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Agricultural Development Bank of Pakistan.

The Agricultural Development Bank of Pakistan (ADBP) has provided a total credit of Rs. 57.5 billion during the last 30 years to over 2 million farmers for development and modernization of agriculture in the country. The ADBP which has completed 3 decades of its existence was established on 18th of February, 1961 through the merger of 2 credit giving agencies, the Agricultural Development Finance Corporation and the Agricultural Development Bank of Pakistan founded in 1952 and 1957 respectively. The main function of this merged institution was set to provide viable credit to the agricultural community for development and modernization of agriculture and to help develop cottage industries and Agri-Business in Rural Areas.

Starting operations with the field network of only 4 regional offices and 27 brances in both erstwhile East and West Pakistan now conducts its operations with 4 high powered provincial offices, 49 regional offices, 332 branches and 1440 Mobile Credit Officers. In the first year of operations, the Bank could disburse a meagre crediit of Rs. 31.5 million which now touches as high a disbursement figure as Rs. 10 billion targeted for 1990-91.

Since its inception, the Bank was providing credit on general loaning pattern under which the pace of operational activities of the Bank remained too slow. In 1979, the Bank designed and introduced a new mechanism of credit disbursement named as "Supervised Credit System" popularly known as "MCO Scheme". Under this scheme all operations of the bank became village-based instead of branch-based. At present the bank has a fleet of 1440 mobile credit officers, all agricultural graduate providing credit and technology to farmers of each and every viable village of the country at their doorstep. In 3 decades, the bank served as many as 20 lac farmers and lent them Rs. 57.5 billion, Rs. 13.2 billion for short term production loans, Rs. 8.0 billion for medium term development loans and Rs. 36.3 billion for long term development loans.

Province wise break up of the amount of Rs. 57.5 billion disbursed by the bank in 30 years, reveals that Rs. 0.465 billion were disbused in Federal Capital Area, Rs. 36.000 billion in Punjab, Rs. 13.775 billion in Sindh, Rs. 4.455 billion in NWFP, Rs. 2.054 billion in Balochistan, Rs. 0.305 billion in Fana and Rs. 0.446 billion in Azad State of Jammu and Kashmir.

The bank started agri-business loaning in 1980 to help establish agro-industries which have "Pull and Push" effect on agricultural production. Under this type of lending the bank finances agro-based, agro-allied and agro-service industries in rural areas. Upto December, 1990, the Bank provided credit of Rs. 4.6 billion for setting up of 487 projects in the country mainly for production of edible oil, production and processing of fruits and vegetable, processing of diary products, agro services and poultry production and processing.

In order to augment its loanable funds and to serve larger number of farmers the bank kept stressing upon recovery of its loans. In 30 years against a recoverable amount of Rs. 46.7 billion, it recovered an amount of Rs. 37 billion which is 79% of the total recoverable.

ADBP also operates in general banking. It maintains all types of account such as PLS accounts, current deposit accounts and term deposit account and business deposit account. At present it maintains enumerous number of accounts with deposits of over one billion rupees.

During 3 decades of its operations, the Bank obtained as many of 32 foreign lines of credit totalling about US $ 600 million were obtained from the World Bank, 10 lines of credit from the Asian Development Bank totalling Us $ 400 million, 6 credit from international fund. For agricultural development (IFAD) amounting to US $ 50 million and 5 credits were obtained from other international financing agencies totalling about US $ 50 million.
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Publication:Economic Review
Date:Apr 1, 1991
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