ISLAMABAD: Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb on Tuesday chaired a meeting to review progress and receive updates from the task force on un-collateralized formal credit for smallholding farmers.
The session focused on recommendations under the National Subsistence Farmers Support Initiative, aimed at unlocking financing for small-scale farmers through innovative, technology-based solutions.
The minister was briefed that the recommendations followed an in-depth diagnostic of practical and systemic challenges faced by smallholder tenant farmers, with the goal of proposing a sustainable and scalable solution to promote their inclusion in the formal financial system.
The initiative seeks to revitalize Pakistan’s rural economy and strengthen food security by enabling smallholders to access credit without traditional collateral requirements.
Minister Aurangzeb was also updated on proposals to support farmers through a holistic, technology-driven framework promoting sustainable agriculture and rural uplift.
The proposed scheme would use an end-to-end digital process to ensure transparency, efficiency, and a seamless customer experience.
Designed as a federal program with nationwide coverage, the initiative aims to align provincial and national efforts to boost agricultural productivity, enhance food security, and contribute to GDP growth through inclusive agricultural development.
The task force presented a revised scorecard placing greater emphasis on agronomic factors, increasing their weight from 40 to 60 percent, while maintaining a 40 percent weight on financial indicators to better reflect the realities of smallholder farming.
The prototype scheme, developed by the Ministry of Finance’s Task Force on Access to Finance, proposes a multi-bank and microfinance institution delivery model implemented through a unified methodology to ensure wide outreach and operational standardization across financial institutions.
The minister welcomed the recommendations and stressed the importance of making the process time-bound and action-oriented to achieve lasting impact.
He highlighted the need to develop a parallel, technology-supported model for the dairy and livestock segment, noting that most smallholder farmers maintain herds but face challenges securing financing for livestock acquisition, maintenance, and dairy marketing.
Noting the dual economic and nutritional value of dairy for rural populations, Aurangzeb urged the task force to integrate crops and livestock financing under a unified framework.
He emphasized that the approach must prioritize client experience, focusing on ease, inclusivity, and accessibility through a robust digital journey delivering benefits across the agricultural sector.
The meeting was attended by senior representatives from Pakistan’s financial sector, including commercial banks, development finance institutions, regulators, and development sector experts who form the core of the task force.
