AGRIC. CREDIT

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The Agricultural Credit Project objectives are to transform the development of the agricultural credit system so it can meet the expanding needs of the agriculture sector and increase its productivity. The project supports medium- and long-term lending both by Agricultural Development Bank of Pakistan (ADBP) and nationalized commercial banks (NCBs); and by ADBP for rural small-scale enterprises and time-saving technologies, incremental short-term lending; and the institutional development of ADBP and the NCBs. For ADBP, institutional development includes innovative approaches related to: (i) establishing a credit delivery system for lending to women through female credit staff; (ii) use of group guarantees as collateral for loans; and (iii) direct lending to and use of non-governmental organizations in lending-relation activities. For the NCBs, the institutional development component will reinforce their existing supervised credit scheme. The project will also develop linkages between credit and extension, provide funds for vehicles and equipment, training, technical assistance, fellowships and study tours, and incremental administrative costs, and promote environmental safeguards in the use of pesticides and fertilizers. It also supports research on agricultural credit nationwide and the computerization of land records in one district on a pilot basis.