Shahid Iqbal

KARACHI: Agricultural credit disbursements surged to record Rs1.412 trillion in the first half of FY26, while the number of borrowers edged up to 2.97 million.

Chairing a meeting of the Agricultural Credit Advisory Committee (ACAC) on Thursday, State Bank Governor Jameel Ahmad said that in FY25 the agricultural credit disbursement had hit a record Rs2.577tr, marking a 16 per cent year-on-year increase.

The meeting reviewed agricultural credit performance and discussed measures to strengthen inclusive and resilient farm finance.

To accelerate borrower expansion, particularly among small farmers in underserved and unserved areas, Mr Ahmad urged banks to fully utilise SBP initiatives, including the Risk Coverage Scheme for Small Farmers and Underserved Areas and Zarkheze, the central bank’s flagship digital platform for agricultural lending.

SBP chief urges banks to fully utilise initiatives for small farmers

Mr Ahmad said Pakistan’s economy had regained macroeconomic stability and was moving towards a more durable growth path. Real GDP growth reached 3.7pc in the first quarter of FY26, while full-year growth is projected at 3.75pc to 4.75pc.

The committee reviewed progress under Zarkheze, described as a major step towards the digital transformation of agricultural credit delivery. The platform enables digital onboarding for farmers, standardised credit assessment, integration with land and crop information, and end-to-end loan traceability. It also ensures financing is used for quality agricultural inputs through an integrated vendor network.

The governor said Zarkheze must be scaled up as a core delivery channel, particularly to make small-ticket lending commercially viable and expand outreach beyond traditional high-volume regions. He urged banks to ensure the timely processing of applications, strengthen internal ownership of the scheme, and further develop the vendor ecosystem to improve farmers’ access to certified inputs and advisory services.

Mr Ahmad also called on banks to fully implement their Agricultural Credit Expansion Plans for FY26 and emphasised coordination with provincial governments for digitisation of land records, as well as partnerships with fintechs, agri-tech firms and microfinance institutions to enhance outreach.

The meeting discussed the development of an Upgraded Crop Loan Insurance Scheme (CLIS+) framework under the Asian Development Bank-funded Pakistan Insurance Transformation Programme to strengthen the sector’s resilience against calamities.

The proposed scheme aims to expand crop coverage, establish an insurance consortium for improved risk-sharing and farmer payouts, and introduce technology-based calamity assessment alongside loss-of-income support. The ADB’s Solidarity Fund will also support extending coverage to non-borrowing farmers and the development of a National Insurance Policy for Agriculture.

In addition, the ACAC deliberated on scaling up Electronic Warehouse Receipt Financing to improve post-harvest liquidity, reduce distress sales and strengthen market linkages. The committee underscored the need to expand accredited warehousing infrastructure and enhance bank participation in warehouse receipt-based financing.

Published in Dawn, February 13th, 2026

Published Date: February 13, 2026