Punjab Agri-Food Investment Forum 2026

In this discussion from the Punjab Agri-Food Investment Forum 2026, Mr. Zafar Masud (President & CEO of The Bank of Punjab) addresses the structural bottlenecks and reform requirements for agricultural investment in Pakistan. He emphasizes that the agriculture sector requires a robust, government-supported ecosystem to thrive.

Key Takeaways

• The Necessity of Subsidies: Mr. Masud argues that priority sectors like agriculture globally rely on government subsidies, such as crop insurance, to succeed. He stresses that the agriculture sector is more deserving of these funds than other sectors like energy.
• The Triangular Problem: He identifies a “triangular problem” hindering growth: lack of documentation from borrowers, a bank mindset overly focused on collateral rather than cash-flow based lending, and the need for stronger government-led data and enforcement policies.
• Long-term Financing Challenges: Banks are often hesitant to provide long-term financing due to the inherent uncertainties of agriculture, the seasonal nature of cash flows, and the difficulty of repossessing and selling specialized agricultural machinery.
• Ecosystem and Digital Transformation: Highlighting the success of the Kisan Card (where BOP financed 800,000 farmers with a 99% recovery rate), he explains that digital ecosystems and data-sharing platforms are crucial for minimizing risk and encouraging commercial bank participation.
• Public-Private Partnership: He calls for a mindset shift within the government and public sector, urging them to operate with the agility of the private sector to facilitate true agricultural growth.

Mr. Masud concludes that by shifting to performance-driven subsidies, leveraging technology for financial data, and involving practitioners in policy-making, Pakistan can unlock the massive export potential of the agriculture sector.

Source/Credit: BOP Official YouTube Channel