Agricultural credit and constraints

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Being an agricultural country, 63 percent of Pakistan’s total population is directly or indirectly engaged in the agricultural sector. According to a rough estimate, 45 percent of the total labour force of the country is employed by this sector. Hence, economic analysts commonly assume that whether it is a positive variation in agricultural productivity or negative, it directly affects the State’s economy and its people.

Since the Green Revolution, Pakistan has been continuously facing a downtrend in the sector’s growth, which is mainly due to poor management and the implementation of ineffective policies. It is also a fact that this sector has been completely ignored by the concerned authorities. This criminal negligence has not only affected the economic progress, but also the living standard of the masses. Hence, to improve the agriculture sector all issues, from farm water management to disbursement of loans, mechanisation, availability of quality inputs, etc, are required to be tackled to reap once again the full benefits of its potential.

Thus, there is a need to inject new investments in this sector to boost productivity for the uplift of economy. It is crystal clear that without money Pakistan would not be able to tackle emerging challenges like water shortage, flood risks, infrastructure development, as well as endogenous and exogenous factors that are commonly faced by the agricultural sector.

Thus, there is a need to inject new investments in this sector to boost productivity for the uplift of economy. It is crystal clear that without money Pakistan would not be able to tackle emerging challenges like water shortage, flood risks, infrastructure development, as well as endogenous and exogenous factors that are commonly faced by the agricultural sector.
More so, productive investments in hybrid seeds, biotechnology, modern farming techniques, latest farm machinery and water infrastructure development have not been made. To boost the agricultural economy, therefore, it is essential to adopt such policies and procedures that work efficiently. Three core factors that significantly affect agricultural growth are the well calculated use of inputs, technological change and technical efficiency.

To read the entire article, visit:  Nation.com.pk  | By: Yasir Mehmood, Muhammad Bahzad Anjum and Mukhtar Ahmad >>

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