ISLAMABAD: Prime Minister Shehbaz Sharif on Tuesday instructed the commerce ministry to draft a comprehensive strategy to raise Pakistan’s trade volume with Azerbaijan to $2 billion, ahead of an expected visit by Azerbaijani President Ilham Aliyev to Islamabad next month.
Pakistan and Azerbaijan signed multiple memoranda of understanding (MoU) last month to enhance cooperation in trade, energy, tourism and education during Sharif’s visit to Baku, aimed at strengthening bilateral collaboration.
The visit was part of Pakistan’s broader push for economic diplomacy with Central Asian republics, offering them access to its southern ports in Karachi and Gwadar.
“The prime minister has directed the Ministry of Commerce to present a comprehensive roadmap for increasing Pakistan-Azerbaijan trade volume to $2 billion,” the PM Office said in a statement following a meeting chaired by Sharif to review progress on recent MoUs.
The prime minister formed a committee, led by Deputy Prime Minister and Foreign Minister Ishaq Dar, to ensure preparations for agreements in the energy and infrastructure sectors between the two sides, the statement added.
Sharif instructed officials to finalize all necessary arrangements on a priority basis before the Azerbaijani president’s visit.
“Pakistan and Azerbaijan share deep-rooted fraternal ties spanning decades,” he was quoted as saying. “We are taking priority steps to fully capitalize on the vast trade and investment potential between Pakistan and Central Asian states.”
The prime minister also directed the appointment of trade officers in countries with high trade potential for Pakistan, including Azerbaijan.
Last year in July, Azerbaijan announced a $2 billion investment in Pakistan during Aliyev’s visit to Islamabad. A few months later in September, Pakistan signed a contract to supply JF-17 Block III fighter jets to Azerbaijan, deepening defense cooperation between the two nations.
Pakistan PM seeks plan to lift trade with Baku to $2 billion before Azerbaijan president’s visit
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Pakistan PM seeks plan to lift trade with Baku to $2 billion before Azerbaijan president’s visit
- President Ilham Aliyev is expected to arrive in Islamabad in April to further deepen bilateral cooperation
- Both countries signed several MoUs last month to enhance cooperation in trade, energy and tourism
Pakistan disburses record $9.2 billion agricultural loans in FY25, central bank says
- State Bank says farm lending rose 16 percent year-on-year to Rs2.58 trillion
- Inflation eased to 5.8 percent in January as GDP growth hits 3.7 percent in Q1 FY26
KARACHI: Pakistan disbursed a record Rs2.58 trillion ($9.2 billion) in agricultural loans during fiscal year 2024–25, a 16 percent increase from the previous year, State Bank of Pakistan (SBP) Governor Jameel Ahmad said on Thursday while chairing a meeting of the Agricultural Credit Advisory Committee (ACAC).
Agricultural financing is considered critical to Pakistan’s rural economy, where farming contributes nearly one-fifth of GDP and employs a large share of the workforce. The government has repeatedly emphasized expanding credit access to small farmers as part of broader efforts to boost productivity, stabilize food supply and support economic recovery under an IMF-backed reform program.
According to official data shared at the meeting, agricultural credit disbursement reached Rs2.58 trillion in FY25, marking a record high. In the first half of FY26 alone, banks disbursed Rs1,412 billion in agricultural loans, while the number of borrowers increased to 2.97 million.
“During fiscal year 2025, record agricultural loans of Rs2.58 trillion were disbursed, reflecting an annual growth of 16 percent,” the State Bank governor said, according to a statement issued after the meeting.
He added that Pakistan had regained macroeconomic stability and that the economy was moving toward sustainable growth.
The governor said GDP growth in the first quarter of FY26 stood at 3.7 percent, while full-year growth was projected between 3.75 percent and 4.75 percent.
He also noted that headline inflation had declined to 5.8 percent in January 2026.
The committee reviewed measures to further expand credit access, including greater use of the central bank’s Zarkhez-e scheme to facilitate agricultural lending. Members also discussed promoting electronic warehouse receipt financing to enhance post-harvest liquidity and reduce distress sales of crops.
The statement said the purpose of electronic warehouse receipt financing was to “reduce forced sales of crops and strengthen linkages within the agricultural market.”
Agricultural lending has been a focus of Pakistan’s financial inclusion strategy, particularly as policymakers seek to improve rural incomes, stabilize food prices and strengthen export-oriented crop production amid broader economic reforms.
