Assessing the Impact of Zarai Taraqiati Bank Limited on Farm Productivity and Farm Income in District Dir Lower, Pakistan

Abstract

This study assesses the impact of ZTBL credit on farm productivity and farm income in District Dir Lower. Convenience sampling technique was applied to select District Dir Lower due to easy accessibility, followed by two tehsils— Adenzai and Timergara— within Dir Lower. A total of 305 farmers who availed loans from ZTBL were selected. Interview schedules as well structured questionnaires were used to collect data from credit beneficiaries (farmers) represented as the sample size. Descriptive statistic was used to summarize data, and percentages were calculated. Inferential statistics, such as the paired t-statistic, was used for empirical analysis. The findings of the study indicate that ZTBL credit significantly increased wheat, maize, and tomato productivity of farmers. The results also show that ZTBL credit led to a significant increase in farm income in District Dir Lower. The study recommends that the government should increase the number of ZTBL branches, particularly in rural areas. ZTBL should ensure timely provision of loans to farmers to purchase inputs to increase their productivity and income. The capacity of credit should be increased to access more farmers to increase their productivity and income. Additionally, the ZTBL team should guide and supervise farmers to utilize agricultural loans only for livestock activities.