PESHAWAR (February 25 2004): The State Bank (SBP) has directed all commercial banks to provide agriculture production loans to the tobacco growers against the agreement executed with them by the tobacco companies.

The decision to this effect was taken during a meting of the Agricultural Credit Advisory Committee of the State Bank held here at its Peshawar office. Chief manager SBP Peshawar Shafiqullah Siddiqui was in the chair.

The meeting observed that it has been the policy of the Pakistan Tobacco Board (PTB) to facilitate grant of agricultural production loans to the growers by the banks so that tobacco growers are not faced with undue hardships in securing these loans.

Such kind of loans would be recovered through banks on vouchers issued by the companies to the growers.

It has been decided to notify to all the interested growers that the agreement holders, who are interested in securing loans from commercial banks, have been advised to approach the bank branches and the Pakistan Tobacco Board in their respective areas for the purpose.

In this connection, the tobacco companies have already been advised to supply a list of the agreement-holders to the bank branches for grant of loans to the growers.

Courtesy Business Recorder