Islamabad, 22 May, 2025: FY26 Budget preparations are underway, with a strong focus on rural development as the federal government plans to introduce a major loan programme aimed at supporting millions of small-scale farmers across the country.
As part of this initiative, the government has crafted a special financing package under the FY26 Budget, specifically targeting farmers who own up to 12 acres of agricultural land.
According to official sources, Prime Minister Shehbaz Sharif has instructed relevant departments to finalise a scheme that would enable approximately 9 million small farmers to access affordable credit through commercial banks.
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The loan initiative already finalised by commercial banks has been presented to Finance Minister Muhammad Aurangzeb. He is expected to provide a detailed briefing to the Prime Minister in the coming days.
A pilot version of the programme is scheduled to roll out by September this year, marking the beginning of a broader push to integrate marginalised farmers into the formal financial structure.
The FY26 Budget proposal not only offers financial assistance but also introduces educational support for farmers.
Authorities plan to include training modules aimed at increasing awareness of modern agricultural techniques, ultimately boosting productivity and ensuring more sustainable farming practices.
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Officials involved in the scheme explained that the broader objective is to reduce farmers’ reliance on unregulated, high-interest loans often taken from informal lenders.
By offering structured, low-cost financing options through recognised banks, the FY26 Budget aims to empower small landowners, enhance crop yields, and stabilise rural incomes.
This targeted package forms part of a wider government strategy to revitalise the agriculture sector, which remains a backbone of the national economy.
If implemented successfully, the programme could mark a transformative shift in how small-scale farmers operate equipping them not only with funds but also with the knowledge required to thrive in an increasingly modernised agricultural landscape.
