Pakistan’s agricultural sector received a significant boost during the first half of FY26, with the State Bank of Pakistan (SBP) reporting Rs1.41 trillion in credit extended to farmers, reaching a total of 2.97 million borrowers. This growth builds on a record Rs2.58 trillion in agricultural loans disbursed in FY25, reflecting a 16% year-on-year increase and underscoring the central bank’s continued focus on promoting rural financial inclusion and enhancing agricultural productivity.
Governor SBP Jameel Ahmad highlighted the critical role of agriculture in supporting rural livelihoods, ensuring food security, and driving broader economic growth. He noted that Pakistan’s economy has regained macroeconomic stability, with real GDP growth reaching 3.7% in Q1-FY26 and projections for full-year growth ranging between 3.75% and 4.75%. Headline inflation moderated to 5.8% by January 2026, allowing the central bank to maintain a balance between growth support and price stability, while external accounts remained broadly contained due to resilient remittances, stable commodity prices, and prudent monetary and fiscal policies.
To accelerate the expansion of borrowers, particularly smallholders in underserved areas, Governor Ahmad urged banks to leverage SBP initiatives such as the Risk Coverage Scheme for Small Farmers and Underserved Areas. He emphasized the potential of Zarkheze, the SBP digital platform for agricultural lending, which facilitates digital onboarding of farmers, standardized credit assessment, integration with land and crop data, and traceable loan utilization. By connecting farmers to certified input vendors, Zarkheze ensures credit is used for quality agricultural inputs while supporting end-to-end loan monitoring.
The central bank also highlighted the need to scale up Zarkheze as a core delivery channel to make small-ticket lending commercially viable and expand outreach beyond traditional high-volume regions. Banks were advised to streamline application processing, strengthen internal ownership of the scheme, and further develop the vendor ecosystem to provide embedded advisory services and quality inputs to farmers.
Other initiatives discussed included the upgraded Crop Loan Insurance Scheme (CLIS+) under the ADB-funded Pakistan Insurance Transformation Program, designed to expand crop coverage, introduce technology-based calamity assessments, and improve risk-sharing through an insurance consortium. The ADB Solidarity Fund will also support extending coverage to non-borrowing farmers and contribute to developing a National Insurance Policy for Agriculture.
Electronic Warehouse Receipt Financing (EWRF) was highlighted as another tool to enhance post-harvest liquidity, reduce distress sales, and strengthen market linkages. The ACAC called for expanding accredited warehouse infrastructure and increasing bank participation in EWR-based financing to better support farmers.
Governor Ahmad emphasized the importance of deepening financial inclusion, prioritizing small and micro farmers, and diversifying agricultural finance into underserved regions. Banks were urged to fully implement their Agricultural Credit Expansion Plans for FY26, coordinate with provincial authorities on digitizing land records, and form strategic partnerships with fintechs, agri-tech firms, and microfinance institutions to enhance accessibility and inclusion.
The Agricultural Credit Advisory Committee continues to serve as a strategic platform under SBP’s leadership, bringing together financial institutions and stakeholders to advance agricultural finance as a driver of inclusion, productivity, and long-term economic resilience in Pakistan.
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