Agricultural financing in Pakistan increased nearly 15 percent during the first nine months of FY2025–26, reaching Rs2.16 trillion as banks expanded lending to farmers and agribusinesses under ongoing reforms to improve rural credit access.
According to the Pakistan Economic Survey 2025–26, total agricultural lending stood at Rs2,161.6 billion during July–March FY2026, compared to Rs1,880.4 billion in the same period last year. The sector achieved 70.6 percent of its full-year target of Rs3.06 trillion.
Outstanding agricultural loans rose 22.6 percent to Rs1.17 trillion by March 2026, while the number of borrowers increased slightly to 2.96 million.
Commercial banks remained the primary source of financing, disbursing Rs1.05 trillion. Private banks provided Rs620.6 billion, Islamic banks Rs181 billion, and microfinance banks Rs209.7 billion. In total, 46 financial institutions participated in agricultural lending, including specialized and rural support programs.
Farm-level credit dominated disbursements, accounting for Rs1.19 trillion or 55.2 percent of total lending. Financing to subsistence farmers rose sharply by 41.6 percent to Rs554.7 billion, while small farm lending increased 47.2 percent to nearly Rs320 billion. Credit to economic holding farms also grew 40.8 percent to Rs170 billion.
Non-farm agricultural financing, including livestock and agribusiness activities, reached Rs967.7 billion, up 14 percent year-on-year.
Production loans remained the largest category, totaling Rs1.06 trillion. Development loans increased 22.6 percent to Rs133.7 billion, reflecting higher investment in farm machinery and infrastructure. Working capital loans for non-farm agri businesses climbed to Rs901 billion.
To broaden access, the State Bank of Pakistan introduced digital and structural reforms, including the ZarKhez-e platform launched in October 2025. The system enables small farmers to access credit through digital profiles, alternative data, and automated risk assessment.
Warehouse receipt financing also expanded, allowing farmers to secure loans against stored crops. Storage capacity under the system reached around 380,000 metric tons, while Rs3 billion was disbursed to 507 farmers during the period.
Additional reforms include digitized land records, expanded crop insurance schemes, and a new risk coverage program targeting underserved farmers. The initiative aims to support 750,000 new borrowers by FY2028 with projected financing of Rs300 billion.
The survey notes that agricultural credit growth aligns with a broader recovery in the farm sector, which expanded 2.89 percent during FY2026. Stronger output in major crops, improved livestock performance, and higher input use supported overall growth.
