Punjab contemplating ‘Kissan Dost Credit Card’ Scheme for farmers

LAHORE: The Punjab government is contemplating to launch ‘Kissan Dost Credit Card’ scheme for providing easy access to credit for buying inputs by small farmers across the province.

A meeting to review the proposals in this regard was held at the Agriculture House on Friday with Punjab Agriculture Minister Ashiq Hussain Kirmani in the chair.

The initial investment of Rs 10.34 billion will be borne by the provincial government while the Bank of Punjab will be the executing agency of this proposed scheme under which, at least 500,000 farmers will be extended the credit cards.

Stakeholders of this proposed scheme included Bank of Punjab, Board of Revenue, Punjab Land Record Authority, Department of Agriculture and Finance and Punjab Information Technology Board.

Punjab Agriculture Secretary Iftikhar Ali Sahoo, Chairman PBIT Faisal Yousaf and Group Head Retail Banking of the Bank of Punjab Naufil Daud participated in the meeting. It was informed that initially farmers with 05 acres of land to 25 acres of land will be facilitated under this scheme.

Bank of Punjab representative Naufil Daud gave a briefing on time lines and other important aspects of the scheme. He said that loan will be extended on easy terms and on 10 per cent interest rate. Collectively loan worth Rs 75 billion will be disbursed among the farmers for a period of 06 months.

Speaking on this occasion, the Punjab Agriculture Minister Ashiq Hussain Kirmani called for including both options of loans on soft-terms and loans without interests. He said it should be ensured that farmers should utilize this card only for purchasing inputs like seed, fertilizer and pesticides. He said that the proposed credit card should not be used for withdrawing cash.

This initiative reflects the Punjab government's commitment to supporting farmers and their prosperity, as envisioned by Chief Minister Maryam Nawaz Sharif, the Minister claimed.

Iftikhar Ali Sahoo asked the Bank to further simplify the terms and conditions of the Kissan Dost Credit Card scheme and submit a financial model on these lines. He also suggested that approval for funds for this project should not be obtained by the method of PC-I. He also called to ensure that subsidy should reach to deserving and target beneficiaries through this credit card project.

Copyright Business Recorder, 2024