| The Presidents/ CEOs,
All Banks / DFIs
Dear Sirs /Madam,
REVISED PRUDENTIAL REGULATIONS FOR AGRICULTURE FINANCING
Please refer to the Prudential Regulations for Agriculture Financing issued vide BPD Circular No.27 dated October 22, 2005.
2. In order to bring regulatory framework for agriculture financing in line with the changing business environment, State Bank of Pakistan, in consultation with stakeholders, has revised the Prudential Regulations (PRs) for Agriculture Financing. The revised PRs provide instructions for banks to develop robust market-oriented policies and adopt practices for facilitation of agriculture finance in Pakistan. These regulations will facilitate banks to enhance the flow of credit to the agriculture sector without compromising on financial stability and banks’ risk management.
3. The Revised Prudential Regulations for Agriculture Financing (copy attached) are applicable with immediate effect. Banks/DFIs are advised to ensure dissemination of these regulations among their branches/field offices for meticulous compliance. Non-compliance of the PRs for Agriculture Financing will attract punitive action under the provisions of Banking Companies Ordinance, 1962.
4. All other instructions in respect of the areas not covered under the above regulations will remain unchanged.
Please acknowledge receipt.
Encl: As above