Pakistan’s agriculture sector has recorded improvements in the availability of key farming inputs during the ongoing Kharif 2026 season, supported by stronger agricultural financing, increased machinery imports and higher tractor production. However, climate forecasts continue to indicate elevated risks for major seasonal crops as below-normal rainfall and extreme weather conditions are expected across much of the country during the coming months.
Agricultural credit disbursement showed significant growth during the fiscal year, reflecting continued financial support for the farming sector. During the July to May period of FY2026, banks and financial institutions disbursed Rs2,791.1 billion in agricultural credit, representing a 21.4 percent increase compared with the corresponding period of the previous fiscal year. Higher financing is expected to help farmers invest in crop production, agricultural equipment and farm operations throughout the season.
Farm mechanisation also continued to strengthen during FY2026. Imports of agricultural machinery and implements increased by 23.1 percent during the July to June period, reaching US$135.3 million. The increase indicates sustained investment in modern farming equipment as producers continue adopting technologies aimed at improving productivity, operational efficiency and long-term agricultural output.
Domestic tractor manufacturing also remained on a positive trajectory during the fiscal year. Tractor production increased by 3.6 percent year-on-year to 29,633 units during FY2026, while total tractor sales reached 28,791 units over the same period. The growth reflects continued demand for mechanised farming equipment despite broader economic pressures affecting input costs across the agriculture sector.
Fertiliser usage presented mixed trends during the Kharif 2026 sowing season. Urea offtake during April to June reached 1,474 thousand tonnes, representing a 17.8 percent increase compared with Kharif 2025. The higher consumption suggests stable demand for nitrogen-based fertilisers to support crop cultivation during the current season.
In contrast, Diammonium Phosphate (DAP) fertiliser demand declined considerably. DAP offtake fell to 194 thousand tonnes during Kharif 2026, a decrease of 37.3 percent compared with the same period last year. The decline has largely been attributed to higher market prices, which may have affected purchasing decisions by farmers during the planting season.
Despite improvements in financing and agricultural inputs, weather conditions remain a significant concern for the country’s farming sector. According to the Pakistan Meteorological Department’s seasonal outlook issued on June 30, 2026, most parts of the country are expected to receive below-normal rainfall between July and September. The forecast increases the likelihood of water shortages for major Kharif crops, including sugarcane, rice, cotton and maize.
Reduced rainfall is expected to increase irrigation requirements across agricultural regions, placing additional pressure on available water resources during critical crop growth stages. Farmers may need to rely more heavily on irrigation systems to maintain crop development if rainfall remains below seasonal averages.
Meteorological forecasts also indicate that varying temperature patterns across different regions could generate strong winds, dust storms, thunderstorms and hailstorms during the season. Such weather events have the potential to affect standing crops, vegetables and orchards, creating additional production risks for farmers already managing changing climatic conditions.
The combination of stronger agricultural financing, increased mechanisation and improved availability of farming inputs provides positive support for Pakistan’s agriculture sector. However, climate-related challenges continue to remain an important factor influencing crop production, making weather conditions and water availability critical determinants of agricultural performance during the remainder of the Kharif 2026 season.
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