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Agriculture Sector:
Economy of Pakistan:
Introduction:
Agriculture
Pakistan’s population 60% is living in villages and 40% living in cities. 60% of
them are engaged in farming, livestock and agro based industries.
Importance of Agriculture
Agriculture is the of process of cultivation of land or soil for production purpose".
Agriculture plays a very vital role for economy of Pakistan and its development.
48% of labor force is engaged directly with agriculture. So it is the main source of
living or income of the major part of economy population.
Agriculture holds great significance for Pakistan. Pakistan has great potential of
agriculture and at the time of independence Pakistan was mainly an agricultural
country. Industrialization is the period of social and economic change that
transforms a country from an agrarian society to an industrial one. Pakistan’s
principal natural resources are arable land and water. About 25% of Pakistan’s
agriculture accounts for about 21% of GDP and employs about 43% of the labor
force.
Source of employment.
Pakistan as developing economy the employment on consistent level has much
importance. In this behalf agriculture has much importance because it provides
employment directly or indirectly to the public. Employment directly affects the
GSP of economy as well as the per capita income. With the increase in per capita
income living standard increases, higher hygiene facilities & better education
facilities are also increases. All these signs are the factors of economic
development. So we can say that agriculture has a great contribution toward
economic development by providing the employment.
Food requirement.
Population growth rate of Pakistan is increasing rapidly. According to UNDP
human development report population growth rate of Pakistan is 2% per year. So
with the rapidly increasing population the food requirement is also increasing
rapidly. In this behalf agriculture is the only the major sector which is the meeting
the increasing requirement of food. It also reduces the import of food from other
economies. So we can say that agriculture sector is playing very vital role in
development of Pakistan by providing the food for massive population as well as
supporting the economic growth.
Contribution in exports.
Major exports or cash crops of Pakistan are wheat, rice and cotton. 9.8 billion
Bales of cotton are produced per year. Rice crop is produced 4.3 million ton per
year. These agricultural commodities are exported to various countries against
foreign exchange. This foreign exchange is utilized for the import of industrial or
technological equipments such as machinery or automobiles. Further this foreign
exchange is utilized to improve the infrastructure of economy or for improving the
other sector of economy like education, health and investments.
Raw material for industries.
Industries have great importance for the development of any country specially for
developing economies like Pakistan. Industries need raw material to produce finish
goods. In Pakistan agriculture provides raw material to industries. Cotton is very
important agricultural production which is also major export of Pakistan. It is
used as raw material in textile industries. The production of these textile industries
is exported to various countries against foreign exchange. Live stock is also an
agricultural sector. It also plays very important role to export goods by providing
the raw material to various industries like sports goods industries and leather
industries. So in this way agriculture helps to Pakistan economy and its growth
toward development.
Problems
About 70 percent of Pakistan’s population is living in rural areas and is directly
involved in agricultural activities. The major crops of Pakistan are wheat, rice,
maize, cotton and sugar cane. These major crops contributed 7.7 percent last year
against the set target of 4.5 percent. Though the agricultural sector is facing
problems in Pakistan yet the major chunk of money comes from this sector.
No mechanism has been adopted to eradicate the issue of soil erosion and even
after harvesting, nothing is done to improve or restore the soil energy. Therefore,
the fertility of soil is decreasing day by day. Water wastage is also very high in our
country. The archaic method of flood irrigation is still in practice, which wastes
almost 50 to 60 percent of water.
A new irrigation system called drip irrigation system has been introduced in many
parts of the world. This not only saves water but also gives proper quantity of
water according to the needs of plants. Thirdly, owing to old methods of cultivation
and harvesting, Pakistan has low per acre yield, whereas Nepal, India and
Bangladesh are using modern scientific methods to increase their yield. Fourthly,
the small farmers are increasing in our country as the lands are dividing
generation by generation. So, there are large numbers of farmers who own only 4
acres of land. These small farmers do not get credit facilities to purchase seeds,
pesticides, fertilizers etc.
Additionally, a large area of land is owned by feudal and the farmers, who work
on their lands, are just tenants. Fifthly, water logging and salinity is increasing
day by day. No effective measures have been taken to curb it. As the storage
capacity of the dams is decreasing so the water availability per acre is also
decreasing.
TECHNO-ECONOMIC PROBLEMS
The total area of Pakistan is about 79.6 million hectares, out of which only
23.7 million hectares (28%) area is used for agricultural purposes. About 8 million
hectares area is idle and un-utilized. There is vast sub-division and fragmentation
of land holdings, as a result modern technology cannot be applied in agriculture
sector.
Water logging and salinity are twin problems of agricultural sector due to
salinity, deposits of salt in land have appeared on the surface of land and they
have adversely affected the performance of agricultural sector. Water logging and
salinity affect about 0.10 million acre of land in every year. It is not only waste of
land but also reduction in productivity.
Allied products refer to those productions, which are not agricultural but
indirectly, help the farmer to improve his living standard. Pakistan is in-sufficient
in the production of fruits, milk, poultry, fisheries, livestock and forestry. As a
result not only our food quality is poor but also industries such as furniture,
textiles and dairy cannot be developed.
The most important problem of agriculture is its low yield per hectare for
almost every major crop. 45.0% of labor force is engaged in this sector in Pakistan
while it is less than 5% in developed countries. But, other countries of world are
getting higher yield per hectare due to use of modern technology and trained
labor.
Land reforms have been implemented against the will of people. There is an
urgent need to conduct a proper land reform for improving agricultural growth.
Due to this problem agricultural production cannot increase to desired level.
Financial Problems
Basically our farmer is poor and he has low level of income. Agricultural credit
facilities are not common in Pakistan. Credit that can facilitate agriculture is not
available easily. Moreover non-institutional sources are available but these are
not reliable due to high rate of interest. About 50.8% poor borrow from landlords
in Pakistan.
Poor farmers cannot afford the expensive technology from their own resources in
Pakistan. So, supply of agriculture credit at easy terms and conditions is very
necessary. An amount of Rs. 85,177 million is disbursed by commercial banks in
2009 and Rs. 49 billion was distributed by ZTBL. ZTBL issued credit or Rs. 37.4
billion during 2010-11.
Water logging and salinity destroys about one million acre of land every
year in Punjab and Sindh. It reduces our cultivable area. For this purpose,
installation of tube wells, repair of canal banks and drainage of water etc. are
needed. The Ministry of Agriculture proposed to invest Rs. 18.5 billion with the
objective of converting 2, 00,000 acres of irrigated land to drip and shower
irrigation system
.
3) Construction of Dames
High yielding variety seed is not available at suitable price in Pakistan. So,
farmers have to depend upon low quality of seeds that causes 20% reduction in
total production. Government should provide HYV seed at minimum price in this
case.
5) Mechanization
5) Agricultural Research
7) Agro-based Industries
8) Tax Concessions
Mechanization is necessary to remove the problems of agriculture sector.
Government should give tax concession on imports of agricultural technologies to
enhance the process of farm mechanization.
9) Training of Farmers
Our farmers are illiterate and ill trained so, their efficiencies are poor.
Government should start special education programme for farmers and give them
training about farming.
Conclusion
Being an agrarian country, agricultural sector of Pakistan’s economy is still
backward. Use of modern techniques, provision of credit facilities, basic
infrastructure and agriculture research facilities are needed to remove all the
problems of agriculture sector.
Over 45% of the population depends on benefits under the income supplement
programs initiated by the government like “samurdi”. The balance of payments
problem remains unresolved. The persistent trade deficit has led to increased
reliance on foreign aid to meet the country's import requirements, leading to an
inevitably mounting foreign debt.
The agriculture sector contributes about 7.5 percent to the national GDP out of
which fisheries sector contributes around 1.4 percent and livestock sector
accounted for 0.8 percent. Over 30 percent of Sri Lankans are employed in the
agricultural sector. Sri Lanka is a fertile tropical land with the potential for the
cultivation and processing of a variety of crops.
Sri Lanka’s primary food crop is rice. Rice is cultivated during two seasons. Tea is
cultivated in the central highlands and is a major source of foreign exchange.
Vegetables, fruits and oilseed crops are also cultivated in the country. One of
President Sirisena’s top priorities is to increase productivity in the agriculture
sector. There has been low adoption of mechanization in farming. The president
wants to increase mechanization and grow higher value cash crops such as fruit,
flowers, and other export oriented crops.
Sri Lanka imports a variety of agricultural products and food including wheat,
lentils, sugar, fruits, milk and milk products. Further, Sri Lanka is emerging as an
important market for international business and tourism. A variety of upscale
international and local hotels, resorts, and restaurants have opened in Colombo,
Kandy, Galle, and around major tourist sites. They offer a good platform for
introducing new-to-market imported food products.
Additionally, upscale retailers are creating avenues for imported foods and
beverages. Sri Lanka also imports animal feed. Total agriculture, food and
beverage imports were $1.9 billion in 2017. and U.S. suppliers have significant
opportunities in this market.
Importance of Agriculture
Agriculture is the most important sector of the Sri Lankan economy. Even though
its contribution to the gross domestic product declined substantially during the
past 3 decades (from 30 percent in 1970 to 21 percent in 2000), it is the most
important source of employment for the majority of the Sri Lankan workforce.
Approximately 38 percent of the total labor force was engaged in agriculture in
1999.
The most notable feature in this regard is the structural transformation1 where the
manufacturing and services sectors make higher contributions to economic
development, measured in terms of the Gross Domestic Product (GDP), than the
agriculture sector (Central Bank of Sri Lanka, 2005; Sanderatne, 2005). At
present, the manufacturing sector contributes about 26.5% of GDP in Sri Lanka,
while agriculture, together with forestry and fishing sectors, contribute 17.9% of
GDP. The historical data from the Central Bank Annual Reports (1951-2005)
show that this
(1) Increase the supply of food available for domestic consumption (food
security)
(2) Release the labor force engage in agriculture related activities for
specialized.
3) Increase the supply of domestic savings from the agriculture sector (capital
formation),
(4) Increase the supply of foreign exchange earned through exportation of
agricultural committed.
Problems
The agriculture in Sri Lanka during the last two decades suffered from stagnation
if not declining production and productivity. The impact of this was mostly felt on
living standards of farmers operating smallholdings, investors dealing with
functions of market integration and consumers. In this context, the target
achievement of 5 percent growth in agricultural sector per year and sustaining it
over the decades to come would be a major challenge for Sri Lanka.
For the market and people friendly approaches to agricultural development there
are four major strategies that the Sri Lanka can peruse in reaching the above
objectives. These include integration into higher and regional niche markets and
the global economy through regionalization and globalization;
it is this very important aspect of the close communication between farmers and
those in authority whose duty is to closely monitor their work, advice and guide
them, that I wish to highlight as a very important area of activity which has a
direct bearing on the many problems facing the agricultural sector of the country.
It appears as if too many officers are involved with farmers and their activities and
none of them could be held responsible for ensuring the achievement of better
productivity from them.
There is the local agricultural instructor in apparent overall charge at the grass
root level agriculture sector. But he is more confined to a distant office or
attending conferences. In short he is usually unable to spare any time for the
solution of a problem affecting a farmer. Besides this, the other officers involved
with agricultural extension activities are Grama Niladaris and the Samurdhi
Niyamakas. As such officers are all from rural areas I have no complaint
regarding their aptitude to doing agricultural work. The main problem is that they
are not properly trained to do the job of serving the farmers in a committed
manner. Having more than one category of officer to do the same work in a
farming community is absurd.
What I therefore envisage is the establishment of a fully fledged agricultural
university in a suitable location of our country wherein undergraduates could be
given all the instruction and guidance necessary in all aspects of all crop
production and also animal husbandry.
Solutions
Agriculture is an important part of the Sri Lankan economy, engaging one-third of
the working population. However, most farm households have limited knowledge
of modern production methods and struggle to access commercial markets. These
obstacles constrain their ability to compete in the market and increase their
incomes. In response to these challenges, USAID and Chemonics are partnering
on the Supporting Opportunities in Livelihoods Development (SOLID) project,
which trains farm households in the northern and eastern regions of the country on
improved agricultural practices and new technologies. The project focuses on
providing training for value chains in the dairy and horticulture sectors.
Project interventions in the dairy sector have had a sustainable impact on the rural
economy. In the 1970s, local milk production covered 80 percent of Sri Lanka’s
consumption needs, but an open economic policy and growing demand resulted in
a sharp increase in imports of dairy products, especially milk powder. Presently,
domestic milk production covers only 20 percent of national consumption.
The project has also gone a long way in helping farmers incorporate new farming
methods and technology in the horticulture sector. For example, chili production
had hit an all-time low in the north-central Anuradhapura District — a traditional
chili growing area — due to difficulties in marketing and cultivation. To combat
some of the cultivation obstacles, SOLID project staff brought sprinkler systems to
Anuradhapura and helped 62 chili farmers install and implement the new tools.
A leading blue chip company in Sri Lanka, recently announced their latest
innovation, the use of agriculture drones for Precision Agriculture Practices –
Smart Farming. The technology helps to scan fields and distribute agro chemicals
and fertilizer with the minimum human involvement and wastage. This is the first
time in the world that areas are being identified and automatically treated using
the drone and GPS technology.
Manju Gunawardana, one of Sri Lanka’s most recognized and highest awarded
innovators has been working on this project with CIC Holdings for the past 7
years. Gunawardene has already won 3 gold medals and a silver Medal at the
Innovators Competition staged in Geneva, Switzerland. He started his career in
1990 by winning the National inventors title and won the title again in 2012.
Manju is currently working as a consultant to CIC Precision Agriculture and runs
his own research firm In India.
Those are registered users, but if we dig beneath the vanity metric to see how many
users are engaging with the services regularly, we find that 59% of the whole
registered user base was active in December 2016, and that two thirds of those
were power users – active users who were returning to the service. This represents
a ten-fold increase in the number of power users from our last set of projects,
the mFarmer initiative. You’ll have to look into the report series to understand
what we think contributed to this success in detail, because today I want to focus
on the outcomes for end users.
The future needs an agricultural system that produces about 50 percent more food
to feed the world’s 9 billion people by 2050; that provides food for adequate
nutrition; that substantially raises the levels and resilience of incomes and
employment for most of the world’s poor (75 percent of which live in rural areas
and mostly rely on agriculture for their livelihoods); that provides environmental
services, such as sequestering carbon, managing watersheds, and preserving
biodiversity; and that uses finite land and water resources more efficiently. This
system can be achieved with more and better investment in the sector, with more
attention to addressing cross-sectoral linkages between agricultural actions and
outcomes for economic growth, livelihoods security, the environment, nutrition,
and public health.