Loans rise bypasses small farmers

Farm credit disbursements climbed 21.4% annually to Rs2.79 trillion in the July to May FY2025-26 period, according to The Express Tribune, citing a State Bank of Pakistan performance overview. Commercial banks supplied the largest share, with Rs2.41 trillion disbursed, up 22.3% from the same period last year. The report, however, said most of the lending still goes towards production needs, with development finance accounting for a comparatively small share.

Mid-sized commercial banks posted the fastest growth, with disbursements up 64.8% to Rs809.4 billion. Bank Al-Habib led that group with Rs233 billion of lending, a 126% increase, while Bank of Punjab and JS Bank reported Rs189.3 billion and Rs34.4 billion respectively. Islamic banks expanded at a slower pace, with total disbursements of Rs216.4 billion, of which Meezan Bank provided Rs125.1 billion and Faysal Bank Rs37.5 billion.

Farm loans still outstanding reached Rs1.182 trillion by end-May 2026, a 27.1% rise, while borrower numbers climbed 14.7% to nearly 2.98 million. Microfinance banks and Rural Support Programmes, however, reported fewer borrowers despite higher disbursements, which the publisher said raises questions about financial inclusion. According to the same report, commercial banks' borrower base jumped 96.3% to 1.21 million.