Impact of agricultural credit on agricultural productivity in Pakistan: An empirical analysis

The purpose of this paper is to investigate the impact of Zarai Taraqiati bank limited's credit to farmers on their agricultural productivity by using logit regression analysis. The study is based on primary source of data collected through field survey of Bahawalpur Tehsil. It is concluded that Household size, income of the household, education of the famers, agricultural credit, short term and long term loans have significant positive impact on agricultural yield per acre. The positive association between credit and agricultural productivity represents that credit enables the farmers to purchase superior quality or high yield variety seeds, fertilizers and pesticides and agricultural yield increases because of timely and adequate inputs. The study suggests that the in time provision of appropriate amount of loan to farmers may be helpful for the enhancement of agricultural productivity of Pakistan.