The Presidents / Chief Executive Officers

All Banks

Dear Sirs / Madam,

Enhanced Indicative Per Acre Credit Limit for Agriculture Financing

In line with the Government’s priority for the development of agriculture sector and to ensure availability of adequate and timely credit to the farming community, State Bank of Pakistan has enhanced indicative per acre credit limits on an average of 70% for major & minor crops, orchards and forestry. The enhancement in limit has been made on the basis of current prices of inputs like seed, fertilizer, pesticides, fuel, electricity, etc.

Further to facilitate farmers in getting loans for growing of orchards and agro forestry, year wise per acre indicative credit limits for growing of orchards viz. mango, citrus, apple, banana, coconut, dates, guava, etc. and agro forestry viz. acacia, shesham, bamboo, etc. have also been provided. The enhanced indicative per acre credit limits are attached at Annexure I.

The enhanced per acre credit limits are indicative in nature and banks are allowed to finance lower or higher than the limits based on actual credit requirements of specific farmers, market conditions and prices of farm inputs.

Banks are advised to circulate the above instructions to its branches immediately for compliance.

Please acknowledge receipt.