Source structure and utilisation of rural credit and allied problems in Pakistan
type: CreativeWork
description: In this study an attempt has been made to look at the effectiveness of credit in the process of agricultural development, given the existing source structure and utilisation patterns of rural credit in Pakistan. The study focuses on the borrowing behaviour of the small farm and tenant farm categories, relative to the other farm categories in Pakistan. In the light of the economic, socio-cultural, historical and religious background of the area, the study identifies a set of factors that could affect the productive utilisation of credit. The study, using data from a large benchmark survey - the Rural Credit Survey of Pakistan, 1972-73 - looks specifically at: 1) the problem of differential 'access’ to sources of credit 2) the role of institutional credit 3) the extent, nature and scope of non institutional credit 4) the utilisation patterns of credit, especially the relative importance of credit utilisation for purposes of current on farm expenditure and for consumption expenditure and expenditure on s.ocial ceremonies. The analysis was severely constrained by limitations of data, arising out of the survey questionnaire design, the range of data available from the survey for analysis and the form in which it was available. In the light of these data constraints the study finds that 'access' to institutional credit is dominated by the large farm and owner farm categories and that institutional credit plays a small almost insignificant role in the borrowing of the small farm and tenant farm categories. As a corollary to the dominance of non institutional credit, the study finds the existence of large scale (over 86 per cent of total) borrowing at zero rate of interest (nominal and explicit). The study also finds that credit utilisation for purposes of current on farm expenditure is relatively low in all farm categories, whereas credit utilisation for purposes of family consumption and for social ceremonies is relatively much higher, especially in the case of the small …
abstract: In this study an attempt has been made to look at the effectiveness of credit in the process of agricultural development, given the existing source structure and utilisation patterns of rural credit in Pakistan. The study focuses on the borrowing behaviour of the small farm and tenant farm categories, relative to the other farm categories in Pakistan. In the light of the economic, socio-cultural, historical and religious background of the area, the study identifies a set of factors that could affect the productive utilisation of credit. The study, using data from a large benchmark survey - the Rural Credit Survey of Pakistan, 1972-73 - looks specifically at: 1) the problem of differential 'access’ to sources of credit 2) the role of institutional credit 3) the extent, nature and scope of non institutional credit 4) the utilisation patterns of credit, especially the relative importance of credit utilisation for purposes of current on farm expenditure and for consumption expenditure and expenditure on s.ocial ceremonies. The analysis was severely constrained by limitations of data, arising out of the survey questionnaire design, the range of data available from the survey for analysis and the form in which it was available. In the light of these data constraints the study finds that 'access' to institutional credit is dominated by the large farm and owner farm categories and that institutional credit plays a small almost insignificant role in the borrowing of the small farm and tenant farm categories. As a corollary to the dominance of non institutional credit, the study finds the existence of large scale (over 86 per cent of total) borrowing at zero rate of interest (nominal and explicit). The study also finds that credit utilisation for purposes of current on farm expenditure is relatively low in all farm categories, whereas credit utilisation for purposes of family consumption and for social ceremonies is relatively much higher, especially in the case of the small …
author: Malik, Sohail Jehangir
language: en
date published: 1981
date modified: 2026-07-24T01:07:11Z
provider: Australian Catholic University
publisher: Networked Digital Library of Theses and Dissertations
type: WebPage
source organization: Australian Catholic University

PropertyValue
property ID: Handle
value: http://hdl.handle.net/1885/122919