Interest-free loans for farmers

Punjab is one of the most fertile regions in Pakistan and is known all over the world for its predominantly agricultural output. The economy of Punjab is largely based on agriculture which is the largest and fastest growing economy in the country. The province of Punjab plays a pivotal role in Pakistan’s economy, by contributing almost 60 percent of the total agricultural production of the country. Therefore, in order to help further develop the agriculture sector and provide relief to the farmers, the Punjab government has approved a scheme to provide interest-free loans to farmers. According to details, soft-term, interest-free loans will be given to the farmers for crops of Rabi and Kharif in the province and a landowner of up to twelve and half acres of agricultural land will be eligible to get this loan.

Since agriculture is of paramount importance for national economy and a major portion of population is associated with it therefore, the government has announced a historic Kissan Package of Rs 100 billion. Moreover, besides provision of relief to the farmers, special attention has also been paid to research and development for increasing per acre yield. Keeping in mind the importance of this sector, the proposal for establishing agriculture stock exchange is also on the cards. The move certainly highlights the fact that the government has fulfilled its promise. It is hoped that the move, if properly implemented, will certainly help agriculture sector in general and small farmers in particular and consequently will pave the way for the socio-economic development of the country.

Syed Ali Qasim

Lahore