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

future, and that it would be highly unusual for a central bank to take pre - emptive action to shocks that have not yet materialised. proponents, on the other hand, argue that global warming causes exceptionally large and partly irreversible changes to our economies. global emissions are not projected to fall over the next 40 years even assuming that all currently planned climate policies are implemented ( chart 10 ). chart 10 climate risk scenarios : projections of carbon emissions and global warming ( emissions of co2, gigatonnes per year ) source : climate action tracker, warming projections global update ( projections : december 2019 ). in the absence of a faster acceleration towards a low - carbon economy, it would be a question of when rather than if climate change will affect price stability. the effects on potential growth and financial stability could be so large that it would leave central banks with few options to fulfil their primary mandates. proponents therefore argue that such exceptional risks require central banks to be forward - looking to reduce both the probability and severity of future shocks to inflation. under our secondary mandate, the ecb has the obligation – indicated by the legal term “ shall ” – to align its monetary policy measures with the general economic policies of the eu, as long as this does not prejudice our price stability objective ( chart 9 ). this implies, among other things, that if the ecb is faced with two policy options that are equally effective with respect to its primary objective, it must choose the one that is better aligned with the eu ’ s economic policies. purchases of corporate bonds vividly demonstrate this principle. given the high priority that european policymakers attach to climate protection, if purchases of two bond portfolios are deemed to provide a similar degree of monetary accommodation, but one of them has a lower carbon footprint, then the ecb should purchase the portfolio with the lower footprint. that is, the ecb is free to choose the instrument – in this case, asset purchases – but it needs to calibrate its use in line with the objectives set out in the treaty. in addition, the treaty specifies that environmental protection requirements must be incorporated into the definition and implementation of the ecb ’ s monetary policy – the “ integration obligation ” ( chart 9 ). any policy action on the part of the ecb must also respect the general provisions of eu primary law, including the principles of proportionality and an “ open market economy ”. these principles impose additional constraints on the ecb ’ s potential actions in the