Effect of Punjab Rural Support Program (PRSP) Microcredit Scheme on Agricultural Productivity of Small Scale Farmers in District Gujrat, Pakistan

Abstract

In developed countries, industry is a major contributor to economic growth and development. Nevertheless, in developing countries including Pakistan, agriculture is considered backbone of economy. Since its inception in 1947, Pakistan faced several issues in agriculture including the use of microcredit scheme for agriculture. This research investigates the contribution of microcredit schemes which were implemented in agriculture. This research intends to document the role of Punjab Rural Support Program (PRSP) in agricultural productivity of small scale farmers in District Gujrat, Pakistan. It also aims to highlight the benefits of this scheme for the marginalized and small scale farmers. A quantitative study was conducted in district Gujrat by using survey method to collect data from the farmers who took an advantage from the microcredit scheme of PRSP. A list of all those farmers was collected from PRSP regional office and by using systematic random sampling technique total 261 respondents were selected. The findings of the research reveal that majority of the farmers were lacking in resources. Most of the respondents were illiterate and they did not have advanced knowledge about the modern agricultural techniques. But at the same time, this research indicates that PRSP loan scheme is bringing about significant change in the lives of farmers. These schemes were not only for improving their agricultural productivity but also improving their socio-economic conditions of their families. The research concludes by suggesting enhancing the loans for agricultural sector in Pakistan for improving the agricultural productivity.