‘Agri credit disbursement up 80pc in four years’

KARACHI: Agriculture credit disbursement has increased 80 percent during the last four years and it is encouraging that commercial banks are extending around 57 percent of the total disbursements, said Tariq Bajwa, governor of the State Bank of Pakistan (SBP) on Monday.

Addressing at the flag hoisting ceremony to celebrate the 70th independence anniversary of Pakistan, he appreciated the financial institution for surpassing the target of credit disbursement during the last fiscal year.

A large number of small agri borrowers are facing problems in obtaining loans, which should be resolved, he said, adding, Pakistan is an agrarian state and this sector has a major contribution towards economic growth.

“Therefore, agri financing to small size growers cannot be ignored,” he added. The SBP governor said the central bank had started its operation in 1948 on the directives of Quaid-e-Azam, adding that Pakistan’s economy faced highs and lows during the period.

At present, the economy is on the right direction and there is a potential to grow faster, he added. Bajwa said that the central bank is working on its Vision 2020, which included effectiveness of monetary policy; improving banking system; improving transparency; modernising payment system, etc.

Currently, discount rate is at historical low and it resulted in record increase in the private sector credit, he said, adding that recently banks had been directed to improve their financing services.

The central bank has focused on small and medium sized industries, which had important role in economic growth, Bajwa said, adding that the central bank has launched many concessionary financing schemes for SME sector growth. The State Bank is also focusing on increasing banking outreach to less developed areas of the country, he added.