Karachi, February 13, 2026 — Agricultural credit disbursements by Pakistan’s banking sector surged to Rs1.412 trillion during the first half of FY26, while the number of borrowers increased to 2.97 million, reflecting broader financial inclusion and improved access to credit for farmers nationwide.
The progress was reviewed during a meeting of the Agricultural Credit Advisory Committee (ACAC) held on Wednesday in Karachi, chaired by the Governor of the State Bank of Pakistan (SBP), Jameel Ahmad. The meeting assessed agricultural credit performance and explored strategies to strengthen inclusive, resilient, and technology-driven agricultural finance.
Banks Urged to Accelerate Agricultural Credit Expansion
Addressing the committee, Governor Ahmad emphasized the full implementation of banks’ Agricultural Credit Expansion Plans for FY26. He also highlighted the importance of close coordination with provincial governments for the digitization of land records and forging partnerships with fintech firms, agri-tech companies, and microfinance institutions to expand outreach, especially in underserved regions.
The Governor noted that Pakistan’s economy has regained macroeconomic stability and is transitioning toward a more sustainable growth trajectory. Real GDP growth reached 3.7 percent in Q1-FY26, with full-year growth projected between 3.75 and 4.75 percent. He added that headline inflation eased to 5.8 percent by January 2026, providing room for monetary policy to support economic growth while maintaining price stability.
Agriculture Key to Growth, Livelihoods, and Food Security
Highlighting the central role of agriculture, Governor Ahmad underscored its importance in boosting farm productivity, supporting rural livelihoods, and ensuring food security. He stressed the need to strengthen agricultural financial intermediation to promote value addition, market integration, and sustainable sectoral growth.
During FY25, collaborative efforts between SBP and the banking sector resulted in a record agricultural credit disbursement of Rs2.577 trillion, marking a 16 percent year-on-year increase. Building on this momentum, agricultural loans reached Rs1.412 trillion in H1-FY26, with the borrower base expanding to 2.97 million.
Zarkheze Platform to Drive Digital Transformation
To accelerate borrower expansion—particularly among small farmers in underserved and unserved areas—the Governor urged banks to leverage SBP initiatives, including the Risk Coverage Scheme for Small Farmers and Underserved Areas and Zarkheze, SBP’s flagship digital agricultural lending platform.
Zarkheze enables digital onboarding of farmers, standardized credit assessment, integration with land and crop databases, and end-to-end loan traceability, ensuring that financing is utilized for certified agricultural inputs through an integrated vendor ecosystem. The Governor stressed the need to scale up Zarkheze as a core delivery channel, making small-ticket lending commercially viable and expanding outreach beyond traditional farming regions.
Strengthening Risk Management and Market Linkages
The meeting also reviewed progress on developing an upgraded Crop Loan Insurance Scheme (CLIS+), supported by the Asian Development Bank (ADB) under the Pakistan Insurance Transformation Program (PITP). The proposed framework aims to enhance sector resilience by expanding crop coverage, improving risk sharing, enabling faster payouts, and introducing technology-based calamity assessments.
Additionally, the committee discussed scaling up Electronic Warehouse Receipt Financing (EWRF) to improve post-harvest liquidity, curb distress sales, and strengthen market linkages. Expanding accredited warehousing infrastructure and boosting bank participation were identified as key priorities.
Three Strategic Priorities for Banks
Governor Ahmad outlined three strategic priorities for the banking sector, supported by the Zarkheze platform:
• Delivery: Expand borrower outreach, especially through microfinance banks and small-ticket products.
• Inclusion with depth: Enhance financing for small and subsistence farmers using productivity-driven credit solutions.
• Geographical diversification: Extend agricultural finance to underserved and remote areas.
Commitment to Sustainable Agricultural Growth
Concluding the meeting, the Governor called on banks to broaden the agricultural borrower base, deepen financial inclusion for small farmers, and scale up digital delivery channels to foster sustainable growth across the agriculture sector.
The ACAC continues to serve as a strategic forum under SBP’s leadership, uniting financial institutions and stakeholders to advance agricultural finance as a catalyst for inclusion, productivity, and long-term economic resilience.