At the Pakistan Banking Summit 2026 on July 7th, 2026, Pakistan Agricultural Coalition (PAC) CEO Mr. Kazim Saeed shared his perspective on one of the most pressing challenges facing Pakistan’s agriculture sector. Responding to a question from moderator Mr. Syed Basir Shamsie on the three priorities for significantly expanding formal agricultural credit, Mr. Kazim Saeed highlighted the central role of the banking sector in enabling agricultural growth.
“Pakistan’s banking industry has a virtual veto on the growth of agriculture.”
Agriculture remains heavily capital-starved, and access to formal finance can make a transformative difference to both the working capital and long-term investment needs of farmers and agribusinesses. Despite agriculture’s importance to Pakistan’s economy, formal agricultural lending remains significantly below its potential. Agricultural credit is equivalent to approximately 52% of agricultural GDP in India, compared to just 10% of agricultural GDP in Pakistan.
He noted that whenever the government introduces initiatives to channel more capital into agriculture, their success ultimately depends on whether banks are comfortable with the underlying risk mitigation mechanisms. Without sufficient confidence in managing risk, even well-designed financing schemes struggle to gain traction, limiting their reach and impact.
To enable the banking sector to lend at scale, Mr. Kazim Saeed emphasized the need for continuous collaboration between the Government of Pakistan and the State Bank of Pakistan to strengthen risk mitigation frameworks. He identified three key priorities:
The State Bank of Pakistan’s Zarkhez-e scheme represents an important step towards expanding access to agricultural finance. Continued refinement and implementation of the scheme can encourage greater participation from financial institutions while supporting productive investment across the agricultural value chain.
Crop insurance plays a critical role in reducing lending risk while protecting farmers against unforeseen losses. Mr. Kazim Saeed stressed that the federal and provincial governments should fund crop insurance premiums for smallholder farmers, enabling wider adoption and making agricultural lending more attractive to formal financial institutions.
Moving away from traditional pledge-based lending towards the Electronic Warehouse Receipts (EWR) system can modernize agricultural finance by improving collateral management, increasing transparency, and reducing risk for lenders. The EWR regime has the potential to unlock greater access to credit while strengthening post-harvest financing across Pakistan.
