ISLAMABAD – The federal government has announced to provide Rs1,001 billion loans to small farmer under budget for fiscal year 2017-18.

Finance Minister Ishaq Dar presented the budget for upcoming fiscal year on Friday in Islamabad.   He said that agricultural credit will be extended at 9.9pc on Rs50,000 amount to farmers who hold 1.2m acres of land.

He added that the government will give subsidy on imported fertilizer. The Urea will be sold at Rs1,400 per bag, while prices of other fertilizers will also be kept constant through subsidies

The State Bank will also help link the banking system to the land record management system to facilitate farmers in securing loans, Dar said.

Extending facilities to farmers, the finance minister said that tube wells will be provided subsidised electricity.

Lending rate for farmers will now be reduced from an average of 14-15% to 9.9%, says Dar.