Project final report

Creating wealth in smallholders farms through efficient credit systems in Pakistan - final report

Date released
15 December 2018
Publication Code

Shabbir Ahmad, John Steen, Clem Tisdell, Martie-Louise Verreynne, George Battese


The project aimed to investigate credit markets and schemes that promote entrepreneurial opportunities for Pakistani smallholders, especially women. Understanding the barriers and success factors in these two areas has enabled more effective development schemes.

This study explored how giving farmers, particularly women, access to credit and entrepreneurial opportunities can help smallholders to improve agricultural productivity and reduce poverty.

The project examined the efficiency of financial lending practices in the agricultural sector and determined the best lending practices which could improve smallholder farmers productivity and profitability. Institutional factors inhibit smallholders access to credit facilities. Some studies focus on informal sector lending such as commission agents, but no study empirically compares financing schemes in the smallholders horticultural sector. This makes it necessary to estimate the cost effectiveness of financing sources for smallholders.

Examining these financing sources could enable analysis of the financial viability of existing loan schemes at farm level and relate them to farm productivity and profitability. This will help policy makers to design financing schemes for smallholders.