The Economic Coordination Committee (ECC) has expressed concern over the exclusion of small farmers from Punjab and Sindh in a new Risk Coverage Scheme. The scheme, developed to provide financial support to farmers in underserved areas, currently covers only Khyber Pakhtunkhwa and Balochistan. The ECC has now asked the State Bank of Pakistan (SBP) to revisit the eligibility criteria and present a revised plan.
The scheme is designed to operate from FY27 to FY31 with a budget of Rs37.5 billion. It includes Rs30 billion for risk coverage and Rs7.5 billion for operational expenses. Farmers will be eligible for loans up to Rs3 million, with a repayment period of 12 months, extended to 18 months for sugarcane producers.
During a recent meeting, ECC members raised concerns about potential misuse of the scheme by larger landowners and urged fair access for all provinces. They warned that excluding Punjab and Sindh, where many small farmers reside, may undermine the programme’s goal of inclusive financial support.
According to the SBP, the initiative will help bring 750,000 new borrowers into the formal financial system and generate Rs300 billion in agricultural credit over FY26–FY28. The government plans to offer a 10% first-loss guarantee to banks and an operational subsidy of Rs10,000 per borrower to encourage outreach.
Although the ECC approved the scheme in principle, it directed the Finance Division and SBP to provide a comprehensive briefing in the next session. The updated plan must address concerns around provincial equity and outline safeguards to prevent misuse.