Share of the Informal Loans in Total Borrowing in Pakistan: A Case Study of District Peshawar.

The main objectives of the study is to analyze the share of informal loan in total borrowing, and the role of informal financial sector in promoting of economic activity in Pakistan. The study is based on primary data; a questionnaire was designed to collect the data from District Peshawar. It was observed that, 83 percent were informal and only 17 percent were formal borrowers. Fifty eight percent of borrowers receiving loan from informal lenders, lived in urban, 33 percent from those lenders working and/or living abroad and 9 percent from rural lenders. Households received more than 90 percent of loan in the form of cash and 2.9 percent in kind. [ABSTRACT FROM AUTHOR]