Pakistani banks lent much more to agriculture last year, but the number of farmers receiving loans increased far more slowly. According to the State Bank of Pakistan (SBP), banks disbursed Rs3,231.56bn in agricultural credit in FY2025-26, 24.7% more than the Rs2,592.23bn disbursed in FY2024-25. The number of borrowers with outstanding farm loans rose by only 4.8%, to 3.26m from 3.11m.

The data were published by the SBP’s Agriculture Credit and Financial Inclusion Department. Most lending, Rs2,924bn, went to crop production, and lending for development purposes also increased.

Commercial banks provided most of the credit. Their lending to agriculture rose by 26.3% to Rs2,791bn from Rs2,209bn. The five largest banks lent Rs1,642bn, up 13.9%. Mid-sized banks grew much faster, increasing lending by 61.7% to Rs898.17bn, while Islamic banks raised theirs by 18.4% to Rs250.38bn.

Specialised banks lent Rs108.45bn, 26.7% more than the Rs85.62bn they lent in FY25. Zarai Taraqiati Bank Limited (ZTBL) accounted for most of that, with loans of Rs99.61bn, up 36.5%.

Microfinance and rural lenders also increased their lending. Microfinance banks raised agricultural lending by 10.3% to Rs278.33bn. Microfinance institutions and rural support programmes increased theirs by 19.6% to Rs53.81bn.

Total outstanding agricultural loans reached Rs1,257.84bn at the end of June 2026, 25% higher than the Rs1,004.86bn outstanding a year earlier.

Lending grew about five times as fast as the number of borrowers, which suggests that most of the additional credit went to existing borrowers rather than new ones. Mid-sized banks drove much of the growth, while microfinance lending rose more slowly. Unless more farmers gain access to credit, larger loan volumes will do less to widen financial inclusion in agriculture.