Officials from the Paktia Directorate of Agriculture, Irrigation, and Livestock say that, for the first time in the province, small loans are being provided to farmers and livestock owners in the form of ‘Murabaha’ (Sharia-compliant financing) through an institution called ‘Hassel’, which operates under the Agricultural Development Fund.
Paktia is a province where most residents are engaged in agriculture and livestock. The goal of this program is to modernize these sectors, support farmers and livestock owners, improve their economic conditions, and reduce poverty in rural areas.
Some farmers and livestock owners who have received loans from this institution say that their businesses have improved in a short time, and they hope their activities will expand further.
Sayed Rahman, a resident of ‘Zurmat’ district in Paktia and a farmer, said he received a loan of 200,000 Afghanis from Hassel institution. He explained that previously, his land did not have enough water for irrigation, and much of it remained dry.
He added that with this loan, he was able to provide water to his land quickly, which will increase his future crop yields and allow him to repay the loan.
“We had a lot of land, but there was no water. We could only cultivate one plot, and the rest remained unused. When we received a loan from the EDF institute, we bought a solar system. Praise be to God, now we have enough water, I cultivate all my land, and I am earning a good profit.” he said.
Mohammad Khan, a resident of ‘Ahmad Aba’ district and a livestock owner, also said he received a loan from Hassel institution. According to him with this money, he was able to buy medicine, feed, and other essentials for his animals, preventing losses in livestock farming. He added that providing loans in the form of Murabaha can solve many problems for livestock owners.
“Previously, our income was very low, but when Hassel gave us a loan, our income increased by about 60%. This is a very good facility for people, as the loan is given and later repaid in installments.” he said.
Agriculture experts also consider providing small loans to farmers and livestock owners very useful. They say it can lead to further development of agriculture and livestock and help reduce poverty in rural areas.
Azizullah Karimi, an agriculture expert, told Salam Watandar regarding this, “Small and medium-term loans play an important role in increasing production and reducing rural poverty. For instance, farmers and livestock owners can buy medicine, feed, chemical fertilizers, and animal manure on time and use them for their crops and lands.”
Meanwhile, officials from Hassel institution say the program was launched to modernize agriculture and livestock, support farmers and livestock owners, and improve their economic situation.
Hashmatullah Taand, head of Hassel institution in Paktia, said that anyone who wants to take a loan must complete specific forms and provide a guarantee. According to him so far, 59 farmers and livestock owners in Paktia have received loans ranging from 10,000 Afghanis to 1.5 million Afghanis.
“Before giving a loan, we evaluate their business—whether the person is a farmer, livestock owner, trader, or industrialist. We check whether they really need the money or not. If we see that it might be used for other purposes or diverted from agriculture or livestock, we do not cooperate.” he added.
Officials from the Paktia Directorate of Agriculture, Irrigation, and Livestock also say this loan program can help reduce the problems of livestock owners and improve their economic situation.
Sayed Amin Hashimi, head of the directorate, said that small loans can help mechanize and modernize agriculture and livestock, which will increase production and crop yields, thereby raising income for farmers and livestock owners.
“If someone has land but no water source, they need capital to establish a water source. Or, if someone grows crops, like apples, but lacks facilities to store and sell them in the market, they need greenhouses, processing machines, and other facilities to process products like apples or tomatoes and generate long-term profits for the local community.” he said.
According to agriculture experts, providing loans to farmers and livestock owners can solve many problems in these sectors and have a positive impact on production.
Reporter: Khalid Zaheen
