Pakistan’s banking sector has achieved a significant milestone in agricultural financing, disbursing a record Rs1.412 trillion in credit during the first half of fiscal year 2026 (July-December 2025).
This robust performance builds on the previous year’s record and underscores growing confidence in the sector amid macroeconomic stability.
Record Disbursement Signals Strong Momentum
The figure of Rs1.412 trillion marks a continuation of upward trajectory following FY25’s historic Rs2.577 trillion disbursement, which saw a 16% year-on-year increase.
The number of borrowers has modestly risen to 2.97 million, reflecting broader outreach to farmers nationwide.
This growth is supported by improved access to inputs, stable commodity prices, and resilient remittances contributing to economic steadiness.
SBP Governor Urges Enhanced Inclusion and Digital Push
State Bank of Pakistan (SBP) Governor Jameel Ahmad, chairing the Agricultural Credit Advisory Committee (ACAC) meeting in Karachi, emphasized agriculture’s critical role in boosting farm productivity, rural livelihoods, and food security.
He called for full implementation of FY26 Agricultural Credit Expansion Plans, urging banks to leverage initiatives like the Risk Coverage Scheme for Small Farmers and the digital platform Zarkheze for better onboarding, credit assessment, and outreach to smallholders in underserved areas.
The governor highlighted priorities such as expanding small-ticket lending through microfinance banks, deepening inclusion for subsistence farmers, and achieving geographical diversification.
Complementary efforts include scaling up Electronic Warehouse Receipt Financing (EWRF) for post-harvest liquidity and advancing crop loan insurance under ADB-supported programs.
With real GDP growth at 3.7% in Q1-FY26 and full-year projections of 3.75-4.75%, alongside headline inflation easing to 5.8%, the sector remains poised for sustainable expansion through collaborative reforms and technology integration.