AGRICULTURE SECTOR OF PKAISTAN

INTRODUCTION:
Pakistan is a country like golden sparrow; it has vast and
rich natural resource and four seasons by which Pakistan
can produce any kind of commodity.
Pakistan has rich agriculture sector and it is mainly
agriculture centered country which contributes enough to
the economic growth of the country. This sector also
generates directly or indirectly hugeemployment in the
country.
The importance of agriculture to the economy is seen in
three ways:
First, it provides food to consumers and fibers for
domestic industry;
Second, it is a source of scarce foreign exchange
earnings;

 And third, it provides a market for industrial goods.

Pakistans Agriculture sector has a great potential and it
needs only some stimulation and effective planning and
execution.The agricultural area is the major source of
foreign exchange incomes in Pakistan and it
includesexport of rice, cotton, cotton based products etc.
Agriculture is performing a double role in Pakistans
development by giving food to such a large population and
assisting economic growth by decreasing imports of food
items.
With the help of agriculture sector, government is
generating revenue in the shape of tax collection and it
also supports other industry by providing raw material.
And to promote this sector Pakistani government is
continuously taking serious steps by designing supportive
policies and providing innovative technology.
Pakistan has comparative advantage that it has wide area
for cultivation especially in Punjab province and Sindh
province a vast area is under cultivation. But still some of
the area has been under the problem of soil erosion and
salinity. The land of Pakistan is a pure land at which every
kind of fruits and vegetables can grow.
RANKING:

Pakistan is one of the world's largest producers and

suppliers of the following according to the different
sources i.e. Food and Agriculture Organization of The
United Nations and FAOSTAT given here with ranking:

Chickpea (2nd)

Apricot (6th)

Cotton (4th)

Milk (5th)

Date Palm (5th)

Sugarcane (5th)

Onion (7th)

Kinnow, mandarin oranges, clementine (6th)

Mango (4th)

Wheat (7th)

Rice (14th)

Pakistan ranks eighth worldwide in farm output, according

to the List of countries by GDP sector composition.

IMPORTANCE AND MAJOR CONTRIBUTION TO GDP:

Over the past 20 years some important structural changes

have taken place in the sector. In particular, livestock has
emerged as an important subsector, today contributing
more than one-third of agricultural GDP, compared with
about 28 percent 20 years ago. Similarly, fisheries and
forestry, while still minor contributors to agricultural GDP,
have grown rapidly. Structural changes have also taken
place within the crop sector. Cotton is now as important as
wheat in terms of value added with a one-fifth share of
total earnings. Rice and sugar have, however, fallen from
a 20 percent share in the early 1970s to 15 percent today.
1. As it is already mentioned that agriculture sector is
playing a vital by contributing enough to the GDP of
economy. Pakistans contribution of agriculture to GDP is
about 24%. This is leading from the front by contributing
to the GDP.
2.

Food Availability

Agriculture sector is the only responsible which makes the

food available in the country. Day by date, Pakistans
population is increasing at the rate of 3% per annumand
which is the 7th biggest country in the world on the basis
of its population, so for every country its really difficult to
meet the demand of such populated country. It is
providing wheat, rice vegetables and edible oils to the
existing population.

3.

Supply of Raw Material To Industries:

Agriculture sector is also responsible which makes the raw

material available for the industrial sector of the country.
Asit provide the cotton to the textile industry of the
economy. Again the development of sugar industry also
depends upon the availability of sugar cane in the
country. Above all, the agro based industries can be
established on the basis of the locally produced raw
material.
4.

A Big Source of Employment

Pakistan has less developed industrial sector, so

agriculture sector is the major source of employment in
the country. Pakistani people, even having no skill are
easily adjusted on lands to earn livelihood for their
parents and offspring. Pakistan is predominantly a rural
country with 69% of its population living in villages,
majority of which is directly dependent on agriculture for
livelihood.
5.

Industrial Development

The industrial development is based upon agriculture

sector. Particularly, it is the agriculture sector which
provides manpower for the sake of industrialization.
Pakistan is a developing country which is mostly oversaturated. It means that this sector is over employed

having zero and negative marginal productivity. Even if

they are removed, the total agriculture production will
remain unaffected However; such withdrawn labor can be
employed to start industrialization in the country.
6.

Sources Of Foreign Exchange Earnings

Pakistan is heavily depends upon the exportation of

agriculture products like cotton, sugar, rice, vegetables,
fruits and certain seeds etc. Accordingly, a sufficient
amount of foreign exchange can be earned through the
exportation of these agriculture goods. Such foreign
exchange can be utilized to import the necessary
machinery and plants etc. which will be helpful in
accelerating the pace of economic development. Moreover,
the agriculture exports by the agriculture countries will be
in accordance with the principle of comparative advantage
an optimal utilization of worlds resources. Again, the
agriculture exports will be helpful in easing the BOP
difficulties of a country like Pakistan. At present 45% of
foreign exchange is earned through agriculture exports.
7.

Extended Markets

The existence of agriculture sector becomes helpful in the

extensionof markets. The expanding and progressing
agriculture sector means the more incomes of the
farmers.Such incomes can be spent on the goods other
than agriculture. For example, the agricultural

development in the country increased the incomes of the

farmers which were speqt on the purchase of luxurious
goods like T.V. motorcycles, radios, fans and houses etc. In
this way, the industries of these goods will develop;
markets will be extended; economies of scale berepead
and; economic development will be facilitated.

FISCAL INCENTIVE FOR AGRICULTURE SECTOR:

0% customs duty on import of agricultural machinery,
equipment and implements
Exemption of duty on transfer of land for CAF
Tax relief; Initial depreciation allowance @ 50% of
machinery cost.
Dividends from corporate agriculture farms not subject
to tax
Farm income given more favorable treatment

PROBLEMS WITH AGRICULTURE SECTOR:

1. There has been no any step taken to control the soil
erosion and to restore the soil energy.
2. There is wastage of water in the country just because
of traditional and weak irrigation system which
always harm the agriculture sector badly.
3. There is low yield per acre because the old method of
cultivating and harvesting has been used.
4. Water logging and salinity is rising day by day. No any
effective measures have been taken to control this
problem.
5. Illiterate farmers are another big problem. Because of
the illiteracy of farmers agriculture business is
decreasing. There is lack of technical skills among

farmers even they do not know about new techniques

and technology.
6. There is inadequate infrastructure like, roads, storage
facilities, transportation, electricity, education,
sanitation and health facilities to meet the
requirements of agriculture sector. Mostly in villages
electricity and other resource are unavailable.
7. In Pakistan, the supply of agriculture inputs is very
short and costly. Inputs like HYV seeds, chemical
fertilizers, pesticides, mechanized machinery etc.
8. There is lack of research and development in
agriculture sector. There has been no any action
taken to improve the agriculture sector and total
agricultural universities and colleges are only 16 in
Pakistan.
9. There are poorly designed land reforms which are
against the will of people.
10.
There are many plant diseases that are affecting
the productivity of crops and no any serious action
has been to kill these diseases.
11.
In Pakistan, land has been underutilized or missutilized because people are using traditional and
orthodox means of cultivation.
12.
Our farmers are consumption oriented; they
consume most of their income for their personal
expenses. They never used their income in a
productive manner.
13.
There is political instability which affects to all
the sectors of economy. People are not willing to

invest in agriculture just because of instability in

political system of Pakistan.

SOLUTION:
1. Pakistani government should support this sector by
introducing supportive Land reforms and must insure
the fair distribution of land amongst farmer re and
remove poverty. Those Reforms will be on the basis of
land reforms of 60s and 70s.
2. Government should Import modern technology and
machinery and make that available to farmers on
subsidized rates.
3. Government needs to develop adequate
infrastructure and roads linking urban areas and rural
areas.
4.Government needs to provide easy loan facility to
farmer. Currently in Pakistan some of the schedule
banks are providind such kind of facility to the farmers
such as; Zaraitarkayati and khushali bank. But those
have lengthy procedures and tough terms and
conditions and location of banks in cities deny farmers
access to the facility.
5. Government must perform the role of a bridge
between the growers and domestic as well international
markets. This will earn them huge gains and encourage

them to sow more.

6. Pakistani government must resolve the issue of
energy supply at urgent basis.
6. More gains to farmers and growers: recent years
have witnessed migration from rural areas to urban
areas. villagers look for employement in cities because
activities in rural areas do not raise their living standard
due to minimal gains and no saving. More gains to
farmers/villagers will encourage them to stay in villages
and engage in agricultural activities.
7. Government should boast up theresearch and
development in order to explore themodern methods so
government should open new research institutes.
8. Government should aware the investors about the
potential of the agriculture sector in order to increase
the investment in this sector.
9. Pakistani government should improve the irrigation
system because distribution of water is very important
and very controversial.
10. Insurance of crop by State: this will provide sense of
security to growers
and others.