Arooj Zulfiqar

To boost agricultural growth and improve their economic well-being, farmers need to be part of the financial system. This can help solve the long-standing problem of limited access to financial resources that holds back the sector’s true potential. “Agriculture forms the backbone of Pakistan's economy, employing a substantial portion of its population. Growth and sustainability of this sector are essential not only for economic stability but also for ensuring a consistent food supply for the nation,” said Bilal Iqbal from the National Agricultural Research Centre (NARC). “Agricultural activities demand considerable financial resources. Farmers require funds for a wide range of purposes, encompassing the acquisition of seeds, fertilizers, machinery, and sustenance of day-to-day operations, including irrigation, labour, and maintenance.

However, securing timely and affordable financing has persistently remained a formidable challenge, particularly for smallholder farmers,” he said. Access to credit should be made easier for farmers, especially the marginalized ones who often struggle to obtain loans from banks. Additionally, farmers' financial burden could be alleviated through targeted subsidies or grants, particularly for practices or inputs that promote sustainability and productivity. “The State Bank's Agriculture Finance Literacy Program, is a good step toward raising awareness among farmers about the government-funded initiatives and financial schemes. Now they will have access to credit, insurance, and other financial tools that are essential for modernizing their farming practices. This is not just about economic growth, it's about empowering farmers to make informed decisions and adopt sustainable practices,” said Bilal.

He said the State Bank of Pakistan (SBP) has taken a significant step towards the financial inclusion of farmers and the growth of the agricultural sector. The central bank’s Banking Services Corporation (SBP-BSC) has launched the Agriculture Finance Literacy Program (AFLP), aiming to integrate 500,000 farmers in the crop sector, livestock, poultry, and fisheries into the financial ecosystem over the next five years. In conjunction with the program launch, the Financial Inclusion Support Department of SBP-BSC has conducted a series of five workshops in major cities, including Karachi, Quetta, Lahore, Rawalpindi, and Peshawar. He added that this program will help the agriculture sector grow and sustain by offering effective solutions to the main problem of financing needs.

Credit: INP-WealthPk