KARACHI, Nov 4: After more than a week of the publication of a report on Oct 24 last, the National Bank of Pakistan issued a clarification on Monday to convey that the crop loan insurance scheme has not hit any snags and that it has been set in place on Oct 15.

The clarification was faxed to Dawn on late Monday afternoon after office hours on a plain page with illegible signature of someone who is not identified. It claims to be the joint clarification of the National Bank of Pakistan and the National Insurance Company Limited.

“As usual with any new scheme, improvement in the operational matters is a continuous process, same applies to the arrangement between the NBP and the NICL,’’ the clarification states without explaining as to what improvement is being made and who suggested this improvement, and of course why it was necessary.

“We proudly announce that this insurance scheme is not limited to major crops, but all field crops, fruits, vegetables, livestock, equipment and machinery of NBP borrowers will be insured up to loan amount. In addition to asset insurance cover, accidental death and disability of the borrowers is also insured,’’ the statement repeats the contents of previous reports published on crop loan insurance scheme.

“As far as premium of the borrowers falling in the category of subsistence farmers, the NBP will pay the agreed premium to the insurance company concerned and will resultantly claim reimbursement from the government,” the NBP statement clarifies the report.

But the NBP clarification is silent on insurance premium cost to the borrowers who own farms of economic size. In the original scheme, the NBP had claimed to bear the premium cost of insurance to all farmers — subsistence level and of economic size.

The NBP statement does not clarify whether the big farmers who will borrow from the bank will enjoy free insurance premium cover now? No one was available on telephone in the NBP to offer a reply.

Sources in the NICL say that the farmers would be given an insurance certificate at the time of borrowing from the bank. No one in the NICL was ready to own the clarification given by the NBP.

The NBP, despite repeated demands, has not given any updated information on disbursement and recovery position of the NBP Karobar or Rozgar Scheme launched with much fanfare last year before elections.

Market reports suggest that instances of default have started figuring in the scheme. There are also reports of many borrowers having returned gas-driven rickshaws back to the NBP dealers. The present elected government wants to re-launch this scheme after giving it a new name “People’s Rozgar Scheme’’ with an expanded line of products for the unemployed.

Analysts recall how in the past yellow cab scheme of Nawaz Sharif government and self-employment scheme of late Benazir Bhutto was abused by the rich and powerful. None of the two schemes was able to put a dent in the unemployment problem in the country and the real beneficiaries were rich and powerful businessmen.