RAISING FARM PRODUCTIVITY THROUGH AGRICULTURAL CREDIT (A CASE STUDY OF ZARAI TARRAQIATI BANK OF PAKISTAN LIMITED)

The effects of agricultural credit on farm productivity and the income of the small farmer as a result of credit provided by Zarai Tarraqiati Bank of Pakistan was conducted in district Peshawar of NWFP Pakistan in 2006 at Institute of Development Studies NWFP Agricultural University Peshawar. For this purpose a total of 120 respondents (60 from beneficiaries and 60 from non-beneficiaries) who obtained agricultural credit from ZTBL were randomly selected from three sampled villages. 51.66% of the total beneficiaries obtained medium term while 41.66% obtained short-term credit and 8.33% got long-term credit from ZTBL. The data were collected through pre-tested interview schedule. Farming was the main occupation of both respondents. The result reveals that the credit advanced by ZTBL in the study area has made positive effect on the area of wheat and maize. But no effect on the area of peaches and pea. The result shows that in case of wheat and maize there is a significant change in their production. While in case of peaches and pea, it’s non-significant.