Impact of Institutional Credit Granted by Zarai Taraqiati Bank Limited on Farmers’ Livestock Outcomes in District Dir Upper, Khyber Pakhtunkhwa

Abstract

The present study was conducted in District Dir Upper, KP. The primary objective was to examine the impact of credit granted by ZTBL on farmers’ livestock outcomes. A purposive sampling technique was used to select Dir Upper from 36 districts in the province of KP, followed by three tehsils— Dir, Barawal, and Sheringal— within Dir Upper. A total of 230 respondents who utilized ZTBL credit for livestock rearing were selected. An interview schedule was applied to collect cross-sectional data from sampled farmers. Data were analyzed with a paired t-statistic. The findings indicated that ZTBL credit has significant impact on livestock outcomes of the farmers in the study area. The ZTBL credit led to enhance livestock number and its productivity, the self-consumption and sale of milk, and farmers' income. It is recommended that ZTBL should introduce interest-free credit program through Islamic financing, follow simple collateral policy, and modernize the credit application process to facilitate farmers’ access to credit. Additionally, the study also recommends that ZTBL should expand its local branches to provide better support to farmers and help boost their livestock outcomes.