Business
Farm lending slumps as finance minister warns of ‘alarming’ crisis
• Farmers face cash-flow crunch; repayments delayed by price volatility
• ZTBL lending nearly halves in two years to Rs39.66bn
• Aurangzeb blames farmers for ‘inefficient practices’
ISLAMABAD: Finance Minister Muhammad Aurangzeb has painted an alarming picture of the country’s agriculture sector — the backbone of the economy — citing crop failures, low yields, farmer migration to cities and compounding climate and economic crises.
“Farmers face cash-flow issues due to crop failures, low yields and open-market price fluctuations, leading to delayed repayments,” Mr Aurangzeb said in a written reply to parliament.
He stressed that credit disbursement to the farm sector by the frontline agriculture support institution — Zarai Taraqiati Bank Limited (ZTBL) — plunged almost 54 per cent in two years to just Rs39.66 billion. The figure was Rs85.563bn in 2023 and Rs61.362bn in 2024.
Attributing the aggravating situation in the agriculture sector to climate and economic crises, the minister said that floods, droughts or pest attacks destroy crops, leaving farmers unable to pay loans while economic challenges like inflation increase input costs (seeds and fertilisers), reducing farmers’ profit margin.
Mr Aurangzeb also blamed the farming community for inefficient practices, stressing that the low productivity was caused by outdated techniques, poor seeds and inadequate fertiliser use besides limited knowledge of modern agricultural practices.
On top of that, socio-economic challenges were quoted as another reason for low credit disbursement by the ZTBL. This included poverty and dependence on agriculture as the sole income source, migration of farmers to cities leaving land uncultivated and high health emergencies or family issues consuming available funds.
The finance minister volunteered the detailed report on the agriculture sector in response to a question from Senator Syed Masroor Ahsan, who wanted to know the status of credit disbursement by ZTBL in Punjab and Sindh over the past three years along with the recovery progress. Senator Ahsan also asked if recovery targets against these disbursements were achieved and, if not, what were the reasons behind it.
Mr Aurangzeb reported that ZTBL’s credit disbursement had declined by 53pc in Punjab and 59pc in Sindh — the country’s top two agriculture and food baskets.
In Punjab, credit to the farm sector in 2023 amounted to Rs75.167bn, followed by Rs61.362bn in 2024, down by more than 18pc. It dropped further to Rs35.43bn in 2025, he said.
In Sindh, the farm credit amounted to Rs10.4bn in 2023 and fell to Rs7.22bn in 2024, down 30.6pc. It further decreased to Rs4.23bn in 2025.
The report said that the outstanding loan portfolio moved in a narrow band in both provinces. For example, total outstanding loans, including non-performing loans and charged-off portfolio (default over three years), in Sindh stood at Rs32bn in 2023, which slightly moved up to Rs32.76bn in 2024 and Rs32.96bn in 2025.
In Punjab, the outstanding portfolio amounted to Rs147.7bn in 2023, rose to Rs154.2bn in 2024 and came down to Rs150.1bn in 2025.
It said that the overall recovery rate against the target in Punjab stood at 77pc in 2023, which jumped to 82pc in 2024 but dropped again to 78pc in 2025.
Conversely, in Sindh, the recovery rate against the target was reported at 60pc in 2023, which fell to 57pc in 2024 and remained there in 2025 as well.
Published in Dawn, October 14th, 2025
Business
PM Shehbaz announces reopening of new gas connections to domestic consumers
Prime Minister Shehbaz Sharif announced on Sunday the reopening of new gas connections after a ban of nearly four years, state broadcaster Radio Pakistan reported.
His announcement comes less than two months after the federal cabinet decided in September to lift the ban on domestic gas connections and supply regasified liquefied natural gas (RLNG).
Speaking about the cabinet’s decision in a post-meeting press conference, Minister for Parliamentary Affairs Dr Tariq Fazal Chaudhry, flanked by Petroleum Minister Ali Pervaiz Malik, had said PM Shehbaz decided to lift the ban on new gas connections imposed in 2021, addressing a longstanding public demand.
Addressing a ceremony related to the resumption of RLNG connections in Islamabad today, the premier reiterated that the government’s decision was in response to the “long-standing public demand”.
“In 2022, there was immense public pressure for [new] gas connections but the government was facing challenges,” Radio Pakistan quoted him as saying.
But, “with this landmark decision, the public will now be able to access affordable and quality fuel,” he added.
“Now, RLNG will be supplied throughout the country to a large number of applicants,” a report by state-run APP quoted him as saying.
According to the reports, a video message by Malik was also played during today’s ceremony, in which the petroleum minister said the government was committed to providing maximum facilities to the public.
He added that the Sui Northern Gas Company had brought down its line losses to 4.93 per cent while earning a profit of Rs29 billion in the previous fiscal year.
Business
Pakistan Engineering Development Board gets new chief
ISLAMABAD: After a gap of nine months, the government has appointed Hamad Ali Mansoor as the new chief executive officer (CEO) of the Engineering Development Board (EDB).
Mr Mansoor’s appointment, in the MP-I scale, is for a three-year term. The position had been vacant since January, and the recruitment process was initiated through an advertisement issued on Nov 17, 2024.
According to the Ministry of Industries and Production, a total of 248 applications were received. Thirty-three eligible candidates were shortlisted and interviewed by the selection committee in February. The committee recommended a panel of three candidates in order of merit: Hamad Ali Mansoor, Akhtar Ahmad Bughio and Shakeel Zahid.
Established in 1995, the EDB functions under the Ministry of Industries and Production to promote, facilitate and regulate the engineering sector in Pakistan.
Mr Mansoor holds an undergraduate degree in mechanical engineering and an MBA from the Schulich School of Business, York University, Toronto. He has over three decades of experience in industrial policy, manufacturing and infrastructure development, with a focus on renewable energy and sustainable growth.
Published in Dawn, October 26th, 2025
Business
PPP reaffirms commitment to farmers
ISLAMABAD: The PPP has reiterated its commitment to supporting the farming community and vowed to continue its struggle to end all injustices faced by the farmers.
“PPP remains committed to respecting, empowering, and reviving the agricultural sector for a prosperous Pakistan,” said the party’s Central Information Secretary Shazia Marri. She quoted PPP Chairman Bilawal Bhutto-Zardari as saying that no economy can be strong if its farmers are weak.
“Chairman Bilawal Bhutto-Zardari believes that strengthening the farmer means strengthening Pakistan itself,” Ms Marri said in a statement issued on Saturday.
Ms Marri said that Bilawal Bhutto-Zardari’s vision was clear — the true measure of progress lies in the prosperity of farmers. She recalled that during the PPP government, Pakistan had moved from wheat shortage to becoming a wheat-exporting country, owing to farmer-friendly policies.
She said that the PPP chairman had always stood by the farmers, advocating for timely procurement and fair prices.
Highlighting the impact of climate change, the PPP leader said that it posed a serious threat to every Pakistani farmer. She added that Bilawal Bhutto-Zardari emphasised the need for investment in sustainable and climate-resilient agriculture, envisioning a modern agricultural economy where small farmers could progress through technology and access to fair markets.
She said the PPP believed that insurance, credit access, and transparent governance were essential to protect farmers from the adverse effects of climate change.
Ms Marri appreciated the government’s decision to allow wheat procurement, terming it a longstanding demand of the PPP. She added that approving the support price for wheat was also a PPP demand; however, she noted that fixing the price at Rs4,000 instead of Rs3,500 per 40kg would have been more beneficial for farmers. She further said that reducing the income tax from 45 per cent to 15pc was an important relief measure for the farming community.
Published in Dawn, October 26th, 2025
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