KARACHI, Feb 12: Credit flows to the agriculture sector were much higher than last year during the first half of the current fiscal but still lower than the target.
The figures were disclosed at the meeting of the Agricultural Credit Advisory Committee (ACAC) chaired by State Bank of Pakistan Governor Dr Shamshad Akhtar here on Tuesday.
The meeting was told that the banks achieved 45 per cent of the disbursement target of Rs200 billion for the whole year.
The meeting was informed that the banks disbursed Rs90.3 billion to the agriculture sector during the first half of FY08 as against Rs71.7 billion in the same period last year, showing an increase of Rs18.6 billion or 26 per cent.
The overall disbursement during July-December, 2007 is about 45 per cent of the full year target and is in line with the percentage achieved during the same period last year. The ACAC in its annual meeting held on 10th July, 2007 had set indicative agricultural credit target of Rs200 billion for the fiscal year 2007-08. The target was 25 per cent higher than the previous year’s target of Rs160 billion and 18.3 per cent higher than the actual disbursements of Rs169 billion.
Out of total credit of Rs200 billion, Rs96.5 billion was allocated to big five commercial banks, Rs35.5 billion to domestic private banks, Rs60 billion to Zarai Taraqiati Bank Limited (ZTBL) and Rs8 billion to Punjab Provincial Cooperative Bank Limited (PPCBL).
The meeting was also informed that five big commercial banks (ABL, HBL, MCB Bank, NBP and UBL) as a group disbursed Rs44.9 billion, ZTBL Rs23.9 billion, domestic private banks Rs19.1 billion and PPCBL Rs2.4 billion as against disbursements of Rs34.3 billion, Rs24.2 billion, Rs10.2 billion and Rs3 billion, respectively, in the same period last year.
Percentage share of five big commercial banks and domestic private banks in total disbursement increased from 48 per cent to 50 per cent and from 14 per cent to 21 per cent while the share of ZTBL and PPCBL declined from 34 per cent to 26 per cent and from 4 per cent to 3 per cent, respectively.
The SBP governor expressed satisfaction over the credit disbursement to the agriculture sector
Dr. Akhtar said the overall credit disbursement to the agriculture sector during the first half of the current fiscal year had been good and based on the achievements and expressed the hope that the indicative disbursement target of Rs200 billion for the year would be achieved.