THE ROLE OF MICROFINANCE IN FISHERIES SECTOR: A Case Study of Ibrahim Hyderi District Karachi (EAST) Sindh Pakistan ►Abbas Ali Chandio, Jiang Yuansheng, Mumtaz Ali Joyo, Sanaullah Noonari and Javed Hussain Sahito
The overarching objective of this study was to investigate the role of microfinance in fisheries sector and its development: a case study of Ibrahim Hyderi District Karachi East Sindh. This study was based on primary data and samples of 120 small scales of fishermen were selected through random sampling method. Interview schedule was used as a tool of data collection. The data was analyzed by using descriptive statistical techniques like means, percentages and frequencies distribution etc. The results of this study showed that total cost reported by fishermen was Rs.7665 per day. Whereas, the average yields of fishermen was 37.5 Kg per day at the rate of Rs.400/ Kg. Moreover, the net return earned by fishermen was estimated to be Rs.7335 per day .For return to investment, overall input-output ratio was calculated 1:1.95 and cost benefit ratio was calculated 1:0.95. It is clear that microfinance played a significant role in the development of fisheries sector in Ibrahim Hyderi District Karachi East Sindh. However, since a decade microfinance has been providing small loan and small business loan for fish catching equipment purpose. Our results suggest that ZaraiTaraqiati Bank Limited, Commercial Banks and Microfinance banks should supply credit on flexible terms and conditions which is helpful for small scale fishermen to increase their income and improve life standard. Government of Pakistan should support small scale fishermen through the allocation of proper incentive structure and supply of loans on affordable interest rates. It may be a helpful to strengthen fisheries sector performance and raise the per capita income of a fisherman.
Keywords: Fisheries Sector, Microfinance, Marketing cost, Net return, Cost Benefit-Ratio