ISLAMABAD: Pakistani Prime Minister Shehbaz Sharif on Thursday directed authorities to finalize a comprehensive strategy by the end of July to provide easy-term agricultural loans and modern technologies to small farmers, particularly those owning less than 12 acres of land, according to a statement from the prime minister’s office.

Agriculture remains the backbone of Pakistan’s economy, contributing around 19 percent to GDP and employing over 37 percent of the labor force, according to official data. The sector supports more than 60 percent of the rural population through crop production, livestock and related activities.

Despite its size, the sector faces chronic challenges including low productivity due to outdated farming methods and lack of mechanization; water scarcity and inefficient irrigation systems, which worsen during prolonged dry spells; dependence on imported seeds and fertilizers, raising costs for farmers; climate vulnerability, as erratic weather and floods frequently damage crops; and limited access to credit, especially for small farmers, who often rely on informal lenders charging high interest rates

Experts say about 80 percent of Pakistani farmers own less than 12.5 acres of land, making them highly vulnerable to market shocks and rising input costs. Many struggle to access quality seeds, fertilizers and modern tools, hindering yields of key crops such as wheat, cotton and sugarcane.

Chairing a high-level review meeting on agricultural planning and agri-financing in Islamabad, the prime minister said the country’s economic growth was closely tied to its agricultural productivity and the value addition of farmers’ produce.

“The provision of facilities to small farmers for the development of Pakistan’s agriculture sector is among the government’s top priorities,” Sharif was quoted as saying in a statement released by his office. 

“A plan should be presented to provide loans on easy terms for modern agricultural equipment, artificial intelligence solutions, and quality seeds.”

Sharif also instructed relevant ministries to develop a detailed roadmap for giving farmers access to small-scale industrial machinery to help them process their crops and produce export-quality goods.

The PM’s office said the government was accelerating reforms to provide farmers with modern tools, improved seed varieties, AI-based solutions, better water management techniques, and small on-farm industrial units. It added that reforms would also include training and capacity-building initiatives to support agri-processing and boost exports.

Officials briefed the prime minister on ongoing agricultural reforms, the performance of Zarai Taraqiati Bank Limited (ZTBL), and current loan disbursement mechanisms for farmers.

“The prime minister instructed that a comprehensive plan be prepared and presented by the end of this month to provide farmers with easy-term loans and introduce a modern agri-financing system aligned with contemporary requirements,” the statement concluded.