Agriculture Banking

Agriculture sector is a vital component of Pakistan’s economy as it provides the raw materials to industries down the line and helps in poverty alleviation. This sector contributed 19.8 percent in GDP and it remains by far the largest employer absorbing 42.3 percent of the country’s total labor force.

The entire spectrum of agriculture sector needs financial support for its growth and development. Activities in agriculture growth and their concentration in geographic specialties, play an important role leading to diversification of agriculture portfolio. Bank AL Habib Limited, through its Agriculture Division, is extending agriculture financing in crop and non-crop sectors keeping in view their horizontal and vertical dimensions. 

Currently the Bank is offering following five agriculture financing products to the farming community assisting them to meet their financial needs in farm and non-farm sectors.

1. AL Habib Kissan Revolving Credit Scheme

Provision of adequate and timely financing support to cater the demand for funds of the farmers/growers in meeting their short term agriculture production needs/working capital requirements to raise their crops as per SBP list of eligible items is made through this scheme.

2. AL Habib Kissan Farm Mechanization Scheme

In view of need and to increase efficiency of the farmers, mechanical support to the farm is essential. Bank AL Habib, in this regard, has introduced farm mechanization scheme. This scheme encompasses financing for purchase of tractor, tractor-mounted and tractor driven implements/machinery. It also includes combine harvester, laser land leveler and other implements/machinery as per SBP list of eligible items to be used exclusively for agriculture purposes.

3. AL Habib Tube Well/Aabyari Finance Scheme

Agriculture is impossible without adequate water resources. Keeping in view the scarcity of water- lifeblood of irrigated lands, Bank AL Habib has offered to finance for installation of tube-wells (electric/diesel), deep turbines, solar energy units, water management equipment etc. which help farmers make optimum use of their limited water resources.

4. AL Habib Livestock Finance Scheme

Livestock is the largest sub-sector contributing 59% to total agriculture value addition and constitutes about 12% to country’s GDP. Pakistan is the fourth largest producer of milk in the world with a great potential to develop meat farm and can have substantial share in the attractive Halal Meat market. The easy and sustained access of financial services would enable livestock farmers to acquire modern and efficient livestock facilities for production and processing thereby giving boost to produce large quantity of livestock products for domestic consumption as well as for export. In order to support livestock farmers, Bank AL Habib has launched this scheme, which will enable them to run, expand and/or to provide working capital facilities for their livestock/dairy farms.

5. AL Habib Godown. Silos. Cold Storage Finance Scheme

There is an acute shortage of proper storage facilities for commodities/fruits/vegetables in the country. Agriculture loans for working capital/construction of godowns/silos or establishment of cold storages under agriculture financing is extended, which obviously helps the farmers to store their produce/raw materials for better price in the market.

SBP Refinance Scheme---Finance Facility for
Storage of Agricultural Produce (FFSAP)

The Scheme

In order to develop the agricultural produce marketing and enhance storage capacity, SBP has introduced a scheme namely “Finance Facility for Storage of Agricultural Produce (FFSAP)” to establish silos, warehouse and cold storages.

Salient Features

The scheme shall be available on long term basis for establishment, expansion and balancing, modernization & replacement (BMR) of steel/metal/concrete silos, warehouse & cold storage facilities for storage of agricultural produce.

The financing facilities shall be available for

  • Purchase of new imported & locally manufactured plant & machinery, equipment & accessories thereof, to be used in steel/metal/concrete silos, warehouse & cold storage.
  • Purchase of new generators.
  • Up to 65% cost of entire civil works.

Tenor of Financing

Financing shall be available for a maximum period of seven years including a maximum grace period of six months.

Mark-up Rate

Financing is available at mark-up rate of 6 percent per annum.

Livestock Financing for Nestle Dairy Farmers

The Scheme

The Bank has made an agreement with Nestle’ Pakistan to provide short, medium and long term financing facilities to dairy farmers affiliated with and duly recommended by M/S. Nestle’ Pakistan Ltd

Finance facility is considered for eligible farmers, on case to case basis, under our approved product “Al Habib Kissan Livestock & Dairy Development Finance Scheme" against acceptable collateral and cash flows.

Salient Features

  • Dairy farmers working with Nestlé since last more than 2 years should have a valid CNIC/identity doc, living / working in the area for more than five 5 years.
  • Applicant must not carry default history with any bank / financial institution.
  • One year running finance facility, renewable every year upon satisfactory conduct to meet day to day requirement of running dairy/livestock farms.
  • Term Finance Facility, for a tenor from 2 to 5 years to purchase animals, livestock & dairy equipment/machinery and distribution / transportation requirement.
  • A mix of working capital and term finance option may be considered as per requirement of the dairy farmer.
  • These financing facilities are available at discounted mark-up rates.

Contact Details

1. Mr. Fiaz Ahmed Malik,Head, Agriculture Division, Lahore
Land Line: 042-3597 2281-2

2. Mr. Shahid Bashir Khokhar,Portfolio Manager, Agriculture Division, Lahore.
Land Line: 042-3597 2281- 2
Cell No.0300-7913 652