Agriculture credit disbursements jumped 24.7% in FY2025-26, while the number of borrowers rose to 3.26 million.
Pakistan’s banking sector significantly expanded financing for the agriculture sector during fiscal year 2025-26, with total agriculture credit disbursements reaching Rs3,231.56 billion. The figure represents a 24.7% increase compared with Rs2,592.23 billion disbursed during FY2024-25.
The latest data issued by the State Bank of Pakistan’s Agriculture Credit and Financial Inclusion Department showed that the number of borrowers also increased during the year. Total outstanding borrowers receiving agricultural financing for production and development purposes climbed 4.8% to 3.26 million in FY26, compared with 3.11 million a year earlier.
Production-related financing accounted for the largest share of agricultural lending during the period. According to the data, around Rs2,924 billion was disbursed for production purposes, reflecting continued demand for financing among farmers and other stakeholders across the agricultural value chain.
Commercial banks remained the largest contributors to Pakistan’s agriculture credit disbursement. Their combined lending rose 26.3% year-on-year to Rs2,791 billion in FY26 from Rs2,209 billion in FY25.
Among commercial banks, the five major banks provided Rs1,642 billion, representing 13.9% annual growth. Mid-sized banks recorded a much stronger increase, disbursing Rs898.17 billion, up 61.7%. Islamic banks also expanded their agriculture financing by 18.4% to Rs250.38 billion.
Specialized banks posted another notable increase in agricultural lending. Their total disbursements rose 26.7% to Rs108.45 billion during FY26 from Rs85.62 billion in the previous fiscal year. Zarai Taraqiati Bank Limited (ZTBL) accounted for Rs99.61 billion, showing a substantial 36.5% increase over FY25.
Microfinance institutions and rural support programs also contributed to the overall growth. Microfinance banks increased their agricultural lending by 10.3% to Rs278.33 billion, while financing by Microfinance Institutions and Rural Support Programs rose 19.6% to Rs53.81 billion.
Meanwhile, the total outstanding agriculture credit reached Rs1,257.84 billion by the end of June 2026, registering a 25% increase from Rs1,004.86 billion at the end of FY25.