Govt to Launch Loan Scheme for 9 Million Small Farmers in FY26 Budget

The federal government is preparing a targeted loan scheme in the 2025-26 federal budget for 9 million farmers owning up to 12 acres of land. Sources informed ProPakistani that Prime Minister Shehbaz Sharif has directed the formulation of a special agricultural support package, under which small farmers will receive loans from commercial banks on easy terms. The loan scheme has been finalized by commercial banks, and key features have been shared with Finance Minister Muhammad Aurangzeb, who is expected to brief the Prime Minister shortly. A pilot project of the scheme is scheduled to launch in September this year. In addition to providing accessible financing, the package also includes measures to raise awareness among small farmers about modern agricultural practices. The initiative is designed to improve productivity, reduce reliance on informal credit sources, and bring more farmers into the formal financial system.