Government disburses Rs 301.7 billion agriculture credit during first half 2016-17

The government has disbursed Rs 301.7 billion agriculture credit during the first half of 2016-17 through various banks and financial institutions against the State Bank of Pakistan (SBP) set target of Rs 700 billion. According to an official document available with Business Recorder, SBP has advised to scheduled banks to provide crop loans to the farmers under SBP’s Revolving Credit Scheme covering both Rabi and Kharif seasons.

The document further noted that during ongoing Rabi season 2016-2017 different banks including Zarai Taraqiati Bank Limited (ZTBL) disbursed credit to the tune of Rs 301.7 billion.

Out of the total agriculture credit disbursed Rs 142.2 billion or 47.5 percent was disbursed to farm sector and Rs 158.5 billion or 52.5 percent to non-farm sector, it said. According to the document, ZTBL disbursed Rs 29.2 billion, five major commercial banks disbursed Rs 156.4 billion, Punjab Provincial Cooperative Bank Limited (PPCBL) Rs 4.8 billion, 15 domestic private banks 5.7 billion, nine Microfinance Banks (MFBs) Rs 42.2 billion and others Rs 7.2 billion.

During financial year 2015-16 Rs 306.1 billion or 51.2 percent was disbursed to farm sector and Rs 292.2 billion or 48.8 percent to non-farm sector. However, during 2015-16 a total amount of Rs 515.9 billion was disbursed out of which 274.3 billion or 53.2 percent was disbursed to farm sector and non-farm sector received Rs 241.6 billion or 48 percent of total disbursement by banks. The share of non-farm sector has witnessed an increase during the last couple of years due to adoption of innovative value chain financing models by banks especially in livestock/dairy and poultry sectors.