He had been chairing the yearly meeting of the Agricultural Credit Advisory Committee (ACAC) held in Peshawar, KPK as a part of SBPs continuing efforts to increase agriculture credit from the underserved states and areas, said a statement issued on Tuesday.
Dr. Baqir, nevertheless, encouraged the banks to boost their attempts to realize qualitative elements of the assigned goals too in accord with the strategic change and crucial policy actions taken by SBP regarding agricultural funding.
He emphasized that the majority of the banks fulfilled with their assigned goals except for a number of those banks such as ZTBL, PPCBL, a number of the national private banks and Islamic banks falling short of achieving their goals.The state wise agriculture charge disbursement observed double-digit expansion across all states and areas; nevertheless, banks fought to realize their assigned goals from the underserved regions.
He advocated agriculture banks and associations to scale up their efforts and dedication to guarantee accomplishment of agriculture credit goal from the underserved countries and areas.The Governor apprised the committee that SBP is contemplating three policy activities to further promote economic addition in the agriculture industry.
To begin with, improving transparency through disclosure of fiscal shrewd performance figures on monthly basis covering agriculture charge disbursement, geographical distribution, outstanding amount, amount of debtors, and agriculture charge infrastructure.
Secondly, introducing a detailed scoring model for standing of banks against crucial agriculture charge indicators and goals.Third, introducing penalties and incentives based on performance scores of banks. Dr. Baqir highlighted that there’s a big scope for financing opportunities for banks which encourage financial inclusion and banks’ profitability.
The keynote speech was followed by a demonstration wherein the performance of banks on agricultural funding has been assessed against their intentions throughout FY19.While assigning the agriculture charge goal for FY20, it was shared that the general disbursement goal of Rs.1,350 billion was delegated to banks that is 89 percent of the overall estimated agriculture charge condition of Rs. 1,518 billion.
The state wise and industry wise distribution of this goal was adopted while contemplating the provincial agricultural credit conditions, banks’ overall lending ability and their business growth strategies.
It was emphasized that Islamic banks and Islamic divisions of commercial banks are delegated disbursement goal of Rs.110 billion based on previous year to help realize the potential of Islamic agriculture funding.What’s more, the total target of borrowers that are outstanding has been improved to 4.67 million with the inclusion of 650,000 new borrowers.
Afterward, presentations were made on Dairy value series in Gilgit Baltistan from the Bank of Khyber, Olive farm along with its own value chain growth by Pakistan Agricultural Research Council, Sophisticated project to recover barren land with a progressive farmer, Rural funding through digitization from HBL,
Agriculture credit via alternate delivery channels by Khushhali Bank and Opportunities for co-financing of PSDP jobs by banks by Ministry of National Food Security. He encouraged the banks to boost their attempts to achieve the regional goals assigned for the year.
Before closing the meeting, Governor-SBP thanked the participants and expressed his optimism that inventories will investigate new investment opportunities through cooperation and experience sharing to realize overall yearly goal for FY20 besides attaining their regional goals especially in the underserved regions.
The assembly was attended by senior officials of provincial & federal authorities, Presidents/CEOs of members, banks of provincial chambers of agriculture, innovative farmers, agents of KPK farming community along with SBP officials.