SBP sets Rs 285 billion agriculture loan target

The State Bank of Pakistan has set Rs 285 billion target for disbursement of agriculture loan among small farmers for current fiscal year.

Director Development Finance of SBP Karachi, Dr Muhammad Saleem said this while addressing"Agricultural & Industrial Awareness Convention-2012" here on Tuesday.

Khyber Pakhtunkhawa Higher Education Minister Qazi Muhammad Asad Khan participated as chief guest in the convention organised by the State Bank, Rawalpindi in collaboration with commercial banks and insurance companies.

More than 120 stalls of handicrafts, clothing agriculture equipment, handmade beautiful jewellers, banking products and food, etc, were set up by women from various organisations and banks to promote rural culture and potential of trade in these areas.

Horse dancing and culture displays made this event more beautiful.

More than 1500 people including students, farmers and women participated in the convention.

Chief Manager State Bank Akhtar Raza, Group Head of United Bank Ltd (UBL) Jameel Ahmed, Vice Chancellor Hazara University Haripur, Professor Dr Sahawat and others were also present on the occasion.

Dr Muhammad Saleem said the SBP had set Rs 270 billion agriculture loans target for small farmers in the previous financial year while actually Rs 260 billion loan was distributed among farmers.

He said that agri loan is being given to farmers through one-window operation.

He said farmers could give better output if banks provide them loan in time on easy instalments.

"Agriculture is backbones of our economy and its share in Gross Domestic Product (GDP) is 21 percent.

Livelihood of 47 percent people is directly or indirectly is linked with agriculture sector.

The SBP is playing pivotal role in progress of agriculture sector by providing loans especially to small farmers," he said.

Dr Muhammad Saleem said the SBP formulates policy in consultation with all the stakeholders including farmers.

The SBP changes its policy with passage of time by keeping the necessities of farmers in view.

Addressing the convention, Khyber Pakhtunkhawa Higher Education Minister Qazi Muhammad Asad Khan said land of Haripur is fertile and the farmers of this area can give maximum production if they were given some financial support for seed, fertiliser and tractor and other inputs necessary for increasing production.

He urged the SBP to set up its branch in Haripur for promotion of small industries and agriculture sector.

About the Haripur University, He said Haripur has also become a part of the community of 120 universities.

"The government should increase budget for education to 4% of GDP.

The quality of education can only be improved by increasing the budget for this sector.

Group head of UBL, Jameel Ahmed said the State Bank has good legal framework and governance in the region.

The employees of the Bank are servants of people.

"It is your money and used to benefit you," he added.

Vice Chancellor Hazara University Haripur, Professor Dr Sahawat said knowledge-based economy and use of latest technology is of vital importance for progress of agriculture sector.