ISLAMABAD, Aug 18: Zarai Taraqqiati Bank Limited (ZTBL) and Nestle Pakistan here on Saturday signed an agreement to provide Rs5bn to farmers in loans under the “White Revolution Scheme” to increase milk production.

The five-year project will be completed by 2011. Each year, 10,000 animals will be financed for an increase in milk production.

Nestle Pakistan Ltd will monitor the loans which will be provided to projects aimed at modernising dairy farming through quality dairy equipment and to adopt modern technology.

The introduction of innovative technology to the dairy sector is one of the prime targets of this joint initiative.

Speaking at the signing ceremony of the agreement, Secretary Ministry of Industries, Production and Special Initiatives, Shahab Khwaja, said hat the move would develop dairy sector and increase milk production which ultimately would help in checking the rising milk prices in the local market.

“Pakistan has an excellent opportunity to earn billions of rupees through export of milk. So this initiative between Nestle and ZTBL would help Pakistan to become leading milk exporting country,” Mr Khwaja said.

ZTBL President Mansur Khan said that the bank had entered into this venture to benefit from the expertise of Nestle Pakistan for the development of dairy farms and animals.

Pakistan, he said, was the fourth largest milk producing country in the world with an annual production of over 32 billion litres. But, the country was still unable to meet the demand or make any considerable headway in exporting milk to international markets.

Nestle Pakistan managing director Roland Decorvet gave a presentation on his company’s operations, its vision and its overall business strategy for the development of dairy sector to meet the domestic requirement by strengthening and modernising through innovative technology spread.