Tuesday, October 20, 2020  | 2 Rabiulawal, 1442
Samaa TV
Facebook Twitter Youtube
HOME > Money

Banks gave farmers 3.5% more loans this year

SAMAA | - Posted: Aug 25, 2020 | Last Updated: 2 months ago
Posted: Aug 25, 2020 | Last Updated: 2 months ago
Banks gave farmers 3.5% more loans this year

Vegetable farmer Muntazir Khan harvests beets in his field in Taxila, Pakistan, about 35 kms from Islamabad, April 26, 2018. Thomson Reuters Foundation/Saleem Shaikh

Banks gave the agriculture sector loans worth Rs1,215 billion during fiscal year 2019-20, said the central bank on Tuesday.
This was 3.5% higher than the previous fiscal year but still fell short of the credit target of Rs1,350 billion set by the Agricultural Credit Advisory Committee in November 2019.
Some factors which have limited the growth of agricultural credit include the COVID-19 pandemic, locust attacks and water shortages which resulted in low production of cotton and sugarcane.
Total unpaid agricultural loan increased to Rs581 billion at the end of the fiscal year, which was a 3.3% growth compared with last year’s Rs562 billion. The number of agricultural borrowers declined, however, from 4.01 million at the end June 2019 to 3.74 million by the end of June 2020 due to the lockdown.
Analysis said that during the last fiscal year, five major commercial banks collectively gave agriculture loans of Rs708.3 billion or 100.5% of their annual target of Rs705 billion. Specialized banks disbursed Rs71.1 billion or 62.9% of their annual target of Rs113 billion and fourteen domestic private banks as a group achieved 88.7% disbursement of Rs225 billion against their target of Rs253.6 billion. The five Islamic banks as a group achieved 76.6% of their annual target of Rs55 billion by disbursing Rs42.1 billion which is 6.1% higher.
Similarly, the Islamic windows of commercial banks disbursed Rs43.5 billion or 79.2% against the target of Rs55 billion in FY 2019-20 which is 33% higher from Rs32.7 billion made during last year.
The agriculture credit of the microfinance sector remained relatively low due to COVID-19 lockdown in the second half of FY 2019-20. Microfinance banks as a group achieved 75.7% by disbursing agriculture loans of Rs139.3 billion to small farmers which is 9.5% lower than the disbursement of Rs154 billion during the same period last year.
Likewise, the microfinance institutions or rural support programs collectively achieved 73.4% of their targets by disbursing Rs28.9 billion but this was 15% lower than the disbursement of Rs34 billion made last year to small and marginalized farmers.

FaceBook WhatsApp

Tell us what you think:

Your email address will not be published.

FaceBook WhatsApp


Monthly Salary

Monthly Tax

Monthly Salary After Tax

Annual Salary

Annual Tax

Annual Salary After Tax

Suzuki Alto 660cc with AC now costs Rs1.43 million
PIA flights to resume to England from October 30
Pakistan’s first ever public electric bikes launched
All you need to know about Canada’s Express Entry visa
Dollar drops below Rs163 for first time in 20 weeks
Honda, Suzuki motorcycle sellers charging ‘own money’
Joblessness in Pakistan to reach 30-year peak in 2021
Pakistan’s dollar reserves at a 15-week low
Roshan Digital Account attracts over $24 million
IMF says Pakistan’s economy to improve by 2023
About Us   |   Anchor Profiles   |   Online Advertising   |   Contact Us   |   Feedback   |   Apps   |   FAQs   |   Authors   |   Comment Policy
Facebook   |   Twitter   |   Instagram   |   YouTube   |   WhatsApp