Industrial Engineering Letters www.iiste.org ISSN 2224-6096 (Paper) ISSN 2225-0581 (online) Vol.7, No.2, 2017 48 Enhancement of Tobacco Production Through Credit Program of Zari Taraqiati Bank Limited in Rural Area of District Mardan Dr.Naushad Khan* Institute of Development Studies , The University of Agriculture Peshawar , Dr.Munir Khan Institute of Development Studies, The University of Agriculture Peshawar Shaista Naz Amir Muhammad Khan Campus Mardan, The University of Agriculture Peshawar Dr.Muhamad Idress Department of Agric. Ext. Edu. and Communication, The University of Agriculture Peshawar Dr. Farhatullah Alama Iqbal Open University Islamabad Abstract This crop play key role in generating income to rural farming community. Therefore ZTBL has given credit to the farmer of District Mardan for boosting tobacco production. Seeing to its importance the study was conducted to analyze the effect of credit program of ZTBL on different size of farms. The universe of the study consisted of tehsils, Mardan, Takhth Bahi and Katlan and on the basis of more loani purposively from each tehsil two villages Gujar Garhi, Rustum, Lund khwar, Sharegarh, Katlang and Jamal Garhi were respectively selected. Total number of beneficiaries of the tobacco was 54, which distributed in tehsil Mardan 11, Takhth Bahi 7, and Katlang 36. Through questionnaire data were collected and using percentages, correlation and paired t-test statistical techniques for data analysis. Average tobacco production per hectare after credit was found 1993 Kg and before1677 Kg and the result was found non-significant which explains that statistically credit has no positive effect on tobacco production while statistically shows a little improvement by credit program. Average cost per hectare after credit was Rs.159718 and before Rs.81756 and the result was found highly significant at .05 levels. The average return per hectare after credit was Rs.265078 and before was Rs.122392 and difference was Rs.142685. The return after credit was found more than before and the result was found highly significant. The correlation in land and tobbaco production was .151 which explains that one unit land increase boost 15.1% production of tobacco crops. Problems were found high costs of the inputs; complicated procedure of the bank, high interest rate and non availability of loan in time etc by bank in the study area. On the basis of problems and constraints, recommendations were fit for future policy formulation which is given as loan should be provided to farmers according to requirements; interest rate should be decreased in future; quality seed should be provided on low price for boosting the tobacco production in the study area. Keywords: Enhancement, Tobacco Production, Credit Program, Rural Area Mardan INTRODUCTION Tobacco has a long history and was first grown in central and south America but now it is grown throughout the world while in 17 th century it was the back bone of the American economy and although export tobacco to Europe and earn an adequate amount of foreign exchange from this crop. Two types tobacco namely Nicotiana Tobaccum and Nicotiana Restica are grown in Pakistan, due to diverse climatic condition every type of tobacco grown is possible in Pakistan. About 90% of area is accounted for Nicotiana tobacum and 10% by Nicotiana Restica and its seeds are grown in early January and seedlings are transplanted in April. It is harvested in August end or early September. The plants are harvested in the farm and leaves are hung in tobacco barn for 6-8 weeks and after that make bundles and carry to market for selling.The utilization of tobacco in Pakistan is usual. Twenty two million smokers smoke tobacco in the country and large proportion of the cigarettes smoker is recorded in south Asia. Tobacco are used in different mode in Pakistan, such as Naswar, cigarettes, Hokah, chewing and pesticides etc. It is a cash crop of Pakistan and earns enough foreign exchange and generates employments for the people of Pakistan and played crucial role in the alleviation of poverty in the rural world while more than 10 million people are involved in the activities of tobacco as cultivation, industry and trading. It is the only sector in the country which pay enormous amount to tobacco growers and huge revenue to government in the form of taxes. Tobacco contributed Rs.46.70 billion to GDP in 2008-09 while in all taxes the share of tobacco was five percent. There are 12 tobacco companies and 15 manufacturing factories are working in Pakistan which