Feature 
 

Empowerment

Boosting Agriculture

Women entrepreneurs can play an important role in boosting Pakistan’s agriculture, provided they are encouraged through easy loans and other facilities.

By Khawaja Amer | March 2021

boosting-agriculture

A recent study titled “Economic Analysis of Women Labour Participation in Agricultural Production in Mirpurkhas, Sindh” concluded that the majority of rural women from Mirpurkhas district have strong participation in activities such as crop production, livestock husbandry, poultry-keeping, food grain processing and its storage. Almost all respondents wanted information about crop production, livestock and preventive measures. The same need was expressed by a number of women in other villages.

Women comprise 41 per cent of the world’s agricultural labour force, which moves up to 78 per cent in some countries. In Pakistan, 67 per cent women are involved in this sector. The rural areas where the source of income is mostly through agriculture comprise a major part of Pakistan.

According to the UN’s Food and Agriculture Organisation (FAO), if women farmers had equal access to land ownership, credit, farming equipment and new technologies, yields could increase by 30 per cent per household and in many countries there would be an increase in agricultural output by 2.5 to 4 per cent. Women also reinvest up to 90 per cent of their earnings into their households —money spent on nutrition, food, healthcare, schooling and other income-generating activities that help in breaking the cycle of inter-generational poverty.

But then, arguably, the biggest hurdle for women agriculturists is land ownership. In developing countries, only 10 to 20 per cent of landholders are women and, in some parts of the world, women still cannot legally own or control land. When a female farmer isn’t empowered to make decisions about the land she works, it is impossible for her to sign a contract farming agreement that could provide higher earnings and reliable sources of income. Therefore, legal and institutional guidelines are also needed for future prospects of security of women entrepreneurs so that they are encouraged to independently go for new venture with new hope.

The Mirpurkhas study is very rightly of the view that the government should take initiatives to promote local women entrepreneurs and organize skill development training programs for women focusing on crop production in order to ensure better output. Credit facilities should also be provided at government level to interested women who want to set up agro-based industries. At present women get only 3 per cent of small-medium business loans whereas men get 97per cent loans. Similarly, only 19 per cent of microfinance loans are is given to women while 87 per cent are given to men.

The worst and the most tragic part of the story is the fact that an aspiring female entrepreneur in Pakistan cannot open a bank account without mentioning her father or husband’s name in the presence of a witness. According to a study conducted by the Asian Development Bank (ADB), this discrimination is the result of banks’ preconceived notions that female clients lack credit-worthiness. On the contrary, surveys conducted by various organisations in different countries have unanimously concluded that women are better than men in loan repayment.

Bangladesh has also proved this notion of the ADB as absolutely wrong. Some 97 per cent of Grameen Bank’s clients are women who give back almost 100 percent in-time recoveries. Moreover, in Bangladesh banks are bound by the government to lend 15 per cent of their funds to women entrepreneurs and report their progress towards this target directly to the Prime Minister. As a result, the women of Bangladesh have proved their skills and have beaten their male counterparts and many of them have even excelled in setting up Small and Medium Enterprises (SMEs).

By following the Bangladesh model, Pakistan can promote potential women entrepreneurs. It is high time to fully revive the Sindh Small Industries Corporation and to begin with setting up a regional office in Mirpurkhas and initiate business plan exclusively for women. It goes without saying that the benefit of microcredit for women through their empowerment would definitely be one of the much-acclaimed achievements of the present government which has so far done nothing for women potential entrepreneurs.

mehboobulhaq

‘Government of Sindh (GOS) is well aware of the critical role played by women in economic growth and development; yet access to finance and inclusion is a major challenge that undermines their contribution. In order to overcome this challenge, GOS offers mark-up subsidy on financial products offered by SBP and banks to women entrepreneurs through Sindh Enterprise Development Fund. Now onus is on financial institutions to come forward and lend to the most deserving segment of the society.’

- Mehboob ul Haq, Managing Director,
Sindh Enterprise Development Fund

It may be mentioned here that only 8 per cent of micro, small and medium enterprise (MSME) owners are women, their access to finance is 6 per cent and only 1 per cent of them are engaged in entrepreneurial activities as opposed to 21 percent men. On the contrary the total number of women entrepreneurs in Bangladesh is above 10 per cent and the curve is gradually showing an upward trend.

Since a woman is Deputy Governor of the State Bank of Pakistan, it is all the more reason that a policy for granting loans to women entrepreneurs be formulated and commercial banks be asked to set aside at least 15 per cent of their funds for women entrepreneurs. Zarai Taraqiati Bank Limited (ZTBL) the former Agricultural Development Bank of Pakistan (ADBP) is the premier financial institution geared to the development of the agriculture sector through provision of financial services and technical know-how and can certainly play a very important role in this regard.

ZTBL can play an effective role in the promotion of Pakistan’s economic growth by enhancing the availability of credit to the agriculture sector through reliable access to sustainable financing, special lending programs, technical assistance, and other products and services. It can promote career development opportunities for increasing professionalism and technical proficiencies of employees.

In view of the economic recession in Pakistan, there is definitely a need to empower women economically and involve them in income generating activities so that they are able to play their role in economic development of the country and in addition provide support for their families. For the development of a women-to-women business potential, women entrepreneurs require support in the form of training in strategic business development, access to credit funds and assistance with marketing skills, product design and development. The concerned government organizations can provide the required help and assistance to female entrepreneurs.

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