Summary
- The government has unveiled a major agricultural support package in the 2026–27 federal budget, introducing the “Zarkhez Scheme” to strengthen Pakistan’s farming sector and improve the financial condition of small-scale farmers.
- The budget also allocates Rs5 billion in subsidies for agricultural machinery to encourage the use of modern farming equipment and improve efficiency in the sector.
- The budget further includes a Rs3 billion subsidy for agricultural tube wells in Balochistan, aiming to reduce irrigation costs and improve water access for farmers in the province.
The government has unveiled a major agricultural support package in the 2026–27 federal budget, introducing the “Zarkhez Scheme” to strengthen Pakistan’s farming sector and improve the financial condition of small-scale farmers.
Under the initiative, authorities will provide Rs300 billion in interest-free loans to around 750,000 small farmers across the country. The program aims to increase agricultural productivity, improve access to financing, and help farmers manage rising production costs.
The budget also allocates Rs5 billion in subsidies for agricultural machinery to encourage the use of modern farming equipment and improve efficiency in the sector. In addition, farmers who own less than 12 acres of land will receive a subsidy of Rs1,500 per acre to support cultivation and reduce financial pressure.
To help keep fertilizer prices affordable, the government plans to offer a Rs20 billion support package to fertilizer manufacturers. Officials expect the measure to ensure a steady supply of fertilizers at reasonable prices and support crop production nationwide.
Recognizing the growing impact of climate change on agriculture, the government has earmarked $200 million with assistance from the World Bank. The funding will support projects designed to protect the agricultural sector from climate-related losses, improve resilience, and promote sustainable farming practices.
The budget further includes a Rs3 billion subsidy for agricultural tube wells in Balochistan, aiming to reduce irrigation costs and improve water access for farmers in the province.
Additionally, the government has set aside Rs20 billion for the Prime Minister’s Youth Business and Agriculture Program, which seeks to create new opportunities for young entrepreneurs and encourage greater participation in agriculture and agribusiness.
Through these measures, the government hopes to boost agricultural growth, support rural communities, enhance food security, and strengthen Pakistan’s overall economy.
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