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ECONOMY OF PAKISTAN

AGRICULTURE SECTOR
Prof Farah Naz Naqvi 1

Sectors of Economy
A nations economy can be divided into various sectors to define the proportion of the population engaged in the activity sector. This categorization is seen as a range of distance from the natural environment. The range starts with the primary sector, which concerns itself with the utilization of raw materials from the earth such as agriculture and mining. From there, the distance from the raw materials of the earth increases.
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Sectors of Economy
Primary Sector The primary sector of the economy extracts or harvests products from the earth. The primary sector includes the production of raw material and basic foods. Activities associated with the primary sector include agriculture, mining, forestry, farming, grazing, hunting and gathering, fishing, and quarrying. The packaging and processing of the raw material associated with this sector is also considered to be part of this sector. In developed and developing countries, a decreasing proportion of workers are involved in the primary sector.

Prof Farah Naz Naqvi

Sectors of Economy
Secondary Sector The secondary sector of the economy manufactures finished goods. All of manufacturing, processing, and construction lies within the secondary sector. Activities associated with the secondary sector include metal working, automobile production, textile production, chemical and engineering industries, aerospace manufacturing, energy utilities, engineering and bottlers, construction, and shipbuilding. Tertiary Sector The tertiary sector of the economy is the service industry. This sector provides services to the general population and to businesses. Activities associated with this sector include retail and wholesale sales, transportation and distribution, entertainment (movies, television, radio, music, theater, etc.), restaurants, clerical services, media, tourism, insurance, banking, healthcare, and law. In most developed and developing countries, a growing proportion of workers are devoted to the tertiary sector.
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Sectors of Economy
Quaternary Sector The quaternary sector of the economy consists of intellectual activities. Activities associated with this sector include government, culture, libraries, scientific research, education, and information technology. Quinary Sector Some consider there to be a branch of the quaternary sector called the quinary sector, which includes the highest levels of decision making in a society or economy. This sector would include the top executives or officials in such fields as government, science, universities, nonprofit, healthcare, culture, and the media. An Australian source relates that the quinary sector in Australia refers to domestic activities such as those performed by stay-athome parents or homemakers. These activities are typically not measured by monetary amounts but it is important to recognize these
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INTRODUCTION
The largest sector of Pakistan economy employing its half of the working force and producing 1/4th of the GDP Provide raw material for two major industries of Pakistan (textile and Sugar ) Creates demand for equipments, machinery, fertilizers, chemicals, electricity and transportation.
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INTRODUCTION
The growth in agriculture sector has not been satisfactory due to old cultivation methods, small holdings, natural catastrophe, pest attacks. Agriculture largely depends on irrigation. With the more commercialization and industrialization of the country, the share of agriculture in GDP is decreasing.
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FEATURES OF PAKISTAN AGRO


THE CLIMATE, IRRIGATION AND LAND UTILIZATION. Pakistan is dry country, 250 mm average rain /per year on more than 3/4th of the country. Summer monsoon (July Aug) brings more rains and enables kharif crops Winter rains (Jan-Feb) enables Rabi crops
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FEATURES OF PAKISTAN AGRO (contd)


However heavy rains and snow fall over Himalayan and Karakoram range creates the greatest rivers which irrigates Pakistan and India. The Indus basin nearly cultivates 32 million hectors. In order to utilize the water of great rivers the British in 1860 laid a network of canals in the area now in Pakistan.
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FEATURES OF PAKISTAN AGRO (contd)


This network runs from the north west to south east DOABAAS. The artificial irrigation system nearly fetch 44% of the cultivatable land in Pakistan. Tubewells are another important source of irrigation (7.21 million hectres.) Through the artificial irrigation system the farmers are able to grow two and in some areas 3 crops every year.
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Although artificial irrigation made it possible to exploit the vast plains for cultivation but poor drainage have raised the underground water level resulted in water logging and salinity. 28 % of cultivatable land is affected 1.614 Million hectors in Punjab, 1.507 M/H in Sind, 0.382 M/H in NWFP and Balochistan, The Total affected area is 3.159 Million Hectors.

PROBLEMS OF WATERLOGGING AND SLALINITY

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Weights in Agriculture Sector


Major Crops (Wheat, Cotton, Paddy, and Sugar Cane) 34% Minor crops 12.4% Live Stock 49.1% Fisheries 1.4% Forestry 2.9%

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Ownership and tenancy


There are three broad institutional arrangements. 1. Owner cultivation, 2. Owner-cum- tenant cultivation, 3. Pure tenant cultivation. 13.75 M people are employed in agriculture and over 10 Million people are tenants. In tenancy 20% is fixed rent tenancy and 80% is crop sharing tenancy.
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PHASES OF AGRICULTURAL GROWTH


4 Phases Phase 1 up to 1960 in which agricultural sector was totally neglected and growth was only 1.5% 1960-65 phase II, growth 3.9% 1964-70 it was 7.8% 1970-77 declined to 1.67 % due to severe floods in Pakistan. 82% of population was dependent of agri in 1951 which is 67% in 2006. 42% of total employed force was in agriculture in 2003-4
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RURAL DEVELOPMENT
Rural development programs were developed to reduce poverty, raise standard of living in rural areas. These programs were given due importance in five years development programs.. The main features of these programs were health and sanity, school education, market development, construction of roads from village to market and construction of bricked water courses.
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CROPS
TWO PRINCIPAL CROP SEASONS KHARIF ( Sowing begins in March April and Harvesting in October , November) and RABI (Sowing in November December and Harvesting in April May) Paddy, Sugar cane, cotton, maize, juwar and bajra are major Kharif crops Wheat, barley, mustard are major Rabi crops.
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COTTON
The most important value added crop of the country 8.2% and 2% of GDP. The estimated out put of cotton is nearly more than 11 Million bales. The total cultivation is 2.794Million hectors. The production and market is normally unstable due to pest attacks, environmental uncertainty and price offered.

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PADDY
2nd largest cash crop which accounts for 5.4% value addition in agriculture and 1.3% of GDP. Production in 2003-4 was 4.848 Million tons. 2.461 Million hectors is cultivation

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SUGER CANE
Value addition to Agriculture is 4.2% and GDP is 1% 1.074 Million hectors are cultivated 53.419 Million tons is estimated production every year.

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WHEAT
13.8% accounts for value addition to agriculture and 3.4% to GDP Area of cultivation is 8.176 Million hectors. Estimate for provisional out put is 19.777 Million tons.

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Minor crops
Gram Tobacco, mustard, bajra, juwar, barley, maize Oil seeds (sun flower, canola) Pulses Chilies Potatoes Onion Garlic
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FARM INPUTS
Fertilizer: Two types of fertilizers Bio and
Chemical. Bio fertilizer is prepared from natural ingredients and the chemical fertilizer is prepared in factories. The natural fertilizer is unable to fulfill the huge requirement of fertility of lands. Pakistan has been importing the fertilizer but now the imports are decreasing and soon Pakistan will be self sufficient in fertilizer production.
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Farm Inputs (Seeds)


A healthy seed guarantees a good crop. Government has established institutions for production, processing and marketing of healthy and improved seeds so that crops may be prevented from diseases. High bred seeds are being produced in public sector organizations and multi national companies.
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Farm Inputs (Mechanization)


The crop yield has been low in Pakistan due to inefficient farming facilities. Conventional tools and obsolete techniques are being implied in cultivations. The government is encouraging the use of modern technology and tools in agri farming. It is providing subsidies, relaxing the taxes and duties on agri based imports and manufacturing.

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CROP PROTECTION
Uses of Pesticides and insecticides. Manufacturing and import of plant protection chemicals is being encouraged by government. Departments are conducting surveys and educating farmers about the protection of crops from pests and insects and herbs.

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FARM INPUTS (IRRIGATION)


The average rainfall in main agricultural areas is very low. The shortage of water is covered through the largest canal system of the world. The Government is developing the water resources, providing facilities for storage of rain water, constructing the dams, headwork's, barrages for irrigation.
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AGRICULTURAL CREDITS
The cost of inputs has been substantially increased due to use of fertilizers, pesticides, herbicides, insecticides and mechanization. Government also wants to increase the agriculture production in the country and encourages farmers through different incentives to increase the cultivation
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AGRICULTURAL CREDITS
In order to coup with the working capital requirement and cost of development of lands for cultivation the Government established specialized agri based financial institutions. Zarai Taraqiati Bank, Punjab Provincial Cooperative Bank. Now the SBP has imposed the mandatory requirement for all the scheduled commercial banks to extend a certain portion of their credit portfolio to agricultural sector.
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AGRICULTURAL CREDITS (Contd)


Credit to women program Micro Credit Schemes.

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LIVE STOCK
The important sector of agriculture which accounts for 49.1% of agri output and 11.4% of GDP. The livestock is integral part of every rural house hold 30 to 35 Million people of rural areas are engaged in live stock production and development. The total live stock population in Pakistan in 2004 was 138.2 Million nearly equivalent to Pakistan human population.
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POULTARY
An important substitute of beef and mutton The government is encouraging poultry production in Pakistan. Provision of easy terms credit, import of poultry plants on duty free basis. Establishment laboratories. Poultry processing plants.
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FORESTRY
25% of the land should be covered with forests for ecological balance In Pakistan it is only 4%. Forests are being removed from mountain areas causing severe environmental problems like shortage of rain fall, increase in temperature, land sliding and dams are being filled with mud.
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FISHRIES
The natural place for Fish is sea, rivers, lakes etc. However due to pollution in water reservoirs, non seasonal fishing and depletion of water resources has seriously damaged the fisheries in Pakistan. The government is trying to promote the fish farming through easy terms loans to fish farmers.
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Heavy Inputs Lead to Low Output


Largest commodity production sector 52% of the countrys manpower is engaged in it. It is 25 % of GDP and 23% of GNP Economic and social importance of this sector compelled the governments to made the heavy investments in this sector.
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Heavy Inputs Lead to Low Output


Allocations were made in billions in each five years plan. Allocations for irrigation system has been 10% of the five years development plans. Subsidies in fertilizer and agricultural machinery and equipments. Availability of credit facilities for production and development from the financial sector.
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Heavy Inputs Lead to Low Output


Research and Development support. Supply of quality seeds, fertilizers, soil testing, research on crop and live stock diseases. Storage facility in shape of PASSCO Pakistan Agriculture research council Ministry of Agriculture and Departments of Agricultures and livestock development.
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Heavy Inputs Lead to Low Output


Despite heavy grants, subsidies, irrigation facilities, credit availability the agriculture sector could not come up with the matching out put. Supply of vegetables, grains, cotton, fruits is less than the demand . Every year Pakistan has to import grain, cotton, vegetables and fruits despite being an agriculture based society.
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POSSIBLE REASONS FOR LOW OUT PUT.


Most of the improved outputs are available to limited number of farmers. Existence of feudalism who holds the large portion of agricultural land. The feudal normally cultivate the land through tenants and are normally not interested in increased productivity. Unawareness of modern technology,
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POSSIBLE REASONS FOR LOW OUT PUT.


Cultivation on individual basis instead of cooperative basis. Misuse of farm credit. (Most of the farm credit is availed by influential people and it does not reach to the deserving farmers. Water logging and salinity. Nearly 52% of cultivatable land is effected by this phenomena.
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POSSIBLE REASONS FOR LOW OUT PUT.


Natural disasters. Poor storage facility. Difficult access of agriculture products from farm to market. Exploiting character of middlemen. Poor net work of roads connecting the rural area with the urban area.
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