AGRIC DEVT BANK II

closed

The project for which the credit would be made includes financing of about 3,400 tractors, with implements, primarily for use by the medium and large-scale farmer in West Pakistan. With this equipment the beginning of mechanized farming would be further supported on some 340,000 acres. In addition, the project would provide financing for about 5,000 one and two cusec pumps for use in East Pakistan. These would irrigate approximately 250,000 acres of boro (winter) rice and make possible an estimated increase of production of 300,000 to 350,000 tons of paddy. The resulting increase in food production would decrease the requirement of imported foodgrains by about $30-35 million per annum. A saving of about $20-25 million per annum would result after subtracting the foreign exchange costs of the imported farm machinery including fuel and debt services.