Govt For Expediting Subsidy Process On Agricultural Loans: Omar Hameed

Federal Secretary Ministry of National Food Security and Research Omer Hameed Khan Thursday called for finalizing the modalities of disbursement of agricultural loans at earliest in order to ensure credit availability to farmers

ISLAMABAD, (UrduPoint / Pakistan Point News - 6th Aug, 2020 ):Federal Secretary Ministry of National Food Security and Research Omer Hameed Khan Thursday called for finalizing the modalities of disbursement of agricultural loans at earliest in order to ensure credit availability to farmers.

He chaired a meeting on agriculture loan, which was also attended by President Zarai Taraqiati Bank Limited (ZTBL) Muhammad Shahbaz Jamee.

Omar Hamid Khan also asked for making the loans disbursement mechanism more efficient and transparent that would help in sustainable agriculture development in the country.

He also urged the need for evolving a comprehensive mechanism to transfer all other subsidies in an effective manner to achieve long term agriculture sector growth and development.

He said that agriculture loans would be provided on sustainable land holding in order to encourage mechanization and adoption of innovative technologies to achieve higher per-acre yield.

It may be recalled that prime minister had announced a fiscal package of over Rs1,200 billion in the wake of COVID-19 pandemic.

The ECC of Cabinet has approved the proposals on May 13 and out of this package an amount of Rs6.861 billion had approved for provision of financial relief in terms of markup subsidy on bank's loans to the most deserving sub segment of farming community.

The subsidy would be provided to farmers with land holding up to 12.5 acres across the country.

Over 70 % of the growers in Pakistan, own land up to 12.5 acres. A mark-up subsidy at the rate of 10% on the loans extended or to be extended during the fiscal year 2020-21 to the farmers of 12.5 acres of land has been approved by the government