The Presidents / Chief Executive Officers
All Banks
Dear
Sir / Madam,
Relief
Package Announced by the Prime Minister for Small
Farmers of
Malakand Division and FATA – Write off/Remission
of Agri. Loans
In
order to provide relief to the war affected districts
of NWFP, the Prime Minister of Pakistan, in Kissan
Convention 2009 announced a relief package for remission/
write-off of small farmers’ agriculture loans
(farm & non-farm). Under the package, all agri.
loans of small farmers having outstanding balances
as on 30-6-2009 of the districts of Malakand Division
viz. Swat, Buner, Shangla, Lower Dir, Upper Dir, Malakand
& Chitral and FATA (Bajaur Agency, Kurram Agency
and Khyber Agency) shall be written off/waived and
the cost thereof shall be borne by the federal government.
The criteria of small farmers will be the farmers
having subsistence land holding i.e. upto: 12.5 Acres
and in case of non-farm sector i.e. for livestock:
20-50 cows/buffalos & upto 150 goats/sheep; poultry:
upto 5000 birds/broilers and 1000 birds for layers;
fisheries: one boat for marine and upto 2 acres pound
for inland fisheries.
For
smooth and timely implementation of the relief package,
banks are advised to stop recovery & accrual of
mark-up of all such loans immediately and make all
out efforts to publicize the scheme through advertisement
in print & electronic media, banners and direct
contact with borrowers. The bank’s claims under
the scheme shall be submitted to Agricultural Credit
Department, SBP on the prescribed format duly audited
and authenticated by their Internal Audit Department
upto 15th December, 2009 for Swat, Buner and Bajaur
and upto 25th December, 2009 for other districts/agencies
for reimbursement. The amount reimbursed by SBP shall
be subject to on-site inspection and if any amount
claimed found ineligible, the same shall be required
to be refunded by the bank along with penalty.
The
reimbursement of bank’s claims of outstanding
agri. loans shall be full and final settlement of
the borrower’s liabilities and banks are required
to release all securities/charges held against such
loans and issue necessary clearance certificates to
borrower soon after the receipt of funds from SBP.
Progress, in this regard shall be furnished to this
department on fortnightly basis.
Encl:
As above