Impact of Agricultural Credit and its Nature on Agricultural Productivity: A Study of Agriculture Sector of Pakistan

Abdul Rauf Kashif, Noman Zafar, Farah Arzoo


This paper is aimed to study the effect of institutional agricultural credit on agricultural productivity. We focused on data of agricultural credits issued by Zarai Taraqiati Bank Limited (ZTBL) and their effect of agricultural efficiency by utilizing logit relapse examination. Results obtained are based on information gathered through field overview of Islamabad. It is reasoned that rural credit, fleeting and long haul advances have positive effect on farming yield per section of land. The positive relationship between credit and agricultural efficiency highlighted that credit empowers the farmers to buy basic inputs required for farming e.g., quality seed, fertilizer, composts, herbicides, insecticides, fungicides and subsequent yield increase as a results of timely and sufficient application of inputs. The study proposes that suitable measures to expedite process of agricultural credit to the farmers can lead higher agricultural profitability. Gender based variations in agricultural credit and relevant influence on crop production can be future research direction. 


Agricultural Productivity; Financial Resources; Resource allocation; Agricultural loan; Credit; Log it Model

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