By Abdul Ghani

Pakistan's drive to modernise agriculture gathered momentum during FY2025-26 as imports of agricultural machinery and implements increased by nearly 25%, complementing higher farm credit and supporting efforts to improve productivity and climate resilience, according to the Finance Division.

The Monthly Economic Update & Outlook (June 2026) states that accelerating farm mechanisation has become a key component of the government's strategy to achieve higher agricultural growth and strengthen food security. Greater adoption of modern equipment, together with improved access to finance and climate-smart technologies, is expected to enhance farm efficiency and raise crop yields.

According to the report, imports of agricultural machinery and implements increased by 24.8% to $123.8 million during July-May FY2025-26, compared with $99.2 million during the corresponding period last year. The increase reflects rising investment in modern farming technologies as producers seek to improve productivity and reduce production costs.

The report notes that easier access to institutional finance has supported this transition. During July-April FY2025-26, agricultural credit disbursement increased by 18.9% to Rs2.458 trillion, up from Rs2.067 trillion a year earlier. According to the Finance Division, greater availability of credit has enabled farmers to invest in machinery, quality inputs and improved production practices.

The document identifies mechanisation as one of the principal drivers of the government's agricultural strategy for FY2026-27. Alongside modern machinery, the strategy emphasises wider adoption of climate-smart technologies, stronger agricultural research and extension services, livestock sector reforms, aquaculture development and improved input availability to support sustainable growth.

According to the report, these measures underpin the government's target of 3.6% agricultural growth during FY2026-27. The sector is expected to be led by stronger performance in livestock, important crops and other crops, with mechanisation expected to play an increasingly important role in improving productivity across farming systems.

The report also indicates that the availability of key agricultural inputs has improved for the ongoing Kharif 2026 season, providing favourable conditions for crop cultivation. At the same time, urea offtake increased significantly during April-May 2026, although DAP fertiliser usage declined because of higher prices.

According to the Finance Division, continued investment in farm mechanisation is essential for strengthening the sector's resilience against climate-related challenges while improving the efficient use of land, water and other agricultural resources. Modern equipment is also expected to help address labour shortages and improve the timeliness of farming operations.

The report concludes that expanding mechanisation, supported by improved financing and technology adoption, will remain central to Pakistan's agricultural transformation. These efforts are expected to boost productivity, strengthen rural incomes and support sustainable growth in one of the country's most important economic sectors.

Credit: INP-WealthPk