Kisan Card DAP loan raised to Rs 33,500 an acre, Punjab announces Apna Kisan Bank and interest-free farm loans

Punjab will raise the Kisan Card loan for DAP fertiliser by Rs 3,500 to Rs 33,500 an acre, set up the province's first Apna Kisan Bank and give interest-free loans of up to Rs 10 million, Chief Minister Maryam Nawaz Sharif announced on Wednesday 28 October at a meeting with small, medium and large farmers, ARY News reported. "Kisan Card" is searched about 5,400 times a month in Pakistan, Semrush shows, and the changes land just as wheat sowing begins.

The package at a glance

What it means in rupees

On fertiliser: for a farmer with 12.5 acres (about five hectares), the higher Kisan Card limit means up to Rs 43,750 more to spend on DAP this season (12.5 x Rs 3,500), and a total limit of Rs 418,750.

On machinery loans: a Rs 10 million loan through PAVET carries no interest at all. A Rs 30 million loan at 2% costs about Rs 600,000 a year in interest before any repayment of principal, and Rs 50 million at 5% about Rs 2.5 million a year. You can model the instalments on our personal loan calculator.

The chief minister said loan recovery under her schemes has been close to 100%, and that more than a million small farmers already use the Kisan Card for fertiliser, seed and pesticide.

Water, olives and smog

The package also promises:

• a continued campaign against water theft, so tail-end farmers get their share, with canal desilting, lined watercourses and more high-efficiency irrigation;
• 400 mini dams completed in Potohar, with a target of 1,000, and a Potohar package for olive growing and olive oil extraction;
• mobile soil and water testing laboratories.

She also asked farmers not to burn crop residue. Lahore was again the world's most polluted major city this week, with the AQI near 300 (our Lahore AQI report).

Wheat price support

Maryam Nawaz said Punjab will ensure growers receive the Rs 4,500 per 40 kg support price agreed by the federal government and the provinces. On the same day, the first ship of imported wheat, 51,000 tonnes, reached Karachi, and the federal food minister said wheat prices should ease within days: see our wheat price in Pakistan report.

What we do not know yet

No date, capital or branch plan was given for Apna Kisan Bank, and the eligibility rules for the new PAVET loan slabs were not published with the announcement. We will add them when the Punjab government notifies them. Until then, farmers should apply only through the official Kisan Card and Punjab agriculture department channels, not through agents.