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The Structure of Informal Credit Market in Pakistan

Author

Listed:
  • M. Irfan

    (Pakistan Institute of Development Economics)

  • G. M. Arif

    (Pakistan Institute of Development Economics)

  • Syed Mubashir Ali

    (Pakistan Institute of Development Economics)

  • Hina Nazli

    (Pakistan Institute of Development Economics)

Abstract

Heterogeneity of practices and complexity of operations obtained in the informal credit system defy efforts to encapsulate and comprehend its functioning. Conventional reductionism identifying moneylender as the typical informal lender in fact scratches the tip of the iceberg. Credit transactions in the informal market arc enmeshed with the web of business matrix in wholesale and retail trade of the country. In the chronological order informal credit system being rooted. in history and culture pre-existed the modern banking system-the so-called formal sector. Variety of agents having different titles such as arhis, input dealers, commission agents, landlord and moneylenders are some of the major operator in the field of informal credit.

Suggested Citation

  • M. Irfan & G. M. Arif & Syed Mubashir Ali & Hina Nazli, 1999. "The Structure of Informal Credit Market in Pakistan," PIDE Research Report 1999:16S, Pakistan Institute of Development Economics.
    • Handle: RePEc:pid:rrepot:1999:16s
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    References listed on IDEAS

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    1. Sarfraz K. Qureshi & Kalbe Abbas & Ahmed Naeem Siddiqui & Ejaz Ghani, 1984. "Rural Credit and Rural Development.Some Issues," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 23(2-3), pages 273-285.
    2. Sarfraz Khan Qureshi & Akhtiar H. Shah, 1992. "A Critical Review of Rural Credit Policy in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 31(4), pages 781-801.
    3. Bell, Clive, 1990. "Interactions between Institutional and Informal Credit Agencies in Rural India," The World Bank Economic Review, World Bank, vol. 4(3), pages 297-327, September.
    4. Anthony Bottomley, 1975. "Interest Rate Determination in Underdeveloped Rural Areas," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 57(2), pages 279-291.
    5. Lipton, Michael, 1976. "Agricultural finance and rural credit in poor countries," World Development, Elsevier, vol. 4(7), pages 543-553, July.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Mohammad, Irfan, 1999. "Rural non-farm sector in Pakistan," MPRA Paper 38152, University Library of Munich, Germany.
    2. Madestam, Andreas, 2014. "Informal finance: A theory of moneylenders," Journal of Development Economics, Elsevier, vol. 107(C), pages 157-174.
    3. Nicoletta Batini & Young-Bae Kim & Paul Levine & Emanuela Lotti, 2009. "Informal Labour and Credit Markets: A Survey," School of Economics Discussion Papers 0609, School of Economics, University of Surrey.
    4. Muhammad Khalid Bashir & Zulfiqar Ahmad Gill & Sarfraz Hassan, 2009. "Impact of credit disbursed by commercial banks on the productivity of wheat in Faisalabad district," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 1(3), pages 275-282, May.
    5. Rashida Haq, 1999. "Income Inequality and Economic Welfare: A Decomposition Analysis for the Household Sector in Pakistan," PIDE Research Report 1999:170, Pakistan Institute of Development Economics.
    6. Athar Iqbal & Bilal Hamid, 2012. "Retail Business Owners Preference: Why not Formal Financing?," South Asian Journal of Management Sciences (SAJMS), Iqra University, Iqra University, vol. 6(1), pages 18-22, Spring.
    7. Zafar Mahmood, 1999. "Growth Potential of Small and Medium Industries in Pakistan," PIDE Research Report 1999:169, Pakistan Institute of Development Economics.
    8. Rizwana Siddiqui & Zafar Iqbal, 1999. "Social Accounting Matrix of Pakistan for 1989-90," PIDE Research Report 1999:171, Pakistan Institute of Development Economics.
    9. Nazli, Hina & Haider, Syed Hamza & Hausladen, Stephanie & Sheik, Asjad Tariq & Shafiq, Hassan & Shahzad, Saqib & Mehmood, Amina & Shahzad, Asma & Whitney, Edward, 2012. "Pakistan Rural Household Panel Survey 2012 (Round 1): Household characteristics:," PSSP working papers 8, International Food Policy Research Institute (IFPRI).
    10. Montgomery, Heather & Weiss, John, 2011. "Can Commercially-oriented Microfinance Help Meet the Millennium Development Goals? Evidence from Pakistan," World Development, Elsevier, vol. 39(1), pages 87-109, January.

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