Pakistan’s agricultural financing reached a record Rs. 2.16 trillion during the first nine months of FY26, reflecting strong growth in farm sector lending. However, questions remain about whether small and underserved farmers are benefiting proportionately from the surge in credit.
While banks, Islamic financial institutions, and microfinance lenders significantly expanded agricultural lending, a large portion of financing continues to flow toward established borrowers and larger agribusiness operations. Despite multiple government and SBP initiatives aimed at improving financial inclusion, millions of small farmers still face barriers such as limited documentation, lack of collateral, and restricted access to formal banking channels.
The Economic Survey 2025-26 highlights growing efforts to bridge this gap through digital lending platforms, warehouse receipt financing, and risk-sharing schemes. Yet the challenge remains ensuring that record credit growth translates into improved productivity, higher rural incomes, and broader access to finance for Pakistan’s smallest farming communities.
Officials hope new technology-driven programs and targeted risk coverage mechanisms will help bring hundreds of thousands of previously excluded farmers into the formal financial system over the coming years.
