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Small Farmers Credit Project

Small Farmers Credit Project

Historically Pakistan’s agricultural credit policy benefited farmers with large landholdings. The main objective of this project was to reorient that policy through the Agricultural Development Bank of Pakistan in favour of small-scale farmers, tenants and landless farm labourers. The target group received loans for land and irrigation improvement and the purchase of farm equipment. This allowed rural poor people to improve their incomes by installing or improving irrigation facilities, purchasing equipment and increasing crop yields. Thanks to the mobility of credit officers, the scheme reached farmers in remote areas.

More than 80 per cent of project participants reported increases in crop yields, animal production and incomes in general. Improvements in productivity led to an income increase of 90 per cent for more than two-thirds of the people who participated, and this figure was significantly higher on small farms. About 30 per cent of participants were able to use tractors on their land for the first time.

Source: IFAD


Status: Closed

Country

Pakistan

Approval Date

27 June 1979

Duration

1979 - 1985

Sector

Credit and Financial Services

Total Project Cost

US$ 387.62 million

IFAD Financing

US$ 26.62 million

Co-financiers (International)

World Bank: International Development Association US$ 30 million

Co-financiers (Domestic)

National Government US$ 331 million

Financing terms

Highly Concessional

Project ID

1100000018


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