Pakistan’s premier bank has gone all in on agriculture

Pakistan’s agricultural sector is under strain from every direction. Crop failures, low yields, farmer migration to cities and compounding climate and economic crises have all laid waste to Pakistan’s most important economic sector. The data is clear. Pakistan’s struggling agriculture sector needs better financing. But out of all the commercial banks in Pakistan, the one that stands out the most is HBL. Last year, instead of giving targets to different banks for agriculture lending, the State Bank of Pakistan (SBP) asked banks to set their own credit expansion plans. HBL gave itself the largest target, aiming to have agricultural loan disbursements up to Rs 350 billion. They outperformed their own expansion plan, achieving 108% of their targetkeeping agriculture and livestock central to the business model. The institution now serves more than 176,000 agricultural borrowers and maintains a portfolio of Rs 54.4 billion, representing 56 percent of its conventional loan book. “Microfinance acts as an entry point for financial inclusion. Once a farmer gains access to a loan, they often begin using other financial services. This progression builds long-term resilience for households and contributes directly to rural development,” said Amir Khan, the HBL Microfinance Bank’s President & CEO.