SBP to launch special project for improved access to agri creditSBP to launch special project for improved access to agri credit

Filed under: Agriculture |

The State Bank of Pakistan is launching a Special Pilot Project in Sindh from the current Kharif season to improve the availability of agricultural credit to the farmers on fast track basis.

Initially the project will be launched in seven agri. intensive districts of Sindh including Hyderabad, Tando Allahyar, Mirpurkhas, Larkana, Sanghar, Nawabshah and Khairpur. The project, which is being launched from 15th March, would be participated by 13 different banks having agri-designated branches in these districts. SBP's pilot project will help to increase outreach of agricultural credit to underserved areas of Sindh and added that the banks are meeting 47 percent of the total credit requirement of farmers. The rest is being met through informal resources.

Commercial banks have disbursed INR 117 billion, against the full-year target of INR 250 billion. The disbursement is higher by INR 12 billion than the disbursements of INR 105 billion in the same period last year. The share of subsistence holding farmers (small farmers) in agri loans disbursement has increased to INR 51 billion or 64 percent from INR 46 billion or 60 percent during July 2008 to January 2009. Similarly, for economic holding farmers the share has risen to INR 18 billion or 23 percent from INR 17 billion or 22 percent whereas the share of above economic holding farmers reduced to INR 11 billion or 14 percent from INR 14 billion or 18 percent.

Under the pilot project, the banks have posted agri Finance Officers/Mobile Credit Officers in their designated branches and have also set branch-wise agri loan disbursement targets in the districts of Hyderabad, Tando Allahyar, Mirpurkhas, Larkana, Sanghar, Nawabshah & Khairpur. The local branch managers and regional heads will be responsible for achievement of their targets.

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