Circulars/Notifications - Agricultural Credit Department   


Seminar on Agribusiness Finance Awareness Building


State Bank of Pakistan in collaboration with the Ministry of Food, Agriculture & Livestock (MINFAL) organized a Seminar on ‘Agribusiness Finance Awareness Building’ on Monday the 27th November 2006 at the Holiday Inn, Lahore. The conference was chaired by the Mr. Azhar Kureshi, Advisor to Governor on Development Finance, State Bank of Pakistan. The conferences was aimed at agribusiness finance awareness building among banks regarding the Asian Development funded Agribusiness Development & Diversification Project. The MINFAL being the implementing agency for the Project made presentation on their components including Agri Support Fund (ASF) and Livestock & Dairy Development Board (LDDB). SBP being the implementation agency for the sub-component made the presentation on Agribusiness Finance Development. The conference was attended by senior bankers, including Presidents of The Bank of Punjab, Zarai Taraqiati Bank, agriculture credit, commercial credit, and SME heads of commercial banks/financial institutions, leading insurance companies, leasing companies and representatives of farmer’s community. The purpose was to highlight the importance of agribusiness sector in Pakistan, support the banks in development of financial products for the agribusiness sector and provide farmers and entrepreneurs easy access to financial institutions.

Agribusiness Development and Diversification Project is an ADB sponsored project executed by the federal ministry of food, agriculture and livestock, Islamabad. SBP is the implementing agency for the component 2: Agribusiness Finance Development Project. The Project has offices in all the four provinces including special areas (FATA, FANA and AJK). All the relevant stakeholders, i.e. farmers, traders, small and medium entrepreneurs, researchers, extension workers, policy makers and experts of agriculture sectors are being involved. The administrative headquarter of the Project is in Islamabad.

Among various other functions, the Project is supporting the development of financial services, particularly credit, to agribusiness enterprises that do not have ready access to such services. The Project will support PFIs (Participating Financial Institutions) to develop their understanding of the potential agribusiness finance market, and subsequently, to enhance their capacity to undertake agribusiness lending. Cooperation with PFIs will be implemented using the services of international consultants, first through awareness building, and second, through specific in-house consulting services provided to PFIs. In the first phase the selection of private sector financial institutions (predominately commercial banks) having an interest in developing an agribusiness loan portfolio is being done, in accordance with the selection criteria agreed with the State Bank of Pakistan (SBP). The awareness-building phase will identify a shortlist of PFIs to be given guidance in preparing a proposal to access capacity-building support from the Project, including an agribusiness finance strategy and work plan. Proposals will be submitted to SBP for review. Based on the review, 3-5 PFIs will be selected to receive customized, in-house support to develop their agribusiness finance capacity. In the capacity-building phase, separate teams of international consultants will work with each selected PFI to refine its strategy and work plan, and identify market opportunities. Each consultant team will establish and operate an agribusiness lending unit over approximately 2 to 3 years. The output of this component will be 3-5 PFIs that have commercially viable agribusiness loan portfolios, and qualified and experienced staff who can expand the PFls' agribusiness lending. The Project will therefore act as a catalyst for the broader development of agribusiness finance in other financial institutions. SBP, as the Implementing Agency for the agribusiness finance development component, will be responsible for (i) establishing PFI eligibility criteria, (ii) approving PFIs that will benefit from capacity building in agribusiness finance, and (iii) coordinating the selection and recruitment of the capacity-building consultants for agribusiness finance development.

The following presentations were made:-

Presentations

1. Agribusiness Presentation by Mr. Arshad H. Hashmi, Director Agribusiness Development Project (PPT Size 4 MB)
2. Agribusiness Support Fund (ASF) Presentation by Mr. Khalid Khan Chief Executive ASF (PPT Size 1.5 MB)
3. Livestock & Dairy Development Board (LDDB) by Mr. Akram Khalid, Company Secretary LDDB (PPT Size 200 KB)
4. Agribusiness Finance Development (SBP Component) by Mr. Timothy Hammond, ADB Consultant for SBP
(PPT Size 93 KB)


       
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