Islamabad September 20 2022: State Bank of Pakistan had decided to make the amendments in Prudential Regulations for Agriculture Financing to enable banks/DFIs to enhance flow of credit to farm and non-farm sectors.
The maximum limit of unsecured or clean financing for agriculture as defined in Maximum unsecured financing has been enhanced from Rs 1.0 million to Rs 5.0 million.
The exposure limit for the requirement of financial statements duly audited by a practicing chartered accountant relating to the business of every borrower who is a limited company has been enhanced from Rs 10 million to Rs 15 million.
This will help to recover some of the lost agriculture output as majority of the crops in the province of Sindh has been destroyed due to destructive floods and torrential rains. However, there are no directives issued by the central bank for the treatment of existing loan portfolio.
