their remarkable support in collaborating with sbp for organizing this event. fao has long played a strong role for the development of agriculture sector in pakistan through introduction of innovation and technical assistance and this event is a mark of their continued commitment to the cause of developing an exceedingly vibrant agriculture sector in pakistan. i am also grateful to ukaid for their continued and long - term support to advance financial inclusion in pakistan. let me also express our gratitude to asia - pacific rural and agricultural credit association ( apraca ) for the importance and attention that you always give to pakistan and sbp in the regional initiatives. ladies & gentlemen, 13. i wish you all a pleasant participation in the conference and hope that this experience will invigorate the spirit of transformation that challenges the conventional beliefs and fosters innovative thinking to find lasting solutions to the problems of agriculture - financing. thank you our chief guest senator muhammad ishaq dar, finance minister, and the guest of honour federal minister mr. sikandar malik bosan, and all the participants and speakers! bis central bankers ’ speeches

encouraging to note that banks have already disbursed rs 326 billion during the first 9 months, which is 65 % of the target of fy 14 - 15, and is 28 % higher than the same period last year. it is also heartening that the portfolio quality of banks agri portfolio has also improved over the recent period. i believe that the banks would be able to further improve the portfolio quality of agri - lending by using innovative lending models supported with their experience curve. 9. it has been through the collaborative efforts of all stakeholders that the banks have improved their actual agri disbursement to financing requirements ratio from 37 % to 53 % over the last 5 years and we are working to improve it even further so that more and more farmers can free themselves from the shackles of exploitative informal credit. in order to make it happen, sbp has taken initiatives to promote agri - financing to bring depth, inclusion, efficiency and stability into the system : • innovations in agri - financing are being promoted by adoption of value chain and warehouse receipt financing through constant guidance and pilot projects. • enhanced risk management through crop and livestock loan insurance schemes and credit guarantee schemes, to help banks venture into providing financing to farmers, particularly the smaller ones. • sbp has been extensively involved in capacity building of farmers through offering financial literacy programs and financial service providers, through engagement of local and international experts who are helping the financial service providers to tailor their approach for improved service delivery and increased profits. distinguished guests! 10. yes state bank views positively at the recent increasing momentum, but we should not lose sight of the fact that our long journey in agri - credit market has just started. in this context, i feel we will be wrong if we say that rs. 500 billion is a big target. let us not forget that this is only 53 % of our credit demand. bis central bankers ’ speeches 11. going forward, the most critical challenges are inclusion of majority small and marginalized farmers, addressing geographical imbalances and financing to non - crop activities, which will lead to enhancing the share of agri credit in banks ’ advances. sbp is committed to continue its efforts to deliver real benefits to the farming community and it is hoped that with the joint efforts of policy makers and the industry, agri - financing would soon emerge as a sound, scalable and sustainable business segment for banks in pakistan. 12. in the end i would like to sincerely thank fao for