Livelihood diversification in managing catastrophic risks: evidence from flood-disaster regions of Khyber Pakhtunkhwa Province of Pakistan.

Pakistan's agricultural productivity is considered to be low despite several agriculture promotion policies. Such policies concentrate primarily on on-farm development and overlook rich prospects for off-farm diversification. Livelihood diversification of small-scale farmers plays a major role in reducing hunger and mitigating the adverse impacts of climate change. Therefore, this paper seeks to analyze livelihood diversification in managing catastrophic risks among rural farm households of Khyber Pakhtunkhwa Province of Pakistan. We have interviewed a total of 600 farm households through a standardized questionnaire in two districts (Nowshera and Charsadda) of Khyber Pakhtunkhwa Province of Pakistan that were badly affected by the 2010 flood. For empirical analysis, a logistic regression model was chosen to analyze the important attributes that are correlated to livelihood diversification of the rural households in flood-susceptible areas of Pakistan. The survey findings indicate that 50% of the total sample respondents adopted off-farm livelihood diversification strategies, while 40.5% of farm households adopted on-farm livelihood diversification strategies in managing catastrophic risks. The logistic regression model results show that attributes including socioeconomic and demographic, institutional, and risk perception significantly influenced households' choices of livelihood diversification. Also, the findings indicated a wide range of livelihood diversification constrained including climatic risks and uncertainties (23%), inadequate natural resources (17%), limited level of skills and training (15%), lack of institutional support (12%), lack of credit facilities (11%), poor infrastructure including markets and roads (16%), and lack of labor availability (4%). The study urges the need for robust climate change adaptation policies, in particular, by aiming at training initiatives, improving access to services, and enhancing institutional assistance, and better infrastructure. The livelihood of small-scale farmers could only improve if the Government pays due consideration and adopts the right policy initiatives that promote the diversification of livelihoods as part of the creation of national jobs to save many lives and improve livelihoods.