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'SBP provides credit
to ADBP for farmers' financing'
ISLAMABAD-Finance Minister Shaukat Aziz on Jan 29, 2002 said
State Bank has assured ADBP to provide optimal credit to meet
the financing requirements of farming class.
In addition, commercial banks have also been asked to provide
credit lines to ADBP to cater the credit demand of the
agriculture sector, he added. While speaking at Agriculture
conference organized by ADBP the finance minister said the
primary responsibility for the delivery of credit to the
agriculture sector revolves around Agriculture Development
Bank of Pakistan (ADBP) and the premier institution of
agriculture credit was itself faced with multiple crises.
The institution was demoralized, dormant, highly politicized
in the past and lost any semblance of professionalism, adding
he said, there was a need for a major surgery to transform the
institution into a vibrant service oriented outfit, capable to
forge a meaningful partnership with farmers community, Shaukat
added.
He said for undertaking restructuring exercise it is
imperative to have a detailed diagnosis regarding the state of
current portfolio. We have already assigned the job and the
report will be available by March-April this year.
Finance Minister said "We have appointed a fairly strong board
of the ADBP and have given it complete autonomy to run its
affairs on the professional bases. The Board is entrusted
complete autonomy regarding bank's policies from credit to
personnel management.
Apart from providing the legislative cover to the autonomy
given to the Board and the Chairman, he said, "we are
arranging necessary resources for the restructuring exercise,
including the technical assistance for portfolio audit".
Finance Minister said agriculture is an engine of economic
growth with major contribution to overall economic
development. He said agriculture is at the top of four sectors
that leads the process of economic revival, adding the farmers
are therefore
required to concentrate on further enhancing production.
He said agriculture share in GDP is 25% while 65% of our
population, directly or indirectly earns its livelihood from
this sector. With a share of 50% in total employment, it is
the largest single employer of labor force and upto 70% of
exports are directly or indirectly contributed by this sector,
he added.
He said the lasting comparative advantage of the country lies
in agriculture and as such export-led growth depends on vital
sector.
Shaukat Aziz said government had taken a number of steps to
boost agriculture sector. "We have freed the wheat
market, allowing farmers to get the best price for its
produce, adding he said before freeing, however, we raised the
price by 30% to compensate the past increases that were due
and were not allowed".
He said the private sector has been allowed to operate in the
wheat market, both inside and outside the country. "We are
investing more than 25% of our development budget in radically
altering the water availability for agriculture. This sector
was subject to criminal negligence for the last three decade
and the credit now goes to the present government to have
taken the challenge of taking care of this sector in effective
fashion", he added.
He said we are focusing on value addition and a horticulture
exports board has been established that would devote its
energies for exports of fruits, vegetables and flowers.
The board will bring together the entire chain of this sub-
sector, by linking growers with processors, and processors
with marketers and exporters.
January 31, 2002
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