SBP Increases Agriculture Credit limits to support Farmers

State Bank of Pakistan Increases Agriculture Credit limits to support Farmer.

Farming is a very important sector of Pakistan and Pakistan has a lot of potential in the farming sector, especially  keeping in view of exports to other countries in order to generate revenues for Pakistan which by far is one of the important aspects Government if working on.

State Bank of Pakistan (SBP) has enhanced the indicative credit limits for agriculture financing by
banks to farmers to align the amount of financing with agriculture input requirements.

The enhanced indicative credit limits for production and development loans of farm and non-farm sectors will
directly benefit agriculture borrowers, who will now be eligible to get more credit from banks and which in return will enhance agriculture productivity through adequate use of inputs.

This will also enable banks to align the loan amounts with the actual requirements of farmers and resultantly enhance the flow of agriculture credit.

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It is important to note that the indicative credit limits serve as a guideline for banks to assess the
credit requirements of agriculture borrowers while sanctioning credit limits. Banks may, however,
make adjustments on the basis of prevailing market conditions, local prices of inputs, and the repayment
capacity of borrowers.


The revised indicative credit limits will also facilitate provincial planning departments in estimating
the total financial and credit requirements of respective provinces/regions for farm and non-farm sectors.

The loan enhancement will also support the farm and non-farm sectors in the expansion of their businesses and will provide them financial support which will increase overall efficiency and productivity of there Agricultural work.

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