Finance Minister Muhammad Aurangzeb recently informed the National Assembly that Pakistan’s agriculture sector is under severe strain, with farm credit disbursement dropping nearly 54 percent in two years amid worsening climate and economic conditions.
As per reports, the minister said Zarai Taraqiati Bank Limited (ZTBL) extended Rs39.66 billion in loans in 2025, compared to Rs85.56 billion in 2023 and Rs61.36 billion in 2024. He said crop failures, fluctuating market prices, and inflation-driven input costs had created severe cash-flow issues for farmers, resulting in delayed loan repayments.
Aurangzeb attributed the sector’s difficulties to repeated floods, droughts, pest attacks, and inflation, which have reduced profit margins and forced many farmers to migrate to cities. He said inefficient farming practices, low-quality seeds, and limited use of fertilisers had further worsened productivity.
The finance minister said ZTBL’s farm credit declined by 53 percent in Punjab and 59 percent in Sindh — the country’s main agricultural regions.
In Punjab, loans dropped from Rs75.17 billion in 2023 to Rs61.36 billion in 2024 and Rs35.43 billion in 2025. In Sindh, disbursements fell from Rs10.4 billion in 2023 to Rs7.22 billion in 2024 and Rs4.23 billion in 2025.
The report showed outstanding loans in Sindh rose slightly from Rs32 billion in 2023 to Rs32.96 billion in 2025, while Punjab’s portfolio hovered between Rs147.7 billion and Rs150.1 billion.
ZTBL’s recovery rate in Punjab improved from 77 percent in 2023 to 82 percent in 2024 before slipping to 78 percent in 2025. In Sindh, recovery remained stagnant at 57 percent after falling from 60 percent in 2023.
Aurangzeb said poverty, health emergencies, and migration had also affected farmers’ ability to repay loans, adding that socio-economic challenges and lack of modern farming knowledge continued to hinder agricultural recovery.
