Agriculture credit outreach grew by 8pc to 4.01 million farmers: SBP

ISLAMABAD: The agricultural credit outreach in the country during financial year 2018-19 recorded about 8% growth as the number of farmers benefited from the agriculture credit has increased to 4.01 million as compared the 3.72 million farmers of same period last year.

The targets of agriculture credit outreach was achieved by 91%  by extending the facility to 4.01 million farmers against target of 4.42 million farmers at end June 2019.

According the State Bank of Pakistan, agricultural credit disbursement during financial year 2018-19 had witnessed about 21% growth as compared the disbursement of the corresponding period of last year.

During the period under review, banks made disbursements of Rs1,174 billion  against  Rs 972.6 billion of same period of last year which, was comprising  94% of the target of Rs 1,250 billion set by Agricultural Credit Advisory Committee for 2018-19.

Meanwhile, the agriculture outstanding portfolio increased to Rs 562.4 billion on end June, 2019 registering a growth of 20% compared with the last year’s position of Rs 469.4 billion.

The detailed credit performance reveals that during FY 2018-19, five major commercial banks collectively disbursed agriculture  loans of Rs 653.5 billion or 100.4% of their annual target of Rs 651 billion.

The specialized banks disbursed Rs 81.2 billion or 71.8% of their annual target of Rs 113 billion and fifteen domestic private banks as a group achieved 86.5% by disbursing Rs 211.9 billion against their target of Rs 245 during FY-2018-19. Moreover, Microfinance Banks (MFBs) as a group have achieved 98.7% by disbursing agriculture loans of Rs. 154.0 billion to small farmers which was 23% higher than the disbursement of Rs 124.8 billion during same period last year. Similarly, the Microfinance Institutions/Rural Support Programs collectively achieved 97.1% of their targets by disbursing Rs 34.0 billion to small and marginalized farmers during FY 2018-19.

Five Islamic Banks as a group achieved 78.8% of their annual target of Rs 50.0 billion by disbursing Rs 39.4 billion which is Rs 23 billion higher than the disbursement made during the corresponding period last year.

Further, in order to mobilize the Islamic Windows of commercial banks for agricultural financing, the disbursement targets of Rs 50.0 billion were assigned for 2018-19.

Accordingly, the windows of commercial banks as a group disbursed Rs 32.7 billion or 65.4% of the annual targets to faith sensitive clients during FY 2018-19.