and the digital platform Zarkheze have been highlighted as key tools to achieve this.
The digital system allows for online onboarding, standardized assessment, integration with crop and land data, and end-to-end traceability of loan use, making smaller loans more viable for banks.
The committee also discussed measures to support post-harvest liquidity through electronic warehouse receipt financing and the potential to boost crop loan insurance to protect farmers against natural calamities.
These steps aim to build resilience and strengthen market linkages for the agricultural economy.