ISLAMABAD, Aug 9: The banking sector has provided a total of Rs169 billion in the last five years to help develop agriculture sector and increase export of its various products.
A meeting, chaired by a senior official of the ministry of finance, was told here on Thursday that the sub-committee on finance (SC-F) was developing a set of guidelines for banking and insurance sectors to further support the agriculture sector.
The new guidelines will include size and types of financing, working capital, term-financing, eligibility, repayment terms, channels, documentation, conditions / covenants, monitoring and recovery.
The SC-F will assist the agricultural support fund of the government, with matters relating to horticulture grants.
It was the first meeting of the finance sub-committee on task force on finance and competitiveness of the horticulture sector held under the chairmanship of Mr Javed Malik, additional secretary, ministry of finance.
The meeting was attended by representatives of relevant ministries, provincial departments concerned and banking as well as non-banking financial institutions.
The aim of the sub-committee on horti-business finance (SC-F) is to help the task force on horticulture finance and competitiveness (TFHFC) achieve its goal by ensuring that all relevant actions are taken in the banking and financial sector to facilitate those wishing to invest in the horticulture sector.
In addition, the sub-committee will pay special attention to exporting and export finance and insurance issues of the sector.
The Competitiveness Support Fund (CSF) was earlier tasked by the Ministry of Finance to undertake a comprehensive study entitled the competitive advantage of the food processing industry: focus on quality, safety and standards.
The CSF is a joint initiative of the ministry of finance, and the US Agency for International Development (USAID).
Support for CSF is part of the $1.5 billion aid that the US government is providing to Pakistan over five years to improve economic growth, education, health, and governance.
The sub-committee on finance will work with stakeholders in horticulture and financial sector to coordinate and facilitate initiatives currently being taken to provide finance to the industry.
Where necessary, the sub-committee will identify areas that require further intervention and liaise with the relevant line ministries, agencies and institutions to bring them about.
In order to achieve the aims and goals of the task force, the sub-committee on finance (SC-F) will establish a profile of financing in the agricultural sector, with particular reference to horticulture.
The SC-F will also identify major participants in the financing of horticulture.
The SC-F will establish a relationship between market pricing of horticultural products and provision of credit.
The committee will also put special emphasis on the fact that horticulture is often undertaken by the poorest of the rural population and will, therefore, establish operations and concerns and issues of micro-credit institutions and the overall provision of micro-credit for horticulture developments.