Banks Cut Agri-Business Loans While Farmers Get More
Agribusiness loans contracted by Rs. 64 billion during the first half of calendar year 2026, even as agriculture advances in … Read More The post Banks Cut Agri-Business Loans While Farmers Get More appeared first on ProPakistani .
During the first half of 2026, the State Bank of Pakistan reported that agribusiness loans contracted by Rs. 64 billion, despite an increase in agriculture advances in the domestic private sector and a sharp rise in financing to the sugar industry. The domestic private sector's agriculture advances rose to Rs. 723 billion by June 2026, up from Rs.
664 billion in December 2025, a rise of Rs. 59 billion during the first half of the year. However, agribusiness loans in the public sector decreased by the same amount, making for a mixed trend in agriculture-related financing. The report attributed the decrease in agribusiness loans to the energy sector's financing, which increased by Rs.
183 billion, partly offsetting the contraction. Additionally, the sugar sector saw a significant financing increase of Rs. 205 billion due to higher working capital requirements, lower refined sugar prices, and the absence of exports. Overall, nonperforming loans declined by Rs. 62 billion, with agribusiness and individual borrowers seeing the largest reductions, while agribusiness lending in the public sector declined.
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