Agriculture is the mainstay of Pakistan’s economy. More than 20% of the country’s GDP comes from agriculture sector which also employs about 41% of the labor force, sustains almost 67% of the population. This simple fact suggests that agriculture contributes less to the national GDP relative to its size of population and labor force compared to other sectors of the economy; limited information and understanding of the rural markets and economy has been one of the key impediments in penetration of banking/finance in agricultural/rural sector of our economy. The sector was never considered as a mainstream and viable business activity by banks and thus could fetch no or limited attention of banks’ senior management to build their capacities for serving the sector.
State Bank of Pakistan and SBP-BSC have been taking different initiatives to enhance banks’ agri finance capacity and conducting research studies and surveys to broaden and deepen the banks understanding of the rural economy. The Agricultural Surveys of Sukkur District in Sindh along with Gujranwala were initiated as pilot projects to explore the districts’ rural economies and thus enable SBP and banks to devise market responsive initiatives and products for increasing flow of financial services in the rural areas. The survey of Sukkur district was conducted through IBA Sukkur.
The survey questionnaire was developed by State Bank of Pakistan, Banking Services Corporation (Bank), Development Finance Support Department’s team. The questionnaire was little bit modified after pilot testing. The final questionnaire comprised 235 questions grouped in 6 parts viz. i) general information about the farmer and his/her village, ii) farming activities, iii) farm mechanization, iv)livestock, v) access to finance and sources thereof and vi) key issues/challenges faced. Responses of 300 farmers, selected randomly from 60 villages based on stratified sampling, were collected and compiled. The survey provides a better understanding of the rural economy in Sukkur and offers some useful insights about the farm and non-farm activities in the rural areas of the district as well as socio economic conditions of the villages.
Contents
Executive Summary
1. Introduction
2. Survey Methodology
3. Socio-Economic Conditions
4. Farm Sector
- 4.1.Wheat
4.2.Rice
4.3.Cotton
4.4.Sugarcane
4.5.Fruits
5. Non-Farm Sector: Livestock
6. Farm Mechanization
7. Access to Finance
8. Key Issues
9. Conclusion
List of Surveyed Villages
