Significance of Agricultural Finance in Agricultural and Rural Development of Pakistan “A Case Study of Qambar Shahdadkot District”

Abstract

The purpose of this study is to investigate the significance of agricultural finance on agricultural and rural development of Pakistan. The study was based on primary data; the data was collected from Borrowers and Non Borrowers of agricultural finance from district Qambar shahdadkot, Sindh Province of Pakistan. Borrowers of agricultural finance include formal and non formal sources of finance. The results shows that the total revenue of Agricultural Finance borrowers was 76000 rupees while the non borrowers agricultural revenue was 61750 rupees and the variable cost for agricultural finance borrowers was a little bit high then non borrowers as 41652 and 34342 rupees respectively, it was because of availability of capital, the farmers who borrowing agricultural finance and providing inputs on time and in proper were getting better production. Most of the farmers agreed that agricultural finance was helpfull for improving living standard useful for household and rural development; it facilitates farmers in use of agricultural inputs on time and getting best agricultural production.

Keywords: Agricultural Finance, rural development, Borrowers and Non Borrowers, total revenue, total cost, Variable costs, capital.