Punjab being the highest contributor of agriculture produce, remained the main beneficiary of agricultural loans with Rs 75.6 billion out of overall disbursement of some Rs 90 billion during the first half of current fiscal year. The State Bank of Pakistan on Saturday released district-wise data of agricultural credit disbursement for the first half (July-December) of the current fiscal year (2007-08) for the first time in the country's history. The move is part of the State Bank's various initiatives, including guidelines/schemes on agricultural financing, capacity building of banks and creating awareness amongst the farming community, to continuously enhance the flow of credit to agriculture sector. The data depicts that major thrust of agricultural financing was towards farm sector. Out of total disbursements of Rs 90.3 billion, an amount of Rs 66.3 billion (73 percent) was disbursed for farm sector and Rs 24 billion (27 percent) to non-farm sector. Punjab being the highest contributor of agriculture produce, remained the main beneficiary of agricultural loans with Rs 75.6 billion, followed by Sindh Rs 10.2 billion, NWFP Rs 3.9 billion, Balochistan Rs 0.2 billion and AJK & Northern Areas Rs 0.4 billion. The district-wise data reveals that banks disbursed agricultural loans in all 36 districts of Punjab and 23 districts of Sindh whereas the disbursement in NWFP, Balochistan and AJK/NAs/Fata restricted to 20, 22 and 7 districts, respectively out of total districts of 24, 30 and 21, respectively. The average disbursement per district stood at Rs 2.1 billion in Punjab, Rs 0.4 billion in Sindh, Rs 0.16 billion in NWFP and only Rs 7 million and Rs 29 million in Balochistan and AJK respectively. Major recipients of agricultural loans were Lahore, Rawalpindi, Sheikhupura, Kasur, Multan, Muzaffargarh, Bahawalpur, Bahawalnagar, Sialkot, Khanewal, and Mianwali in Punjab; Hyderabad, Khairpur, Karachi, Sukkur, Sanghar, Ghotki and Nawabshah in Sindh; Mardan, Charsadda, DI Khan, Swabi, Swat, Nowshera and Mansehra in NWFP; Quetta, Nasirabad and Jaffarabad in Balochistan; Muzaffarabad, Kotli and Bagh in AJK; and Gilgit in Northern Areas. With a view to analysing the current agricultural loaning at grassroots level and to identify the gaps between demand and supply side of agricultural financing, the State Bank has rationalised agricultural credit data base with effect from July 2007, whereby banks are sending agricultural credit data on size of loan, land holding-wise farm loan disbursement, district-wise loan data, etc. Bank-wise data reveals that five big commercial banks and Zarai Tarraqiati Bank Limited extended countrywide loans. However, disbursement by other commercial banks was restricted to areas based on their branch network in respective districts. Punjab Provincial Co-operative Bank Limited, being a provincial bank of Punjab, has covered all districts of Punjab, while Bank of Punjab covered all districts of Punjab in addition to one district in Sindh and three districts in NWFP. The data has also covered other dimensions of agricultural credit like, outstanding loans, recovery of loans, farm and non-farm sector credit, and disbursement by land holding, number of borrowers, etc. The data will help researchers/economists/policymakers and other stakeholders for formulation of future strategies/policies. Copyright Business Recorder, 2008