The Presidents/ Chief Executive of all banks/MFBs

(As per list attached)

Dear Sir/Madam,

Livestock Insurance Scheme for Borrowers

In order to improve access to finance to the Livestock & dairy sector and to mitigate risk of loss of livestock due to disease, natural calamities & accidents, State Bank of Pakistan, in collaboration with SECP, banks, insurance companies and provincial livestock & dairy departments has developed a framework for Livestock Insurance for borrowers, which is attached.

2. The Livestock Insurance Scheme will provide an essential risk mitigating tool to encourage banks to enhance flow of credit to this highly potential and underserved sector. The scheme would also safeguard the interest of farmers in case of loss of animals due to death.
3. Banks are advised to implement the Scheme based on the parameters mentioned therein and enter into agreements with reputable insurance companies for underwriting Livestock Insurance for their borrowers. Further, banks may also negotiate with insurance companies for best terms vis-à-vis premium rate, insurance coverage for disability and theft of animal, etc as per mutual arrangement.

Please acknowledge receipt.

Encl: LISB