Agriculture expenditure has increased to 80% with side by side extensions of commercial banks to 57% of the entire expenditures in the last four years, said Tariq Bajwa, governor of the State Bank of Pakistan (SBP).
He appreciated the financial institution for surpassing the target of credit disbursement during the previous fiscal year while addressing at the flag hoisting ceremony to celebrate the 70th independence anniversary of Pakistan.
Pakistan being an agricultural state and farming and agriculture has a major contribution to economic growth. Many small scale agriculture debtors are facing problems in finding loans, that is to fix for the sake of country’s economy, he added.
“Even a small scaled financing should not be ignored that is agriculture based”, he added.
The State Bank of Pakistan is working in this regard since 1948 on directions from Quaid-e-Azam, emphasizing that the economy has faced many ups and downs in Pakistan in all these 70 years.
He furthered stated that the economy has great potential for flourishing being on the right track currently. State Bank of Pakistan is focusing on effectiveness of monetary policy; improving banking system; improving transparency; modernizing payment system, etc. as a part of Vision 2020.
Banks were directed to improve their financing as the historical low discount rate has resulted in record increase in the private sector credit, he added.
“The central bank has launched many concessionary financing schemes for SME sector growth”, said Bajwa. The State Bank is focusing on small to medium industries along with increasing banking outreach to less developed areas of Pakistan to enhance economy.