Pakistan is basically an agricultural country. Agriculture includes the raising of crops, forestry, animal husbandry, poultry farming dairy farming and beekeeping. With a view to meet the financial need for its rapid development. Agricultural Development Finance Corporation was set up in 1951. The main objective of this corporation was to provide financial facilities to agriculture including forestry, fishery, animal husbandry, poultry and dairy farming.
Functions of Zarai Taraqiati Bank Limited In Pakistan.
Another institution to extend financial assistance to agricultural sector was established in 1957 as Agricultural Bank of Pakistan. As the functions of the Agricultural Development Finance Corporation and Agricultural Bank of Pakistan were similar and since both were working with capital provided by the Government, they were merged into one organization as Agricultural Development Bank of Pakistan on February 18, 1961. The main objective of this bank is to provide long term, medium term and short-term credit facilities to the agriculturists for agricultural purposes
ADBP’s CONVERSION INTO ZTBL:
The reorganization and conversion of Agricultural Development Bank of Pakistan (ADBP) into ZaraiTaraqiati Bank Ltd (ZTBL) has been effected and the new entity has started its countrywide operations from 14th of December, 2002.
The new corporate structure redefines the banks status as a public limited company with an independent board of directors promulgated under the presidential ordinance which aims at ensuring good governance, autonomy, delivering high quality, viable and timely financial services to a greater number of clientele in the agricultural and rural segment of the country with adequate returns to the stockholders.
ZaraiTaraqiati Bank (ZTBL) has been registered with SECP as a public limited under the Companies Ordinance 1984 and by virtue of finance order, all assets, liabilities proceedings undertaking of ADBP stands transferred to and vested in ZaraiTaraqiati Bank with effect from December 14, 2002.
The management of ZTBL has taken up the task to reinvigorate new spirit to strengthen the institutional capacity and efficacy of this new corporate entity to expand its outreach so as to ensure that agri credit is made available at affordable cost to greater number of small farmers, women and rural poor.
It is worth mentioning that the formal financial sector is catering to a much lesser percentage of agri and rural credit demand at affordable rates and that a large proportion of such demand is met through the informal sector at exorbitant interest rates. The restructuring of ADBP and its conversion to ZTBL basically aims at extending more credit to the needy segment of productive and yielding agri and non-farm activities. It is hoped that this step shall greatly enhance the credit distribution mechanism. The quintessence of the initiative is basically aimed at increased functional autonomy, improved services, enhanced farm productivity, streamlining institutional credit and increased outreach in terms of small farmers and women folk.
SHARE CAPITAL:
The authorized capital of the bank is 25,000 million rupee and the paid up capital is 12,522.441 million rupee by December 31, 2016. The detail of share holding by Federal Government and Provisional Governments is given below:
PARTICULARS OF SHAREHOLDING AS ON DECEMBER 31,2016
(RUPEES MILLION)
- FEDERAL GOVERNMENT 12,511.891
- GOVERNMENT OF PUNJAB 923
- GOVERNMENT OF SINDH 256
- GOVERNMENT OF K.P.K/N.W.F.P 717
- GOVERNMENT OF BALUCHISTAN 379
- GOVERNMENT OF ERSTWHILE EAST
PAKISTAN 5.275
TOTAL 12,522.441 – 1
MANAGEMENT:
The general direction, affairs and business of the bank is entrusted to a Board of Directors which consists of five members (including President / CEO and Company Secretary).
OFFICE & BRANCHES:
Its head office is in Islamabad and there are 466 branches of the bank in different cities of the country.
[FUNCTIONS]
- ISSUANCE OF LOANS:
Agricultural bank provides short terms, long terms and medium terms loans to different departments of agriculture.
- Short Term Loans:
These loans are issued for the duration of three months to eighteen months. The main object of these loans is to provide seeds, and agricultural medicines.
- Medium Term Loans:
The duration of these loans is eighteen months to five years.
- Long Term Loans:
These loans are issued for more than five years for different projects related to irrigation.
- SALE OF AGRICULTURAL INSTRUMENT:
Bank sells tractors, thresher and other such machines to the farmers at nominal prices in order to promote the mechanical irrigation.
- GENERAL DUTIES:
Agriculture bank performs the following general dudes
- (i) Receipt of deposits.
- Safety of valuable goods and documents.
- Counseling in connection of usage of loans.
- Training of the bank staff.
[OBJECTIVES]
- Development of Agriculture:
ZTBL gives ‘loans and suggestions for the cultivation of crops, fruits and vegetables. It also guides for purchasing the quality seeds and fertilizers.
- Development of Gardening:
ZTBL provides guidelines and loans for plantation and development of gardens and nurseries.
- Development of Forests:
It is also doing a lot for the nourishment of forests. Development projects of Changa Manga and Murree’s forests are being developed with the co-operation of Z.T.B.L.
- Fishing:
Z.T.B.L is contributing a lot in the field of fishing. Bank not only provides loans but also counseling to meet the immediate need of fish.
- Dairy and Poultry Farming:
Bank sanctions loans graciously to look after the field of dairy and poultry. The bank to meet the increasing need of meat and milk also provides latest technology, medicines and other facilities to set up new dairy and poultry farms.
- Transport:
ZTBL also grants loans to the farmers in order to facilitate them in different agriculture matters. So that they could buy tractor, trolley, pickup and motorcycle etc.
- Home Industries:
Home industries play an important role in the economy of our country. Bank provides sufficient loans to different home industries like fruit baskets, crates, shoes, raw sugar, net, rope, small boats and carpets etc.
- Warehouse:
Z.T.B.L provides loans to construct, buy or to take the warehouse on rent, which is used for storing and protecting the agriculture produce.
- Irrigation:
Z.T.B.L plays a very important role to promote the irrigation system. Bank not only sanctions loans but also provides successful conselling in this regard.
- Agro-based Industries:
The industries which use agricultural produce as raw material (i.e.,) oil mill, sugar mill or flour mill etc. are also financed by Z.T.B.L
