The government has approved Rs6.861 billion under Agriculture Fiscal Package to provide financial relief in terms of markup subsidy on bank’s loans for the most deserving sub-segment of farming community.
The Ministry of National Food Security and Research said the farmers with land holding up to 12.5 acres could be benefited from the subsidy scheme across the country, a press release issued here on Friday said.
It said the prime minister had announced a fiscal package of over Rs1,200 billion in the wake of COVID-19 pandemic to provide relief to the farming community in the country.
The Economic Coordination Committee of the Cabinet had approved the proposals on May 13, 2020, it added.
Over 70% of the growers in Pakistan, own land up to 12.5 acres, it said adding that a mark-up subsidy at the rate of 10% on the loans extended or to be extended during the fiscal year 2020-21 to the farmers of 12.5 acres of land had been approved by the government. The statement said the total amount of subsidy was Rs6.86 billion and all the loans with passbook as collateral were eligible to avail the subsidy.
It added the government shall bear markup at 10 % on agricultural loan disbursed or to be disbursed to above mentioned sub-segment of farming community during the fiscal year 2020-21 and balance markup shall be payable by the individual farmers on the loan amount availed from Zarai Taraqiati Bank Limited. It said the ZTBL under a mutually agreed or predefined mechanism with Ministry of National Food Security shall pass on the involved subsidy to all the borrowers with 12.5 acres of land holding. It said the farmers with land holding of up to 12.5 acres, all over the country shall be eligible for subsidy.
It said under the scheme, the borrowers offering only collateral of Agri-land under passbook shall be entertained for subsidy.
The farmers availing agricultural finance facility under any other collateral including residential or commercial property, gold, defense certificate and cash, shall not be qualified for any relief under the package, it added.