Prime Minister Shehbaz Sharif has directed authorities to finalize a comprehensive plan by the end of July to facilitate easy-term agricultural loans and introduce modern technologies for small-scale farmers—particularly those owning less than 12 acres of land, according to a statement from the Prime Minister’s Office on Thursday.
Agriculture, which contributes roughly 19% to Pakistan’s GDP and employs over 37% of the workforce, remains a critical pillar of the national economy. It supports more than 60% of the rural population through farming, livestock, and related activities, official data shows.
However, the sector is plagued by longstanding issues such as outdated farming practices, low mechanization, water shortages, inefficient irrigation, dependence on costly imported seeds and fertilizers, climate-related disruptions, and limited access to formal credit—especially for smallholders. These challenges continue to limit productivity and economic potential.
Experts note that approximately 80% of Pakistani farmers operate on plots smaller than 12.5 acres, leaving them vulnerable to market instability and rising input costs. Many lack access to modern tools, certified seeds, and fertilizers, which directly impacts yields of staple crops like wheat, cotton, and sugarcane.
During a high-level meeting in Islamabad focused on agricultural development and financing, the prime minister emphasized the importance of enhancing productivity and value addition in the farming sector to drive economic growth.
“Supporting small farmers is a top government priority,” Sharif said. “A plan should be devised to offer easy-term loans for acquiring modern farming equipment, artificial intelligence-based tools, and high-quality seeds.”
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He also instructed relevant ministries to devise a detailed roadmap for giving farmers access to small-scale industrial machinery, enabling them to process crops and produce goods suitable for export.
According to the PM Office, the government is fast-tracking reforms aimed at equipping farmers with improved seeds, advanced irrigation methods, AI solutions, and small on-farm processing units. These reforms will also include training programs to enhance agri-processing skills and expand agricultural exports.
Officials briefed the prime minister on the progress of ongoing agricultural reforms, the role of Zarai Taraqiati Bank Limited (ZTBL), and current loan disbursement systems.
The meeting concluded with the prime minister reiterating his directive for a complete plan—addressing modern agri-financing and loan access for small farmers—to be presented before the end of July.