Development Finance Essay

5915 Words Sep 3rd, 2010 24 Pages
DEVELOPMENT FINANCE & ITS ROLE IN RURAL AREAS TO ALLEVIATE POVERTY
2010
M. MOBASHAR ALI & RANA RASHID REHMAN
STATE BANK OF PAKISTAN-BANKING SERVICES CORPORATION SIALKOT
9/3/2010

Contents INTRODUCTION 4 LITRATURE REVIEW 4 REVIEW OF POVERTY IN PAKISTAN 6 SBP INITIATIVES IN TO PROMOTE DEVELOPMENT FINANCE 8 ESTABLISHMENT OF DEVELOPMENT FINANCE GROUP 8 ESTABLISHMENT OF AGRICULTURE FINANCE DIVISION 9 PUBLIC AWARENESS PROGRAMS 10 DEVELOPMENT FINANCE PROGRAMS CURRENTLY IN OPERATION 11 NONGOVERNMENTAL ORGANIZATIONS (NGOs) 11 RURAL SUPPORT PROGRAM (RSP) 11 AGA KHAN RURAL SUPPORT PROGRAM (AKRSP) 11 SARHAD RURAL SUPPORT PROGRAM 12 NATIONAL RURAL SUPPORT PROGRAM (NRSP)
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This view was reiterated by the UN General Assembly in resolution adopted in March 2009 stating that Development Finance, in particular Development Finance Programmes, has succeeded in generating productive self-employment and proved to be an effective tool in overcoming poverty and reducing the vulnerability of poor people to crises and has led to their growing participation, in particular, the participation of women, in the mainstream socio-economic and political processes of society.
According to the economic survey of Pakistan 2009-10, 62% of the whole population of Pakistan resides in rural areas. It is the second largest sector, accounting for over 21% of GDP, and remains by far the largest employer, absorbing 45% of the country’s total labor force. The agriculture sector is comprised of entrepreneurs that have potential to grow but they didn’t have finance to invest, for this purpose they are provided with development Finance from the DFIs, they can take from the commercial banks according to different introduced schemes and requirements for granting loan by the State Bank in order to facilitate entrepreneurs. In FY 2009-10, development expenditures are Rs. 616.5 billion, i.e. 21 percent of the total

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