The annual meeting of Agricultural Credit Advisory Committee (ACAC) was held on December 14, 2023 in Lahore, under the chairmanship of the Governor, State Bank of Pakistan (SBP), Mr Jameel Ahmad. In his inaugural remarks, the Governor emphasized the need to strengthen and promote growth in the agriculture sector, which is pivotal for the socioeconomic development of the country. He urged the banks to ensure easy, timely and hassle-free access of farmers to all financial services including credit, deposits, payments etc.
The Governor highlighted that despite various challenges including floods, the agriculture credit disbursements reached an impressive level of Rs 1,776 billion during FY23, witnessing year-on-year growth of 25.2 percent and achieving 97.6 percent of the overall target of Rs 1,819 billion. Acknowledging the challenges, particularly attrition of borrowers, the Governor informed the ACAC that SBP will engage with each bank individually to develop plans and strategies to achieve sustainable increase in agri borrowers continuously. The Governor advised banks to not only develop their own Agrifinance capacity but also develop partnerships with Microfinance Institutions (MFIs) to increase the outreach of agriculture and rural finance services.
The Governor SBP highlighted another significant area requiring immediate consideration – the promotion of developmental loans, specifically directed towards the mechanization of the agriculture sector. He also advised the banks to assess the feasibility of financing to agri-service providers, which provides agricultural machinery and equipment to farmers on rental basis. The ACAC meeting, which is an annual affair of SBP since the 70’s, witnessed participation by senior officials from federal and provincial governments, Presidents/CEOs of banks, members of provincial chambers of agriculture, representatives of regional farming communities and senior officials of SBP. http://tinyurl.com/3ymtwh52
Source: IBP