20000203

ADBP to provide

Rs 7bn for

30,000 tractors

this year

ISLAMABAD: The Agricultural Development Bank of Pakistan has earmarked Rs 7 billion for current fiscal (1999-2000) to finance 30,000 tractors, as compared to financing of 16951 tractors with Rs 4510 million during 1998-99.

About 10,000 tractors have been financed during July to December, 1999 besides issuance of 2600 demand drafts, for which tractors deliveries are yet to be made by tractor manufacturers, sources at ADBP said here on Wednesday.

The slow pace of tractor sales is due to preferential treatment of tractor manufacturers/suppliers to sell the tractors on cash, sources added.

The companies supplied only 15,151 tractors during 1998-99, against the booking of 24,199 tractors by ADBP borrowers, due to their preference for cash sale.

As per agreed booking procedure, companies have to issue intimation letters to the borrowers indicating the dates of delivery of tractors to them (borrowers), sources said.

They said that the manufacturers and suppliers generally take long time after receipt of supply orders to issue intimation letters, resulting in inordinate delay.

As far as ADBP is concerned there is absolutely no cause of concern in issuance on demand draft from the bank, sources maintained.

The bank made a payment of Rs 3786.669 million to tractor manufacturers during July-December 1999, against Rs 1350.434 million paid during July-December, 1998. So far, no payment to traders or manufacturers is pending with ADBP, sources added.ÑAPP