Agricultural Credit & Microfinance Department  

 


Mission Statement

Foster financial inclusion by developing agriculture credit market, microfinance and branchless banking, thereby contributing to equitable economic growth and prosperity in the country.

Vision Statement

To promote access and usage of agricultural credit and microfinance by the underserved economic, social and geographic segments through enabling environment, robust market infrastructure, self-sustaining business models, innovative products & delivery channels, and improved financial literacy.


About Us

With a view to create synergies for developing agricultural credit and microfinance, Agricultural Credit Department (established under SBP Act 1956) and Microfinance Department have been merged together as a part of SBP overall restructuring. The new department namely Agricultural Credit & Microfinance Department is being headed by a Director, working within the overall supervision of Executive Director (Development Finance Group) and Deputy Governor (Banking). The Department is responsible for achieving its objectives through enabling regulatory environment, developing market infrastructure, promoting financial inclusion through branchless banking innovations and financial literacy. Two sectors which are handled at the Department are critically important as Agriculture sector is the mainstay of Pakistan’s economy, which generates nearly one fourth of the total GDP, employs 43% of total labour force and is a major source of foreign exchange earnings whereas the Microfinance sector has widely been recognized as an instrument for inclusive economic growth and poverty alleviation.


Departmental Goals

The Departmental Goal is to increase financial inclusion through development of agricultural credit market, promotion of microfinance and branchless banking by:

Developing financial inclusion policy and strategy, addressing issues and market failures for broadening access in agricultural credit & microfinance.
Continuous review of Prudential Regulations & guidelines for the agriculture and microfinance sectors on the drawing of internal/external feedback and as per international best practices.
Developing Market Infrastructure and establishing funding mechanisms.
Expansion of Branchless Banking.
Research & Analysis to understand the causes of exclusion and publication of research.
Capacity enhancement of service providers.
Creating market awareness and financial literacy.
Promoting innovations in product & service delivery leveraging technology & networks.
Designing and implementing donors funded programs for market interventions to advance financial inclusion.
Coordinating with the Federal Government, Provincial Governments, Banks, Provincial Cooperative Banks, Microfinance Banks, Microfinance Institutions and International Donors for promotion of agri. finance and financial inclusion..
        ORGANIZATION:

The organization of the Department is spread over the following Divisions:


1
Agricultural Credit and Microfinance Policy Division
2
Financial Inclusion Initiatives Division
3
Data Measurement and Analytics Division
4
Programs Management Division
5
General Services & Coordination Division

Agricultural Credit and Microfinance Policy Division


Developing strategies and policies for financial inclusion.
Reviewing issues & identifying challenges faced in financial inclusion and developments taking place in agriculture and microfinance and formulating policies for banks accordingly.
Dealing with matters relating to SBP credit lines.
Preparing guidelines and policies for farm/non-farm sector financing in consultation with stakeholders.
Assessing credit requirements of farm and non-farm sectors in collaboration with provincial planning & development Departments and collecting annual agri. credit disbursements plans from banks.
Processing queries, references, exceptions etc. on agri. credit & microfinance policies, schemes, Prudential Regulations etc.
Implementing and monitoring progress made in respect of initiatives envisaged in the National MF strategy and suggesting necessary adjustments.
Reviewing existing PRs and formulating new PRs in line with market demand and international best practices..
Providing comprehensive feedback to BPRD on Microfinance Bank/Branch licensing/FPT of CEO/Directors.
Coordinating with Banking Departments within SBP and Focus Groups of Agri Credit & MF of SBP BSC.
Dealing with matters relating to various meetings of Federal & Provincial Governments, PMN, CGAP, PPAF, etc..
Allocating annual indicative credit targets and monthly monitoring of agri. loans disbursements against these targets.
Preparing working papers & conducting meetings of consultative groups of agricultural credit and microfinance.
Organizing quarterly meetings with Agri. Credit Heads of the banks.


Financial Inclusion Initiatives Division


Developing Branchless Banking (BB) to increase Access to Finance.
Acting as Secretariat for BB Consultative Groups & its Working Groups..
Developing Warehousing Receipt Financing mechanism, Value Chain Financing, Insurance Schemes etc.
Piloting projects to improve access of agri. credit to farm , non-farm sectors, underserved areas etc. on fast track basis.
Implementing existing initiatives like Crop Loan Insurance & National Agriculture Insurance Schemes and taking up new initiatives like Livestock Loan Insurance scheme..
Developing frameworks for promoting efficient and equitable market infrastructure to broaden frontiers of financial access to poor and low income people.
Providing feedback to BPRD on proposal of banks/MFBs for initiating Branchless Banking.
Organizing conferences/workshops on promotion of Branchless Banking, microfinance and agri. finance.

• Developing and implementing special initiatives, such as:

a. Financial Literacy Programs

b. Agri. & Microfinance awareness program

c. Capacity building programs for the staff of Banks/MFBs/MFIs at various field stations

d. Public awareness programs

e. G2P Payments

f. Consumer Protection

g. Grievances redressal mechanism

h. MF-CIB at national level.

Conducting various studies such as Islamic Finance Study, Hybrid Value Chains Study and Agriculture Finance Study.
Coordinating with Alliance for Financial Inclusion and its Working Groups for knowledge exchange through meetings, online member zone, and arranging exposure visits..

Data, Measurement and Analytics Division
Collecting periodical data on agri. credit, microfinance, and Branchless Banking and its processing through ISTD portal.
Compiling & disseminating periodical data on agri. credit and microfinance for use & analysis by internal stakeholders, banks, government and general public.
Collecting data on CLIS premium claims of banks for subsistence farmers for onward verification by BID and subsequent reimbursement by the Government.
Collecting and maintaining market statistics (secondary data) on agri. credit and MF from the stakeholders.
Designing and arranging market surveys, studies for collection of primary data on agri. credit and MF.
Preparing periodical publications on Financial Inclusion focusing on agri. credit, microfinance, and branchless banking.
Reviewing international and national best practices, reports, schemes, products, etc for onward sharing with internal & external stakeholder.
Analyzing statistics on agri. credit & MF and overall financial inclusion sector in Pakistan for suggesting corrective measures to improve access to finance.
Conducting special studies/ surveys on agri. credit, MF, and related areas to facilitate policy formulation, projects initiations, etc in collaboration with stakeholders.
Dealing with Assembly/Senate questions on agri. credit & MF.


Programs Management Division

Reviewing applications prior to submission of the formal grant application under ISF in accordance with the fund objectives.
Maintaining liaison with applicant institutions and provide them with necessary information and guidance during preparation of the grant proposals.
Facilitating Technical Committee on ISF in terms of collecting information, organizing meetings, and implementing decisions.
Preparing project documentation along with performance indicators and complete other formalities in close liaison with grantee institutions, for executing the grant and signing of the same.
Monitoring progress of approved projects through quarterly reports, progress reviews on gaps and make recommendations for necessary action.
Managing ISF program in terms of budget & projections for disbursals/ investments, preparation of quarterly, semi-annual and annual reports on ISF initiatives and progress thereof for onward submission to Donor Agency (DFID).
Designing and implementing various interventions under FIP TA component to address financial inclusion challenges and RFSDP components relating to SBP.
Organizing FIP Steering Committee/ Technical/Advisory Committee Meetings.
Reviewing MCGF guidelines and policy and providing input on CGS related matters.
Designing and launching various rounds under FICF.


General Services & Coordination Division

Dealing with matters relating to impreset account, leave, inward/ outward, etc.
Providing administrative and logistic support to the Department.
Conducting pre/post-audit of all financial transactions of the department.
Ensuring compliance with approved policies and procedures.
Coordinating with Internal Audit and Compliance Department.
Arranging local procurements, stationary, oracle requisitions and other requirements of the department in coordination with BSSD, ISTD and other departments of the bank.
Handling matters relating to business planning, budget, procurement, IT equipment, etc.
Reviewing monthly variance analysis of budget viz. a. viz actual expenses.
Preparing & maintating risk register of the processes of the deaprtmetn in collaboration with concerned division of the Department.
   Important Events / Data


Handbook on Best Practices in Agri-Rural Finance

APRACA FinPower Knowledge Sharing Programe on Rural Finance

Prudential Regulations for Agriculture Financing

Definitions of Agricultural Terminologies

Indicative Credit Targets and monthly analysis table

District Wise Agri Credit Data

Circular No.06 - SBP. INTRODUCES A NEW REVOLVING CREDIT SCHEME FOR AGRICULTURE

COMPREHENSIVE /MASTER CIRCULAR

Agricultural Credit Target for 2005-2006

Agricultural Credit Target for 2004-2005

Profile Agricultural Credit Department

SBP's efforts for Agricultural credit to farmers

Brochure

Farm Loans Help desk

SBP Task Force Report on Crop Loan Insurance Framework

Presentation about Bank for Agriculture & Agricultural Cooperatives (BAAC) Thailand

FAQs
FAQs regarding SBP Supervised Agricultural Credit Scheme

Trainings

Summary of 03 Days Specialised Trainings (3rd Phase) on Agricultural Credit/Rural Finance Conducted by A.C.D. During 2004-05

Summary of 04 Days Specialised Trainings (2nd Phase) on Agricultural Credit/Rural Finance Conducted by A.C.D. During 2003-04

Summary of 03 days Specialised Trainings (1st Phase) on Agricultural Credit/Rural Finance Conducted By A.C.D.

 

List of Officers / Contatct Persons

Draft Guidelines For Livestock Financing

Guidelines on Horticulture Financing

Financing Scheme for Small Farmers

Guidelines on Fisheries

Draft Guidelines for Poultry Financing

Seminar on Agribusiness Finance Awareness Building

Methodology Report 2006

Branchless Banking Newsletter  

Draft Framework for Warehouse Receipt Financing



 


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Phone: (+9221-24450298, Fax: (+9221) 9212440
www.sbp.org.pk