ISLAMABAD — The government intends to expand agricultural credit to Rs1.5 trillion ($5.36 billion) by June 2027, increasing the number of beneficiary farmers to 4.5 million, the Prime Minister’s Office (PMO) announced on Friday. The initiative seeks to broaden financial access for cultivators, aiming to bolster food security and improve crop quality.
As a cornerstone of the national economy, agriculture employs a vast workforce and accounts for roughly one-fifth of the country’s GDP. Expanding credit access for smallholders remains a priority, supporting wider goals of productivity growth, food supply stability, and economic recovery under the IMF-backed reform program.
Prime Minister Shehbaz Sharif hosted a delegation of bank presidents and CEOs on Friday, acknowledging their institutions’ contributions toward financing the affordable housing scheme, small and medium enterprises (SMEs), and the agricultural sector.
In a statement, the PMO noted that agricultural loan volume had already reached Rs1.352 trillion ($4.83 billion) by the end of September 2026, covering 3,455,313 individuals.
Looking ahead, the administration aims to raise agricultural disbursements to Rs1.5 trillion ($5.36 billion) by June 2027, lifting the number of farmer beneficiaries to 4.5 million.
Sharif stated that enhancing credit flow to SMEs, housing, and agriculture would foster employment, drive investment, raise productivity, and stimulate overall economic growth.
He directed the State Bank of Pakistan to streamline loan approval and disbursement procedures, eliminating bottlenecks to allow greater public access to financing.
“Agricultural lending is essential for elevating farmers’ economic standing, boosting output, and securing food supplies,” he added.
Officials also briefed the prime minister on the SME sector, where approximately 350,862 businesspersons have received $4.1 billion in loans. The target is to reach $5.36 billion in total SME lending and 565,000 beneficiaries by June 2027.
Agricultural finance remains central to Pakistan’s financial inclusion strategy, as policymakers work to raise rural incomes, stabilize food prices, and bolster export-oriented crop production within the context of broader economic reforms.
