Money, Finance and Banking Blog in Pakistan
Specialized Banking
Banks Gave Rs859 Billion in Agriculture Loans in 5 Years
Aug 1st
Commercial banks in Pakistan disbursed Rs859.6 billion to the agriculture sector in the last five years with an average of Rs14.326 billion a month and recovery rate of 79 per cent.
According to estimates, the agriculture sector requires loans of Rs40 to 50 billion a month as focus on the sector grows and input prices surge.
In last fiscal year 2008-09, banks slightly fell short of meeting the target of agriculture loans. The State Bank of Pakistan had fixed a target of Rs250 billion but banks gave Rs233 billion in loans, 6.8 per cent less than the target.
Interestingly, despite having insufficient credit More >
Ban on Auction of Mortgaged Properties Lifted
Jul 30th
The government of Pakistan has decided to lift ban on auction of properties mortgaged by defaulters of the Zarai Taraqiati Bank Limited (ZTBL) and the House Building Finance Corporation Limited (HBFCL).
The decision has been taken in the light of the Supreme Court of Pakistan’s decision of February 11, 2009.
It may be noted that the Minister for Finance, in June 2008, had announced stoppage of auction of mortgaged properties of the defaulters of the Zarai Taraqiati Bank and the House Building Finance Corporation.
However, the Supreme Court of Pakistan, in its decision on February 11, 2009, revived the power of investment banks More >
SME Banks to Be Opened in Post Offices
Jul 27th
Privatization Commission (PC) Board of Pakistan has given approval for the appointment of Technical Advisor to prepare feasibility report for setting up SME banks in over 7,000 post offices across the country, reports Aaj TV.
Privatization Board has granted approval for the appointment of advisor following in depth discussion on the issue.
It is said that existing set-up of post offices would not be disturbed and micro banks would be an additional facility.
The meeting was of the view that the additional facility of small banks in post offices would not only discourage the illegal mode of payment through ‘Hundi’ in remote and More >
Builders Urges Government to Enhance Funding for Housing
Jul 27th
The Association of Builders and Developers (ABAD) has urged the government to use the services of House Building Finance Corporation for meeting housing needs of the middle and low-income people.
Referring to an announcement by President Zardari about building one million housing units, ABAD in an open letter to the government stressed the need for unhindered provision of finances for the housing and construction sector.
In its letter, ABAD said there were several factors responsible for the shortage, the most important being the dearth of housing finances on easy and affordable terms. The construction of one million homes, it said, required a More >
Agriculture Credit Disbursement Target Missed by Rs17 billion
Jul 24th
Banks have missed agriculture credit disbursement target of Rs250 billion set by State Bank of Pakistan for financial year 2009 by Rs17 billion.
The target was higher by Rs50 billion or 25 percent than the last fiscal year’s target of Rs200 billion and Rs37.5 billion or 18 percent higher than the actual disbursement of Rs 211.5 billion in financial year 2008.
Slow economic activities in addition to having hurt all major sectors including industry, consumer, corporate and auto sectors also negatively impacted agriculture credit disbursement, reports Aaj TV.
The banks and specialized financial institutions were however able to surpass level of agriculture credit More >
