ISLAMABAD – In a major step towards agricultural reform, Prime Minister Shehbaz Sharif has announced a new soft agricultural loan scheme aimed at providing affordable credit to millions of small farmers across Pakistan.
The initiative, launched under a public-private partnership model, is part of the government’s broader plan to modernise the agriculture sector, reduce input costs, and ensure food security nationwide.
Loan Access for 9 Million Farmers
According to government officials, the scheme will benefit approximately nine million farmers with landholdings of up to 12.5 acres. These farmers will be able to obtain low-interest production and development loans, with simplified application processes and minimal red tape.
The credit facility will be provided through Zarai Taraqqiati Bank Limited (ZTBL) and commercial banks, with a special focus on digital transparency and institutional accountability.
Aims of the Scheme
Speaking at a high-level meeting in Islamabad, PM Shehbaz outlined the objectives of the initiative:
- Provide small farmers with easy access to financing for seeds, fertilisers, diesel, machinery, and irrigation
- Promote the use of modern agricultural tools and climate-smart technology
- Strengthen institutional infrastructure by overhauling existing lending systems within agriculture-focused banks
- Encourage public-private cooperation in agriculture finance
Modernising Pakistan’s Agricultural Landscape
The Prime Minister emphasised that the loan scheme is a foundational step toward transforming agriculture into a high-yielding, tech-driven sector. He also highlighted the need to integrate mechanisation, climate resilience, and data-driven practices to help farmers adapt to modern challenges.
Pilot Launch and Budget Inclusion
Officials confirmed that the scheme will be formally included in the upcoming FY2025–26 federal budget. A pilot launch is expected by September, targeting select districts before expanding nationwide.
The government also aims to coordinate closely with provincial departments to ensure smooth implementation and avoid duplication of existing subsidy programmes.
Looking Ahead
Experts believe that by reducing reliance on informal lenders and offering affordable financing options, the scheme could significantly boost crop yields, enhance food security, and generate employment in rural communities.
The move is seen as a key pillar in the government’s broader economic revival strategy, particularly in sectors with untapped growth potential.
This story has been reported by PakTribune. All rights reserved.
