The Presidents / Chief Executive Officers

All Banks/MFBs

Dear Sir / Madam,

Report on “Indicative Credit Limits & List of Eligible Items for Agri. Financing”

State Bank of Pakistan, in its quest of facilitating financing to farmers, has revised the Report on Indicative Credit Limits & List of Eligible Items for Agri. Financing to align with inflationary adjustments and current market practices. The parameters for segmentation of borrowers based on land holdings and average requirements of seed, fertilizers and pesticides have also been embedded in the revised Report to facilitate provincial planning departments in computing financial and credit requirements of respective provinces for farm sector activities. An exhaustive list of activities and purposes segregated for farm and non-farm sector has been annexed to the Report.

2. The limits for per acre cost of production are indicative and can be adjusted based on the actual credit requirements of specific farmers, market conditions, and prevailing prices of farm inputs at respective place while sanctioning the loan.
3. The revised Report and enhanced indicative per acre credit limits will facilitate farmers in getting adequate loans for growing their farms and forestry. It will also facilitate banks and provincial governments to estimate actual credit requirements of the farmers.
4. Banks are advised to circulate the above instructions to their field offices immediately for compliance.

Please acknowledge receipt.