Secretary General (Federal) of the Businessmen Panel for Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Ahmad Jawad has said that Zarai Taraqiati Bank Ltd (ZTBL) should revisit its decision about markup rate which currently stands at 18.25% and could hit the agricultural financing at large.
Jawad said instead of promoting its deposits, increasing efficiency and lending in Sindh, Balochistan and KPK provinces, the bank increased the markup rate to over come losses which is unjustified.
He said, "We understand that this premier organization was used in the past for political gains and excessive hiring and opening of unusual branches increased bank expenses, but that could be curtailed with effective strategy."
Similarly the bank cut its share to agro-industry which was a prime objective of the bank in 80's and 90's era which may be resumed again to meet the needs for promotion of agro industry.
Jawad urged the president ZTBL to immediately provide relief to farming community and announced favourable markup rate, especially for small farmers. "If you have to behave like other commercial banks then what's the difference between the largest agriculture based bank and others?" he asked.
He also demanded Ministry of Finance to appoint new board of directors so that absence of policy making may be overcome, suggesting new BOD may compromise mixed brains who at least know the agriculture sector and its issues.
He said that Prime Minister Imran Khan's vision is to promote agriculture sector that is why he recently announced Rs100 billion package for this deprived sector and "we hope the details of the package will be announced timely."
"One should know we have to uplift the agriculture sector to increase our GDP growth and that can be only done through competitive borrowing for farming community," Jawad added. Similarly introducing smart or targeted subsidy is the answer to Pakistan's growing food insecurity.
Unlike the current subsidy offered by the government on urea produced from imported Re-gasified Liquefied Natural Gas (RLNG), Jawad believes that smart or targeted subsidy has the potential to elevate the livelihood of Pakistanis and ensure food security with affordable prices for millions of people as well as small-scale farmers.
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