Small borrowers not to benefit from loan write off package

The News Tuesday, December 08, 2009 - Bureau reportPESHAWAR: The small borrowers in Malakand division are not going to draw any benefit from the Prime Minister’s loan write-off package as it does not cover those, who have sought the loan of 10,000 rupees or less than that.The federal government on December 2 announced a loan write-off package for the small farmers and non-farm livestock holders in some of the districts in the NWFP and Federally Administered Tribal Areas (Fata).The State Bank of Pakistan has asked all banks to stop recovery of loans in the war-affected districts of Swat, Dir Lower, Malakand, Dir Upper, Buner, Shangla and Chitral in the NWFP and Bajaur, Khyber, Kurram, Mohmand, North Waziristan, Orakzai and South Waziristan Agencies of Fata.The criteria for the loan write-off included the farmers having landholding of up to 12.5 acres while in case of non-farm livestock sector it covers those with 20-50 cows or buffaloes and up to 150 goats or sheep, poultry of up to 5,000 birds or broilers and 1,000 birds for layers, and a fisherman with one boat for marine and up to two acres pound for inland fisheries.Under the package, all the loans of small farmers having outstanding balances of June 30, 2009 have been waived and cost thereof would be borne by the government, but it does not cover the loans less than 10,000, usually offered by the three branches of the Khushali Bank in Malakand division.The president of Awami National Party, Matta Tehsil, former nazim of Chuprial Union Council and secretary general of the Pakistan People’s Party Matta Tehsil, Deputy General Secretary of the PPP-S Fazal Rehman Nono, PPP leader and former nazim of Swat expressed their gratitude to the prime minister for loans write-off and said that it would benefit thousands of the war-stricken farmers and families.They said the package would lessen the burden of the small farmers, but it could not benefit those, who got small loans and were facing innumerable difficulties in the wake of militancy and subsequent operations.They asked the prime minister to revisit package and include in it the small households, which have also been badly shattered by the militancy.The local leaders of the political parties also sought a two-year exemption from the utility bills for the people of the Malakand division so that they could recover their households shattered by the militancy. However, the package that amounts to Rs2.56 billion would not benefit the Khushali Bank clients, who have received total loan worth Rs10,000. Those who obtained loans from all the three branches of the bank in the division also sought the write-off facility under the PM’s package. One of them said that the Khushali Bank officials told them that the package did not cover their category.Sources in the bank told The News that about seven thousand costumers of the Khushali Bank would hardly fetch any benefit of the package and the bank official are not entertaining claims or requests in this respect. They said over 35,000 persons, who got loans from the Batkhela branch of the bank were not going to take any benefit from the package.

source - http://www.thenews.com.pk/daily_detail.asp?id=212228