Pakistan’s agriculture sector saw a sharp rise in financial support and mechanization during FY2025, with credit disbursement and machinery imports climbing to new highs, even as adverse weather continues to cloud the outlook.
According to the Monthly Economic Update and Outlook for August 2025, agricultural credit disbursement jumped 16.3 percent, reaching Rs. 2,577.3 billion in FY2025 compared to Rs. 2,215.7 billion in FY2024. Officials said this reflects the government’s drive to ensure farmers have access to timely and affordable financing.
Mechanization also gained momentum. Imports of agricultural machinery and implements soared by 123.9 percent to US$14.4 million in July FY2026, underscoring a growing shift toward modern farming practices.
Fertilizer usage during the ongoing Kharif 2025 season (April–July) showed mixed patterns. Urea offtake rose 2 percent to 1,859 thousand tonnes, while DAP offtake slipped 0.7 percent to 416 thousand tonnes.
The report noted that the government remains “steadfast in its efforts to support the farming community by ensuring timely access to quality seeds, fertilizers, credit, and agricultural machinery to help boost productivity and rural incomes.”
Still, the sector’s performance is tempered by risks from heavy rainfall and floods, which have disrupted farming activity and could threaten growth targets. Despite these hurdles, policymakers reaffirmed their commitment to sustaining agricultural development through policy continuity and targeted support measures.
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