Table of Contents

Contents

Foreword

Executive Summary

Main Findings

Policy Recommendations..

Policy Guidelines................

Specific Policy Changes

I.     Establishment of New Institutions:

II.           Re-orientation of Existing Institutions      

III.           Reform of Micro and Agricultural Sector Policies:

The Report...............

1.           Scope of Rural Finance.

2.           Present Status of Rural Finance:

3.       Rural Credit Market – a profile:

4.           Saving Mobilization       

5.       The Post Office          

6.             Insurance ………..

7.           Conclusions of the RFC summarized          

8.           Recommendations of the RFC 

Annex-I.......

Performance of Rural Credit Market  

Annex- Ia...

Agriculture Credit Requirements SBP 2001

Foreword                    

Report of the Committee of Experts to revise the Methodology for the preparation of estimates of Agricultural Credit Requirements               

Meetings

Revisions and Modifications.........

REVISIONS AND MODIFCATIONS SUGGESTED IN THE METHODOLOGY FOR PREPARING AGRICULTURAL CREDIT REQUIREMENTS               

A.           FARM (CROP) CREDIT (SHORT-TERM)

A.       Farm (CROP) CREDIT MEDIUM AND LONG TERM..

B.       NON FARM (NON CROP) CREDIT

C.           FORESTRY INCLUDING SOCIAL FORESTRY (MEDIUM AND LONG TERM)

D.           FISHERIES – MARINE (MEDIUM AND LONG TERM)

E.       BIO-GAS PLANT INCLUDING INSTALLATION COST EXISTING ITEM

Appendix-A

VIEWS OF THE MEMBERS OF COMMITTEE ON RURAL FINANCE FROM BALOCHISTAN ON THE ROLE OF ADBP (NOW ZTBL) AND THE COMPOSITION OF ITS BOARD OF DIRECTORS 

Appendix-B

AGRICULTURAL CREDIT (LIST OF ELIGIBLE ITEMS)      

Appendix–C

METHODOLOGY FOR PREPARING CREDIT REQIREMENTS                 

A.           FARM- (CROP) CREDIT (SHORT-TERM)

1.           SEEDS       

2.           FERTILIZER AND GYPSUM          

3.           PESTICIDES INCLUDING HERBICIDES AND WEEDICIDES     

4.           CHARGES FOR PURCHASE OF TUBE-WELL WATER

5.           CHARGES FOR PURCHASE OF DIESEL OIL FOR TRACTOR          

6.           PRODUCTION LOANS FOR MUSHROOMS    

FARM (CROP) CREDIT (MEDIUM LONG TERM)

1.           LAND IMPROVEMENT..

2.           WATER COURSE IMPROVEMENT..

3.           WELLS    

A.           REPAIR OF TUBE-WELL ENGINES AND TRACTORS          

4.           FARM POWER          

5.           STORAGE OF AGRICULTRUAL RAW/ FARM PRODUCE          

6.           DEVELOPMENT LOAN FOR TEA PLANTATION/PALM OIL   

8.           EFFECTIVE MICROBES TECHNOLOGY (EMT)          

9.           CONSTRUCTION OF LABORATORY FOR INTEGRTED PEST MANAGEMENT (IPM)          

Appendix-D

METHODOLOGY FOR PREPARING CREDIT REQUIREMENTS               

B.       NON-FARM (NON CROP) CREDIT (MEDIUM AND LONG-TERM)

1.           LIVESTOCK (GOAT. SHEEP AND CATTLE)          

2.           FORESTRY INCLIDING SOCIAL FORESTRY          

3.           FISHERIES - MARINE

4.           SULPHURIC ACID GENERATOR    

Appendix-E

CREDIT REQUIREMENTS AS PERCENTAGE OF CASH REQUIREMENTS FOR VARIOUS FARM (CROP) AND NON-FARM (NON-CROP) ITEMS                    

FARM (CROP) CREDIT (SHORT-TERM)

FARM (CROP) CREDIT (MEDIUM & LONG-TERM)

NON-FARM (NON CROP) CREDIT

1.     LIVESTOCK

2.     POULTRY.

3.     FORESTRY INCLUDING SOCIAL FORESTRY....

4.     FISHERIES (INLAND MARINE EXCLUDING DEEP SEA FISHING    

Annex-Ib....

NO. OF LOANEES CB’s          

Annex-Ic...

DISBURSEMENTS         

Annex-Id....

LOANEES 

Annex – II...

Number of Area of Farmers in Pakistan

Annex – IIa

Number of Branches, Deposits, Loans, Advance and Recovery of Banks

Annex -III...

ADBP – STATE BANK’S EXPERIENCE                    

Introduction..........

1.     Operations.

2.  An Appraisal    

3.     Restructuring of ADBP

Borrowing/Repayment of SBP Loans and Intermediation Cost of Funds..

Annex – IIIa

ADBP Financial Statement            

Balance Sheet As of June 30, 2002                   

Profit and Loss Account for the Year ended June 30, 2002                   

Cash Flow Statement for the Year ended June 30, 2002                    

Statement of Changes in Equity for the Year ended June 30, 2002                

Notes to the Accounts for the Year ended June 30, 2002            

Statement of Written Off Loans or any other Financial Relief of Rupees 500,000 or above provided during the Year Ended June 30, 2002                  

Annex – IV

Post restructuring scenario for ADBP

Mission

Annex – V

City Wise Advance for Major Commercial Banks

Annex-VI..

Calculation of MF Client Market Size         

Annex – VIa...

Khushhali Bank      

Annex – VIb..

The RSP Experience                  

Annex – VIc....

RSP's IN PAKISTAN AS OF APRIL 2002       

Annex – VII

Cooperative Banks/Societies...

Annex – VIIa......

PERI Study Evaluation of Cooperative Credit Programme in Punjab

Appendix - F........

Loans Advanced to Farmers by Various Institutional Sources in Punjab                

Annex – VIIb..........

A STUDY OF SEMI-FORMAL FINANCIAL INSTITUTIONS         

(COOPERATIVE CREDIT)                  

Executive Summary...........

Background...

Sample Size

Profile and Performance of Cooperative Societies.......

Profile and Performance of Cooperative Banks.......

Member’s Views Regarding Cooperative’s Performance:.

Conclusions...

Policy Implications.

Annex – VIIc......................

Co-operative Credit System

Annex – VIId......................

Cooperative Scam

Annex -VIII

The Post Office Infrastructure       

Annex - VIIIa......................

PAK POST ANNUAL REPORT 1999-2000          

Annex – VIIIb......................

Meeting of Sub Committee of the Rural Finance Committee with Pakistan Post to discuss practical aspects of involving Pakistan post in developing rural finance held at the Office of Addl. DG Pakistan Post Islamabad on Feb. 20, 2002          

Annex – VIIIc......................

Role of the post offices in rural finance

Annex –IX

Distribution of individual life assurance business of EFU Life Assurance for the year 2002 to date     

Annex – IXa......................

BANCASSURANCE      

Strategic Alliance.......

Mixed Models.......

Bancassurance in Pakistan...........

Future Direction...........

Annex – IXb......................

BRAC BANK                  

Introduction......

Annex – X

Micro Credit Methodologies and the Role of the Rural Support Programmes in delivery of Microcredit in Pakistan                  

Background.........

Status of Microfinance in Pakistan...........

Lending Methodologies of MFIs in Pakistan...........

Public Sector/Commercial Bank model:.......

The RSP Model......

The NGO Model.......

NRSP  (The RSP Approach)

AKRSP (The RSP Approach)....

The Bank of Khyber  (Individual lending and financial intermediation)

DAMEN (Group-Lending).......

Kashaf Foundation  (Group-lending…Grameen approach)......

OPP   (Individual Lending).......

SRSP   (The RSP Approach)....

SAFWCO  (Group Lending).......

Sungi Development Foundation   (Group Lending).......

Taraqee Foundation   (Group lending…Grameen approach)......

Outreach.......

Current issues relating to Microcredit in Pakistan...........

Appendix-G.....................

Credit Administration Manual

The RSP Network...........

Goals & Purpose of RSPN

Credit Policies and Procedures...........

RSP Credit Packages...........

Annex – XI

WHAT MAKES RURAL FINANCE INSTITUTIONS SUCCESSFUL                  

Indicators....... 293

Annex –XIa

Rural Finance Matiex by Type of Credit   

Annex -XI b

Rural Finance Matrix by Type of Market