Agriculture is a sector on which almost whole economy of Pakistan relies. It is quite impossible to push aside the significance of agriculture as this is the industry which drives all other industries. Despite this, it is a neglecting, under developed realm possessing a lot of potential for growth. To call this most ancient profession of humankind as integral for even existence of humankind is absolutely justifiable.
Role of Banks in Development of Agriculture in Pakistan
Agriculture is a sector on which almost whole economy of Pakistan relies. It is quite impossible to push aside the significance of agriculture as this is the industry which drives all other industries. Despite this, it is a neglecting, under developed realm possessing a lot of potential for growth. To call this most ancient profession of humankind as integral for even existence of humankind is absolutely justifiable.
No doubt, meliorations took place in Pakistani Agriculture since independence, but these do not cope with the accomplishments of contemporary world and with the present and future era needs. A mess of departments & institutions at provincial and federal level exist in our country for research and development, and consequently to disseminate the research results in the form of innovations to the farming community. But a less attention is paid on the capital requirement needed to adopt such innovations by farmers. Financial institutions like banks are not playing their role as effectively and appropriately in this context as required. Though State Bank of Pakistan has directed all banks to have agriculture credit, yet a lot more is needed to execute to eliminate loop holes and to meet the challenges. Central Bank has to take some more steps towards making availability of timely and adequate credit facilities to farmers.
While disbursing agricultural credit, commercial banks have motives to earn profits rather than to develop the sector. In order to achieve such motives, banks make the perspective and potential clients deprive of credit facilities. Commercial banks rarely cater the needs of small land holders. After selection of intending borrowers, banks take too much time in processing of loan applications that cause inordinate delay in providing inputs to crops that ultimately results into reduced production. As agriculture is much different business than other businesses, so there is a need to treat it in a separate, special and dynamic way. SBP should make certain to make available the cheap credit on soft conditions to every farmer at any time irrespective of his or her land holdings. Besides, banks should focus more on unconventional forms of agriculture like dairy, poultry, fish farming etc. Loan processing and execution should be simple. There is also a need to ensure the proper utilization of funds by farmers. Our farmers are mostly illiterate, and are in a practice to spend money borrowed from banks on purposes other than productive. At the same time, banks must be cautious to save their precious funds from going into the hands of malicious borrowers and habitual defaulters who are mostly influential and well renowned.
Of all the banks, the recitation of Zarai Taraqiati Bank Limited having sole objective of development in agriculture rather than making profits makes the sense here. ZTBL played emphatic role in past by inducing farm mechanization and catering the needs of particularly small farmers on subsidized markup rates. It could deliver more if had escaped from political interference. Redundant political interventions have decelerated the journey towards success by harming the efficacy of organization. If only ZTBL is allowed to play its role effectively, it can bring revolution in agriculture. Only the need is of a qualified, honest, dedicated competent management which remains confined only towards its objectives of improving agriculture. Likewise old unqualified staff lacking skills is necessary to be replaced with young meritorious skilled staff to get finalizing the computerization and to refine the current tarnished image of the organization.
Now last but not the least, unrealistic targets allocated to banks by SBP involve them into a race of dissembling. To have less but actual work is far better than magnified but fictitious work. Therefore, any assigned targets must be compatible with ground realities in order to curb fabrication in outcomes.
By:
Rizwan Asghar Bhatti,
Vehari
Cell No. 03217727780,
Email: [email protected]
