ISLAMABAD, Oct 17: The government has decided to set up “Pakistan Livestock and Dairy Development Board” to streamline agriculture loans and promote agriculture sector especially dairy and livestock.

A high-level meeting, presided over by Finance Minister Shaukat Aziz here on Thursday, also decided that Food and Agriculture Minister Khair Muhammad Junejo would head the new Board.

The Board would coordinate national and provincial efforts in different livestock activities to promote investment in the sector and work as one-window operation to make dairy and livestock as vehicle for poverty alleviation for small and landless farmers with special emphasis on women empowerment.

Shaukat Aziz said that dairy and livestock contributed 38 per cent of the agriculture GDP. Therefore, credit availability to poor for the sector need to be increased to alleviate poverty. He said that one of the best ways to attack poverty was to provide micro credit in rural areas to promote dairy sector.

He directed the ADBP chairman and management of Khushhali Bank to increase their credit portfolio for dairy sector for increasing employment opportunities and the development of dairy and livestock sectors. He expressed the hope that similar micro credit programmes will also be introduced by other leading banks in the county.

Similar board will also be set up at the provincial level. The Federal Board will have ten members. Provincial ministers of livestock and dairy, secretary Ministry of Food and Agriculture, secretary finance, chairman ADBP, president Khushhali Bank, and representatives of private sector to be nominated by the provincial governments will act as members.

The board will be responsible to plan, promote and provide advice and direction for accelerated development of Pakistan livestock and dairy industry. The other functions of the Board will be: i) To evolve support systems for those engaged in milk, meat and other livestock production activities particularly rural based small livestock farmers; ii) To encourage and promote the active participation of farm families, rural cooperatives and the private sector recognizing them as principal agents in the development of the Pakistan livestock and dairy industry; iii) To suggest measure to ensure adequate supply of milk and other dairy products and affordable prices; iv) To suggest livelihood opportunities and thereby increase income level through livestock raising; v) To suggest measures to enhance children nutritional intake through the promotion of locally produced milk and milk products; vi) To advise strategy for development and dissemination of appropriate small holders based dairy/livestock techniques; vii) To devise methods for improved milk production from existing stock and to systematically programme build-up of genetically superior hard; and viii) To advise on measure to improve marketing of live animals within Pakistan and export of meat, leather, wool, and other by products.

The finance minister was briefed by the ADBP chairman and president Khushhali Bank. The ADBP has portfolio of Rs1.3 billion in the current financial year to be disbursed as loan to small farmers for development of dairy and livestock industry.

Similarly, Khushhali Bank has disbursed loans of Rs232 million to the small farmers.

The minister was further informed that the ADBP was in the process of allocating another 25 per cent of Rs4 billion to the agriculture sector. The loans will be available to the small farmers to increase dairy production.

The meeting also noted that the Asian Development Bank has provided an amount of $5 million for insurance of replacement of assets. The various bankers were in the process of negotiating formula with the State Bank for utilizing this amount to provide an insurance cover to livestock and dairy sectors.

The meeting, among others, was attended by minister of agriculture, secretary general finance, federal secretaries, provincial secretaries of agriculture, chairman ADBP and president Khushhali Bank.