MUZAFFARABAD: The Azad Jammu and Kashmir (AJK) government launched on Tuesday an interest free loan scheme for people inclined towards dairying, with a view to creating employment on the one hand and overcoming shortage of fresh dairy products on the other.

Under the scheme, Rs186 million would be disbursed for establishment of some 300 dairy farms in different parts of the state.

Each dairy farm, required to be in possession of at least five insured buffaloes or cows, would be loaned Rs10 million, whose markup would be paid by the AJK department of animal husbandry and dairy production.

The department would also provide regular technical assistance to the farmers, who would [have to] return the principal amount within three to five years.

A Memorandum of Understanding between the AJK animal husbandry and dairy production department and Zarai Taragiati Bank (ZTBL) was signed by Raja Tariq Masood, the secretary concerned, and Shahzad Iqbal, zonal chief ZTBL, at the AJK Prime Minister`s office in the presence of premier Raja Farooq Haider.

The animal husbandry and dairy production department expects that these farms will not only generate an income to the tune of Rs383 million per annum, but also benefit thousands of people in different ways.

Speaking on the occasion, the AJK premier maintained that the scheme suited the peculiar environment of AJK and would go a long way in scaling down unemployment in the state.

`Multiplication of dairy products, social development and promotion of cottage industries could help overcome unemployment in AJK to a great extent,` he remarked.

Mr Haider was of the view that since AJK people had small landholdings, such activities could fetch them considerable income with little effort and in a short span of time.

He exhorted the animal husbandry and dairy production department to accommodate all administrative units in this scheme in a transparent manner.

The prime minister was told by department`s secretary that dairy goat breeds would also be distributed in the next phase with the assistance of ZTBL.

While a survey for this purpose was being already conducted, advertisements would also be published in a couple of days to attract people interested in this field, he said.

He said loans would be granted in all districts according to the size of population and on average not more than 30 dairy goat farms would be established in one district.