Original Articles Urdu Articles

Remembering the Violence during Zia (L) Regime – by Ahsan Abbas Shah

 پاکستانی تاریخ کے گزشتہ عشرے عظیم سیاسی اتھل تھپل کے غماز ہیں۔

ان اَدوار میں بائیں بازو کی قؤتوں کا جو اُبھار دیکھنے میں آیا۔ وہ ملکی سیاست میں سنگِ میل کی حیثیت رکھتا تھا۔

ذوالفقار علی بھٹونے موقع کی نزاکت کو دیکھتے ہوئے وطن کے افتادگانِ خاک کی

 قیادت سنبھال لی اور قومی آزادی اور عوامی آسودگی کے عظیم اصولوں

  کو آگے بڑھانا شروع کیا، لیکن پاکستانی عوام کی یہ جدوجہد چونکہ بنیادی طور پر

مراعات یافتہ طبقوں اور بین الاقوامی سامراج کے خلاف تھی۔

 اس لیے سامراج نے اپنے پاکستانی گماشتوں کے ساتھ سازش کر کے ذوالفقار علی بھٹو کو شہید کر دیا۔

 مُلک پر ایک طویل آمریت مُسلط کر دی گئی ۔

 جس کے خلاف پورے دس سال تک ملک کے بہادر عوام نے پامردی اور تسلسل سے جمہوریت کی جنگ لڑی۔

ضیاء الحق (لعنتی) کے دور میں جہاں ہر جمہوریت پسند پر ظلم و تشدد کیا گیا

  ویسے میرے بزرگوں کو بھی نشانہ بنایا گیا۔۔۔

اُسی تاریک دور میں لکھی گئی میرے دادا(سیف زُلفی) مرحوم کی ایک نظم پیشِ خدمت ہے۔۔

 تمام کوڑے نچوڑ دوں گا۔۔۔۔

!

 تُو کاہے، خود کو خُدا سمجھنے لگا ہے کافَر

 تِرے تکبر کا سخت پتھر

 مَیں اِستقامت کے نرم شیشے سے توڑ دوں گا

 تمام کوڑے نچوڑ دوں گا

 تُو اپنے دستِ سِتم پہ اتنا گھمنڈ مت کر

 قریب تر ہے وہ دِن جفا گر

 تِری کلائی مروڑ دوں گا

 تمام کوڑے نچوڑ دوں گا

 تِرے تشدد کی ناگنوں کا مَیں زہر پی کر

 تجھے دِکھا کر تیرا مقدر

 میں تیری نَس نَس میں چھوڑ دوں گا

 تمام کوڑے نچوڑ دوں گا

 تِری شرافت کی پارسائی کا — کِینہ پرور

 عوام کے رُو برُو —- دِکھا کر

 مَیں آج بھانڈا ہی پھوڑ دوں گا

 تمام کوڑے نچوڑ دوں گا

 یزیدِ ثانی — جفا کے پَیکر

 لُہو سے جو میرے تر بتر ہیں،

 سُن اے ستمگر

 !وہ سارے کوڑے نچوڑ دوں گا۔۔۔

About the author

Ahsan Abbas Shah

7 Comments

Click here to post a comment
  • CASE STUDY OF ZARAI TARAQIATI BANK LIMITED—ITS ROLE IN DEVELOPMENT OF FOOD AND FIBRE PRODUCTION—ITS FUTURE.

    Agricultural production has long been a mainstay of the Nation’s economy, successfully feeding and clothing the domestic population as well as exporting agricultural goods. Although the ZTBL has played a vital role in agricultural development in the past, it can, however, be only as much effective as the effort put into it in a planned, organized and coordinated way. Unfortunately, the importance of proper planning for development of agriculture had never been realized by the Bank management after mid-nineties to the extent this sector demanded. Being ex-officer of the Bank I intend to share my experiences during my service in making a general analysis of the basic factors that have limited the capacity of the Bank and resultantly the agricultural production, and to identify the role which an institutional credit agency like ZTBL was required to play for effective acceleration of the efforts to achieve the goal of maximum agricultural production.
    HISTORY OF ADBP (NOW ZARAI TARQIATI BANK LIMITED)
    • Banking is traditionally an industry that calls for utmost prudence and eternal vigilance in securing the safety of public funds and retaining public confidence. Stability of a bank is always based on continued public trust and solvency. Prior to mid-eighties, the Bank employees looked to the character, capacity and capital of the borrowers, while considering their loan applications. There was no corruption in the Bank on a significant or debating level. Consequently one never heard of charge sheets or employee-dismissals for acts of misconduct or corruption. A charge sheet was considered a serious weapon and was rarely used. Banking skill and knowledge consisted more of business content and less of needing a professional qualification as far as credit delivery techniques were concerned. If one were to learn the primary thumb rules of safety, security, liquidity and profitability, and basics of negotiable instruments act, he successfully managed the Branch of the Bank. Under-graduates and matriculates could control not only Bank branches, but hold responsible position even at the Head Office. Failure was an exception, and when an individual case occurred, it was felt as a dooms-day by the bank management. It was not professionalism, but pragmatism, sound commonsense, personal integrity and cleanliness that ruled the day. Today the Bank officials are not perturbed if bad advance even to an extent of rupees 5/10 lacs emerges. No one has time or concern to ponder and correct the rut that is now found commonly everywhere.
    • The situation qualitatively changed after mid eighties. Old dedicated and experienced field staff was replaced by “agricultural Graduate” MCOs. During nineties top management also withered away due to natural process of superannuation and retirement. The new leadership that inherited the top layers was ill prepared to shoulder the added new burden. It lacked the traditional banking culture of trustworthiness and prudence. Selfish opportunism and adhoc adventuresome characterized the new management. They lacked vision. Personal greed replaced prudent goals for securing the Institution’s interests.
    • Why all this happened? Why wrongdoings emerged on a vast dimension in the new era, while things were smooth and fair earlier? Why the bank became inefficient and corrupt when qualified agricultural graduates and postgraduates were inducted in the system, while it remained more care taking and competent earlier with high-school passed and under graduates managed the show? The employees were then vigilant to protect and safeguard their assets, but today it is an irony that bank executives are increasingly coming under the preview of vigilance scrutiny. The custodians of public trust and confidence are increasingly becoming untrustworthy. There is today an urgent need for strictly guarding the guardians of the Bank.
    • The feeling of false security, wrong business objectives, and the effect of political influence exerted on the Bank in its day-to-day administration adversely affected the management of the Bank. Remote directions for routine business operations of the Bank acted to the detriment of the innate initiative, self reliance and efficiency of the senior and middle level management within the Bank. They became dumb rubber stamps to blindly ditto whatever instructions were received from the external controllers. Lack of professional training, quick promotions (vertical ascendancy without horizontal movement and without gaining experience in multiple disciplines) of the top and middle management, and cross-country transfer of staff, without planning a regular career path for them resulted in unplanned deployment of the unprepared human resources leading to imperfect operations.
    • The Bank faced no major crisis before mid-nineties, when the personnel of the old top management were continuing and steering the course of management. But after the mid-nineties when the new generation of those in the junior cadre succeeded to top executive posts and took control of the Bank, things started drifting. The new generation of top management setup came to occupy positions exclusively on the strength of quick promotions, after putting in few years of service in the middle posts in the hierarchy. A quickly erected structure lacked stability and durability and similarly these instantly developed top executives lacked the vision and foresight that their job demanded. They lacked expertise in management needed for administering a huge corporate organization like ZTBL and motivating and activating several thousands of staff members in a goal oriented direction. The new top management inherited status and ego, but lacked personality and image to motivate, vision to foresee and commitment to supply a long-term culture and growth path. Human resource development could not keep pace with the rapid Business growth. Business remained appreciating but human resources development kept on depreciating.
    • The executives regularly hold meetings, but no serious and sincere concern or discussion about the affairs of the Bank takes place in those meetings. The top most executives intended to provide collective wisdom and inter disciplinary expertise acts as a mere rubber stamp, leaving the field exclusively to the whims and arbitrary fancies of the Regional Managers. This absolute power with no in-built checks and controls on the Regional Managers served as the main crippling effect for the decay and downfall of the Bank.
    • This atmosphere became a fertile ground for breeding widespread corruption at different centers, starting from the Head Office, and extending to the Regional office and finally the Branches. Chairmen of the Bank occupied arbitrary powers in a brief period of contract tenure, sure to be terminated at the near future. They lacked vision, foresight or motivation for long-term building of an edifice or culture for the Bank, but were looking only towards short-term objectives.
    • The Bank had its own terms and ruled its own territory without competition. On the one hand debt liability of the borrowers continued inflating due to high rate of corruption prevailing amongst the Bank employees and on the other hand the Bank imposed exorbitant interest rates and exploited the farmer’s community with impunity. To show the better achievement in recovery of loans, the borrowers were advanced frequent loans for adjustment of their previous debts which naturally resulted into over-financing, beyond the repaying capacity of the borrowers. Unfortunately, Bank management was unable to see far enough in the future the implications of this window dressing. Business growth continued, as it is persisting even today, but emergence of NPLs in the balance sheet of the Bank crippled its profitability and reduced its capital adequacy. The Bank started to be categorized as loss showing bank. The concept of the Debt Restructuring Plan was the logical means of resolving the deadlock between borrowers and the Bank. But it was a far-fetched idea not in consonance with the ground realities in Pakistan. There were not enough subject specialists available to make Corporate Restructuring and Debt Restructuring Plan in the Bank. While implementing restructuring plan, both the unwilling and incapacitated defaulters were treated at par which in fact allured the good repay master borrowers waiting for another “Relief package” for discharging their loan liabilities rather than making the prompt repayments.
    • Corruption started rising up its ugly head at alarming levels. Along with the growth of business accompanied the growth in NPLs. The accumulation of NPL indicates the miserable state of affairs in the fields of credit management, inspection, audit and control, while the overwhelming response to VGHSS during 2002 indicates the total failure of HRD management in the Bank. Fear of ever impending threat of Charge Sheets and Disciplinary cases among honest and hard workers was main cause for exercising their option to accept VGHSS and to leave service than to continue. The corrupt elements still remained holding the field and they did not feel necessary to exercising their option to accept VGHSS.
    • No one may complain, if charge sheets are served on the really guilty, who disobey authority or who are caught involved in corruption. Innocent and honest employees are served a spate of charge sheets in a routine manner. If Charge sheet is the weapon that is able to enforce discipline and cleanliness in services, it is justified. But in an atmosphere where charge sheets are served on some one, so that it saves the seniors from explaining chronic situations, it has turned to be counter productive. Charge sheet is not considered as a discipline enforcing process, but as a bureaucratic response to an adverse operational development in the Bank’s business. It is an easy, evasive and escapist endeavor.
    • In spite of such a disaster being faced by the Bank, the HRD is still not cared of. I think more amounts are spent in disciplinary cases than in imparting training to the employees. Can a Zonal Chief in the bank take the challenge of his management skill and show and prove the ability to provide zero level operational errors of serious nature, and bane charge sheets for procedural errors in his zone? Are the systems and procedures so imperfect that it is not possible to secure this ideal state? Where is the fault, is it in all operational officer employees all the time? is it in the system and procedures? Or is it in the management efficiency of the executives, who control and oversee the Bank functioning?
    • The most of top Bank executives are quite unfamiliar with the problems holding the field. They too deal in papers and reports and expect things to be done by writing down notes. Productivity can not be increased just by writing notes. It requires proper vision and skill to remove the hurdles lying in the way. The whole devastation is because of the tendency of the senior management to exercise power and authority without accepting equal responsibility. There is no goal-setting, there is no spirit, and there is no mission and above all no honesty of purpose. Corruption at the lower level is fought, but incidence of corruption is proportionate to the exercise of power. The senior executives in top management are more vulnerable to the lure and temptations of office and power. They choose to bait bureaucrats. They have the means. However, with proper planning, the Bank can grow again, and along with it, the agricultural economy of the country should be able to grow too, Inshallah. There is still a lot of opportunity for the authorities to derail the nascent recovery.
    • The top Bank management should be aware that knowledge is not a commodity that can be stored in currency chests or deposited in Bank Vaults. It has necessarily to be retained in human brains and backup storage devices. “People are most valuable asset of an organization, which no member of any senior management team would disagree with. Yet, the reality for this Bank is its employees remain under valued, under trained and under utilized only and only due to inefficient senior management. In order to implement a successful business strategy in the Bank must ensure that it has right people in the top management capable of delivering an effective strategy.
    • The distortions in the management of discipline enforcement and non-action on the prevailing widespread corruption are only one part of the situation. I am only making a parting reference to this tragic episode and intend to pass on to a darker side of another inhuman outrage, that of misusing such arbitrary powers on the meeker sections of the officers in the middle management through blatant application malice and victimization in the guise of taking disciplinary action by the corruption-ridden management. This manifests as deception and fraud in conducting inquiries. How the tool is being used to settle score and to strike on those not dear or near to the bosses, needs no illustration.
    • It is a common perception that employees in the public sector do not work hard or are incompetent but our day-to-day experience does not support this. It may be correct in some cases but not in general term. There are countless ordinary public servants doing their jobs effectively and even under great stress. Same is the position in the Bank. In fact most of the people working in the Bank were dedicated, competent and hard working who opted for GHSS and preferred not to continue their service due to unjust attitude of the management. Even by now there are a number of people working with dedication and honesty and majority from the rest can be brought on track by implementing the effective policies, if so desired. The remaining Bank employees who do not do their jobs or involved in corruption should be discharged. What is required from the Bank in that case is the employee is given notice of the reasons for discharge and an opportunity to defend himself; and that the final decision is made by a fair process. One thing is very much clear that if anything lacks is the quality of management in the Bank — not quality of workers.
    • Unjust decisions taken by different managements in the Bank after mid-nineties providing shelter to the corrupt elements and creating embarrassing position for honest and dedicated employees resulted into a huge and infinite litigation in the Bank. The things are even on record to show that the Bank was burdened with this unnecessary expense merely with the intention that cost was being born by the Bank and not from the own pocket of the management. This unnecessary litigation demoralized the honest and dedicated people who ultimately preferred to quit the service with the natural result that it cleaned the way for corrupt elements who are now at absolute liberty to do whatever they like.
    • Yet another wrong decision of the Bank managements particularly after 2000 was to harass the employees by adopting different techniques which created a sense of insecurity of their service amongst the Bank employees and resultantly paved the way to a non-stop corruption in the Bank. So much so due to that service insecurity created by the managements some honest people also tended to make money through some unfair deals just to preserve their uncertain future. Those unfair actions of the management and reactions of the Bank employees are at climax even in the present regime of the management which has created a war like situation in the Bank. The most corrupt elements have become custodians of the Bank and actions of the management reflect that they are fully supported by the top management. National exchequer is being thrown away for personal whims and nobody is there to take accountable the managements for such a high leveled loss of funds.
    • An arbitrary decision taken by the Government during the year 2002 was corporatisation of the Bank without changing the mind-set of its management and devising any proper future strategy. Many dedicated and honest employees lost their jobs as a result of its abortive corporatisation. Cutting jobs has not meant cutting out the have seen their workloads increase. For some the increase has been so great they are unable to perform all their new duties and suffer from burnout and frustration with the definite result that the quality of work at present in the branches is at worst level countrywide, but nobody is there to care of.
    • Apart from many other absolutely wrong decisions taken by the Bank management during its corporatization in the year 2002, a very suspicious and
    mysterious action was that the management got re-evaluated the fixed assets of the Bank as Rs. 1.140 billions against their original worth of approximately Rs. 35.000 billions (Now raised to about more than Rs. 50.000 billions). Simultaneously a comprehensive campaign was launched by the management through the print media to prove the Bank to have become almost bankrupt after having lost 90% of its loans. I don’t know its background but I can say that such type of actions lost the credibility of the Bank in absolute terms.
    REQUIREMENTS OF PAKISTAN IN AGRICULTURE CREDIT SECTOR
    • In an agricultural economy like Pakistan, agricultural development is considered as the foundation of industrial development and, consequently of country’s overall economic development. But to attain agricultural development, the government must consider agricultural credit as an important policy. The basic principle of reform in agricultural finance is to maintain and repair the financial institutions instead of to destroy or take apart the whole system. Withdrawing the Government support to agriculture and farming, and increasingly leaving farmers at the mercy of the private money lenders and the markets, has put this sector in a very critical position. The tragic and shocking reversal of the role – feeding the farmers who have been feeding the country all the times – is the result of the culmination of national policies that have neglected agriculture and farming merely in the wake of globalization without analyzing its impacts. It is need of the day among other things: reversing the declining trend in public investment in agriculture, stepping up credit flow to farmers, enhancing public investment in irrigation and wasteland development, increasing funds for agricultural research and extension, investing in rural healthcare and education, promoting rural electrification and rural roads, setting up commodities futures markets and insuring against risk in farming and rural business.
    • The commercial banks generally view the agriculture lending as a risky proposition despite the fact that the non-performing assets in the farm sector are lower than in other sectors in real sense. While Zarai Taraqiati Bank Limited, being specialized developmental agency, has a crucial role to play in this sector. Instead of putting this institution into the process of privatization, there is a need for continuous interaction with farmers by the Bank to study their problems and the government should propose to streamline the credit delivery mechanism to this most vital sector through ZTBL as continuous flow of credit to the farmers can not be expected from any private lending agency. It is also to be kept in view that the commercial banks, despite their recapitalization, had not been able to fulfill the priority sub-sector target fixed by the SBP for the agriculture sector. Further, in the context of declining interest rates in the banking sector, it is necessary that the rates charged from farmers be brought down substantially and provision of credit to the farmers may be enhanced to save them from exploitation by the private moneylenders, arhaties and commission agents.
    • The successful experience in a specific enterprise of a given country or region is not directly replicable in the enterprise of another country or sometimes even within the same country. The in-depth studies in this volume confirm that the social, economic and political context plays a major role, and thus needs to be kept in mind. There appears to be a lack of clear assessment of the benefits and costs of privatization of all the assets in Pakistan, and insufficient efforts to seek alternatives. A cursory study of the current situation would show that in many cases the process is perceived to be and reacted to essentially as a political issue. The choice is not based on a clear assessment of the wide range of costs and benefits of privatization and restructuring of a specific unit. Decisions are or appear to be rushed, taken in an emergency, leaving little room for rationality. Before launching any entity for privatization, there needs to be a clear statement of its goal, along with how the option and the path chosen should achieve it, and a full and fully understandable account of the foreseen positive and negative consequences.
    • Surveys show that a large percentage of farmers already want to leave farming because of tightening policies of the Government, their insufficient access to credit, and due to lack of so many other facilities they find it is no longer sufficiently profitable. The uncertainty associated with farming has also increased, and farmers lack effective means of insuring against such risks. There are larger market uncertainties associated with the crops and poultry because of greater vulnerability owing to falling groundwater levels. There is also evidence of increased indebtedness arising from the inability to cope with risks.
    • Due to the economic decline in rural areas, low profitability, uncertainness of crops, lack of facilities as discussed above, and the difficulties in monitoring agricultural operations (high risks) bankers regard agriculture as an unattractive sector for investments. In general, commercial banks are reluctant to provide credit to agricultural entrepreneurs and there seems to be no competition between them. They do not make much use of their own funds, but act only if credits are guaranteed or investments are supported by the Government. An efficient rural finance system is a precondition for economically viable agricultural production on the national scale. Most agricultural enterprises/farmers face difficulties in accumulating enough credit. There have no funds left for any re-investments. The government needs to react in order to avoid a total collapse in agricultural production rather than destroying the existing financial institutions in the name of “Globalization”. The role of the government is vital in this very important sector. The Zarai Taraqiati Bank is still the most important source of credit to agricultural entrepreneurs which needs to be re-organized and strengthened, because any private entity would always be looking for other possibilities to make profits instead of catering the needs of the agricultural sector.
    • Over the years, one of the major problems facing Pakistan government has been to ensure food security to their huge numbers of low-income people. Through state trading enterprises, government purchases food from producers and distributes throughout the country by using public food distribution channels. But this policy to provide cheap food by subsidizing mostly the urban consumers has had an adverse impact on food production, income of farmers, and on rural areas in general. Government should provide support to farmers by lowering the inputs prices and subsidized farm credit which will result agricultural production on lower prices and ensure food security both for rural and urban consumers requiring no subsidy.
    GLOBAL SCENARIO TOWARDS AGRICULTURE CREDIT SECTOR
    • The countries which previously followed development strategy based on industrialization alone soon realized that without an expanding agriculture sector, the urban labor force would not be able to buy food at reasonable prices, there would be no supply of raw materials for industries, and the majority of population living in rural areas would not have the purchasing power to buy goods produced by the industries. Now, even among those developed countries where manufacturing and the service sectors are considered to be the driving force of the economy, the agriculture sector is still prioritized to remain an important contributor, especially in the food production. Although the percentage contribution of agriculture to gross domestic product (GDP) is declining in all the developing as well as developed countries; in term of absolute value the amount is increasing. Rapid agricultural growth has the potential that can stimulate and thus sustain the pace of industrial growth, thus setting into motion a mutually reinforcing process of sustained economic growth. The agriculture credit sector is contributing significantly to the growth of their economies. Most of the countries have set up their rural credit systems being run as state-owned statutory bodies (with whatever name) who are responsible to arrange, provide, supervise and co-ordinate credit for agricultural purposes. The idea for those state-owned entities is uniformly to embark on the maximum food production and to ensure the full realization of maximum economic and social benefits. They have thus established as Rural Finance Institutions to specialize in the provision of credit to the agricultural sector. Few examples of state owned agricultural credit institutions are produced below:

    1. Bank Partanian Malysia (BPM) Malaysia

    2. Agricultural Bank Iran

    3. Agricultural Credit Bank Yemen

    4. Farmers Commercial Bank Sudan

    5. Agricultural Bank Syria

    6. Agricultural Credit Corporation Jordan

    7. Agricultural Credit Egypt

    8. Banque Nationale Agricole Tunisia

    9. Agricultural Bank Libya

    10. The Caisso National de Credit Agricole Morocco

    11. Land and Agricultural Development Bank South Africa

    12. Turkiye Cumhuriyeti Ziraat Bankasi Turkey

    13. NABARD India

    14. Agricultural Bank Saudi Arabia

    • It is only in Pakistan where a system already existing to provide rural credit in shape of Zarai Taraqiati Bank is being devastated by the Government itself instead of introducing positive structural changes and deploying dedicated and skilled management in the Bank. With Structural reforms by strengthening on human resources development to upgrade knowledge, skill and instill the corporate culture of professionalism, positive attitude, teamwork, responsiveness, individual development and timeliness would be enhanced and carried out seriously. Quality workforce will produce excellence results and project good image of the Bank, Inshallah.
    WHAT TO DO?
    • No doubt, privatization of some public sector entities is a good idea in the present scenario, but it can not be enforced blindly in all the cases. The Government should make a thorough, in-depth assessment before putting any entity into the process of privatization. This assessment must be made against a full range of criteria including cost efficiency, effectiveness and impact on competitiveness of the economy, sustainable development, the wide spectrum of labour issues, the interests of consumers and social welfare. Privatization of an essential organization like Zarai Taraqiati Bank is not at all feasible in any way. Some private investors may be interested to purchase it due to its undervalued assets but no private investor would be interested to continue its less profitable operations on the long run. Withdrawing the Government support to agriculture and farming by privatizing the ZTBL, and leaving farmers at the mercy of the private money lenders and the markets could result into collapse of the economy as a whole. It is only the public sector that can effectively and efficiently carry out certain functions like catering the needs of the poor farmers and indeed only national governments can assume those responsibilities that affect the state as a whole. Rather than dispensing with the farmer support, considerable public investment in infrastructure, capacity building and institutional strengthening is needed for sustainable development of agriculture in Pakistan. The flow of production credit from institutional sources needs to be increased for the poor farmers.
    • The Government should operate diverse support schemes through the Bank such as lowering interest rates, postponing repayment schedules, replacing the loans with concessionary interest rate loans, or making other financial restructuring programs. The farming community needs financial restructuring rather than debt structuring. It is important to encourage the borrowers to overcome their debts and implement restructuring works. Besides badly restructured loans, ill conceived plans as already implemented by the Bank should be discarded. The Bank should sign a memorandum of understanding with the borrowers, indicating that the the Bank can terminate it when the borrowers do not keep their words. However, economic profitability of the investment should be ensured. In case of debts the Government should no more bail out both the bank and the borrowers with fresh money, anymore. In this respect, new rules and regulations, including changed obligations have to be observed by both sides. In case one side is no more sticking to its commitment, sanctions should be enacted. Otherwise the rural finance system will collapse. It must be recognized that capacity building at the field and intermediate levels needs to be supported by a more responsive planning strategy at the national level.
    • Bank’s action plan should focus at the grassroots level producing tangible results for farmers; something that will make a difference to their lives. Amongst a number of other options, the following actions can bring positive results not only in sustainable rural development and capacity building of farmers but will also strengthen the Bank as an institution:
    a. Operations of the Bank may be restricted to cater the needs of the farmers holding ownership of land not more than 25 acres irrigated land or 50 acres barani land.
    b. The Bank may provide production loan only to the extent of owned land and no loans be granted on leaseholds.
    c. Agricultural credit card may be introduced for land owners.
    d. Small loans scheme upto Rs.25000/- may be introduced for landless people on the surety of two guarantors who had already availed loan against pass book system, to start their own business.
    e. Small loans scheme upto Rs.25000/- may be introduced for women on the surety of two guarantors who had already availed loan against pass book system, to start their own handicrafts or cottage industries business.
    f. A continuous communication system may be introduced between farming community and the Bank. The farmers may be regularly informed the latest research and farming techniques.
    g. A regular contact of the Head office with the borrowers encouraging them to increase their farm yields and realizing them their responsibility regarding timely repayment of loan will generate a sense of confidence in them and will certainly bring positive results.
    h. Focus of the Bank should not be on profit earning alone but it should, in particular, focus on the increase in per acre yield leading to self-sufficiency of the country in food and fiber, to improve the capacity of the farmers community by encouraging off-farm activities side-by-side, to devise specific policies for each area as per its particular requirements, and to ensure easy access to credit to the farmers.
    i. Bank should generate its own funds by entering into commercial operations throughout the country.
    j. Incentive policies to the good repay masters can enhance the financial viability of the Bank.
    • President of the Bank is appointed by the government. He is placed in the Bank without a process of consultation with the Board of directors and therefore he can not become sensitive to the full range of stakeholder issues. For some time past particularly after 1995 to date, there is one man show prevailing in the Bank. A Chairman/President takes over the Bank not based on his personal capabilities but due to some unseen power behind him. Normally he does not take care of the decisions even taken by the Board of Directors—what to say about rest of the people. Instead of working for the Bank and ultimately for the country, he utilizes his energies to defeat his enemies i.e. “the Bank employees”, the labor unions, and the officer associations particularly who create hurdles in his unfair actions. He has normally nothing to do with the development of agriculture or hardships of the farmer’s community. He brings his near and dears having no vision about developmental banking on salaries ten times more than the regular employees and plays hide and seek with the Bank employees for three years instead of consuming his energies towards the actual objects of development of agricultural, hardly has he left and then another comes into the picture and so on….. Nepotism, favoritism, corruption, lack of vision, and arbitrary appointments in the Bank is the order of the day. In fact engaging retired personnel as Chairman/President of the Bank has not been proved a fruitful experience. Experience shows that the Bank suffered losses only after the start of taking over the Bank by the retired people as Chairman/President on political basis. Posting of sitting senior civil servants as Chairman/President ZTBL was, and can be the best possible option. What I suggest is that the Board of directors should be more engaged in the selection of top management in the Bank. All the top management positions including the President should be filled by a transparent process where the Board makes the final decision so that the most qualified candidates are chosen.
    • Bad governance is in fact the root cause of evil within our society. There needs to be checks and balances and consensus decision making in the Bank. Governance issues include size and composition of its Board of Directors, general approach to consensus building of the board and decision-making practices. Good governance begins and ends with the Board. Lack of independence exposes the banking system to the risk of ineffective use of public funds, and politically-driven, poor quality lending. Authority of the BOD therefore must be firmly established; along with legal protection, the appointments of bank regulators should be free from political influences. Good corporate governance and transparency are fundamental to achieving the highest standards goals. It will be advisable if a new powerful Board of Directors comprising of all the stakeholders including farmers, employee’s representative, and Government representatives etc. is constituted.
    • State Bank of Pakistan should judge the effectiveness of the board of ZTBL as a whole periodically and board members should be properly educated regarding their duties, as well as on the key drivers of bank’s performance. Checks and balances of good governance have to be in place for the Bank. General areas ensured should be codes of ethics, clearly defined roles of Board members, committee members and senior staff, along with conflicts of interest. Boards become better as they become more transparent.
    • A system of monthly meetings of the Board of Directors with the executive committee of the bank needs to be devised to review the developments regarding decisions taken by the Board, the challenges and plan ahead for maintaining financial stability, sharing systemic issues and concerns, seeking views on major policy issues, etc. A framework should also be designed to identify weaknesses in the operations and financial health of the Bank.
    • The Board should create a scheme that set program targets for managers and staff on capital adequacy, asset quality and profitability. Compensation should be tied to achieving those targets. I think the management as well as the staff will respond enthusiastically to the incentives. They will expand their focus from growth to credit quality, efficiency and capital adequacy. As a result the Bank will become a stronger and better managed bank.
    • The management system in the Bank is unsound and the practices followed by the Bank are not compatible with the required standards. The system requires to be fine-tuned with the early warning system, supported by the financial soundness indicators and the prompt corrective action framework. The BOD of the Bank should formulate appropriate policies and standards, including rules for adequate capital in line with the developments in best practices, standards and codes. The fine-tuning of the practices should be an ongoing process.
    • The Bank should achieve significant progress in strengthening its financials, marked by robust growth in balance sheets, higher capital adequacy, better asset quality, good corporate governance practices, etc. Consolidation and re-engineering of the management practices and greater efficiency are necessary to meet the challenges ahead. The convergence of regulatory and supervisory standards within the Bank could enable it to grow and expand more and more.
    • Bank should understand that good governance is a very powerful tool for providing positive incentives. It can reinforce a good credit culture. It is crucial to develop managers who make credit decisions in the best interest of the Bank. This makes borrowers more committed to repaying debts and will contribute to the overall health of the Bank. Regular Training Programs appropriate to the particular context need to be developed.
    • The essence of good corporate governance includes safeguarding the interests of Stakeholders through transparency, accountability, trustworthiness and responsibility. The Board of Directors must ensure that a sound strategy is in place with adequate instruments to control hazards and to maximize opportunities, in addition to upholding integrity and high ethical values, and monitoring and measuring the Bank’s performance. Setting performance targets and crafting effective mechanisms to translate targets into accomplishments are also an integral part of corporate governance. The Bank had strayed away from core competency due to lack of proper management and paid a heavy price for that. Following immediate actions can serve as a short tem strategy to bring the things on track:
    a. A new “Senior Executives Committee” comprising of at least seven “Senior Executives” to implement the policy decisions made by the Board of Directors, with their clearly defined duties, can have the best positive impact on the smooth functioning of the Bank. The Executives can be selected on a five years contract out of the present/ Golden Hand shake employees (being comprehensively familiar with the entire functions of the Bank) through an open competition exam conducted by any outside agency like Institute of Banking and Finance or any other agency. It will have lowest possible cost with best possible results.
    b. Present Executive Directors should be asked in clear terms either to improve their efficiency or to leave the Bank.
    c. Corrupt elements may not at all be spared. Firstly they can be politely asked to quit one, either corruption or service. After that, if anybody is found involved in corruption or embezzlement may be dealt with iron hands.
    d. Charge sheet culture needs to be ended forthwith and that weapon may be used only where utmost necessary.
    e. The employees may be assured their service security if they perform their duties honestly and dedicatedly to create in them a sense of belonging.
    • The Bank should have good baseline supervisory system, adoption of best practices in supervision, sound legal and regulatory architecture, accounting and provisioning standards, transparency and corporate governance practices, skilled human resources and robust risk management systems.
    An effective and responsible Board; good incentives; independent auditing; innovative and proactive regulators; committed professionals — these are the building blocks for the bridge that will lead the Bank into the future Inshallah. Given above are few tips to streamline the Bank’s affairs. I can devise a comprehensive short term as well as long term strategic plan for all the areas of Bank’s functions, if so desired.
    Thanks a lot for sparing your precious time to study this document.
    A STUDY BY: Shaukat Masood Zafar
    Email: smzafar101@gmail.com
    Cell. 0333-5499592

  • Dear Moderators,

    Kindly remove this irrelevant post.

    Remembering the Violence during Zia (L)

    Federal information secretary Lt. Gen. Mujibur Rehman (the firstarmy officer to be appointed to this post in the history of Pakistan) under General Zia In his book “Press in Chains”, senior journalist Zamir Niazi said «.,that between 1948 and 1985, a total of 183 newspapers and periodicalswere the victims of punitive action taken in the form of totalclosure, demand for security deposit, issuance of show cause notices, curtailment or total withdrawal of government advertisementand newsprint quota or officially sponsored mob attack on their offices. Zamir Niazi in his book Press in Chains (1986) wrote: “May 13th was the blackest day in the history of journalism in the subcontinent, when four newsmen were ordered to be flogged by summary military courts. Those ordered to be whipped were, Masudullah Khan (Pakistan Times, Rawalpindi), Iqbal Ahmed Jafri (Sun), Khawar Naeem Hashmi (Musawat, Lahore), and Nisar Zaidi (Nawa-I-Waqt). Their offence included: ‘organizing meetings at open public places, raising slogans, displaying banners and starting hunger strike.’”

    Gen. Zia’s anti-press regime.

    Perhaps the worst the press suffered was during the Martial Law administration of General Zia-ul-Haq legitimised under a Supreme Court judgment in the name of the so-called ” Law of Necessity.” But while this period may be remembered for its oppressive measures including long spell of censorship banning of independent and dissenting newspapers, arrest of editors and journalists , sentencing them to rigorous imprisonment under Martial Law regulations and even whipping them, it was also marked by memorable resistance put by the journalists and press workers led by the PFUJ and APNEC. This great struggle unprecedented in the annals of the Fourth Estate the world over began towards the end of November 1977 in Karachi only about five months following the advent of Gen. Zia’s Martial Law. The PFUJ’s struggle was triggered by the government’s ban on publication of Daily ” Musawaat”, Karachi. After the failure of efforts to convince the Martial Law authorities to lift the ban , the PFUJ and APNEC launched a campaign of hunger strike in Karachi from first of December 1977 o And within eight days of the struggle in which journalists and press workers from all over the country participated the government surrender and lifted the ban.

    Egged on by its oppressive nature, the government again took recourse coercive methods against the dissenting press and banned the daily ” Musawat”, Lahore , and weeklies like ” Al-Fatah” and ” Meyar” and others, critical of the Martial Law regime. After the failure of protracted negotiations with the Government the national executives of PFUJ and APNEC decided to launch countrywide hunger strike movement from Lahore commencing from 30th April, 1978. The charter of demands included restoration of banned newspapers, release of “Musawat” editors, Messers Badaruddin and Zahir Kashmiri, and the paper’ s printer, Mir Jamilur Rahman, and reinstatement of dismissed journalists including office-bearers of PFUJ and APNEC employed in the government controlled NPT newspapers.

    The historic movement was spread over two stages: one beginning in Lahore from April 30 and ending on May 30 and, the second beginning in Karachi from July 18 and ending on October 10, 1978. The two had their own distinct and memorable features marked by common inspiring spirit and enthusiasm. In the first phase’ in Lahore, the journalist and press workers who joined the hunger strike were arrested and sentenced under Martial Law Regulations from six months to one year rigorous imprisonment including three who were ordered to be flogged (Nasir Zaidi, Khawar Naeem Hashimi and Iqbal Jaferi were in fact flogged. The fourth, Masoodullah Khan was spared on the intervention of the doctor in view of Mr. Masood’s disability. It was during this stage that after having failed to suppress the movement for press freedom the military regime picked up the four renegades from the PFUJ and APNEC to create parallel PFUJ and APNEC pocket organisations known as ” Rashid Siddiqui Group”.These renegades who were given full publicity on official media supported the government and condemned the PFUJ’s struggle for press freedom exposing their true colours. As a result of the movement the government was forced to lift the ban on ” Musawat ” Lahore and release the arrested Journalists and Press workers by May 3oth but refused to reinstate the dismissed newsman from NPT papers. In addition, the government again banned ” Musawat ” Karachi. The PFUJ then at its meeting on June 12 at Karachi decided to resume the struggle from July 18, 1978.

    The resumed struggle which started in Karachi with the arrest of PFUJ and APNEC President continued until 10th of October (almost two months and 25 days) had its own memorable features. For besides the journalists and press workers who came from all over the country to court arrest, scores of trade union workers, students and militant haris from interior of Sindh joined the movement and filled almost all the jails of Sindh. (During the Lahore struggle the arrested journalists and press workers were disbursed to almost all the jails of the province of Punjab). The Sindh phase of movement would also be remembered for the mass hunger strike unto death inside the jails. The hunger strike culminated in the acceptance of most of the APNEC-PFUJ demands by the Government. As a result “Musawaat” Karachi resumed its publication, arrested persons were released, and most of the 30 dismissed journalists of the NPT papers (Pakistan Times and Imroze) were reinstated (only four including the President of the PFUJ and APNEC were not taken back).

    It was also during Gen: Zia-ul-Haq’s regime that ten senior journalists and office-bearers of the PFUJ belonging to the NPT papers – the Pakistan Times, Imroze and Mashriq – were similarly dismissed from service because they signed an appeal for ” Peace in Sindh ” when the government repressed and persecuted the people indiscriminately during the 1983 MRD Movement. The signatories to the appeal also included some 50 writers and poets on whom the doors of Radio and Television were closed as punishment. The journalists who were punished included Masood Ashar , Shafqat Tanvir Mirza , Azhar Javed , Mrs. Rakhshinda Hasan , Badarul Islam Butt, Aziz Mazhar , Aurangzeb, Mumtaz Ahmad , I.H. Rashid and Riaz Malik(late).This clearly proved that the Zia Government was callous and insensitive to the basic human rights of the people notwithstanding with its claim for Islamic justice . It was during this period that a most abominable version of the press censorship was imposed on newspapers wherein even Quranic verses and Prophet’s hadiths used to be censored if they reflected in any way on the person of Gen. Zia-ul-Haq regime or his policies. REFERENCE: MOVEMENT CALLED PFUJ BY MINHAJ BARNA

  • ”Success of Jinnah and Zia in Pakistan and Failure of Others – A Perspective”
    In pakistan on July 7, 2010 at 3:38 pm
    By Muhammad Akram Khan Niazi.

    In view of present scenario, when Pakistan is suffering from violent conflict between Pakistan army and Islamic Fighters and both are cutting throats of each other and killing each other mercilessly, and no one is there to stop them from this bloody madeness, In fact some ethnocentric parties and India are enjoying this bloody film continuously, and are trying to pour more fuel on this fire. In such condition it is the responsibility of Intellectuals of Pakistan to try to stop this blood shed and to analyze the past history of Pakistan and find out that why Pakistan was stable in the era of Quaid-e-Azam and General Zia, and was a most stable and strong country of the region in spite of all adversaries and enemity of British Empire, India and Soviet Union and why it has become so much unstable in the era of General Musharaf and Mr.Zardari in spite of support of World Super power USA,NATO and other nations..

    Pakistan Needs Leader Like Quaid-e-Azam.
    Quaid-e-Azam was a leader who united whole the populations of Muslims of subcontinent on one platform in spite of all their weaknesses due to illiteracy, ethnocentrism, regionalism, provincialism and conspiracies of Indian National Congress and British rulers, From each sentence of his speeches it is evident that he was the most caring and sincere leader for Muslims and for their interests. His speeches are full of words like Muslims, Musalamans and Islam, He very strongly proved that he is a well wisher of Muslims and will never compromise against the best interests of Muslims.
    This was the reason that Muslims of subcontinent have thrown all their differences and were united under his leader ship without any reservation. For the cause of Muslims his family life was destroyed, his sister never married, her daughter was separated from him, For the cause of Muslims he lost his personnel home in Bombay, India, For the cause of Muslims he refused to accept the Premier ship of India and due to his hard work for the Muslims his health was destroyed but till his death he continued to work for welfare of his peoples. These were the characteristics of Quaid-e-Azam due to which even his enemies like him and have praise for him.

    Pakistan Needs Leader Like General Zia-ul-Haq.

    After separation of East Pakistan in 1971 a critical change occurred in the demography of Pakistan and ratio of Muslims Population increased from 85% to 98%.General Zia was the first leader who comprehended this change and used this phenomena for the strength and stability of Pakistan. Due to his apparent commitment with Islam and Muslims, he was able to rule the country like an Iron Man till his death. During his era Pakistan was the Island of piece in whole region, his devotion for Islam and Pakistan made him the most successful ruler of Pakistan, Although he was a military dictator he was having a very effective influence both socially and religiously on people of Pakistan, and people were having trust on him, due to his policies there was no anti state or separation activities except that of Al-Zulfiqar by brother of Mrs.Benazir Bhutto.
    Islamization of Society:
    General Zia-ul-Haq’s Islamization policy also proved to be extremely influential, and has continued to affect the political and sectarian situation in Pakistan till the present day. Zia’s Islamizing policies restored a sense of dignity and religious integrity back to the country.There was no extremism and separation movements in the era of Jinnah and there were no Talibans and Extremist in the era of General Zia-ul Haq,

    While recent non-religious and ethnocentric rulers such as Musharaf and Zardari nor have any Ideology and neither have any courage to go in masses and are even unable to control the affairs of the Capital of Pakistan,Islamabad and the city of Rawalpindi where the General Head Quarter of Pakistan Army is located, because these rulers have chronically failed in proving their sincerity with Islam, Muslims and the people of Pakistan ,Which was proved on the day of Death of Benazir Bhutto,when workers and supporters of these non-religious leaders committed each and every crime against the innocent and peaceful citizens of Pakistan, both Musharaf who was in power at that time and Zardari who was the successor of Benazir chronically failed in protecting the assets and citizens from their violent supporters, therefore now how people of Pakistan can support and trust such selfish and deceptive leaders.
    while secular rulers such as Musharaf and Zardari even are not aware with the teachings of Islam,which is a religion of 97% population of Pakistan, how these rogue secular rulers will be able to successfully run the affairs of a country without having any expertise about their religion and sensitivities..

    Industrial Development.
    Although General Zia was supporting Afghan Jihad against Soviet Union his relations with Soviet Union were surprisingly good, and Pakistan Steel Mill in Karachi was completed with the help of Soviet Union. While secular leader like Zulfiqar Ali Bhutto was using that project as a job bank for members of his party, and other two secular leaders Pervez Musharaf and Zardari were found by courts of Pakistan guilty of abusing and selling this mill less than the price of land of this Mill.
    General Zia greatly favoured egalitarianism and industrialisation. Between 1977 and 1986, the country experienced an average annual growth in the GNP of 6.8%, one of the highest in the world at that time.
    While in the era of Secular leaders like Zulfiqar Ali Bhutto and Pervez Musharaf Pakistan became one of the most poor nation of the world.

    Strengthening Defense of Pakistan.
    Zia brought the Pakistan Army up on modern weaponry using the money that US gave for fighting in Afghanistan- so that in 1986 when Indira Gandhi was ready to invade Pakistan–(Operation Brass Tacks) she was informed as to what waited for her soldiers and she withdrew from the borders. It was his commitment with the nation that he lost his life when observing performance of Abrahm Tank for defense forces.
    In the era of Zia,30 years ago Pakistan was having F-16 fighters,and Pakistan was able to have Nuclear arms. While after 30 years secular leaders like Benazir, Pervez Musharaf and Zardari were unable to gain such fighters but infact capped Pakistan nuclear program and kept Pakistan nuclear scientist under arrest, and were found with allegations of taking bribes and commissions in defense equipment deals such as Augusta submarine from France.

    Collapse of Super Power Soviet Union:
    Due to General Zia support for Afghan Jihad Soviet Union was broken into pieces of more than dozen countries and Pakistan was able to take the revenge of separation of East Pakistan from Soviet Union in which Soviet Union was nakedly involved .
    Due to General Zia policies so many countries of Eastern Europe and Central Asia were liberated from the claws of Soviet Union and both East and West Germany were reunited.He refused to accept any pressure with reference to Nuclear Program from USA.

    India:
    In the era of General Zia ,India was highly frightened from stability and progress of Pakistan and lost all its credibility and diplomatic respect due to support for Soviet Union for invasion in Afghanistan and Indira Gandhi a foolish leader of India who was involved in aggression and terrorism for taking the advantage of foolish acts of General Yahya Khan in 1971 in East Pakistan , was totally failed in controlling the affairs of East Punjab due to her foolish policies and in fact lost her life in that crisis.

    Service to Humanity:
    In the era of Quaid-e-Azam Millions of Indian refugees took shelter in Pakistan as a safe heaven and in the era of General Zia-ul-Haq three millions Afghan refugees took shelter in Pakistan and Bihai faith religious Minority of Iran,and Rohingya people of Burma were also given shelter in Pakistan.While in the era of secular leaders General Yahya Khan and Zulfiqar Ali Bhutto,Ten millions citizens in East Pakistan were forced to take shelter in India, and in the era of Musharaf and Zardari millions of Pakistanis were displaced internally in Pakistan, and were also humiliated fby preventing them from going to safer places,and situation is so much alarming that each and every citizen of Pakistan want to flee out of Pakistan in the era of these non religious and secular leaders.Success of Jinnah and Zia was witnessed by their smile and satisfaction and their body language while those secular and non religious leaders such as Musharaf, Zardari are having no smile in any of their Photographs their failures are just evident from their faces.
    Reasons for Success of Religious Leaders and Failure of others:
    In this article a comparison has been made between Two Ideologies on one side Pro-Islamic Democratic leader Quaid-e-Azam and another Pro-Islamic Dictator General Zia-ul-Haq have been compared with non-religious Democratic leader Mr.Zardari and another non-religious leader Dictator Pervez Musharaf.
    Both pro-Islamic leader ruled the country till their death and also mysteriously Quaid-e-Azam defeated to British Empire and United India,Another pro-Islamic leader Zia-ul-Haq defeated world Super power Soviet Union where as non-religious leaders like Zardari and Pervez Musharaf were even struggling to control and safeguard the capital Islamabad and GHQ in Rawalpindi.

    All success of Quaid-e-Azam and General Zia-ul-Haq were due to trust of Pakistani Nation on them due to their commitment with Islam, Muslims and Pakistan, in proving that commitment both were very proactive while present rulers are devoid of such characteristics, due to which today tribal people who have helped Pakistan in liberating 1/3 of Kashmir, and Mujahideen who helped Pakistan in Afghan Jihad are now attacking Pakistan security forces and national assets.
    Due to Quaid-e-Azam commitment and support for Islam and Muslims,he was able to compete both British Empire a World Super of that time and India second largest country of the world. In the same manner General Zia was able to give the defeat to Soviet Union a world super power, just by sensing the psychology and religious culture of people of Pakistan.
    While recent non-religious and ethnocentric rulers such as Musharaf and Zardari nor have any Ideology and neither have any courage to go in masses and are even unable to control the affairs of the Capital of Pakistan, Islamabad and the city of Rawalpindi where the General Head Quarter of Pakistan Army is located, because these rulers have chronically failed in proving their sincerity with Islam, Muslims and the people of Pakistan ,Which was proved on the day of Death of Benazir Bhutto,when workers and supporters of these non-religious leaders committed each and every crime against the innocent and peaceful citizens of Pakistan, both Musharaf who was in power at that time and Zardari who was the successor of Benazir chronically failed in protecting the assets and citizens from their violent supporters, therefore now how people of Pakistan can support and trust such selfish and deceptive leaders.
    It is the responsibility of world leaders specially western nations to analyze the situation scientifically, because even for Western Nations Jinnah and Zia , were more beneficial while it is quite obvious that Musharaf and Zardari who are just using guns to gain their objective will just fail, and Musharaf already had failed and the situation is highly volatile at present, therefore it is the need of time to encourage those people to come forward who can solve the crisis of Afghanistan and Pakistan peacefully with Ideological Warfare and not with deceptive politics and Guns.
    Written By: Muhammad Akram Khan Niazi.
    Karachi,Pakistan.,
    Email:akrumniazi@hotmail.com

  • SUMMARY OF PROPOSED BUSINESS PLAN FOR UPLIFT OF AGRICULTURE THROUGH INTEGRATED INITIATIVES TO BE TAKEN BY THE ZARAI TARAQIATI BANK LIMITED

    1. Agriculture is the backbone of our Economy. This paper attempts to address issues related to agricultural development, food security, poverty reduction and livelihoods generation and to assess the strength of Zarai Taraqiati Bank Limited to keep contributing effectively to the provision of credit in the rural sector.

    2. Three main factors that contribute to agricultural growth are the increased use of agricultural inputs, technological change and technical efficiency. Technological change is the result of research and development efforts, while technical efficiency with which new technology is adopted and used more rationally is affected by the flow of information, better infrastructure, and availability of funds and farmers’ managerial capabilities. Higher use and better mix of inputs also requires funds at the disposal of farmers. These funds could come either from farmers’ own savings or through borrowings. In Pakistan where savings are negligible especially among the small farmers, agricultural credit appears to be an essential input along with modern technology for higher productivity.

    3. Pakistani farmers have seen rise in prices of agricultural inputs such as fertilizers, seeds, electricity, water etc. during the decade of 1990s onward which affected the profitability of the farmers. As a result of this, farmers have become interested either to leave agriculture in order to move towards other professions or occupations, or they have fallen prey to money-lenders and middle-men so as to get loans and credits at exorbitant rates of interests. The rising cost of production has made the farmers depend on informal sources of credit since the transactions costs are too high to receive formal credit from the commercial lenders along with the problem of moral hazards. In order to sustain agriculture, huge subsidies were given on inputs (for producers of inputs—firms, and consumer of inputs—farmers) like electricity, fertilizers etc, thus making the entire effort economically unsustainable. It was the large farmers, which benefited from the subsidies provided at the cost of the small and the marginal farmers.
    4. Subsidizing interest rates is not the way to help marginal borrowers. Instead, they can be helped through fixed cost subsidies and self-selected targeting. The existing large differentials between the concessional rates of interest charged by ZTBL and market rates is now responsible for rent seeking by the middlemen who re-lend credit, especially to the poor households at higher rates of interest. Large farmers have been the major beneficiaries of long-term loans at concessional rates at the expense of small and marginal farmers.
    5. The cultivators borrow from traders on immensely high interest rate prior to cropping season and return the sun in cash or in kind at harvest. In some cases the lender keep farmer’s land on mortgage and some time gold ornaments too are mortgaged to get few buck on loan. Most of the rural loans are spent either on purchase of a seeds, fertilizer or even for marriages of sons and daughters. Although its intensity has decreased to some extent due to availability of more credit from banks at comparatively easy rates, yet it is still going on in most parts of the country.
    6. Credit is an important instrument in enabling farmers to acquire command over the use of working capital, fixed capital and consumption goods. Due to the important and increasing role of the non-farm sector as a source of employment in rural areas, the need to cater to credit requirements of this sub-sector has also been a motive factor for the reorientation of the rural credit system in Pakistan.
    7. Development assistance for agriculture sector has been declined by the Government over the last two decades, leaving the country more vulnerable to hunger and poverty. Agriculture has been plagued by low productivity and under-investment, making it difficult for Pakistanis to feed themselves and earn an income from farming.
    8. Access to tools, fertilizers, seeds, and information is urgently needed to help farmers prevent another food crisis. In the long-term, food security and economic growth will require significant investments in agriculture and rural development with better infrastructure, improved technology and training, and access to financial services, farmers could benefit from increased crop yields and stronger connections to domestic, regional, and international markets.
    9. Shortage of finance is one of the major problems facing small farmers. Farmers need financial resource to buy improved agricultural inputs and farm implements so that they can increase their output and income level and break the cycle of poverty. The Government of Pakistan established the Agricultural Development Bank in 1961 to provide a dependable and affordable source of credit to rural areas at a time when commercial lenders avoided farm loans. It was a for-profit lender with a statutory mandate to serve agriculture sector and it well played its pivotal role for uplift of agriculture production in the country till 1990s. Talk about irony; the nation’s largest sub-prime lender, which got rich making “creative” loans to farmers who couldn’t otherwise qualify to purchase the machinery and inputs they were buying, is itself now at the brink of broke.

    10. During the year 2002, in line with the Government of Pakistan approved the Restructuring Plan of Agricultural Development Bank of Pakistan in collaboration with the Asian Development Bank to improve its level of efficiency and accountability, poor monitoring of its operations, virtually exclusive dependence on borrowings from the State Bank, unsustainable level of non-performing loans and prohibitively high expenditure on administration and to introduce it as a new autonomous corporate entity. Important elements of restructuring were stated:

    i. To Put in place a strong and transparent accountability mechanism including a possible association of private sector with the bank;
    ii. To reduce Government interference to the minimum;
    iii. To make the Operations of the bank should be transparent, corrupt elements must be dealt with strong hands;
    v. To improve the Issues of governance.
    vi. To review the human resource policy and right sizing of the staff.

    Unfortunately the management could not properly implement the plan established for its restructuring and failed to achieve any of above objectives. The concept of the Debt Restructuring Plan was the logical means of resolving the deadlock between borrowers and the Bank. But it was a far-fetched idea not in consonance with the ground realities in Pakistan. There were not enough subject specialists available to make Corporate Restructuring and Debt Restructuring Plan in the Bank. The farming community needed financial restructuring rather than debt structuring. It is important to encourage the borrowers to overcome their debts and implement restructuring works. Besides badly restructured loans, ill conceived plans as already implemented by the Bank should be discarded. While implementing restructuring plan, both the unwilling and incapacitated defaulters were treated at par which in fact allured the good repay master borrowers waiting for another “Relief package” for discharging their loan liabilities rather than making the prompt repayments. Rather the restructuring backfired; the Bank deprived of its 2200 well experienced and skilled employees, with no positive achievements in addition to sustaining losses worth of billions of Rupees. It will have to be restructured in true sense by introducing a number of strategic changes.

    11. Zarai Taraqiati Bank’s failure is due to a variety of causes – gross mismanagement, bad policy making, bad management in making loans; dishonest officials who used the bank’s funds for their own speculations; rumors of insolvency of the Bank, panics to the employees, repeated relief packages for borrowers, adjustment lending to falsely show the high recovery performance, political interference, and number of other causes played role in its failure. The most frequent cause of bank trouble, in fact the almost invariable cause of bank failures, is the granting of credit far beyond the legal and prudent limits and capacity of the borrowers. The Bank’s problems stem from the fact that a large number of its customers can no longer make repayment of installments. Many are faced with huge increases in their payments after an initial low. No Bank tells its customers straightforward that it is suffering from financial crunch as it is not wise on the part of the Bank to do so. Indirectly, its actions send a signal to its customers. The ZTBL has recently issued a circular banning tractor loans which clearly reflects its poor liquidity position. The causes bringing the Bank to the present position are still going on even with more force. I would like to quote following few examples amongst countless others to understand its actual disease so as to cure it properly:
    a. Successive governments appointed political favorites to head this Bank and indiscriminate unsecured lending under political influence ravaged the balance sheets. Management inefficiencies, narrowed visionary abilities and corruption led to gross mismanagement. Increasing interference of the politicians has now threatened the overall profitability and creditability of this valuable Bank. Corrupt political leaders have in fact destroyed this premier financial institution particularly after 1988. Induction of highly paid so-called “banking experts” and “consultants” has failed either to reduce the extent of bad loans or otherwise improve efficiency of the Bank.
    b. It is a shocking revelation to see how top Bank management recklessly spend tax payer’s money on some very unnecessary and unproductive political appointees. Even at present a cluster of incapable, inexperienced, and unqualified people consisting of about a dozen Army Officers, two Police Officers, some people removed from other institutions, some people from his own sugar mill, and some other nears and dears having no skill or experience about developmental banking have been appointed by Mr. Zaka Ashraf on top executive positions who unfortunately now constitute the “Management” of the Bank. It is first time in the history of Bank that highest management positions have been filled on political considerations. This so called “Management” is plundering hundreds of millions rupees in the name of high salary packages, perks, and facilities. It is a worst example of misuse of powers. Some of these appointees have no qualifications or experiences as compared to the officials already working in the Bank, and Bank is not fully utilising these dear “brains” to their full potential. Most of the political appointees are very unproductive, unqualified, inexperienced, and very corrupt. Should the government be transparent, it should advertise the positions of top management positions they want filled into the open market and let all the eligible candidates to apply. Only then can we say that the government is transparent and the system of political appointees be done away with. Political Appointees are nothing but “beggars” of the system put in there because they cannot get any employment through the open level playing field of interviews/ tests through applying. When corruption and deploying inefficient and unskilled executives would not be stopped; it is very difficult to bring any betterment and change in the Bank. In spite of their proven inefficiency and lack of skills and experience of the political appointees, the Bank regular officials are receiving less pay as compared to the political appointees who are working with them in the same institution.
    c. As per report published in “The Nation” on February 23, 2010, three PPP ministers from Tando Muhammad Khan, Larkana and Nawabshah got some 120 tractors worth about Rs 110 million through Benazir Tractor Scheme. The tractors were provided to the kith and kin of three ministers which were a blatant violation of law and day light robbery of national exchequer that deprived thousands of skilful yet extremely poor growers of their due rights. Report says that the informers not only provided records to this scribe but also confirmed that the desired result have been acquired by the ZTBL to oblige the party workers. One Muhammad Rafiq son of Muhammad Sadiq from Bahawalnagar (Punjab) approached the Supreme Court of Pakistan pleading that Chief Justice might take notice of this computer rigging and provide justice to the poor growers. Some influential people compelled the engineers who prepared software for balloting to select their names. “Some 2,108 tractors were gifted to blue-eyed growers as first five digits of their NICs were fixed in the prepared software and all tractors have gone to the PPP activists and supporters a source close to President ZTBL disclosed.

    d. The Audit officials have recently briefed the Honorable Public Accounts Committee that Zarai Tariqiati Bank Limited (ZTBL) had not been cooperating in audit since last two years despite the fact Auditor General of Pakistan had been conducting its audit in the past and requested the Public Accounts Committee to direct ZTBL to get its audit by Auditor General of Pakistan. The committee directed that law should take its course in this regard. Secretary Finance asked ZTBL representative that issue should not be presented before the committee again and follow the law otherwise strict disciplinary action would be taken against the responsible person. In spite of clear orders the Bank has not yet been got audited through the AGP.
    e. The State Bank of Pakistan has recently informed the National Assembly’s Standing Committee on Finance that ZTBL President Zaka Ashraf was appointed without the clearance of the regulator. The Committee was briefed by the Governor of SBP, Syed Salim Raza over the working of the Bank.“We did not give any clearance for the appointment of ZTBL president,” assertion of the SBP team led by Salim Raza shocked most of the committee members who wondered as to what would be the legal status of the decisions taken by the president and the board of the ZTBL. The Committee was told that although the power lies with the Ministry of Finance, the final authority, clearance from the SBP is prerequisite in the light of law of the country. There was also no answer as to what would be the legal status of the decisions taken by these appointees.
    f. Honorable Public Accounts Committee of the National Assembly has also investigated in detail that how a huge public money was written off during the last five years 2004-2008. A total of 20,439 borrowers of more than one lac and 117,042 borrowers of less than one lac were given benefit by writing off Rs 10.132 billion and Rs 2.714 billion respectively.
    g. Another controversial project has been signed between ZTBL and Chinese companies to providing electricity for farmers by installing windmills and solar panels through Chinese companies for which funding to the said Chinese companies would be provided by the ZTBL in collaboration with AEDB. About 2,000 to 3,000 MW will be produced from those windmills and solar panels. It is general perception that this deal has been finalized with the Chinese companies on extraordinary high prices.
    h. Financial misappropriations are very common in the Bank. The Bank has paid millions of Rupees to the counsels hired for personal cause of Mr. Zaka Ashraf to defend a writ of Quo Warranto filed by Mr. Muhammad Iqbal Khattak. Similarly, it is heard that Mr. Zaka Ashraf has paid Rs. 5 billions out of pension fund of the employees to UBL in connection with rental power projects. Millions and millions Rupees are reported to be plundered in procurement.
    i. Mr. Zaka Ashraf, in spite of being patently illegal appointee himself, has appointed thousand of MCOs and other staff in ZTBL and its subsidiary KSSL quite unnecessarily without any proper advertisement and without observing the merit. These thousands of people have been appointed either to accommodate the party workers or for bribe taken either by the Bank officials or by the public representatives of PPP. It can be well imagined that if a person gets appointment by paying money, what he will do while working in the field.
    j. There are lavish expenditures going on in the Bank irrespective of its financial health. Just imagine, in some cases annual increments of Rs.75000/- to Rs.100000/-, and high bonuses are allowed to some of the executives. Nobody is there either in the Board of Directors or in the management to care for the institution. No financial discipline can be seen in the Bank at any level. This premier institution has been made a play thing and has now been handed over to Mr. Zaka Ashraf to play with.
    k. The Bank has been practically converted into a sale organization with little interest in banking not in public interest but for personal gains.
    l. Wrongdoings have emerged in the Bank on a vast dimension in the new era. The bank has become inefficient and corrupt. Today it is an irony that bank executives have come more under the preview of vigilance scrutiny. The custodians of public trust and confidence are increasingly becoming untrustworthy. There is today an urgent need for strictly guarding the guardians of the Bank. The middle management has become dumb rubber stamps to blindly ditto whatever instructions are received from the illegally appointed top management. Lack of professional training, quick promotions of the top and middle management, and cross-country transfer of staff, without planning a regular career path for them have resulted in imperfect operations.
    m. The executives regularly hold meetings but with no avails. The top most executives normally intended to provide collective wisdom and inter disciplinary expertise is acting as merely a rubber stamp, leaving the field exclusively to the whims and arbitrary fancies of the President. This absolute power with no in-built checks and controls on the Bank has served as the main crippling effect for the decay and downfall of the Bank.
    n. The weakness of the management has become a fertile ground for breeding widespread corruption at different centers, starting from the Head Office, and extending to the Regional office and finally the Branches. President of the Bank occupy arbitrary powers in a brief period of contract tenure, sure to be terminated at the near future. He lacks vision, foresight and motivation for long-term building of an edifice or culture for the Bank, but he looks only towards short-term objectives.
    o. The Bank management is absolutely unable to see far enough in the future the implications of window dressing and manipulations being done presently. The emergence of NPLs in the balance sheet of the Bank has crippled its profitability and reduced its capital adequacy. The Bank is being shown as profit showing bank only due to recovery in loans written off by the previous regime only “to clean the balance sheet”.
    p. Charge sheet is a weapon to be served on the really guilty, who disobey authority or who are caught involved in corruption to enforce discipline and cleanliness in services. Instead, innocent and honest employees are being served a spate of charge sheets in a routine manner that does not “cooperate” with the management. Misusing powers on the meeker sections of the officers in the middle and lower management and staff through blatant application of malice and victimization for personal reasons in the guise of taking disciplinary action by this corruption-ridden management has disheartened the honest staff working in the Bank. This manifests as deception and fraud in conducting inquiries. How the tool is being used to settle score and to strike on those not dear or near to the bosses, needs no illustration.
    q. Unjust decisions taken by the management in the Bank providing shelter to the corrupt elements and creating embarrassing position for honest and dedicated employees has resulted into a huge and infinite litigation in the Bank. The things are even on record to show that the Bank was burdened with this unnecessary expense merely with the intention that cost is being born by the Bank and not from the own pocket of the management.
    r. The most of top Bank executives are quite unfamiliar with the problems holding the field. They too deal in papers and reports and expect things to be done by writing down notes. Productivity can not be increased just by writing notes. It requires proper vision and skill to remove the hurdles lying in the way. The whole devastation is because of the weak policy making tendency of the senior management. There is no goal-setting, there is no spirit, and there is no mission and above all no honesty of purpose. Corruption at the lower level is fought, but incidence of corruption is proportionate to the exercise of power. The senior executives in top management are more vulnerable to the lure and temptations of office and power.
    12. There has been alarming increase in the amount of non-performing loans (NPLs) during the last 30 months of the present government. Bank performance also acts as a key cause of non-performing loans. The Bank should be selective as to which good borrowers it accepts. Due to doing poorly in these areas the ZTBL has created more nonperforming loans which have become a major problem because of political interference and directed credits.

    13. Repayment from borrowers belonging to rural sector in Pakistan has drifted to lower side due to wrong Bank/ Government policies. Agriculture sector is undoubtedly unorganized profession and a world of uncertainty; its success and failure depends on climatic factors, since there is always possibility of non-repayment by a borrower. The main thing to be kept in view is that collateral should be based on potential credit worthiness of borrowers, elimination of credit subsidies and no new loan facility to previous loan defaulters till three years.

    14. There are several avenues in banking and financial sectors, which have not yet been properly opened up in Pakistan. The Bank should add new products and services to improve productivity. Business Process of Reengineering for Zarai Taraqiati Bank is a critical phenomenon for the overall economy of Pakistan. With little sincere efforts this presently ailing government-owned bank can be transformed into a highly profitable, self-reliant financial intermediary, turned into a major microfinance provider offering carefully crafted micro-savings and microcredit products to low-income people at market rates of interest, and can won the reputation as a successful rural financial institution and developing world’s largest microfinance institution if it:

    • comply with all relevant legislation, codes of conduct and standards of good corporate practices;
    • Promote and facilitate the engagement of all its shareholders in the direction of the bank and provide them with a return on their investment;
    • conduct its operations in an open and transparent manner;
    • put local resources to work for local development, serving the rural community and its aspirations;
    • provide a full and balanced range of financial products and services that satisfies the needs of the rural population of Pakistan, on a profitable and sustainable basis;
    • strive consistently to provide improved products and services to its clients at reasonable cost, using modern banking, information and communication technology in the most appropriate form to its clients needs;
    • be vigorous in building a reputation for professionalism, competitive, pricing, reliability and quality of service and innovation;
    • operate in accordance with best banking practice, acting with financial prudence and keeping in mind the need to balance profitability with asset preservation and liquidity and to safeguard depositors’ funds;
    • work together with its employees to develop their capabilities to contribute to achievement of the bank’s objectives, promoting excellence, rewarding achievement and providing them the opportunity to share in the bank’s success;
    • develop mutually acceptable relationships with government in the pursuit of improvement in living standards in rural areas, while respecting best financial practices;
    • ensure that its activities contribute to the environmental stability and overall improvement of living standards in Pakistan; and
    • judge the bank’s success against measures that include profitability, portfolio quality in terms of minimal arrears and non-performing loans, portfolio worth, total deposits, geographic outreach and public image;
    • utilize the Bank’s network on full potential;
    • Improve deposit to loans ratio;
    15. The growth of any sector of the economy depends on the growth of and support it receives from other sectors and the extent of integration between activities in different sectors. Until now the growth of Pak agriculture has been severely constrained by the weakness of its linkages with other key sectors, including industry, agricultural education, banking, insurance, marketing and infrastructure. A conscious effort to strengthen these linkages can stimulate rapid growth in this sector resulting in rapid growth in employment opportunities.
    16. The credit should be designed to stimulate the growth of Pakistan’s agricultural economy, through predominantly pro-poor activities, directed primarily at small and marginal landholders, poor fishing communities, and the landless. Rural communities may be impacted directly by the credit operations. The Bank should provide access to improved farming supplies, market linkages, and information about improved cropping systems that will help farmers increase their incomes while better protecting the soil and environment. It may also be ensured that small farmers have access to markets, and receive the training and information they need to manage cash crops, form farmer collectives, and sustain economic growth over the long-term.
    17. The thrust of my suggestions is to directly utilize agriculture as an engine to raise on-farm incomes and purchasing power, generate additional on-farm employment opportunities, and stimulate rural industrialization and services. These would in turn increase demand for agricultural products, manufactured goods and services throughout the economy, creating a multiplier effect that generates jobs in other sectors. The specific focus on the strategy should be on raising on-farm productivity and fostering closer linkages with industry and markets through innovative approaches to the organization of the rural economy. An integrated effort needs to be put in by the Zarai Taraqiati Bank by introducing in private sector SOIL TESTING LABORATORIES, FARM ADVISORY INTELLIGENCE SYSTEM, RURAL INFORMATION SYSTEM, AGRICULTURE SERVICE CENTERS, and FARM SCHOOLS. Once these services are in place, there is ample scope to raise average productivity on a wide range of crops by a factor of 100 to 200% or even more by focusing on improved methods for plant nutrition, land preparation and irrigation. Rapid dissemination and adoption of this technology can be accomplished through an integrated package of strategies that includes the following:
    1. There is enormous scope for raising the productivity of agriculture, doubling crop yields and farm incomes, and generating significant growth in demand for farm labor. Improving plant nutrition through micronutrient analysis and improving irrigation through deep chiseling of soil can result in a tripling of crop yields.
    2. Rising rural incomes consequent to higher productivity will unleash a multiplier effect, increasing demand for farm and non-farm products and services, thereby stimulating rapid growth of employment opportunities in other sectors.
    3. In addition to Farm Schools to impart advanced skills in production agriculture, a network of government-certified, rural vocational institutes providing training and certification in hundreds of vocational skills need to be established.
    4. Pak agriculture is constrained by weak linkages between agricultural training and extension, crop production, credit, processing, marketing, and insurance. An integrated strategy is needed for bringing together all these elements in a synergistic manner by:
    a. Establishment of village-based Farm Schools in private sector to demonstrate and impart advanced technology to farmers on their own lands.
    b. Establishment of a network of sophisticated soil test laboratories capable of high volume precision analysis of 13 essential plant nutrients coupled with development of expert computer systems to interpret soil test results and recommend individualized packages of cultivation practices for each crop, location and soil profile.
    c. Establishment of Rural Information Centers to act as a medium for transmission of soil test data and recommended practices, access to current input and market prices, and other essential information for upgrading agriculture.
    d. Encouraging contract farming arrangements between agri-business firms and self-help groups in order to increase small farmers’ access to advanced technology, quality inputs, bank credit, processing, marketing and crop insurance.
    e. Strengthening farm credit and insurance programs, including creation of linkages between crop insurance, crop loans, and farm school training to encourage farmers who seek credit and crop insurance to adopt improved cultivation practices.
    18. ZTBL should devise a regular information service and insist the farmers to enroll in the farm schools and apply for soil test analysis as conditions for bank loans or at least offer differential rates to those who do so, since both measures will improve crop production and reduce risks. The promotion of contract farming will ensure the farmer and the bank of a ready market for the farmers’ produce and provide an intermediary with the organizational capacities to facilitate banking, insurance and input procurement by small farmers.

    19. Risk Management: ZTBL should take initiatives for strengthening risk management practices. The issues related to Credit Risk should be addressed in the following manner:

    Loan Policy.
    Credit Monitoring Policy.
    Credit Risk Management Policy.
    Collateral Risk Management Policy.
    Recovery Policy.
    Treasury Policy.

    The Board of Directors should have the overall responsibility of ensuring that adequate structures, policies and procedures are in place for risk management and that they are properly implemented.

    20. Insurance: Crop insurance scheme should be introduced linked, on a compulsory basis, with the crop loan system…. The entire amount of the crop loans should be insured.

    21. Good Management: The essential components for good management to be in place in the Bank are that it:
    • Is driven by top skilled management.
    • Focuses on profitable customer fulfillment.
    • Requires everyone to be highly trained.
    • Is data driven, not based on beliefs or conjecture.
    • Requires disciplined and methodical (i.e., scientific) problem solving approaches.
    • Fosters continuous process and product improvement through resource alignment.
    22. Grievance Redressal Policy: The Bank should set a vision to maintain its position as number one Bank in terms of farm credit. Towards this end, Bank should ever remain alert and sensitive to customer complaints and uses it as a tool for removing deficiencies in service at all levels. The adoption of Banking Codes and Standards Policies of State Bank of Pakistan places greater responsibility on the Bank to meet higher standard of customer expectation. Bank should use customer education, customer awareness and transparency as tools for reducing grievances and enhancing customer satisfaction.

    • Instituting an annual performance review of the Bank is a critical way of ensuring that work is being done, and done well, and promoting transparency and accountability within the Bank. Conducting such reviews will identify red flags regarding corruption before they have drastic effects.
    • In order for this to be a feasible policy alternative, Bank administration would need to create a separate department tasked simply with performance measurement and management, who will be completely independent, objective, and expert-driven.

    23. Governance reforms: The governance reforms that are badly needed in the Bank are:

    (1) Reform of the enabling environment for rural finance by reviewing rules on provisioning requirements.
    (2) Reforming and implementing a new legal framework for secured transactions.
    (3) Development of new products and lending technologies for rural finance.
    (4) Better internal control and appropriate management information system.

    24. Composition of Board: The members should possess relevant expertise and be of a mix of backgrounds and perspectives. The Board should act in the best interest of ZTBL, taking into account the interests of all stakeholders, while ensuring financial sustainability of the bank.

    25. Accountability: A strict system of accountability is needed in the Bank.

    26. Corruption: Corruption in ZTBL remains a substantial obstacle in its proper functioning where it is perceived to be widespread and systemic in the present regime. Most governance indicators show an unchanging rather worst situation in the Bank now deeply entrenched at all levels. Corruption manifests itself in various forms in the Bank, including widespread financial corruption, nepotism, without merit appointments, misappropriation of Bank’s funds, writing off Bank’s loans, offering six figures salary packages to near and dears, paying highest fees in millions to the blue eyed counsels, and misuse of power in other functions causing huge losses to the Bank. Both petty and grand corruption is prevalent in the Bank. Farmers commonly face demands for bribes in their dealings with loan cases.

    27. Poverty Alleviation: This is not possible without financial inclusion as a means of empowerment and pre-supposes some exposure to financial literacy and banking system. Without a strong support system, poverty alleviation will remain a dream unless financial margins of farmers and rural artisans are improved. Also cluster development for farm and off farm activities would help in creating employment opportunities for rural growth. The key to poverty alleviation is ensuring livelihoods in and around villages in rural areas.

    28. The Rural Services Sector: Credit for the rural transportation sector and other rural services sector such as cheap rural housing, drinking water, sanitation systems, rural eco-tourism and renewable rural energy, the credit flow is virtually non-existent. Unless lending to these sectors is stepped up, the quality of rural life will not improve and the unending migration of rural youngsters to urban areas in search of livelihoods and jobs will continue.
    29. Microfinance: Microfinance brings the power of credit to the grassroots by way of loans to the poor, without requirement of collateral or previous credit record. It has proven an effective and popular measure in the ongoing struggle against poverty worldwide, enabling those without access to lending institutions to borrow at bank. The Bank should open a window for micro-financing, or in alternate Bank should establish a subsidiary for this purpose.

    30. The countries which previously followed development strategy based on industrialization alone soon realized that without an expanding agriculture sector, the urban labor force would not be able to buy food at reasonable prices, there would be no supply of raw materials for industries, and the majority of population living in rural areas would not have the purchasing power to buy goods produced by the industries. Now, even among those developed countries where manufacturing and the service sectors are considered to be the driving force of the economy, the agriculture sector is still prioritized to remain an important contributor, especially in the food production. The agriculture credit sector is contributing significantly to the growth of their economies. Most of the countries have set up their rural credit systems being run as state-owned statutory bodies headed by highly professional top management supervised by professional boards who are responsible to arrange, provide, supervise and co-ordinate credit for agricultural purposes. The idea for those state-owned entities is uniformly to embark on the maximum food production and to ensure the full realization of maximum economic and social benefits. During the instant year Paraguay, a small agricultural country has reached an unprecedented 14.5 per cent economic growth by adopting good management practices thus seeing a notable recovery of its economy by record cereal, soy and beef exports. On the contrary our country has handed over the whole system to non serious people to play with and enjoy, just as a reward to party loyal. It is a very sensitive sector needing concrete attention because 170 million people are wholly dependent on this sector. Political rewards can be given by some other way. But this sector requires to be supervised by purely professional people. Otherwise our rural finance system and ultimately the agricultural production will collapse.

    This paper is just an outline. There are a number of other measures to strengthen the Bank, the agriculture base, and resultantly overall economic of the country. I will devise a complete working plan covering each and every aspect with justifications, costs, and legal requirements if the Government of Pakistan may so desire.
    Shaukat Masood Zafar
    Cell: 0333-5499592

  • Aaj k din wo Waqiya hua jis k bahd Pakistan main Jabry (Jaw) ka janza parhany aur jabray ko qabar bana k dafnanay ka aaghaz kiya gya, ye din Jabry ki tareekh main aik sang e meel ki haisiyat rakhta hai…! 😉

  • My developer is trying to convince me to move to .net from PHP.
    I have always disliked the idea because of the expenses.

    But he’s tryiong none the less. I’ve been using
    Movable-type on a variety of websites for about a year and am worried
    about switching to another platform. I have heard
    great things about blogengine.net. Is there a
    way I can import all my wordpress posts into it?
    Any help would be greatly appreciated!

    Here is my page – clash of clans hack no download or survey