ISLAMABAD, April 29: The Asian Development Bank (ADB), in view of improved operational results of Agricultural development Bank of Pakistan (ADBP) has shown keen interest in restructuring the financial institution in providing credit to farmers.
A mission from the ADB had recently visited and conducted a detailed study of the current operations of the ADBP and ways and means on how they can be improved further to revitalise the institution and to expand its outreach to small farmers, a bank report issued here on Monday said.
ADB, during the last nine months of current fiscal year has already disbursed Rs20.3 billion as against Rs18.9 billion during corresponding period of last year. The recovery of the bank improved from Rs21.2 billion for the said three quarters of the current fiscal to Rs22.2 billion despite the ongoing adverse circumstances entailing widespread consecutive drought.
The mission from the ADB appreciated government’s efforts of restructuring ADBP which in the past had been marred with negative political influence widespread irregularities and management’s inactiveness in removal of these deficiencies. It also applauded the new management team installed by the current government to set pace for rapid improvement in its operational efficiencies.
A portfolio audit under the aegis of ADB has already been commenced for diagnostic analysis and help stakeholders to actually determine the financial standing of the bank and help other aspects of restructuring ie operational, organizational and financial.
The ADB has shown keen interest in extending technical and financial assistance for the bank’s medium term objectives in view of the short term improvements.
The objective was expanding outreach in terms of increased number of small loans, regions and agri sub sectors focusing on value chain through active participation with community based organizations and collective lending schemes based on demand financial products.
The focus of restructuring would be the timely provision of financial services to small farmers on least cost.