ISLAMABAD, Oct 6: The Zarai Taraqiati Bank Limited (ZTBL) has devised a plan to provide Rs5 billion credit facility to dairy farmers for dairy sector development with an aim to bring about white revolution in the country.

“Prime objective of this credit is to provide sustainable rural finance and services, particularly to small farmers to help them generate their own income resources as well as enhance milk production in the country,” ZTBL sources said here on Saturday.

The ZTBL, under the ‘White Revolution Programme’ plans to spend Rs5 billion during 2007-2011 for the purchase of 50,000 animals (cows and buffalos), of which 10,000 of these animals would be purchased during the current year, the sources added.

The amount would be distributed among dairy farmers through Nestle Pakistan Limited (NPL), the sources said adding that the NPL would provide loans to the poor and low-income farmers on merit basis to purchase milk producing animals.

The amount would be provided on 9 per cent mark up basis which would be recovered in monthly as well as weekly instalments with a grace period of 1-3 months for local and imported animals, respectively, and Nestle would be responsible for carrying out monitoring of loans.

Livestock has been playing an important role in development of economic sector and farming contributes 40 per cent to the economy of the country.

“The dairy sector has been neglected for last several years. The average per cow milk production in 1996 was 6 litres which increased to 6.1 litres in 2006, showing very nominal increase.

Similarly, production of average per buffalo milk production was 7.6 litres in 1996, which rose to 7.9 litres in 2006, also showing little increase.

The Zarai Taraqiati Bank Limited credit project is expected to bring about white revolution in the country and help increase income of the poor and low income people, sources concluded. —APP