Senator Usman Kakar, on Thursday, claimed that the president of Zari Taraqiati Bank Limited had been always appointed on a political basis. Kakar, also the chairman of the Senate Standing Committee on Less Developed Areas, noted that such politically appointed president would also take decisions on political bases. Kakar claimed that it had been a norm since the creation of the bank while chairing the committee in parliament house. He further added that less developed areas of the country had an abundance of natural resources but remained under-developed. ZTBL Acting President, Shaikh Amanullah, noted that the bank worked for the welfare of agriculture sector irrespective of the affiliation of cultivators with any political parties. The ZTBL should act like other banks and target the cultivators particularly in less developed areas as defined by the government of Pakistan, Kakar added. Members of the committee were of the view that the ZTBL should facilitate small farmers, who were the backbone of the country in their agriculture-related activities. They also suggested that the bank should prioritise less developed areas through the provision of a soft loan facility. Briefing the committee, Amanullah said that the total distribution of funds among provinces during the year 2018 remained Rs 10.262 billion across four provinces, Azad Kashmir(AJK), Gilgit-Baltistan (GB) and ex-FATA. He said the bank distributed agriculture loan worth Rs 6219 million in Punjab; Rs 2393 million in Sindh; Rs 753 million in Khyber Pakhtunkhwa; Rs 151 million in Balochistan; Rs 372 million in Azad Jammu and Kashmir; Rs 371 million in Gilgit Baltistan and Rs 54 million in ex-FATA. He further said that the recovery by December 2018 stood at Rs 12413 million. Further classification of recovery remained: Punjab, Rs 7774 million; Sindh, Rs2700 million; Khyber Pakhtunkhwa, Rs 948 million; Balochistan, Rs 157 million; Azad Jammu and Kashmir, Rs 403 million; Gilgit Baltistan, Rs 394 million and ex-FATA, Rs 54 million. The bank chief also noted that the ZTBL had inked a joint venture scheme with AJK government in January 2019 and the scheme became operational. According to the agreement, he said that the ZTBL would finance 300 small dairy units at AJK with the maximum lending limit of Rs 1 million over a period of five years. The AJK government would bear the cost of mark-up of these loans provided by the borrower to repay loans on due dates. Consequent upon default, mark-up would also be borne by the borrower himself. Amanullah further maintained that a similar type of agreement was also finalized with Khyber Pakhtunkhwa government to pay the markup. The loan facility would be provided for orchard/tree plantation scheme, solar power water pumping machine, dairy units for small landholders, machinery for dehydration of fruits and vegetables, pulp making machines, off-season high-value vegetable cultivation, tunnel and vertical farming and mushroom cultivation. In addition, the ZTBL was implementing Crop Loan Insurance Scheme for five major crops, wheat, cotton, sugarcane, rice and maize, to mitigate the risk of losses occurring to agricultural borrowers due to natural calamities and risks of defaults to the bank by such borrowers under the directives of SBP. Livestock insurance scheme for cows, buffaloes and bulls would also be initiated. The Acting President said that the main purpose for the bank lending remained to encourage small farmers, based on subsistence farming.