CURRENT PAKISTAN ECONOMY IN AGRICULTURAL

Pakistan's agriculture sector plays a central role in the economy as it contributes 18.9 percent
to GDP and absorbs 42.3 percent of labour force. ... According to the 6th Population and Housing Census
of Pakistan 2017, the country's population is growing at the rate of 2.4 percent per annum.
Performance during 2017-18 During 2017-18, agriculture sector recorded a remarkable growth of 3.81
percent and surpassed its targeted growth of 3.5 percent and last year’s growth of 2.07 percent. This
stemmed from higher yields, attractive output prices and supportive government policies, better
availability of certified seeds, pesticides, agriculture credit and intensive fertilizers offtake. The crops
sector performed well and witnessed a growth rate of 3.83 percent against the last year’s growth of 0.91
percent. The growth in sub sectors, important crops, other crops and cotton ginning registered a
significant growth of 3.57 percent, 3.33 percent and 8.72 percent, respectively, against last year’s growth
of 2.18 percent, -2.66 percent and 5.58 percent respectively. Major Kharif crops such as sugarcane and
rice surpassed their production targets during 2017-18 by recording growth of 7.45 percent and 8.65
percent, respectively, while cotton crop production managed to exceed last year’s production level by
recording growth of 11.85 percent. Wheat and maize crop production remained subdued, as it witnessed
decline of 4.43 percent and 7.04 percent, respectively. Other crops having share of 10.80 percent in
agriculture value addition and 2.04 percent in GDP, grew by 3.33 percent on the back of increase in the
production of fodder, vegetables and fruits. Livestock having share of 58.92 percent in agriculture and
11.11 percent in GDP, recorded a growth of 3.76 percent compared to 2.99 percent during corresponding
period last year. The Fishing sector having share of 2.10 percent in agriculture value addition and 0.40
percent in GDP, grew at 1.63 percent compared to growth of 1.23 percent in same period last year.
Forestry sector having share of 2.09 percent in agriculture and 0.39 percent in GDP posted a positive
growth of 7.17 percent against the negative growth of 2.37 percent recorded in same period last year due
to higher timber production reported by Khyber Pakhtunkhwa. (Table 2.1). Pakistan has two cropping
seasons, "Kharif" being the first sowing season starting from April-June and is harvested during
OctoberDecember. Rice, sugarcane, cotton, maize, moong, mash, bajra and jowar are “Kharif" crops.
"Rabi", the second sowing season, begins in October-December and is harvested in AprilMay. Wheat,
gram, lentil (masoor), tobacco, rapseed, barley and mustard are "Rabi" crops. Pakistan’s agricultural
productivity is dependent upon the timely availability of water.
The Agriculture sector continues to play a central role in Pakistan's economy. It is the second largest
sector, accounting for over 21 percent of GDP, and remains by far the largest employer, absorbing
45 percent of the country's total labour force.
Agriculture is a vital sector of Pakistan's economy and accounted for 25.9 percent of GDP in
1999-2000, according to government estimates. The sector directly supports three-quarters of the
country's population, employs half the labor force , and contributes a large share of foreign
exchange earnings. The main agricultural products are cotton, wheat, rice, sugarcane, fruits, and
vegetables, in addition to milk, beef, mutton, and eggs. Pakistan depends on one of the world's
largest irrigation systems to support production. There are 2 principal seasons. Cotton, rice, and
sugarcane are produced during the kharif season, which lasts from May to November. Wheat is
the major rabi crop, which extends from November to April. The key to a much-needed
improvement of productivity lies in a more efficient use of resources, principally land and water.
However, change is dependent on the large landowners who own 40 percent of the arable land
and control most of the irrigation system, which makes widespread reform difficult. Assessments
by independent agencies, including the World Bank, show these large landholdings to be very
unproductive. Pakistan is a net importer of agricultural commodities. Annual imports total about
US$2 billion and include wheat, edible oils, pulses, and consumer foods.
Pakistan is one of the world's largest producers of raw cotton. The size of the annual cotton
crop—the bulk of it grown in Punjab province—is a crucial barometer of the health of the overall
economy, as it determines the availability and cost of the main raw material for the yarn-spinning
industry, much of which is concentrated around the southern port city of Karachi. Official
estimates put the 1999-2000 harvest at some 11.2 million 170-kilogram bales, compared with the
1998-99 outturn of 8.8 million bales and the record 12.8 million bales achieved in 1991-92. The
government recently actively intervened in the market to boost prices and to encourage
production. A major problem is that the cotton crop is highly susceptible to adverse weather and
pest damage, which is reflected in crop figures. After peaking at 2.18 million tons in 1991-92,
the lint harvest has since fluctuated considerably, ranging from a low of 1.37 million tons in
1993-94 to a high of 1.9 million tons in 1999-2000.
The 2000-01 wheat crop was forecast at a record 19.3 million tons, compared to 17.8 million
tons produced during the previous year. This increase is due largely to favorable weather and a
25-percent increase in the procurement price to about US$135 per ton. About 85 percent of the
crop is irrigated. Despite the record production, Pakistan will continue to be a major wheat
importer. The government has imported an average of US$2.4 million annually over the past 5
years. The United States and Australia are the major suppliers. Demand for wheat is increasing
from Pakistan's rapidly growing population as well as from cross-border trade with Afghanistan.
Pakistan is a major rice exporter and annually exports about 2 million tons, or about 10 percent
of world trade. About 25 percent of exports is Pakistan's famous fragrant Basmati rice. Rice is
Pakistan's second leading source of export earnings. Private traders handle all exports. Pakistan's
main competitors in rice trade are Thailand, Vietnam, and India.
Tobacco is grown mainly in the North-West Frontier Province and Punjab and is an
important cash crop . Yields in Pakistan are about twice those for neighboring countries largely
due to the extension services provided by the industry. Quality, however, is improving only
slowly due to problems related to climate and soil. Farmers have started inter-cropping tobacco
with vegetables and sugarcane to increase returns. About half of the total production is used for
cigarette manufacturing and the remainder used in traditional ways of smoking (in hand-rolled
cigarettes called birris, in water pipes, and as snuff). The share of imported tobacco is increasing
gradually in response to an increased demand for high-quality cigarettes.
Minor crops account for only 5 percent of total cultivated area; these include oilseeds (sunflower,
soybean), chilies, potatoes, and onions. Domestic oilseed production accounts only for about 25
percent of Pakistan total edible oil needs. As a result, Pakistan spends more than US$1 billion
annually in scarce foreign exchange to import edible oils, while its oilseed processing industry
operates at less than 25 percent of capacity due to an inadequate supply of oilseeds. For 2000-01
total oilseed production was forecast to decrease 10 percent to 3.6 million tons. The government
has highlighted development of the oilseed sector as a priority.
Pakistan's fishing industry is relatively modest, but has shown strong growth in recent years. The
domestic market is quite small, with per capita annual consumption of approximately 2
kilograms. About 80 percent of production comes from marine fisheries from 2 main areas, the
Sindh coast east from Karachi to the Indian border, and the Makran coast of Baluchistan. Ninety
percent of the total marine catch is fish; the shrimp which constitute the remainder are prized
because of their greater relative value and demand in foreign markets. During 1999-00, total fish
production was 620,000 tons, of which 440,000 tons consisted of sea fish and the remainder were
fresh-water species. About one-third of the catch is consumed fresh, 9 percent is frozen, 8
percent canned, and about 43 percent used as fish meal for animal food.
Livestock accounts for 40 percent of the agricultural sector and 9 percent of the total GDP.
Principal products are milk, beef, mutton, poultry, and wool. During 1999, the livestock
population increased to 120 million head. That same year Pakistan generated 970,000 tons of
beef, 640,000 tons of mutton, and 190,000 tons of poultry. In an effort to enhance milk and meat
production, the government recently launched a comprehensive livestock development project
with Asian Development Bank assistance. Poultry production provides an increasingly popular
low-cost source of protein. Modern poultry production is constrained by high mortality, high
incidence of disease, poor quality chicks, and poor quality feed, combined with an inadequate
marketing system. Frozen poultry have only recently been introduced.
Forests cover an area of 4.2 million hectares or about 5 percent of the total area of Pakistan. The
principal forest products are timber, principally for house construction, furniture, and firewood.
Many of the country's wooded areas are severely depleted as a result of over-exploitation. The
government has restricted cutting to protect remaining resources—though corruption often
jeopardizes environmental efforts—and has lowered duties to encourage imports. Forestry
production has since declined from 1.07 million cubic meters in 1990-91 to 475,000 cubic meters
in 1998-99. Pakistan imports an estimated US$150 million of wood products annually to meet
the requirements of a growing population and rising demand by a wealthy elite