ADBP converted into Zarai Taraqiati Bank to provide credit to small farmers
KARACHI (December 14 2002) : The Federal Government has converted the Agricultural Development Bank of Pakistan (ADBP) into Zarai Taraqiati Bank Ltd (ZTBL) and the new venture has started its operation with immediate effect.
The new corporate structure redefines the banks statue as a public limited company with an independent Board of Director promulgated under the presidential ordinance which, aims at ensuring good governance, autonomy, delivering high quality, viable and timely financial services to a greater number of clientele in the agricultural and rural segment of the country with adequate returns to the stakeholder.
Zarai Taraqiati Bank (ZTBL) has been registered with SECP as a public limited under the Companies Ordinance 1984 and by virtue of Finance Order, all assets, liabilities proceedings undertaking of ADBP stands transferred to and vested in Zari Taraqiati Bank with effect from December 14, 2002.
The Management of ZTBL has taken up the task to reinvigorate new spirit to strengthen the institutional capacity and efficacy of this new corporate entity to expand its outreach so as to ensure that agri credit is made available at affordable cost to greeter number of small farmer, women and rural poors.
It is worth mentioning that the formal financial sector is catering to Busch lesser percentage of agri and rural credit demand at affordable rates and that a large proportion of such demand is met through the informal sector at exorbitant interest rates.
The restructuring of ADBP and its conversion to ZTBL basically aims at extending swore credit to the needy segment of productive and yielding agri and non-farm activities. It is hoped that this step shall greatly enhance the credit distribution mechanism. The quintessence of the initiative of is basically aimed at increased functional autonomy, improved services, enhanced farm productivity, streamlining institutional credit and increased outreach in terms of small farmers and women folk.
Under the net corporate entity ZTBL is to act as a catalyst in rural and agriculture sector for alleviating poverty and ensuring greater outreach.
The corporate structure of ZTBL in terms of operational efficiencies, risk mitigating factors and organisational optimal mix stands geared up to acclimatise with agriculture needs and to be a proactive financial institution for economic development and sustainable agriculture growth.
Courtesy Business Recorder
Pakissan.com; Advisory Point