ISLAMABAD: Parliamentary Secretary for Finance and Revenue Rana Muhammad Afzal Khan Wednesday informed the National Assembly that efforts were being made to reduce operational cost on loans of Zarai Taraqiati Bank Limited (ZTBL). Responding to a Calling Attention notice moved by Rana Muhammad Hayat and others regarding charging of 16.50 per cent markup by ZTBL from the farmers, the Parliamentary Secretary that the figures were not correct.
He said there were three categories of agriculture sector loans including Kisan Dost Scheme, Production and Development loans. Under Kisan Dost and Production schemes loan was being provided at 12.5 per cent markup while mark up on development loan was 14.8 per cent, he said.
Rana Afzal said the non performing loans of ZTBL reached to Rs.80 billion, which was converted into equity by State Bank of Pakistan to save the bank from collapse.
He said ZTBL was only providing 20 per cent agri loans while other commercial banks share was 80 per cent. To a question, the Secretary said there was no recovery charges on agri loans only mark up was being charged. Rana Afzal said the matter of agriculture loan markup has been referred to the select committee of the House and recommendations of the committee would be considered.
He said the agriculture is backbone of the country’s economy and efforts were being made to bring the markup on agriculture loan to minimum level.
Rana Afzal said the government had also announced a package to boost agri production in the country. He aid GDP growth has also increased from 3.4 per cent to 5.4 per cent during the last three years. He also clarified that a total 9 per cent mark up was being charged on commercial lending.
