Banks disburse Rs1.26tr in agriculture loans in H1FY25

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KARACHI: In the first half of the financial year 2025, banks increased the form credit to Rs 1.26 trillion, with the number of lenders increasingly increased to 2.86 million, the central bank said in a statement on Friday.

The State Bank of Pakistan (SBP) convened a meeting of the Agricultural Credit Advisory Committee (ACAC) in Multan, which confirmed its commitment to financing agriculture and increasing sustainable growth in the agriculture sector.

In his keynote address, the governor of SBP Jameel Ahmed emphasized the need to increase his rural presence by nominating more branches to lend agricultural loans to banks. .

In fiscal year 24, a record credit distribution of Rs 2.21 trillion was observed, which reflects a 25 % annual increase, which helped farmers manage input cost and improve production capacity. Looking forward, Ahmed urged the banks to fully implement their agricultural credit extension projects. Invest in human resources, infrastructure and digital technologies to better serve farmers. He encouraged financial institutions to cooperate with the relevant government departments, fantasy, microfinance organizations and Agri -Tech companies to provide the last digital loan solutions and consulting services for small farmers.

The SBP governor emphasized the important role of agriculture in the economy, which highlighted its cooperation in its integration with food safety, rural livelihood and industrial and services sectors. Recognizing the constant challenges of this sector – low productivity, climate change effects and limited financial inclusion – urged banks to prefer agricultural finance as a basic and viable business line.

He said that during the financial year 24, the agriculture sector achieved significant growth. However, in the first quarter of the financial year 25, agricultural growth decreased from 8.1 % to 1.2 % last year and resulting in a relatively slow gradually slowing of GDP, compared to 2.3 % recorded in the same period last year. There has been an increase. He looks at the minor crop symbols, highlighting the need for flexibility and innovation in agriculture for permanent growth.

Ahmed highlighted three important sectors for stakeholders to focus on developing the agriculture sector. First, farmers ‘training to reduce the risks of climate change challenges and to ensure smart agriculture, green financing, and farmers’ training, and to ensure sustainable growth. The target strategy has been called for expanding the flexibility. Second, it is very important to take advantage of modern technology to change Pakistan’s agriculture.

Globally, geographical technologies are changing agriculture by activating precise crop monitoring, increasing resources management and minimizing production risks. Pilot projects in Pakistan can adopt these tools to increase productivity and reduce resources waste. Third, increasing the focus on the cattle sector, which pose 14 % of GDP and 2.1 % of the country’s total exports, a wide chance to diversify the revenue series and reduce the dependence on the cycles of export crops Provides Effective breeding can increase productivity, such as improved nutritional governments, and fertilizer management systems, and by 2030 to reduce greenhouse gases by up to 50 %. Is

Listening to the problems facing farmers belonging to Balochistan, Ahmed said that SBP Quetta has a comprehensive approach to agriculture to all stakeholders in the respective government departments, banks, farmers’ associations, and all service providers. Will take the lead and will be included. Farmers are facing credit barriers in Balochistan. After that, other provinces should also be followed.

One of the important points of this meeting was a climate -related meeting, which, to monitor health crops, took advantage of geo local technologies, improving resources distribution and reducing climate risks. Provided viable insights about. The meeting also presented the World Bank’s move, which is an important financing opportunity to support microfinance banks to support the climate adaptation strategies in agriculture.