The Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb chaired on Tuesday a key assembly in the finance division to examine progress and receive an update of the working group on the non -collatered official credit to small farmers, according to an official statement published by the Ministry of Finance.
The meeting has brought together main representatives of the financial sector of Pakistan, in particular commercial banks, development financing institutions (DFIS), regulators and experts in the field of the development sector which constitute the heart of the working group. The session has focused on the recommendations presented as part of the National Subsiste Farmers Initiative Support, aimed at unlocking non -collateralized funding for small farmers through innovative technology solutions.
The Minister was informed that these recommendations were drawn up following an in -depth diagnosis of the practical and systemic challenges faced by small operators, in order to propose a lasting and evolving solution to support their inclusion in the formal financial system.
The initiative aims to revitalize the rural economy of Pakistan and strengthen food security by allowing small operators to access credit without traditional collateral obstacles.
The Minister has also been updated on proposals to support farmers thanks to a holistic approach promoting sustainable agriculture and rural uprising, anchored in a technology focused framework. The proposed program would use a digital end -to -end process to ensure transparency, efficiency and transparent customer experience.
Designed as a federal program with national coverage, the initiative aims to align provincial and national efforts to stimulate agricultural productivity, improve food security and contribute significantly to GDP growth through inclusive agricultural development.
A revised dashboard was presented by the working group with greater importance on agronomic factors, increasing the weight of agronomy by 40 to 60%, while maintaining a weight of 40% on financial indicators, thus rebalancing the priorities to better reflect the realities of agriculture for small operators.
The prototype scheme, developed by the working group of the Ministry of Finance on Access to Finance, calls a model of multi-banque and microfinance delivery (MFI) implemented by a unified methodology, guaranteeing a large modification and operational normalization between financial institutions.
The Minister of Finance, Aurangzeb, praised the recommendations and stressed the importance of making the entire limited process and action -oriented to obtain a lasting impact. He also underlined the critical need to develop a parallel model and supported by technology for the dairy and livestock segment, recognizing that most small operators maintain herds but encounter difficulties in obtaining funding for the acquisition, maintenance and marketing of dairy products.
Noting the double economic and nutritional value of dairy products for the rural population, the Minister urged the working group to integrate crops and livestock in a unified financial framework. He stressed that the approach must maintain the customer experience at the center, prioritizing ease, inclusiveness and accessibility through a robust digital journey that offers advantages in the agricultural landscape.