The State Bank of Pakistan (SBP) has enhanced per acre indicative credit limits for agriculture financing in the wake of increased production cost while list of eligible items has also been updated. The Central Bank through a circular, revised the report on Indicative Credit Limits and Eligible Items for Agriculture Financing for the second time in 2022 that also contains guidelines for banks to assess requirements of farmers. Following a significant increase in cost of seeds, fertilizers, fuel, labor and other inputs, the measure would enable farmers to obtain more credit from banks and enhance agriculture productivity through adequate use of inputs. The per acre credit limit for major crop of wheat is revised to Rs. 100,000 from Rs.60,000; of Rice from Rs.70,000 to 95,000, Cotton from 75,000 to 102,000; Sugarcane from 105,000 to 142,000, Maize (Hybrid) fro 78,000 to 106,000 and Maize from 65,000 to Rs.88,000. Indicative credit limits for minor crops, forestry, orchards and non farm and non crop sectors like poultry, dairy, livestock, fisheries etc are also revised accordingly. The per acre indicative credit limits for crops, orchards, forest trees and agriculture related infrastructure were based on technical data received from leading agricultural research institutes and other stakeholders, the report claims. Further, banks may use the indicative limits for the premium claims of Crop Loan Insurance Scheme (CLIS) and variation from these limits would be justified in the CLIS premium claim formats accordingly In minor crops per acre credit limit for cultivation of potato was fixed at Rs.162,840, for onion Rs.88,000, tomato 109,000, ladyfinger and Chilly 102,000 each, garlic Rs.88,000 and ginger Rs.68,000. Farmers may also get credit for tobacco, fodder crops, oil seeds, coarse grains, pulses, groundnut, olives, melons, flowers and nurseries for flowers or plants and tea. In the list of eligible items of short term farm credit included purchase of inputs like seeds, fertilisers, pesticides, farm yard manure; Services like laser levelling, labour charges for sugarcane stripping, cotton picking, rice sowing/transplantation of nursery, red chillies picking etc; expenses on water, transplantation, transportation, marketing, grading, packing, packing material cost and processing.