The federal government is finalising a special loan programme aimed at supporting nearly 9 million small-scale farmers in the upcoming 2025–26 budget, sources confirmed on Thursday.
Under the new plan, farmers owning up to 12 acres of land will be eligible for low-interest loans through commercial banks. Prime Minister Shehbaz Sharif has reportedly instructed officials to develop a comprehensive agricultural support package to help boost the sector’s performance.
Read More: Budget Talks with IMF Stall as Tax Relief Demands Face Resistance
The scheme, which is being shaped in coordination with commercial banks, has already been presented to Finance Minister Muhammad Aurangzeb. He is expected to brief the prime minister on the proposal in the coming days.
A pilot version of the programme is likely to be launched in September this year, with the aim of making formal credit more accessible to small farmers. Officials believe the initiative will reduce farmers’ dependence on informal lending and encourage the use of better agricultural practices.
Read More: Govt Plans Tough Crackdown on Tax Evaders in IMF-Driven Budget Reforms
Beyond financing, the government plans to raise awareness among farmers about modern farming techniques and productivity tools, making the scheme a broader step toward agricultural reform.
The move comes ahead of the federal budget, as authorities aim to stimulate rural economies and improve food security.
