LAHORE, April 7: State Bank Governor Dr. Ishrat Husain says the government has raised the total micro-credit allocation for the rural population from Rs60 billion to Rs80 billion. Exchanging views on investment promotion through better banking facilities and strategy for improvement in micro-financing facilities for the general public with Punjab Governor Khalid Maqbool here on Thursday, Dr. Ishrat said reduction in the rate of markup on agricultural loans from 14 per cent to eight per cent had helped in boosting agricultural production and making the loans for livestock farming accessible to a maximum number of farmers.

He said the target fixed for advancing loans till the end of the current financial year had also been met. He said the State Bank had decided to advance loans to the industrial units for technology upgradation and improvement in facilities for the marketing of agricultural products.

The Punjab governor lauded the State Bank efforts for evolving a system for enabling the financial institutions to meet the free trade requirements and enabling the low-income groups to benefit from banking facilities without collateral. He said it was the responsibility of the government to solve problems of economically-weak sections of society by advancing small loans.

He expressed satisfaction over visible improvements achieved in agricultural and economic sectors through good governance without providing subsidies. He said the State Bank also deserved a genuine credit for continuous improvement in the economic conditions in the country through reforms in the banking sector.