Bank loans: Agriculture sector gets only 5% share

Report says only 11% people have access to financing.

Shamsul Islam May 17, 2011


The agriculture sector gets only 4.9 per cent share of the total loans lent by the banks, whereas the corporate sector gains 63.5 per cent, bank’s staff gets 2.3 per cent, consumer financing attains 8 per cent and small and medium enterprises gets 9.9 per cent.

This was revealed in a seminar titled ‘Policy, Adequacy and Awareness about Agricultural Financing’ arranged by the Agriculture Credit and Micro financing Department, State Bank of Pakistan in collaboration with Agri-Economics Department, University of Agriculture Faisalabad (UAF) on Monday.

Agriculture Credit and Micro-financing Department, State Bank of Pakistan Director Samar Husnain said that only 11 per cent of the people across the country have access to obtaining loans from the banks.  He further said the all banks are bound to operate 20 per cent of their branches in rural areas to facilitate the rural people.

UAF Faculty of Agriculture Dean Prof Dr Muhammad Ashfaq, in his address, said that 20 per cent of the seed requirements are met by the public sector while 80 per cent is being met by the private sector. Ashfaq also briefed the audience about the distribution of loans obtained by the farmers, stating that only 37 per cent of the loan is actually utilised on agriculture, while the rest of it is used up for personal needs.

Askari Bank Country Head Farooq Abid Tung urged people to invest more in the agriculture sector, stating that it is the backbone of our economy. He also called for adopting latest techniques, citing the example of milk, of which 40 per cent gets wasted due to lack of technology.

Published in The Express Tribune, May 17th, 2011.


Abid Chaila | 10 years ago | Reply our rural Population specially the farming comunity is facing rare problem in financing input cost of cultivation.for avialing banking facility they have to travel long distances from their homes. this conference brilliently highlighted these problems.
Dr.Azhar Iqbal Sabri | 10 years ago | Reply Fine Agriculture is also our back bone and blessing of God. It should be facilitated!
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