Arooj Zulfiqar

Banks have been asked to extend easy-term loans to farmers to help stimulate agricultural sector growth in Pakistan. "Recognising the challenges faced by landowners in accessing affordable credit, there is a dire need for financial institutions to introduce flexible and accessible loans tailored to the specific needs of the agriculture industry," stressed Muhammad Bilal Iqbal, a scientist at the National Agriculture Research Centre (NARC). He said that the agricultural sector in Pakistan faced several barriers, difficulties and distortions, including credit restrictions, water shortages, high input costs, a lack of seeds and fertiliser, problems with natural resource management and electricity shortages, all of which have a negative impact on the crop yields. "Insufficient market availability of inputs prevents the farmers from making full use of their cultivable lands, which results in reduced production," he said, adding that ensuring easy-instalment loans to landowners could significantly overcome these issues and contribute to the development of the agriculture sector. Bilal added that the introduction of farmer-friendly loans by the banking sector would be a positive step towards addressing the financial needs of landowners.

"These loans, tailored to the cyclical nature of farming, will empower farmers to make crucial investments in inputs, machinery and technology. By providing flexible repayment options and reasonable interest rates, financial institutions can play a pivotal role in alleviating the economic burdens faced by farmers." "Furthermore, this initiative aligns with the broader goal of promoting sustainable agricultural practices. The ability of farmers to access timely and affordable credit is instrumental in enhancing productivity, adopting modern farming techniques, and ensuring food security," he stressed. The NARC scientist said that it was crucial for the banking sector to collaborate with agricultural experts, policymakers and local communities to design loan structures that truly meet the needs of the farming community. "If executed thoughtfully, this initiative has the potential to enhance agricultural productivity, and contribute significantly to the overall economic growth of the country," he noted.

Credit: INP-WealthPk