Pakistan Farm Credit Hits Record Rs 1.41 Trillion in H1-FY26; SBP Urges Digital Shift.

Pakistan’s agricultural sector achieved a record-breaking credit disbursement of Rs 1.412 trillion during the first half (July–December) of FY2025-26. This milestone was shared by State Bank of Pakistan (SBP) Governor Jameel Ahmad during a meeting of the Agricultural Credit Advisory Committee (ACAC) on February 12, 2026.

Key Highlights of the Farm Finance Update

• Broad Impact: The credit disbursements have benefited approximately 2.97 million borrowers, reflecting enhanced financial access across the country.
• Macroeconomic Stability: Governor Ahmad noted that the economy has regained stability, with 3.7% GDP growth recorded in Q1-FY26. Full-year growth is projected between 3.75% and 4.75%.
• Digital Transformation: Banks were urged to scale up Zarkheze, the SBP’s flagship digital platform, to enable digital onboarding, standardized credit assessment, and end-to-end loan traceability.
• Support for Small Farmers: The Governor emphasized leveraging the Risk Coverage Scheme for Small Farmers and Underserved Areas to expand outreach beyond traditional high-volume regions.
• Innovative Risk Mitigation: The meeting discussed an Upgraded Crop Loan Insurance Scheme (CLIS+) to improve risk-sharing and farmer payouts, alongside scaling up Electronic Warehouse Receipt Financing (EWRF) to enhance post-harvest liquidity and reduce distress sales.
• Financial Inclusion: Priorities for the sector include expanding outreach through microfinance banks, geographical diversification to underserved areas, and coordination with provincial governments for the digitization of land records.