Analysis of Agricultural Credit and Constraints: Experience of Paksistan

Agriculture growth is a primarily function of capital investment because it acts as carrier of improved technology. In Pakistan about 81% growers are below the subsistence holding. The formal institutions have extended the credit facilities to the growers from Rs: 14,968 million to Rs: 37,668 million during the period 1990/91 to 1999/2000. The procedure of disbursement of credit is so complicated that a little number of small growers get loan facility from the formal institutions and the majority is neglected. In this way, the formal institutions meets hardly 34% requirements of the growers