ISLAMABAD, July 11 — Agricultural machinery imports rose by nearly 25% during FY2025-26 as farmers increased investment in modern equipment, supported by higher credit disbursement and government efforts to improve productivity and climate resilience.
The Finance Division said expanding farm mechanisation is central to the country’s agricultural growth strategy because modern machinery can reduce production costs, improve the timing of farm operations and help farmers use land and water more efficiently.
According to the Monthly Economic Update & Outlook for June 2026, imports of agricultural machinery and implements increased by 24.8% to $123.8 million during July-May FY2025-26, compared with $99.2 million in the same period a year earlier.
The increase indicates growing demand for modern farming technologies as producers seek to improve yields, manage labour shortages and strengthen resilience against climate-related risks.
Agricultural Credit Supports Machinery Investment
Improved access to institutional financing also supported the shift towards mechanised farming.
Agricultural credit disbursement increased by 18.9% to Rs2.458 trillion during July-April FY2025-26, up from Rs2.067 trillion in the corresponding period last year.
The Finance Division said wider access to credit has enabled farmers to purchase machinery, use better-quality inputs and adopt improved production methods.
Mechanisation Central to FY2026-27 Growth Strategy
The report identified mechanisation as a major component of the government’s agricultural strategy for FY2026-27.
Other priorities include climate-smart technologies, stronger agricultural research and extension services, livestock reforms, aquaculture development and improved availability of farm inputs.
These measures are intended to support the government’s target of 3.6% agricultural growth during FY2026-27.
The sector is expected to benefit from stronger performance in livestock, major crops and other crops, while wider use of machinery is projected to improve efficiency across different farming systems.
Kharif Input Availability Improves
The Finance Division also reported improved availability of key agricultural inputs for the Kharif 2026 season, creating more favourable conditions for crop cultivation.
Urea offtake increased sharply during April and May 2026, while the use of diammonium phosphate, commonly known as DAP fertiliser, declined because of higher prices.
The report said sustained investment in machinery, financing and modern technologies will remain important for improving farm productivity, supporting rural incomes and strengthening food security.
It added that mechanisation can also help the sector respond more effectively to climate pressures and shortages of agricultural labour.
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