Agricultural credit disbursement by the banks surged by 19 percent on year-on-year basis to Rs 172.563 billion in the first eight months, July-February, of the current fiscal year (2011-12).
In absolute terms, disbursement of credit to the agriculture sector increased by over Rs 27.124 billion in the review period when compared with total disbursement of Rs 145.439 billion in the corresponding period of last year.
Overall credit disbursement by five major commercial banks, including Allied Bank, Habib Bank, MCB Bank, National Bank of Pakistan and United Bank, stood at Rs 94.595 billion in the said months compared to Rs 80.415 billion disbursed in FY2011. This depicts an increase of Rs 14.180 billion or 17.63 percent, reported the central bank Wednesday. The Zarai Taraqiati Bank, the largest specialized bank, disbursed a total of Rs 31.652 billion, up by 1.18 percent when compared with Rs 31.282 billion disbursement of last fiscal year. The Punjab Provincial Co-operative Bank disbursed Rs 5.549 billion, up by 33.13 percent compared to last year’s Rs 4.168 billion. The 14 domestic private banks also loaned a combined amount of Rs 32.910 billion during the review period that registered an increase of 11.28 percent compared to Rs 29.574 billion of FY11. The five microfinance banks, Khushhali Bank, NRSP Microfinance Bank, The First Microfinance Bank, Pak Oman Microfinance Bank and Tameer Microfinance Bank, disbursements totaled at Rs 7.856 billion during the period.
It may be pointed out that the State Bank for the first time has given an indicative target of Rs 12.20 billion to microfinance banks for disbursement of credit to agriculture sector during the current fiscal year. It may be recalled that the State Bank has set an indicative agricultural credit disbursement target of Rs 285 billion for the current fiscal year.
Credit play pivotal role in the development of agricultural sector. The farmer of the Pakistan is very poor and can not purchase input for their farming to increase their output while the supply of credit now a day is more than before in figure but due to inflation the price of the input is so high that the farmer of the country can not purchase these input on these amount which is supplied by bank . Therefor it is recommended to down the price of input of the farming community because price is the main hurdle for improvement of agricultural secto
The banker supply credit to those peoples in the farming community who are influential in the farming society while not give loan to those people who are poor but they play great role in cultivation of the field and agricultural development. The bank staff only see to their interest and highly focus on their benefits while not see to the benefits of the farming community, so they give loan those people who pay the amount in time . Through this way the development of the farming community is impossible
285 billion amount is a huge amount if the banker distribute the said loan on merit basis then development of agriculture is impossible while otherwise is impossible because if the water not go equally to all side of the farm then how we get more production than the said field. Therefore it is recommended to distribute the said amount by honest expert to because to distribute on merit basis. There for development honest expert selection is compulsurys
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