CM says sit-ins undermine national interest

Pacts signed with banks for Rs100b interest-free loans to cultivators

LAHORE

Punjab Chief Minister Shahbaz Sharif has announced interest-free Rs100 billion loans for small cultivators. The interest on the loans will be paid by the Punjab government.

The chief minister expressed these views while addressing a signing ceremony of agreements between the Punjab government and banks to provide interest-free loans to small cultivators at Chief Minister’s office. He said that lakhs of farmers would benefit from the unique and splendid programme in the history of the country. "Interest-free loans will be distributed among small farmers through modern technology. The historic programme of provision of interest-free loans of Rs.100 billion for the development of the agriculture sector and prosperity of farmers will bring about socio-economic and green revolution in the country," he added. 

He said, "Agriculture is the backbone of the national economy and a guarantee to national prosperity and increase in exports besides being a source of earning foreign exchange. The prosperity of farmers will result in prosperity of Pakistan and strengthening the national economy. The revolutionary programme started by the government for the uplift of farmers, promotion of the agriculture sector and increase in per acre yield will realise the dream of agriculture progress. The former rulers were associated with agriculture but they paid no attention to the development of the sector. He said that the historic decision of provision of interest-free loans has been taken by Punjab government in the tenure of Prime Minister Nawaz Sharif. Sit-ins on The Mall will now stop and farmers should distribute sweets as the Punjab government has announced the package for the prosperity of small cultivators. Sit-ins should also now come to an end as they undermine national interest."

Agriculture Secretary Muhammad Mehmood, National Bank of Pakistan President Iqbal Ashraf, Executive Vice President Zarai Taraqiati Bank Riaz-ud-Din, Chief Executive Officer National Rural Support Programme Dr. Rashid Bajwa and President Tameer Bank Ali Riaz Chaudhary signed the documents. Provincial Ministers Dr. Farrukh Javed, Ayesha Ghaus Pasha, Deputy Governor State Bank of Pakistan Saeed Ahmad, Chief Secretary, bankers, experts, farmer representatives, intellectuals and columnists participated in the ceremony. The chief minister said that agriculture had key importance in the national economy. He said that farmers and the agriculture economy suffered a loss during the last three years ad rice and cotton were damaged while recession in international markets also affected the local farmers. He said that in view of the losses suffered by cultivators, Prime Minister Nawaz Sharif announced a big package of Rs.40 billion and the Punjab government contributed 50 percent to it. He said that a compensation of Rs.5000 per acre was given to small farmers for losses caused to rice and cotton crops. He said that federal government had announced a big agriculture package in the budget this year as well which was being speedily implemented. "Small cultivators are fully benefiting from reduction in the prices of fertilisers and power tariff on tube-wells. The Punjab government has also given its share of 50 percent in the package besides announcing the historic package of Rs100 billion for the development of agriculture sector," he added. 

The chief minister said that implementation of the package of Rs.50 billion had started this year while the agreement was signed with banks for the provision of interest-free loans of Rs.100 billion.

"The point of view of cultivators was considered that loans are given to industries and investors at the interest rate of 8 to 9 while these are given to cultivators at the rate of 16 percent. Farmers have been demanding that loans should be given to them at 8 to 9 percent interest rate as well while the government has evolved a programme of interest-free loans to small cultivators. The government itself is bearing the burden of interest on the loans given to small cultivators. Besides small cultivators, tenants will also benefit from the programme as they have no land of their own. The government will rid farmers of exploitation by the middle man," he added. 

Addressing the bankers, the chief minister said that bankers always think before extending loans that it should be given to a wealthy person who can repay while history is witness to the fact that it has been the elite that got loans of billions of rupees written off and not those who earned their livelihood through hard work. He said that loans worth Rs25 billion had been distributed among 1.1 million persons under the Khadim-e-Punjab Rozgar Scheme and their rate of recovery was 99.9 percent. He said that no country could progress without promoting small business and developed countries had also progressed through adopting the programme. He said that there was a need to move speedily towards the end. Referring to Khadim-e-Punjab Rural Roads Programme, the chief minister said that Pakkian Sarkan Sukhay Panday programme continued successfully for the last two years and a sum of Rs.60 billion had been spent on the programme of construction and rehabilitation of rural roads. He said that a sum of Rs.30 billion was being spent on the programme this year. 

He said that water supply and drainage schemes in the past could not be successful but the schemes started by Punjab government would run successfully as the companies which were starting the schemes would operate them for five years and also train the rural youth for the purpose.