Agri credit target raised to Rs1.8trn: Rs511bn Kissan Package notified

ISLAMABAD: The Ministry of National Food Security and Research (MNFS&R) has notified Rs 511 billion Kissan Package already approved by the federal government, official sources told Business Recorder.

According to the notification, agri loan disbursement target has been enhanced from Rs 1,419 billion to Rs 1,819 billion. The Finance Ministry and the State Bank of Pakistan (SBP) will be responsible for disbursement of agri loans.

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Other decisions are as follows: (i) waiver of mark-up on outstanding loans for subsistence farmers in the flood affected areas Rs 10.62 billion; (ii) provision of subsidy for interest-free loans for subsistence farmers in the flood affected areas, Rs 8.2 billion; (iii) Mark-up subsidy and Risk Sharing scheme for farm Mechanization Rs 6.4 billion(for first year); (iv) reduction in DAP price to Rs 11,250/per bag from Rs 13,750 (Rs 2,500 per bag); (v) inclusion of agro-SMEs in SME modernization, Rs 10 billion; (vi) interest free loan to landless farmers in the flood affected areas; Rs 05 billion; (vii) targeted subsidy for provision of free wheat seeds in flood-affected areas, Rs 13.2 billion; (viii) PIU value increased from Rs.4,000/- to Rs.l0 000/; (ix) import of up to 5-year tractors with duty reduction Rs 02 billion; (x) reduction in CKD duty from 35% to 15% for new tractors manufacturers; (xi) Private agriculture consumer of all DISCOs and K-Electric shall be provided relief of Rs3.60/kWh in their current base rate of Rs16.60/kWh. Fuel Charges Adjustment, Quarterly Tariff Adjustments and taxes/duties shall be paid by the consumers as usual with a financial impact of Rs 28 billion.

Copyright Business Recorder, 2022