The State Bank
of Pakistan, in collaboration with SECP, banks, insurance companies and provincial
livestock & dairy departments, has developed a framework for Livestock
Insurance for borrowers. It is aimed at improving access to finance to the livestock
& dairy sector by mitigating risk of loss of livestock due to disease,
natural calamities & accidents.
The livestock
sector contributes 55% in Agriculture GDP and 11.4% to the overall GDP. It
is an important tool for poverty alleviation
and for raising the living standards of the poor especially in rural areas.
However, banks’ financing to Livestock/Dairy & meat is only Rs 56 billion which
constitutes 17% of total agri. lending of Rs. 336 billion in 2012-13. One
of the major reasons for modest off take of credit to this sector is the limited availability of appropriate insurance products or
other risk mitigation tools.
