State Bank of Pakistan (SBP) has notified the federal government initiatives for markup waiver and financing schemes for the revival of agriculture including farm and non-farm sectors in the rain/flood affected areas, as notified by National/Provincial Disaster Management Authority (NDMA/PDMA) during recent floods in 2022.
Markup Waiver Scheme
Markup Waiver Scheme (MWS) for subsistence farmers against agriculture loans with outstanding balances (including markup) of up to Rs. 500,000 per loan that were regular as on June 30, 2022.
MWS will be offered to the borrowers of farm sectors having subsistence landholding and to small farmers of non-farm sectors in flood-affected areas as declared by NDMA/PDMA during recent floods. These borrowers have been defined in SBP’s Report on indicative credit limits and eligible items for agriculture financing.
Banks/MFBs will waive off the entire amount of markup due till September 30, 2022, against outstanding agriculture loans (principal plus markup) up to Rs. 500,000 that were regular as on June 30, 2022, and reschedule/restructure the principal amount of loans for up to one year in calamity-notified areas.
50 percent of the cost of the above waiver of markup will be borne by the Government of Pakistan (GoP) through budgetary allocation whereas 50 percent will be borne by the concerned Banks/MFBs themselves. In this regard, banks/MFBs shall submit their markup subsidy claims on prescribe format duly audited by their Internal Audit Department to Director DFSD SBP BSC Head Office Karachi by January 15, 2023.
GOP Markup Subsidy Scheme
GOP Markup Subsidy Scheme (GMSS) for the revival of agriculture/livestock sectors against loans of up to Rs. 500,000 to subsistence farmers.
Interest Free Loans for Landless Farmers
Interest Free Loans and Risk Sharing Scheme for Landless Farmers (IF&RSLF) up to Rs. 200,000 in flood-affected areas.
Banks/MFBs have been advised to gear up their systems for the successful implementation of these schemes and to avoid any misuse.
Giving loans to farmers and allowing mafias to cut colonies on agriculture land. Isn’t it another confusing govt?