15. Microenterprises in the Agricultural Sector and (Lack of) Insurance: A Study of Fresh Fruit Farmers and Retailers in Northern Pakistan

This chapter is one of the first studies to specifically analyze the lack of insurance for agricultural microentrepreneurs in Pakistan’s mountainous peripheral Gilgit-Baltistan region. Based on field interviews with 20 fresh fruit farmers and retailers, we found out that even though they are knowledgeable about micro-health insurance, and most have access to banking services, none of the respondents use business or agricultural insurance. The knowledge of agriculture and business insurance (including the benefits and access possibilities) could have been better for microentrepreneurs operating in these sectors. Currently, the sample microentrepreneurs rely on social networks, including family, in case of difficulties, as informal insurance mechanisms. Due to the perishable nature of produce, lack of proper storage facilities, and supply chain problems, the vulnerability of such businesses is high, and lack of insurance further complicates this situation. Based on respondents’ feedback and literature review, our chapter offers several policy implications to further financial inclusion, particularly on the insurance aspect in this region.