The economy of Pakistan is heavily dependent on agriculture. This sector is dominated by small and medium farmers, who are toiling at the lowest rung of economic ladder and hence have a very small income base and saving potential to invest in farming business from equity, which makes it imperative that outside finances be provided to make sure the participation of these farmers in the development process. There exists a huge gap between requirements and disbursements of credit and it is widening over time. The participation of the small and medium farmers in the formal rural credit market is limited, causing lopsided development in the farming sector.
