Banks urged to provide financial services to agriculture
sector
State Bank of Pakistan Governor Jameel Ahmed has called on
banks to ensure that farmers have easy, timely, and hassle-free access to all
financial services. The Governor made these remarks during the annual meeting
of the Agricultural Credit Advisory Committee (ACAC) held on December 14, 2023,
in Lahore, according to a statement issued by the State Bank of Pakistan on
Friday.
In his address, Governor Ahmed emphasized the importance of
promoting and enhancing growth in the agricultural sector, which plays a
pivotal role in the country's social and economic development. Despite
challenges such as floods, agricultural credit disbursements reached an
impressive level of Rs 1,776 billion during FY23, marking a year-on-year growth
of 25.2% and achieving 97.6% of the overall target of Rs 1,819 billion.
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Expressing optimism about the strong recovery in the
agriculture sector, Governor Ahmed anticipated real GDP growth in the range of
2-3% in FY24. The disbursement target for FY24 has been set at Rs 2,250
billion, reflecting a 26.7% increase over the previous year's disbursement.
Governor Ahmed highlighted the excellent growth of 30%
during the period from July to October 23, indicating progress toward achieving
the disbursement target comfortably. Addressing challenges, particularly the
attrition of borrowers, he announced that the central bank would engage with
each bank individually to develop plans and strategies for a sustainable
increase in agricultural borrowers.
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He advised banks to enhance their capabilities in
agricultural financing and encouraged them to establish partnerships with
microfinance institutions to expand the reach of agricultural and rural
financing services. The Governor also urged banks to cooperate and partner with
AgriTechs, agricultural universities, district agricultural departments, and
other stakeholders to improve farmers' productivity through the provision of
high-quality inputs, better agricultural techniques, and optimal use of
agricultural technology.
Additionally, Governor Ahmed emphasized the immediate
consideration of promoting development loans, especially directed towards the
mechanization of the agriculture sector.
Source: Geo TV