Despite devastating floods in 2025 that damaged large swathes of farmland and disrupted rural livelihoods, Pakistan’s agriculture sector has shown resilience with a noticeable increase in agricultural financing and higher uptake of key farming inputs. The federal government has declared both climate and agriculture emergencies across the country, highlighting the urgency of the crisis while also focusing on support measures to keep production on track.
Preliminary assessments of crop and livestock losses are still underway, but policymakers are already pointing to significant damage in major Kharif-growing areas. Yet, the financial response from banks and the demand for essential inputs suggest that the agriculture sector continues to push forward, preparing for recovery and continuity in food production.
According to the Finance Division’s Economic Adviser’s Wing, agricultural credit disbursement rose sharply in the first two months of FY2026. From July to August, farm credit reached Rs. 404.2 billion, reflecting a 19.5 percent increase compared to Rs. 338.2 billion during the same period last year. This jump indicates both an increase in demand from farmers looking to rebuild operations and an expansion in supply as banks and financial institutions scale up lending under government-backed programs.
At the same time, imports of agricultural machinery and implements surged by 66.7 percent to $29.4 million in July-August FY2026. The rise highlights a renewed interest among farmers in mechanization as they seek to replace damaged equipment and modernize cultivation practices to improve efficiency. For an agriculture sector under pressure from climate shocks, mechanization is increasingly seen as a necessary step toward resilience.
Fertilizer consumption also recorded a strong upward trend during the Kharif 2025 season, which runs from April to August. Urea offtake reached 2,676 thousand tonnes, marking a 12.4 percent increase over Kharif 2024. Meanwhile, Diammonium Phosphate (DAP) offtake stood at 552 thousand tonnes, an 8.7 percent rise from last year. These figures indicate that despite the floods, farmers have continued to invest in maintaining soil fertility and ensuring crop growth, signaling their determination to safeguard output.
Experts believe the resilience stems partly from the government’s emergency response measures, which include targeted subsidies, credit support, and facilitation for input supplies. The declaration of nationwide climate and agriculture emergencies has also enabled the channeling of resources into flood-hit regions more quickly, while reinforcing the importance of building long-term climate adaptation frameworks for Pakistan’s agricultural economy.
The positive trends in financing and input use come against a backdrop of increasing risks from climate change. Agriculture, which employs nearly 40 percent of Pakistan’s workforce and contributes significantly to GDP, remains the most vulnerable sector to climate disruptions. The 2025 floods have once again underscored the urgent need for investment in resilience, both through financial inclusion and through access to modern technologies.
For farmers, the challenge now lies in balancing immediate recovery with preparations for the next cropping cycle. With increased credit flows and higher input uptake, the foundations for recovery are visible, but sustainability will depend on continued support from the government and financial institutions.
The months ahead will be critical as the full extent of crop and livestock losses is documented. For now, the surge in financing and farm inputs provides cautious optimism that Pakistan’s agriculture sector, though battered by natural disasters, is determined to recover and adapt.
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