ISLAMABAD, Pakistan: As many as Rs 332.7 billion agricultural credit has been disbursed during the first eight months of the current fiscal year by various banks and financial institutions against the target of Rs 600 billion set by the State Bank of Pakistan (SBP).
The details about the credit disbursements were revealed at the meeting of Federal Committee on Agriculture here.
Federal Minister for National Food Security and Research Sikandar Hayat Khan Bosan chaired the meeting which among others was attended by representatives from all the provinces and relevant departments.
The disbursement of Rs.332.7 billion from July-March (2015-16), shows an increase of 15.3 percent when compared to the disbursement of Rs.288.7 billion during the corresponding period of last year.
The outstanding portfolio of agricultural loans has increased by Rs 46.9 billion i.e. from Rs 307.6 billion to Rs 354.5 billion with 15.2 percent growth at the end of February 2016 as compared to the corresponding period of last year.
The committee was informed that despite having various challenges, the overall performance of banks remained encouraging and witnessed 15.3 percent growth in disbursements during the period under review.
As man as fifteen domestic private banks collectively disbursed Rs 72.3 billion or 54.8 against their target of Rs 131.8 billion. Nine microfinance banks have disbursed Rs 30.5 billion of 76 percent of their annual targets, while the five Islamic Banks, as a group have disbursed Rs 4.9 billion against the target of Rs 7.9 billion during the period.
The committee was informed that in the backdrop of the government priority of agriculture sector for current fiscal year the SBP allocated the provisional indicative agricultural credit disbursements targets of Rs 600 billion to the 36 participating institutions including 20 commercial banks, two specialized banks, five Islamic banks and nine microfinance banks.
The indicative agriculture target is 20 percent higher than the last year’s target of Rs 500 billion and 16.3 percent higher than the actual disbursement of Rs.515.9 billion for FY 2014-15.
Out of the total target Rs 305.7 billion have been allocated to five major banks, Rs 102 billion to Zarai Taraqiati Bank Limited, Rs 131.8 billion to 15 domestic private banks, R .12.5 billion to Punjab Provincial Cooperative bank, Rs 40.1 billion to nine microfinance banks and Rs 7.9 billion to five Islamic banks for current fiscal year.