Banks Target 5.8 Million Agricultural Borrowers by 2028

Pakistan’s agricultural borrowers have increased to 3.4 million over the past two years, recovering from a low of 2.7 million. The State Bank of Pakistan (SBP) aims to expand the number to 5.8 million by 2028.

Pakistan Banks Association (PBA) Chairman Zafar Masud said the banking sector had reversed the decline in agricultural lending. However, the number of farmers with access to credit remains below the approximately four million recorded in 2019.

Speaking during a visit to the Karachi Press Club on Tuesday, Masud said the SBP’s target would significantly expand access to agricultural financing over the next two years.

He added that the volume of agricultural loans was projected to increase from Rs1.3 trillion to Rs3.3 trillion by 2028.

SME Financing Reaches Rs1.2 Trillion

Masud said banks had also increased financing to small and medium enterprises (SMEs) to Rs1.2 trillion from around Rs490 billion over the past two years.

The number of SME borrowers rose from 200,000 to 350,000 during the same period.

Auto Policy: Pakistan’s Parts Industry Warns of Job Losses and Rising Import Dependence

He said the banking sector had also expanded housing finance. The number of borrowers increased from 65,000 to approximately 300,000, while approved financing reached Rs455 billion.

Masud said banks were working to extend credit to underserved segments, including farmers, small businesses and households. He described wider access to finance as important for financial inclusion and wealth creation.

PBA Chairman Calls for Welfare-Based Growth Measures

Masud proposed a Welfare GDP framework to assess economic performance through improvements in household living standards, rather than relying only on growth in the overall size of the economy.

He also identified the undocumented economy as a major obstacle to expanding credit.

Banks depend on financial records to assess borrowers’ repayment capacity. Masud said greater documentation and tax compliance would help lenders extend financing to more individuals and businesses.

Remittances Support Vulnerable External Account

Meanwhile, PBA Chief Executive Munir Kamal said Pakistan’s foreign exchange position remained vulnerable due to weak export growth and limited foreign investment.

He said remittances from overseas Pakistanis had exceeded $41 billion and were playing an increasingly important role in supporting the country’s external account.