KARACHI:
State Bank of Pakistan (SBP) governor has urged banks to focus on expanding the agricultural borrower base, strengthening inclusion of small farmers and scaling up digital delivery channels to support sustainable growth in the farming sector.
Jameel Ahmad noted that agriculture remained critical for improving farm productivity, supporting rural livelihoods and ensuring food security. He emphasised the need for strengthening agricultural financial intermediation to support value addition, market linkages and sustainable growth in the sector.
He made the remarks at a meeting of the Agricultural Credit Advisory Committee (ACAC) held in Karachi on Thursday to review credit performance and discuss measures to strengthen inclusive and resilient agricultural finance.
During financial year 2024-25, Ahmad mentioned, due to collaborative efforts of the SBP and banking sector, a record agricultural credit disbursement of Rs2,577 billion was achieved, marking a 16% annual increase. Building on this momentum, credit disbursements to farmers during the first half (Jul-Dec) of FY26 reached Rs1,412 billion, while the number of borrowers rose modestly to 2.97 million. In his address, the central bank governor pointed out that Pakistan’s economy had regained macroeconomic stability and was moving towards a more durable growth path. He shared that real GDP growth reached 3.7% in the first quarter of FY26, while full-year growth was projected in the range of 3.75% to 4.75%.
He noted that headline inflation moderated to 5.8% by January 2026, enabling the monetary policy to support growth while remaining anchored in price stability. “The external account remains broadly contained due to prudent policies, resilient remittances and stable commodity prices.
To accelerate borrower expansion, particularly among small farmers in the underserved and unserved areas, Ahmad urged banks to fully leverage initiatives such as the Risk Coverage Scheme for Small Farmers and Underserved Areas and Zarkheze – a flagship digital platform for agricultural lending.
The advisory committee reviewed progress under Zarkheze, which represents a major step towards the digital transformation of agricultural credit delivery in Pakistan. The platform enables digital onboarding of farmers, standardised credit assessment, integration with land and crop information and end-to-end traceability of loans, while ensuring financing is utilised for quality farm inputs through an integrated vendor network. The governor emphasised that Zarkheze must be scaled up as a core delivery channel for agricultural finance, particularly to make small-ticket lending commercially viable and to expand outreach beyond traditional high-volume regions.
He asked 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 embedded advisory services.
He called on banks to ensure full implementation of their Agricultural Credit Expansion Plans for FY26 and emphasised the importance of coordination with provincial governments for digitisation of land records and partnerships with fintechs, agri-tech firms and microfinance institutions to enhance outreach. The meeting also discussed the development of an upgraded crop loan insurance framework, CLIS+, being formulated under the Asian Development Bank (ADB)-funded Pakistan Insurance Transformation Programme to strengthen the agriculture 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 along with enhanced protection through loss-of-income support. Going forward, 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 (EWRF) to improve post-harvest liquidity, reduce distress sales and strengthen agricultural market linkages. The committee noted the need to expand accredited warehousing infrastructure and enhance bank participation in EWR-based financing.
The governor outlined three priorities for the banking sector, highlighting that Zarkheze provides the infrastructure to achieve them: One – delivery: expand borrower outreach, especially through microfinance banks and small-ticket products. Two – inclusion with depth: strengthen financing for subsistence and small farmers through productivity-enhancing credit. Three – geographical diversification: extend agricultural finance to underserved areas.
The ACAC meeting continues to serve as a strategic platform, bringing together financial institutions and key stakeholders to advance agricultural finance as a driver of inclusion, productivity and long-term economic resilience.
