July 18, 2008

Pakistan's farm loans increase 25 percent for FY2007 

Pakistan's farm loans during the last financial year ended June 30 totaled 211.5 billion Pakistan rupees (US$2.945 billion), the State Bank of Pakistan said in a statement Thursday (July 17, 2008).

This compares with PKR168.8 billion allocated by commercial banks in the previous year period, a 25-percent increase which surpassed the government target of PKR200 billion as farmers borrowed more funds, the country's central bank said.

Overall credit disbursement within the farming sector by five major commercial banks - Allied Bank, Habib Bank, MCB Bank, National Bank of Pakistan, and United Bank - stood at PKR94.75 (US$1.322 ) billion during the July 2007 to June 2008 period.

This compares with PKR80.39 billion (US$1.122 billion) during the corresponding period a year earlier, an increase of 18 percent.

The remaining loans were given by other financial institutions.