Agricultural credit disbursement rises 16.3% to PKR 2.58 trillion in FY25

Agricultural credit disbursement in Pakistan rose 16.3 percent to PKR 2.58 trillion during the financial year that ended June 30, 2025, compared to PKR 2.22 trillion in fiscal year 2024, according to a Ministry of Finance report.

The report said imports of agricultural machinery and implements increased 124 percent, reaching $14.4 million in July FY26. During the 2025 Kharif season (April through July), urea offtake grew 2 percent to 1.86 million tons, while DAP offtake declined 0.7 percent to 416,000 tons.

The government remains committed to supporting farmers through timely access to quality seeds, credit, fertilizers and modern machinery. However, adverse climate events, including heavy rainfall and floods, pose risks to achieving the sector’s growth targets.

The report also noted that the large-scale manufacturing sector posted a year-over-year increase of 4.1 percent in June 2025. On a month-over-month basis, however, it declined 3.7 percent. Overall, LSM output fell 0.74 percent in FY25, compared with a slight increase of 0.78 percent in the previous fiscal year.

Of 22 sectors, 12 recorded positive growth, including textiles, wearing apparel, coke and petroleum products, beverages and pharmaceuticals.

The automobile sector showed strong performance in July FY26, with car production up 49 percent, trucks and buses up 40.1 percent, and jeeps and pickups up 34 percent.

Cement dispatches rose to 3.99 million tons in July FY26, a 30.1 percent increase from the previous year. Domestic sales grew 18.4 percent to 2.99 million tons, while exports surged 84.2 percent to 1.01 million tons, indicating an overall pickup in industrial activity.