Importance Of Agriculture In Pakistan

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Agriculture continues to be the single largest sector, a dominate driving force for growth and the main source of livelihood for 66 percent of the country`s population. It accounts for 21.4 percent of the GDP and employs 45percent of total work force. As such agriculture is at the center of the national economic policies and has been designated by the government as the engine of national economic growth and poverty reduction. Agriculture contributes to growth as a supplier of raw materials to industry as well as market for industrial products and also contributes substantially to Pakistan’s export earnings. Thus any improvement in agriculture will not only help the country`s economic growth to rise at a faster rate but will also benefit alargersegment…show more content…
The bank continued to operate as the prime financial institution catering to the credit needs of agriculturists for the development and modernization of agriculture as well as promoting cottage industries in the rural areas. The bank is currently passing through the restructuring phase to serve as a catalyst for this sector in a more effective and yielding manner. For this purpose Federal Government has incorporated the bank into a public limited company in the year 2002. The new cooperate structure in addition to ensuring good governance and autonomy, aims at delivering high quality, viable and timely financial services to a greater number of clientele so as to increase its outreach on viable and self sustainable basis. (ZTBL,…show more content…
ZTBL alone serves about 0.45 million farm families annually and share around 34% of the total institutional credit. The bank continuously endeavors to serve its clients with increasing effectiveness and efficiency. In this pursuit, several financial products and delivery mechanisms such as General Agricultural Credit System, Revolving Finance Scheme, Awami Zarai Scheme, Sada Bahar Scheme, One window Operation and General Credit Scheme etc have been introduced over the years (ZTBL, 2006). The bank provides loans under Awami Zarai Scheme on the basis of crops type like Rabi corp.kharifcrop vegetables and orchard crops. Under Awami Zarai Scheme the loans are basically production loans having maturity period up to 14 months but in some conditions the loans are in advanced for the development purposes and their maturity period spreads up to over 5 years. The loans are sanctioned for the agricultural inputs, orchards, tractorsmachinery,tub well, irrigation facilities etc. (ZTBL, 2006) NEED FOR THE

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