KARACHI, April 23, 2026 – The State Bank of Pakistan has launched the Crop Loan Insurance Scheme Plus (CLIS+), an upgraded version of its earlier crop insurance framework, aimed at enhancing financial protection for farmers and strengthening agricultural resilience in Pakistan.
The revised scheme builds on the original Crop Loan Insurance Scheme introduced in 2008 and later updated in 2014. The new CLIS+ has been developed after extensive consultations with key stakeholders, including the Finance Division, Asian Development Bank, Securities and Exchange Commission of Pakistan, the Insurance Association of Pakistan, and SUPARCO.
Expanded Coverage and Mandatory Insurance
Under CLIS+, crop loan insurance has been made mandatory for all production loans—whether collateralized or not—covering major crops such as wheat, rice, sugarcane, maize, cotton, and potato. The scheme applies to all borrowers availing agricultural loans, ensuring broader risk coverage across the farming sector.
To support small farmers, the government will subsidize insurance premiums for landholdings up to 25 acres nationwide (32 acres in Balochistan), covering up to 2% of the premium per crop per season.
Technology-Driven Risk Assessment
A key feature of CLIS+ is the introduction of technology-based trigger mechanisms for claim settlements. For major natural calamities such as floods, droughts, and heavy rains, designated technology partners will issue hazard alerts and yield assessments using predefined thresholds.
Claims will be automatically triggered if crop losses exceed 50% at the tehsil level with high reliability, eliminating delays typically associated with government notifications.
For other risks—such as pest attacks, diseases, hailstorms, and heatwaves—claims will continue to rely on official declarations by provincial authorities.
Enhanced Benefits for Farmers
CLIS+ introduces additional financial protection measures for farmers. Eligible borrowers in affected areas will receive a one-time income support payment of Rs15,000 for male farmers and Rs17,500 for female farmers. The scheme also includes personal accident coverage of up to Rs250,000 for male farmers and Rs275,000 for female farmers.
These payments will be transferred directly to farmers’ bank accounts or digital wallets, ensuring quick and transparent disbursement.
Streamlined Claims and Digital Integration
The scheme outlines a structured claims process, requiring banks to submit claims within 15 working days, with insurance companies mandated to settle claims within 30 working days. Funds must then be credited to farmers’ loan accounts within five days.
Additionally, a centralized digital portal will be developed to facilitate real-time data sharing among regulators, banks, and insurance providers, improving transparency and monitoring.
Boosting Agricultural Stability
With an aggregate insurer liability capped at 300% of total premiums collected, CLIS+ aims to ensure sustainability while expanding coverage. Analysts say the initiative will reduce financial risks for farmers, improve credit access, and support Pakistan’s agricultural growth amid climate-related challenges.
The launch of CLIS+ marks a significant step toward modernizing agricultural finance, leveraging technology, and strengthening the safety net for millions of farmers across the country.