Islamabad, September 2025 – Pakistan’s agricultural sector has continued to receive strong financial and policy support through increased access to credit, fertilizers, and modern machinery, enabling farmers to strengthen productivity and resilience. According to the Finance Division’s Economic Adviser’s Wing, agricultural credit disbursement rose by 16.3 percent during FY2025, reaching Rs. 2,577.3 billion compared to Rs. 2,215.7 billion in FY2024. This increase reflects sustained government and banking sector efforts to facilitate timely financial resources for farmers, supporting crop cycles and input purchases.
The momentum was also visible in the agricultural machinery segment, where imports of equipment and implements recorded a significant surge of 123.9 percent. In July FY2026 alone, the value of machinery imports reached $14.4 million, underlining the growing adoption of mechanization in farming practices across the country. This shift toward modern agricultural technology highlights not only a drive for efficiency but also the government’s policy focus on equipping farmers with tools that can raise yields and reduce reliance on manual labor.
Fertilizer consumption, a key driver of crop productivity, showed a mixed trend during the Kharif 2025 season (April–July). Urea offtake increased by 2 percent, rising to 1,859 thousand tonnes, reflecting strong farmer demand during the sowing season. On the other hand, diammonium phosphate (DAP) fertilizer recorded a marginal decline of 0.7 percent, settling at 416 thousand tonnes. Analysts suggest that pricing pressures and shifts in crop patterns may have contributed to the slight dip in DAP demand.
The government has reiterated its commitment to strengthening the agricultural sector by ensuring timely access to essential inputs, including quality seeds, fertilizers, credit, and modern machinery. These measures are intended to improve yields, lower production costs, and enable farmers to better respond to the growing food security demands of the country.
Despite these positive developments, risks remain due to climate-related challenges. Heavy rainfall and flooding during the monsoon season have once again underscored the vulnerability of Pakistan’s agriculture to extreme weather events. Such climatic disruptions pose significant threats to achieving the sector’s targeted growth levels, which rely heavily on stable crop cycles and uninterrupted farming operations.
Experts stress that while improved financial access and mechanization are critical for strengthening agriculture, long-term resilience will require comprehensive climate adaptation strategies. This includes investment in flood-resistant seeds, water management infrastructure, and insurance products designed to protect farmers from climate-induced losses.
The steady growth in credit disbursement, rising mechanization, and consistent fertilizer use signal positive strides toward strengthening Pakistan’s farm sector. However, policymakers and industry stakeholders alike recognize that addressing climate vulnerability remains essential for ensuring the long-term sustainability and food security of the country.
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