By Abdul Ghani

Pakistan’s agricultural sector showed improved momentum during FY2026, supported by higher credit disbursement, increased input utilization and rising imports of agricultural machinery, according to the Monthly Economic Update & Outlook released by the Finance Division.

Agricultural credit disbursement increased by 11.1 percent to Rs1,649.0 billion during Jul-Jan FY2026, compared to Rs1,483.6 billion in the same period last year. The rise in credit availability supported farm operations and input procurement during the Rabi season.

The report indicates that improved access to financing played a key role in supporting agricultural activity, particularly during the sowing and growth stages of major crops.

For the Rabi season 2025-26, wheat production has been targeted at 29.7 million tonnes, up from 28.4 million tonnes last year. The sowing position remained better than the previous year, supported by government measures and improved input availability.

However, the final yield is expected to depend on weather conditions, particularly during the crop’s maturity stage.

Input utilization also showed an upward trend during the season. Urea offtake during Rabi 2025-26 (Oct-Feb) reached 2,994 thousand tonnes, marking an increase of 7.1 percent compared to the same period last year.

Diammonium phosphate (DAP) offtake stood at 685 thousand tonnes during the same period, reflecting continued use of fertilizers to support crop growth.

In addition to fertilizers, imports of agricultural machinery and implements also increased significantly. During Jul-Feb FY2026, machinery imports rose by 17.1 percent to $90.8 million, compared to $77.5 million last year.

The increase in machinery imports indicates higher investment in farm equipment, contributing to improved efficiency and productivity in the agricultural sector.

The report highlights that the combination of higher credit disbursement, increased input usage and machinery imports supported the overall momentum in agriculture during the Rabi season.

These factors contributed to improved sowing conditions and enhanced crop management practices during the period.

Overall, the agricultural sector showed positive developments during FY2026, with increased financial support, higher input utilization and greater investment in machinery contributing to improved activity levels.

Credit: INP-WealthPk