The Pakistan poultry industry may be on the verge of receiving bank loans, it was announced on Friday.
The industry, which produces 20% of the total meat production in the country, may receive bank loans for modernisation and improvements. ‘Draft guidelines for poultry financing’ were issued by the State Bank (SBP) on Friday to banks and other financial institutions for consultation.
The guidelines will serve to facilitate in improving credit flow to the poultry sector by covering all areas of the industry such as farming, feed manufacturing and the hatchery sector. Banks will be encouraged to develop expertise in poultry financing products.
Background to the guidelines is that the SBP believes that the poultry industry has great potential and a major role to play in the economy by contributing to food supplies, earning foreign exchange and additionally reducing demand for beef and other meat products
Poultry farmers, in turn, will be encouraged to increased poultry meat and food production by adopting modern and efficient farming techniques.
Once the final guidelines have been issued (no date has been indicated yet), the banks and financial institutions will be in a position to develop new products for the poultry industry based on a number of factors such as: target market analysis (size, trendsâ€¦), developing procedures for product marketing, developing close liaisons on the field with the poultry industry representatives and analysing developments within the domestic and international poultry sectors.