AVN 66.93 Decreased By ▼ -0.17 (-0.25%)
BAFL 29.54 Decreased By ▼ -0.21 (-0.71%)
BOP 4.06 Decreased By ▼ -0.01 (-0.25%)
CNERGY 3.62 Decreased By ▼ -0.11 (-2.95%)
DFML 11.94 Decreased By ▼ -0.31 (-2.53%)
DGKC 43.26 Decreased By ▼ -2.10 (-4.63%)
EPCL 45.97 Decreased By ▼ -1.03 (-2.19%)
FCCL 11.81 Decreased By ▼ -0.19 (-1.58%)
FFL 5.91 Decreased By ▼ -0.04 (-0.67%)
FLYNG 6.04 Decreased By ▼ -0.14 (-2.27%)
GGL 11.41 Decreased By ▼ -0.48 (-4.04%)
HUBC 68.11 Decreased By ▼ -0.39 (-0.57%)
HUMNL 5.64 Decreased By ▼ -0.08 (-1.4%)
KAPCO 24.91 Decreased By ▼ -0.34 (-1.35%)
KEL 2.13 Decreased By ▼ -0.01 (-0.47%)
LOTCHEM 24.95 Decreased By ▼ -0.41 (-1.62%)
MLCF 24.91 Decreased By ▼ -0.79 (-3.07%)
NETSOL 75.92 Decreased By ▼ -1.88 (-2.42%)
OGDC 85.99 Decreased By ▼ -2.13 (-2.42%)
PAEL 11.11 Decreased By ▼ -0.54 (-4.64%)
PIBTL 3.99 Decreased By ▼ -0.13 (-3.16%)
PPL 66.27 Decreased By ▼ -2.44 (-3.55%)
PRL 12.92 Decreased By ▼ -0.33 (-2.49%)
SILK 0.87 Decreased By ▼ -0.01 (-1.14%)
SNGP 40.72 Decreased By ▼ -0.98 (-2.35%)
TELE 7.57 Decreased By ▼ -0.40 (-5.02%)
TPLP 15.05 Decreased By ▼ -0.37 (-2.4%)
TRG 110.33 Decreased By ▼ -2.23 (-1.98%)
UNITY 13.52 Decreased By ▼ -0.58 (-4.11%)
WTL 1.21 Decreased By ▼ -0.02 (-1.63%)
BR100 4,081 Decreased By -61.9 (-1.49%)
BR30 14,631 Decreased By -307.2 (-2.06%)
KSE100 40,376 Decreased By -501.9 (-1.23%)
KSE30 14,916 Decreased By -172.3 (-1.14%)
Follow us

In a bid to boost the sector, the State Bank of Pakistan (SBP) has enhanced the indicative credit limits for agriculture financing by banks to farmers to align the amount of advances with agriculture input requirements.

The SBP said on Wednesday that the enhanced indicative credit limits for production and development loans of farm and non-farm sector will directly benefit agriculture borrowers, who will now be able to obtain more credit from banks and, in turn, enhance agriculture productivity through adequate use of inputs.

“This will also enable banks to align the loan amounts with the actual requirements of farmers and resultantly, enhance the flow of agriculture credit,” said SBP in a statement.

The credit requirements are the actual demand of the farmers or agriculture business entrepreneurs for agricultural financing. The SBP calculated the credit requirements based on various factors like; land holding, size of farms, economic conditions and expected prices of the agriculture produce.

"Generally, farmers having medium to large farm size are in a good financial position and may have relatively low credit demand while the subsistence and marginalised farmers mainly rely on credit/loans to meet their financial requirements which varies from 90 to 100%," the central bank said in its report.

SBP said that the per-acre indicative credit limits for crops, orchards, forest trees and agriculture-related infrastructure are based on technical data received from leading agricultural research institutes and other stakeholders.

Raast Person-to-Person: PM believes SBP's latest initiative to enhance formal economy

As per revised credit limits provided by SBP, the per-acre indicative agriculture credit limits for major crops has increased Rs45,000 to Rs70,000 for rice, for wheat, the credit limit has been revised to Rs60,000 per acre from Rs40,000 per acre.

For cotton, the credit limit has been raised to Rs75,000 per acre from Rs52,000 per acre, Sugarcane credit limit revised from Rs73,000 per acre to Rs105,000 per acre, whereas, for maize (Hybrid) the credit limit has increased from Rs55,000 per acre to Rs78,000 per acre, while for maize the credit limit has been raised to Rs65,000 per acre from Rs45,000 per acre.

Foreign embassies: ADs can remit visa, document attestation fees: SBP

It is important to note that the indicative credit limits serve as a guideline for banks to assess the credit requirements of agriculture borrowers while sanctioning credit limits. “Banks may, however, make adjustments on the basis of prevailing market conditions, local prices of inputs, and repayment capacity of borrowers,” the SBP said.

The central bank added that revised indicative credit limits will also facilitate provincial planning departments in estimating the total financial and credit requirements of respective provinces/regions for farm and non-farm sectors.


Comments are closed.

SBP increases indicative credit limits for agri financing

Government should make Toshakhana records from 1990 to 2001 public: LHC

At least 10 dead, 62 injured in KPK after strong earthquake

Rupee strengthens against US dollar, settles at 283.20

‘Pakistan is running out of time,’ warns PBC as IMF programme hangs in balance

KSE-100 falls over 500 points owing to IMF programme uncertainty

Only 50% of deemed income tax be paid at the moment: SC grants interim order

Blinken says China has not ‘crossed line’ on lethal aid to Russia

Energy transmission lines to be set up in Thar by April 30: PM Shehbaz

Electricity generation dips 4% in February as economic slowdown continues

Import restrictions: Bannu Woollen Mills shuts production for 6 weeks