LAHORE: The Federation of Pakistan Chambers of Commerce and Industry’s Businessmen Panel (BMP) has welcomed the Economic Coordination Committee’s (ECC) decision to approve the Risk Coverage Scheme for small farmers and underserved areas, urging the State Bank of Pakistan to notify the scheme without any further delay.
FPCCI former president and BMP Chairman Mian Anjum Nisar the approval was an important step toward correcting a long-standing imbalance in agricultural credit distribution where the bulk of financing continues to be consumed by large landholders in Punjab and Sindh, leaving millions of small farmers in other provinces struggling for survival.
Nisar pointed out that small farmers make up more than 93 percent of the country’s agricultural borrowers, yet they receive only 32 percent of total agri-credit disbursements. In contrast, the large farmers, who represent a mere 7 percent of borrowers, corner 68 percent of the lending.
He said this disparity not only worsens the rural poverty but also deprives the national economy of the full potential of agriculture, which remains the backbone of Pakistan’s livelihood and food security.
Quoting figures shared during the ECC meeting, the FPCCI leader said that currently 97 percent of agriculture financing is concentrated in Punjab and Sindh, while only 3 percent trickles down to Khyber Pakhtunkhwa, Balochistan, Azad Jammu & Kashmir and Gilgit-Baltistan.
He stressed that this imbalance must be corrected, especially as farmers in these underserved areas are already facing multiple shocks, from climate change to poor infrastructure and market access. “If agriculture credit continues to bypass them, the inequality between provinces will only deepen, creating long-term socio-economic instability,” he warned.
The BMP Chairman said the ECC had rightly recognized that the proposed scheme should cover not just small and subsistence farmers in Punjab and Sindh but also all farmers in the underserved provinces, since their share of credit disbursements is already negligible.
He urged policymakers to adopt a holistic approach, noting that agriculture and SMEs are deeply linked. He also reminded the government of its responsibility to fully take care of the flood victims, who not only lost their crops but also their homes and livelihoods. He said relief measures must go beyond temporary food packages and shelters, and should include financial support that enables victims to rebuild their economic base.
He further said that in the aftermath of floods and natural disasters, Pakistan requires a stronger disaster-resilient financing system where quick disbursement of loans, grants and insurance payouts can prevent economic collapse in vulnerable regions.
He called on the government to learn from global best practices where targeted credit programs and crop insurance schemes have saved millions from falling into extreme poverty.
Copyright Business Recorder, 2025
