Federal Government introduces digital loan scheme for Pakistani farmers
The federal government has introduced a major agricultural reform by launching digital loans for farmers in Pakistan. It now offers unsecured loans of up to Rs1 million to smallholder farmers.
Finance Minister Muhammad Aurangzeb announced the scheme in the National Assembly during his budget speech. The government designed it to provide financial support for essential inputs such as seeds, fertilizers, and diesel.
The government has included digital loans for farmers in a flagship agri-initiative aimed at boosting productivity, ensuring food security, and helping small-scale farmers adopt modern farming practices. It will disburse the loans digitally to promote transparency and financial inclusion in rural areas.
Aurangzeb also announced plans to introduce an Electronic Warehouse Receipt System, allowing farmers to store their grain securely and sell it when market conditions are favorable. This initiative aims to reduce post-harvest losses and shield farmers from exploitative middlemen.
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The minister emphasized that the government must empower small farmers to drive inclusive growth and promote rural development.
“Our goal is to provide farmers with financial independence and the tools they need to enhance productivity,” he said.
The government launched this initiative to complement other key social and economic reforms, including expanded support for women through inclusive finance programmes and a historic increase in BISP funding.
The government aims to modernize the agriculture sector and ensure easier access to capital by offering digital loans to farmers in Pakistan. The Ministry of National Food Security will announce more details on eligibility and disbursement channels in the coming weeks.
