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Haris to get loans from micro-credit bank

TAHIR DHINDSA

ISLAMABAD: The government has decided to provide credits to the landless haris under the proposed micro-credit bank, even before its formal operation.

Principal Secretary to the Chief Executive Tariq Aziz on Monday directed Ministry of Finance to start initiating credit advances to the landless haris on immediate basis. The credit from the micro-credit bank forms an important part of micro-credit bank plan. The bank is to be set up through an ordinance. Therefore, the ministry of finance has been asked to arrange the disbursement of the credit soon.

The move is a part of the economic revival package announced by the government in the light of December 15 speech of the chief executive, which is based on imports substitution rather than export-led growth. The finance minister on Monday promised that the ordinance to set up new micro-credit bank would be promulgated soon.

The Agriculture Development Bank of Pakistan is already handling the small loan advances in agriculture sector, for which structured modalities do exist.

All modalities have to be chalked out afresh for the credit scheme. The Ministry of Finance in this regard will chalk out all details of the proposals, which will be adjusted in the light of the existing prudential regulations.

The micro-credit bank, which will be set up with the equity of about Rs 20 billion, will be an independent bank, which will operate outside the cover of the State Bank. Therefore, it will not be governed by the prudential regulations of the State Bank.

The government is already initiated dialogue with the donor agencies for getting credit line for the bank.

The Ministry of Finance, will finalise the details of the project this week to be presented for its final approval.