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Monday, 18 July 2011

Write a note on the Agriculture Development Bank of Pakistan (ADBP) or examine the role of ADBP in increasing the agriculture product

Agriculture Development Bank of Pakistan (ADBP) :-
For the development of agricultural sector government established the agricultural development finance corporation in 1952. While agricultural ban of Pakistan was also established in 1957 for the same purpose. So government decide to establish one institution. In 1962 agricultural development bank was established by merge-ring the two.

Management :-
A board of directors supervises the policies and operations of the agricultural development bank of Pakistan. Board consists of one president and less than five members. The president is chief executive of the board. He also presides over the meeting. The president and members are appointed by the government of Pakistan.

Capital :-
The paid up capital of the bank amount is Rs. 4000 million and paid up capital Rs. 3214 million as on 30th June, 1999 the bank has 347 branches, 49 regional office and 1465 mobile credit officers. All the shares belongs to the government. Now govt. has decided to sell its 10% shares to the public.
i. Borrowing of the State Bank.
ii. Federal Government Funds.
iii. Foreign Credits.
iv. Borrowing by sale of debentures.

Head Office and Branches :-
The head office of the bank is situated at Karachi. The total number of branches are 347 at. Its branches are available in every where in Pakistan.

Functions :-
ADBP is also performing the other functions like accepting deposits. lending, borrowing and collection of cheques but its major function is to finance the agricultural sector in Pakistan. It provides short term, medium term and long term loans for the following purposes :

1. Finance for Inputs :- This finance is provided by the bank for the purchase of seeds, fertilizers and chemicals. This finance is provided for short term period, less then one year.

2. Finance for Technology :- In the present age farmer uses the modern equipments like tractor and thrashers. So ADBP provides the loan for medium term and long term loans for these purpose. By using these things the per acre yield is increasing and economic condition of the farmer is not improving.

3. Finance for Forestry and Fishery :- ADBP also provides credit for the animal husbandry, poultry, forestry and fishery to improve the economic condition of the rural population. In this way the rate of unemployment is falling and the rate of migration to urban areas has been also controlled.

4. Finance for Storage :- Storage facilities are not available in our country and due to this a lot of production is wasted. ADBP provides credit for the construction of storage in the country.

5. Finance for Special Crops :- ADBP provides special attention to the cotton and rice which are exported to other countries, because a lot of foreign exchange is earned by these crops.

6. Credit for Related Industries :- The bank provides loan to those industries which are directly related to the agriculture. For example cottage industry is also financed by the agricultural development bank. There is simple procedure of advancing the loan. Pass book system has been introduced and loans are also provided against the crops.

7. Small Scale Enterprises :- The ADBP launched this programme in 1992. Its main objective is to improve the conditions of small farmers.

8. Rural Credit Programme :- This scheme was started in 1987 by the ADBP. Its objective was to extend the credit facility to the people of rural areas at their door step. Credit limit was Rs. 50 thousands for second loans.

9. Women Lending Programme :- This programme is operative in 16 regional offices. It is covering 22 branches. ADBP has given Rs. 471 million to rural women for various projects up to 30-6-1999.

10. Recovery and Profit :- The recovery position is not satisfactory. It has reserved 61% loans but its profit is increasing day by day.

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