SBP asks govt. to waive off loans in flood-hit areas

KARACHI: State Bank of Pakistan (SBP) has suggested government to write off agriculture loans in flood-hit areas, Geo News reported.

Banking sources told Geo News, in a meeting on reviewing the devastation the floods have wreaked across farmland and for economic revival, SBP asked government to waive off loans owed by small farmers and small industries functioning in flood-hit areas.

If government has enough funds, it should waive off loans on small industries and farmers in flood-ravaged areas for their economic survival, the statement released after meeting said.

The total volume of loans mounts to 42 billion rupees out of them, 28 billion rupees loans were meant for agriculture purpose, statement said.