Pakistan Budget 2025: Loans for Small Farmers without Collateral

Pakistan's Budget 2025: Small Farmers to Receive Interest-Free Loans Pakistan's Finance Minister recently announced a significant initiative within the Budget 2025 aimed at bolstering the nation's agricultural sector. The plan focuses on providing small farmers with access to much-needed financial resources. A key component of this initiative is the provision of loans up to 100,000 rupees, without the requirement of collateral. This move is designed to alleviate the financial burdens faced by many small farmers and promote growth within the agricultural sector. "Banks will be provided with a 10% first-loss coverage portfolio on these loans," stated the Finance Minister, highlighting the government's commitment to mitigating risks for financial institutions. This risk-sharing mechanism is intended to encourage greater participation by banks in the program. The initiative is expected to benefit a substantial number of small farmers across the country, providing them with the financial resources necessary to invest in their farms and improve their livelihoods. The program is also designed to help address the long-standing challenges faced by the agricultural sector in Pakistan. This initiative is a positive step towards empowering small farmers and strengthening the agricultural sector in Pakistan, contributing to economic growth and rural development.