ISLAMABAD, Jan 25: President Gen Pervez Musharraf emphasized here on Tuesday the need for employment of local population in the branches of Zarai Taraqiati Bank Limited (ZTBL) on regional basis and its expansion to Federally Administrated Tribal Areas and Balochistan.

The president was addressing the executives of the ZTBL on the occasion of a presentation on the restructuring of the bank. He observed that the branches of the bank should be expanded to the developing areas like Fata and Gwadar and to areas where mega development projects such as Kachhi canal, Thal canal, Mirani dam, Mangla dam raising and other such schemes were being undertaken.

Appreciating the fact that the ZTBL had disbursed Rs29 billion to farmers having land holdings of less than 25 acres, the president stressed upon the management of the bank to further concentrate on increased volume of credit for the poorest of the poor.

The ZTBL, he said, had a key role to play as a vehicle for the development of the agriculture sector and that its efforts should be complemented by other banks so that a greater number of farmers were given credit at affordable rates on a timely basis.

This itself would help in fighting the twin problems of poverty and unemployment in the country, he observed. Agriculture, he said, was the mainstay of the national economy as it brought about 70 per cent of the foreign exchange earnings and contributed to 25 per cent of the country's Gross Domestic Product (GDP).

Appreciating the financial, legal, organizational and operational restructuring plans of the ZTBL, President Musharraf pointed to the improvement of the bank's credit rating from D in 2001 to AAA during last year.

He said other institutions should emulate the high standards that had been set by the ZTBL. The president appreciated the current management of the ZTBL for staging a major turnaround for the institution.

Welcoming the new management, he expressed the hope that the bank would reach new heights as a sustainable financial institution focussed on rural financing for poverty alleviation and augmented agricultural growth.