Pakistan's economy has regained macroeconomic stability, yet its transition to sustained growth increasingly depends on expanding agricultural finance and improving inclusion for small farmers, according to the State Bank of Pakistan (SBP). Addressing the Agricultural Credit Advisory Committee, SBP Governor Jameel Ahmad highlighted that real GDP growth reached 3.7 percent in the first quarter of FY26, with full-year projections ranging between 3.75 and 4.75 percent. Inflation has eased to 5.8 percent by January 2026, creating space for monetary policy to support economic activity while maintaining price stability. The external account, he noted, remains broadly contained, supported by prudent policymaking, stable commodity prices and resilient remittance inflows. These developments suggest a degree of macroeconomic consolidation after a period of volatility. Yet the central bank's focus has shifted toward structural drivers of growth, particularly agriculture. The sector, which underpins rural livelihoods and food security, is now being positioned as a key lever for productivity gains and economic resilience. Credit flows to agriculture have expanded significantly. Disbursements reached a record Rs 2,577 billion in FY25, reflecting a 16 percent annual increase. Momentum has continued into the current fiscal year, with Rs 1,412 billion disbursed in the first half of FY26 and the number of borrowers rising to 2.97 million. Despite this progress, access remains uneven. The governor stressed the need to broaden outreach, especially among smallholders in underserved regions. Banks have been urged to leverage initiatives such as the Risk Coverage Scheme and Zarkheze, a digital platform designed to transform agricultural lending. Zarkheze enables digital onboarding, standardised credit assessments and integration with land and crop data, while ensuring traceability of loans. It also links financing to certified agricultural inputs through an embedded vendor network. The central bank sees this as a cornerstone for scaling small-ticket lending and extending financial services beyond traditional high-volume areas. Financial institutions have been asked to accelerate adoption of the platform, improve processing timelines and strengthen internal accountability. Partnerships with fintech firms, agri-tech companies and microfinance institutions are also being encouraged to deepen market penetration. Risk management is another priority. The proposed CLIS+ crop loan insurance framework, being developed under an Asian Development Bank-supported programme, aims to expand coverage and improve pay-outs through better risk-sharing mechanisms. Technology-driven assessment tools and income protection measures are expected to enhance resilience against climatic shocks. In parallel, efforts are underway to expand Electronic Warehouse Receipt Financing. By improving post-harvest liquidity and reducing distress sales, this mechanism could strengthen market linkages and stabilise farm incomes. The SBP has outlined three strategic prio rities for lenders: expanding borrower outreach, deepening inclusion for small farmers, and extending services geographically. Achieving these goals, the governor suggested, will be essential for translating macroeconomic stability into durable growth. The broader message is clear. While headline indicators point to stabilisation, the sustainability of this recovery will depend on how effectively financial systems support productivity in core sectors. Agriculture, long central to Pakistan's economy, now sits at the heart of that transition.