The Presidents/Chief Executive Officers

All Banks/ MFBs

Dear Sir /Madam,

Amendment in the Loans for Agricultural Purpose Rules, 1973

Revision in PIU Value of Land

Please refer to AC&MFD Circular No. 03 of 2015 dated July 28, 2015, on the subject.

2. The Finance Division (Internal Finance Wing), Government of Pakistan, vide Notification S.R.O. No. F.12(1)IF-I/2009-Vol-II-1174, dated September 18, 2015 (copy enclosed) has made amendments in the Loans for Agricultural Purpose Rules, 1973, enhancing the Produce Index Unit (PIU) value from Rs 3,000/- to Rs 4,000/-.
3. All banks/MFBs are advised to note the amendments made in the Loans for Agricultural Purpose Rules, 1973 as notified in the above said notification and also ensure instructions to their branches for necessary action in this regard. However, SBP’s instructions allowing banks to accept agricultural land as security on the basis of the realizable value/ forced sale value in addition to market value or PIU shall remain unchanged.
4. Please acknowledge receipt.
   Encl: As Above