‘SBP amends rules to promote Agri financing’

ISLAMABAD: The State Bank of Pakistan (SBP) has made amendments to its prudential regulations (PRs) relating to agriculture financing to allow banks and development finance institutions (DFIs) to increase lending to farm and non-farm sectors.
According to the new amendments, the maximum clean lending for agriculture as defined in R-4 has been increased from Rs1 million to Rs5 million, the central bank said in a circular.
Similarly, the exposure limit for the requirement of duly audited financial statements under R-20 has been raised from Rs10 million to Rs15 million. Banks and DFIs have been advised to ensure that these amended regulations are distributed throughout their branches and field offices.
The State Bank has been playing a vital role in uplifting the agriculture sector. Due to its significant contribution to national income, employment, food security, and export earnings, Pakistan’s agriculture sector continues to play a central role in the economy. –Agencies