Farmers' organisations have urged the State Bank of Pakistan (SBP) to release Rs 8 billion to the Punjab Provincial Co-operatives Bank Limited (PPCBL) for the year 2007-08 to enable the latter to release loans to farmers in time.
Kissan Board Pakistan Central President Sardar Zafar Hussain Khan and General Secretary Jam Hazoor Bukhsh in a joint statement said 70 percent of country's population was attached with agriculture and out of them 92 percent were small farmers. They claimed all other commercial banks disburse loans to farmers and PPCBL support farmers after Zarai Tarqaiti Bank.
They appealed to the president and the prime minister to ask the State Bank of Pakistan to review its decision of not releasing funds to the PPCBL. They warned of launching a protest movement if this decision is not reversed.
Agri-Forum Pakistan Chairman Muhammad Ibrahim Mughal also urged the government to levy low service charges on agricultural loans. 50 percent of the auto loans being disbursed by the banks should be given for purchase of tractors and banks should be asked to have 50 percent of their branch networks in small cities, towns and villages.