IMPACT OF AGRICULTURE LOAN ON AGRICULTURAL FARM PRODUCTIVITY: EVIDENCE FROM DISTRICT PARACHINAR, KURRAM AGENCY, PAKISTAN

high farm yields than non-borrowers (Irfan, 1999). All these studies suggest that credit is an important input to meet the farmer’s needs. The nations as the United States, the UK, Canada, Germany, France and other developed countries, the high agricultural farm yields is because of wide use of credit. In the Eastern Europe, the The present study was designed for the evaluation of the effect of agricultural loan on productivity and income of sample farmers in a backward area of Upper and Lower Kurram tehsil of Parachinar, where the main source of institutional credit is Zarai Taraqiati Bank Ltd (ZTBL). For this purpose, primary data of 100 respondents were collected from two Tehsils i.e. Lower and Upper Kurram by using convenience sampling technique, and multiple regression model was used for data analysis. Furthermore, the research could support us to evaluate the relationship between the farm productivity and agricultural credit facilitated by ZTBL in the Parachinar, in term of loan availability and its uses in improving the farm productivity. The result showed that overall average efficiency of the noncredit user was 4.448 while credit user efficiency was 7.058 which shows credit has a significant impact on farm productivity if it is not used as non-productively i.e., construction of houses, purchase of vehicle and marriages.