ISLAMABAD, June 11 (APP): Finance and Revenue Minister Senator Muhammad Aurangzeb reaffirmed the government’s strong commitment to transforming the agriculture and livestock sectors to promote sustainable economic growth and social development.
During a post-budget press conference on Wednesday, the Minister highlighted agriculture as a critical driver of the economy, contributing 24% to the national GDP. He announced that a comprehensive development strategy would be crafted in coordination with provincial governments to enhance both agriculture and livestock.
As part of the new budget, several initiatives are being rolled out, including improved access to credit for small-scale farmers, expansion of crop storage infrastructure, and increased availability of certified seeds for major and minor crops to boost per-acre productivity.
To further bolster the sector, a dedicated committee has been formed to oversee agricultural progress. The Minister pointed to the notable rise in agricultural credit disbursement as a key achievement of recent efforts.
Additionally, the government is introducing a clean financing facility, allowing banks to offer collateral-free loans of up to Rs. 100,000 to small farmers. These loans will be distributed through e-wallets to ensure transparency and operational efficiency.
Key Terms and Concepts
What is a post-budget press conference?
A post-budget press conference is a formal event where government officials explain the budget’s highlights, policy goals, and sectoral allocations. It’s crucial for transparency and public understanding of fiscal plans. For example, in June 2025, the Finance Minister outlined agriculture reforms during this conference. These events clarify how funds will be used across sectors.
When did Pakistan announce its federal budget for 2025–26?
Pakistan presented its 2025–26 federal budget on June 10, 2025, outlining spending priorities, revenue targets, and reforms. Budget day is a key national event affecting all sectors. The 2025 budget prioritized agriculture, small businesses, and digital inclusion. Understanding this timing helps track new policy implementation cycles.
What is the Clean Financing Facility for farmers?
The Clean Financing Facility provides collateral-free loans of up to Rs. 100,000 to small farmers, disbursed via e-wallets for transparency. It’s essential for financial inclusion, especially for those without access to formal credit. This 2025 initiative helps farmers buy seeds, fertilizers, or machinery. Example: A rural wheat farmer can now buy certified seeds without pledging land.
What is agricultural credit?
Agricultural credit refers to loans provided to farmers for buying inputs like seeds, fertilizers, tools, or livestock. It’s vital for boosting productivity and reducing reliance on informal moneylenders. In 2025, Pakistan is expanding this credit to empower small-scale farmers. For instance, a farmer in Punjab may use it to purchase a drip irrigation system.
How important is agriculture to Pakistan’s economy in 2025?
Agriculture contributes 24% of Pakistan’s GDP and employs nearly 38% of the labor force in 2025. It’s central to food security, exports, and rural livelihoods. Reforms in this sector affect inflation, trade, and social stability. Wheat, rice, sugarcane, and livestock are key components of this economy.
What role do provincial governments play in agricultural reforms?
In Pakistan, agriculture is a provincial subject, meaning provinces manage policy execution while the federal government provides strategy and funding. Collaboration is vital for reform success. For example, federal funds may support Sindh’s flood-resistant crop programs. This ensures policies match local needs and geography.
What are certified seeds, and why are they important?
Certified seeds are high-quality, tested seeds approved by authorities for purity, yield, and disease resistance. In 2025, they are essential for boosting farm productivity and reducing crop failure risks. A cotton farmer using certified seeds can expect higher returns and fewer pesticide issues. They’re distributed through government-registered dealers and schemes.
What is per-acre yield and why does it matter?
Per-acre yield is the output produced on a single acre of land. It is a key measure of agricultural efficiency. Higher yields mean better income for farmers and national food security. In 2025, boosting yields of crops like maize and pulses is central to Pakistan’s development strategy. It also reduces the need for food imports.
How will taxes on agriculture impact farmers in 2025?
Agricultural taxes, if introduced or raised in 2025, could increase production costs through levies on inputs or income. While they may boost revenue, they risk burdening small farmers unless subsidies or loans offset the impact. For example, taxing fertilizers might discourage usage unless balanced with affordable financing.
What is the significance of crop storage infrastructure in 2025?
Crop storage infrastructure like silos and cold stores reduces post-harvest losses and stabilizes market prices. In 2025, Pakistan is investing in this to help farmers retain produce longer and avoid distress sales. For instance, a rice farmer can now store harvests and sell during peak prices. This also ensures food availability year-round.
What is the role of e-wallets in loan disbursement?
E-wallets are digital platforms used to transfer and manage money via mobile devices. In 2025, they’re used by banks to send loans to farmers, ensuring transparency and cutting out intermediaries. For example, a farmer in Balochistan receives funds directly on their mobile app. This reduces fraud and enables quick transactions.
Why is livestock included in agricultural development plans?
Livestock is a key part of agriculture, providing dairy, meat, and income, especially in rural Pakistan. In 2025, development includes improved breeds, vaccines, and market access. A dairy farmer using better feed and veterinary care can double milk yield. Livestock also supports export potential and women’s rural employment.
What is the government’s agriculture modernization plan in 2025?
The 2025 modernization plan includes digital platforms, modern machinery, research-based seeds, and smart irrigation systems. It’s aimed at moving from traditional to technology-driven farming. For example, precision agriculture tools help farmers monitor soil health. The goal is to improve efficiency, profitability, and sustainability.
Why is sustainable agriculture emphasized in 2025?
Sustainable agriculture protects natural resources while increasing food output. In 2025, Pakistan promotes eco-friendly practices like crop rotation, drip irrigation, and organic inputs. These reduce environmental harm and adapt to climate change. For instance, desert farming using solar-powered water pumps is being adopted in Tharparkar.
What does increased agricultural credit disbursement mean?
Increased credit disbursement means more loans are reaching farmers, showing improved financial outreach and policy success. In 2025, it helps farmers invest in seeds, equipment, and resilience measures. For example, a farmer can now install solar water pumps or greenhouse tunnels. It’s a sign of a healthier rural finance system.
