Agricultural Credit Hits Rs2.58 Trillion as Pakistan Expands Farmer Support
KARACHI: Pakistan disbursed a record Rs2.58 trillion ($9.2 billion) in agricultural loans during fiscal year 2024–25, a 16 percent increase over the previous year, State Bank of Pakistan Governor Jameel Ahmad said Thursday. The announcement came during a meeting of the Agricultural Credit Advisory Committee (ACAC).
Agricultural financing is critical to Pakistan’s rural economy, where farming contributes nearly one-fifth of GDP and employs a significant share of the workforce. Expanding credit access for small farmers has been a key government priority to boost productivity, stabilize food supply, and support economic recovery under the IMF-backed reform program.
According to official data, agricultural credit disbursement reached Rs2.58 trillion in FY25, marking a record high. In the first half of FY26 alone, banks disbursed Rs1.412 trillion in agricultural loans, while the number of borrowers rose to 2.97 million.
“During fiscal year 2025, record agricultural loans of Rs2.58 trillion were disbursed, reflecting annual growth of 16 percent,” Governor Ahmad said in a statement issued after the meeting. He added that Pakistan had regained macroeconomic stability and was moving toward sustainable growth.
The governor noted that GDP growth in the first quarter of FY26 stood at 3.7 percent, with full-year growth projected between 3.75 and 4.75 percent. Headline inflation declined to 5.8 percent in January 2026.
The committee reviewed measures to further expand credit access, including increased use of the central bank’s Zarkhez-e scheme and promotion of electronic warehouse receipt financing. The latter aims to enhance post-harvest liquidity, reduce distress sales of crops, and strengthen agricultural market linkages.
Agricultural lending remains central to Pakistan’s financial inclusion strategy as policymakers focus on improving rural incomes, stabilizing food prices, and supporting export-oriented crop production amid broader economic reforms.
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