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 is 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 borrowers soon after the receipt of funds from SBP. Progress, in this regard, shall be furnished to this department on fortnightly basis.