Government announces interest-free loan program for small farmers

ISLAMABAD: The government, while announcing a major financial package for the agriculture sector in the budget 2026-27, has decided to provide interest-free loans of Rs 300 billion to small farmers under the Fertile Scheme.

About 750,000 small farmers will benefit under this scheme.

According to the budget documents, farmers holding less than 12 acres of land will be given a subsidy of Rs 1,500 per acre to reduce agricultural costs and increase production, while a subsidy of Rs 5 billion has also been allocated for agricultural machinery.

The government has also decided to provide a special package of Rs 20 billion to fertilizer factories to keep fertilizer prices stable, which aims to provide relief to farmers and prevent agricultural production from being affected.

In addition, $200 million has been allocated with the support of the World Bank to combat the effects of climate change and protect the agricultural sector from potential losses. This fund will promote modern agricultural technology and safety measures.

On the other hand, a subsidy of Rs3 billion for agricultural tube wells in Balochistan has also been made part of the budget to reduce the problem of water scarcity and facilitate agricultural activities.

Similarly, Rs20 billion has been allocated for the Prime Minister’s Youth Business and Agriculture Program, which aims to attract youth to agribusiness and provide them with new employment opportunities.

The government says that these measures will strengthen the agricultural economy and significantly improve the financial condition of small farmers.