The Impact of Institutional Credit on Agricultural Production in Pakistan

Three main factors that contribute to agricultural growth are the increased use of agricultural inputs, technological change and technical efficiency. Technological change is the result of research and development efforts, while technical efficiency with which new technology is adopted and used more rationally is affected by the flow of information, better infrastructure, availability of funds and farmers’ managerial capabilities. Higher use and better mix of inputs also requires funds at the disposal of farmers. These funds could come either from farmers’ own savings or through borrowings. In less developed countries like Pakistan where savings are negligible especially among the small farmers, agricultural credit appears to be an essential input along with modern technology for higher productivity.

The Impact of Institutional Credit on Agricultural Production in Pakistan

Agricultural credit plays an important role in enhancing the agricultural productivity in developing countries like Pakistan. The study discusses various indicators of agricultural credit in Pakistan and presents results of estimated production function using institutional credit as one of the explanatory variables. Over the years, increased percentage of agricultural GDP has been disbursed as institutional credit. During the study period disbursement of institutional credit per cropped hectare also depicted an increasing trend in nominal terms. However, it declined in real terms from late 1980’s to early 1990s. Zarai Taraqiati Bank Limited (ZTBL)-- formerly known as Agricultural Development Bank of Pakistan (ADBP), provides the major share of institutional credit. The share of production loans in total loan advanced has been increasing during 1980-81 to 1986-87 and after mid 1990’s. It shows multiple shifts in credit policy from loans for fixed capital to advances for operational capital during the study period. The OLS estimates of the production function revealed that institutional credit affects agricultural production positively. Water availability at the farm gate, labor, and cropping intensity are the other important variables that affect agricultural output positively. However, the shocks like floods, cotton leaf curl virus (CLCV), and drought have caused significant decline in agricultural output during certain years.institutional credit; agricultural production; production function

Adoption of Recommended Varieties: A Farm-level Analysis of Wheat Growers in Irrigated Punjab

This study uses farm level data to analyse the determinants of adoption of recommended wheat varieties in irrigated Punjab, Pakistan. A notable proportion of wheat acreage is sown to non-recommended wheat varieties in the province. These cultivars had either lost (overtime) or did not have resistance against yellow rust. Farm size, education, and size of wheat enterprise on the farm are the important determinants of adoption of recommended wheat varieties while tractor ownership and irrigation source play a positive but insignificant role in the adoption decisions. Age and tenure proved to be less of a constraint towards adoption of the recommended wheat varieties. The likelihood of the adoption of recommended wheat varieties varied among tehsils, with the highest probabilities of adoption in Melsi and Arifwala tehsils of cotton-wheat zones I and II respectively.

Wheat Productivity, Efficiency, and Sustainability: A Stochastic Production Frontier Analysis

This paper uses the farm-level survey data to estimate the stochastic frontier production function incorporating inefficiency effects. Sufficient evidence of positive relationship between wheat productivity and higher and balanced use of fertiliser nutrients was present. The productivity showed an inverse relationship with the proportionate farm area allocated to rice production and illustrated no association with the proportion of farm area under cotton. The average technical efficiency at wheat farms was about 68 percent. An inverse relationship was observed between technical efficiency and farm size. The farmers with greater access to credit and located closer to the markets were found more efficient. The small farmers are not only producing at a lower level but are also operating relatively farther from the production frontier. The results also revealed that wheat growers in Punjab are comparatively more efficient than their counterparts in Sindh and NWFP.stochastic frontier production function; technical efficiency; small farmer; Pakistan; productivity

Wheat Productivity, Efficiency, and Sustainability: A Stochastic Production Frontier Analysis

The agriculture sector plays a crucial role in the overall development of the country. The sector shares about 24 percent of the GDP and employs about 44 percent of the workforce in the country. Crops sub-sector is the major contributor towards agriculture, sharing more than 53 percent of the value-added. Wheat, being the staple food of Pakistanis, carries immense importance: it contributes about 12 percent of sector value-added, is sown on about 37 percent of the total cropped area, and shares 80 percent in consumption of food grains, while its share in food grain production is around 70 percent. As primary diet, wheat alone shares about 50 percent of the total calories’ and proteins intake in Pakistan, and contributes about 8 percent of the total fat consumed [FAO (Various Issues]. Consequently, overall dietary well being of our people especially the urban and rural poor is largely dependent on the performance of wheat economy. Despite serious efforts made by the wheat breeders in developing new highyielding varieties during the past three decades, wheat production in Pakistan remained short of demand and thus import has been the only alternative to fill the gap. The present wheat requirement of the country is more than 20 million tonnes. It has been estimated that by the year 2020 wheat import would rise up to 15 million tones costing 2 billion US dollars [PARC (1996)]. The situation could worsen further if Pakistan fails to achieve a higher level of growth rate in wheat production and sustain it.

Adoption of Recommended Varieties: A Farm level Analysis of Wheat Growers in Irrigated Punjab

This study uses farm level data to analyse the determinants of adoption of recommended wheat varieties in irrigated Punjab, Pakistan. A notable proportion of wheat acreage is sown to non-recommended wheat varieties in the province. These cultivars had either lost (overtime) or did not have resistance against yellow rust. Farm size, education, and size of wheat enterprise on the farm are the important determinants of adoption of recommended wheat varieties while tractor ownership and irrigation source play a positive but insignificant role in the adoption decisions. Age and tenure proved to be less of a constraint towards adoption of the recommended wheat varieties. The likelihood of the adoption of recommended wheat varieties varied among tehsils, with the highest probabilities of adoption in Melsi and Arifwala tehsils of cotton-wheat zones I and II respectively.Adoption; wheat varieties; Punjab; Pakistan

An Assessment of Livestock Production Potential in Pakistan: Implications for Livestock Sector Policy

About two third of the farming community in Pakistan consists of small farmers who are characterised by small land holdings (less than 5 hectares) and by several factors that influence their productive potential and income generating capacity [Pakistan (1998)]. Livestock farming is an integral part of rural smallholders and has a vast untapped potential for productivity increase and income generation. Livestock holdings by the small farmers constitute a significant portion of the farm incomes. Small farmers and landless livestock producers derive around 10-25 percent of their incomes from this sub-sector.......

Generalized Exponentiated Moment Exponential Distribution

Moment distributions have a vital role in mathematics and statistics, in particular in probability theory, in the perspective research related to ecology, reliability, biomedical field, econometrics, survey sampling and in life-testing. Hasnain (2013) developed an exponentiated moment exponential (EME) distribution and discussed some of its important properties. In the present work, we propose a generalization of EME distribution which we call it generalized EME (GEME) distribution and develop various properties of the distribution. We also present characterizations of the distribution in terms of conditional expectation as well as based on hazard function of the GEME random variable