Agriculture and Industry Sector In Pakistan

Presented To :
Prof. M. Azmat

Presented By :
Bilawal Shabbir ( 1210 )
Waqas Sattar ( 1205 )
Ch. Awais Zahid ( 1211 )
Arham Javed ( 1215 )
 AGRICULTURE
ëEconomy of every state depends on three sectors i.e. agriculture, industry
and commerce.

ë These three are interrelated with each other as the progress or retrogress
of one sector effects the other two.

ëPakistan is an agricultural state thus agriculture gains are of much

importance than any other sector.

ëImportance of this sector is manifold as it feeds people, provides raw

material for industry and is a base for foreign trade.

ëForeign exchange earned from merchandise exports is 45% of total

exports of Pakistan. It contributes 26% of GDP and 52% of the total
populace is getting its livelihood from it. 67.5% people are living in the
rural areas of Pakistan and are directly involved in it.
 AGRICULTURE
The Backbone off Pakistan's Economy

ã Agriculture is the mainstay of Pakistan's economy.

ã Nearly 26% of total output (GDP)

ã 52% of total employment is generated in agriculture.

ã It also contributes substantially to Pakistan¶s exports.

ã There are two crops in Pakistan i.e. Rabi & Kharif›

Crop | Sowing season | Harvesting season

Kharif | April ± June | Oct ± Dec
Rabi | Oct ± Dec | April ± May

ã Some Major Crops In Pakistan

ã Cotton
ã Wheat
ã Rice
ã Sugarcane
Area Under Major Crops (000 Hectares)
 Major Causes of Agricultural Problems in
Pakistan
i. No mechanism has been adopted to eradicate the 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. The thickness of fertile layer of soil in
Pakistan is more than 6 inches but the average yield is lower than other countries
where layer of fertile soil is only 4 inches.

ii. Water wastage is very high in our country. The archaic method of flood irrigation
is still in practice in whole of the country 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.

iii. Owing old methods of cultivation and harvesting, Pakistan has low yield per acre
that means the average crop in Pakistan is just 1/4th of that of advance states.
Where as Nepal, India and Bangladesh are using modern scientific methods to
increase their yield per acre. For this purpose, these states are using modern
machines to improve their yield.
 Major Causes of Agricultural Problems in
Pakistan
Iv . The small farmers are increasing in our country as the lands are dividing generation by
generation. So, there are large number 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. This uncertain situation of occupancy neither creates incentive
of work nor does attract capital investment.

V . 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. Therefore, the farmers are installing more and
more tube wells to irrigate their crops. This is why salinity is becoming the major issue
in most parts of Punjab and Sindh.

Vi . Focusing more on land, crops and yield problems the man behind the plough is always
ignored. While formulating the 5 or 10 years plan, no emphasize has been laid on the
importance of solving the problems of farmers. Most of the farmers are illiterate, poor
and ignorant. In this wake the loans issued by ADBP or other banks are used by them in
other fields like repayment of debts, marriage of daughters etc, in spite of its befitting
use in agricultural sector.
 Major Causes of Agricultural Problems in
Pakistan

Vii . The only mean of communication in rural areas is T.V or radio so it is urgently
needed on the part of these mass communication resources to air the programmes
related to the new agricultural techniques and allied sciences. But these programmes
should be telecast in regional or local languages. Because lack of guidance is the main
reason of farmers backwardness. The communication gap between well qualified
experts and simple farmers have not been bridged. Availability of these experts is not
ensured in rural areas as they are reluctant to go there.
 Solutions For Agricultural Problems In Pakistan:
ã Feudalism should be abolished and lands should be allotted to poor farmers. This will
enhance the productivity and per acre yield of all the crops in Pakistan. Taxes
should be levied on Agricultural income but not without devising limit of land holding.
Other wise it would directly effect poor farmers.

ã Federal Seed Certification and Federal Seed Registration is approved but it should taken
responsible steps in approving seeds as it has already approved 36 new kinds of seeds.
Specially, those seeds should be banned which can create pest problem in near future. These
seeds are of cotton mainly. International seed makers are providing those seeds which are
not successful in our country as these seeds are not tested on our soil.

ã A new Agricultural policy must be framed in which following steps should be focused on.
- Small farmer must be focused. The major problems of small farmers should be solved
first.
- Consumer friendly policy must be projected.
- Productivity enhancement programmes must be constituted to adjust and support prices.
Solutions For Agricultural Problems In Pakistan:
ã Surplus vegetables and fruits must be exported. A Rs 39 million scheme has been
approved for the current fiscal year for establishment of agro export processing zone
for fruits, vegetables and flowers. This will also help in commercializing agriculture.

ã Latest machinery should be provided to the farmers to increase the per acre yield.
This provision should be on easy installments so that the farmers can avoid the
burden of loans. If possible subsidy should be given by the government of modern
machinery.

ã Modern techniques of irrigation can solve the problems of irrigation in Pakistan.

this includes drip irrigation and sprinkle irrigation methods. By using this technique
the farmers can save a huge some of money which he pays for irrigation through
tube wells and tractors.

ã More dams should be constructed on Indus, Jhelum and Chenab rivers. This will
enhance the storage capacity of water and reduce the per acre cost of all the crops.
This step will also reduce the salinity chances of the lands as less tube well water will
be flooded to the lands which cause salinity.
 Industry
ãPakistan's manufacturing sector accounts for about 25% of GDP.

ãCotton textile production and apparel manufacturing are Pakistan's

largest industries, accounting for about 51.4% of total exports.

ãOther major industries include food processing, beverages,

construction materials, clothing, and paper products.

ãManufacturing sector growth has slowed in the last two years due to
energy shortages and capacity constraints.

ãHowever, the sector is forecast to grow 5.5% for FY 2010. Despite

government efforts to privatize large-scale units, the public sector
continues to account for a significant proportion of industry.
 Industry

ãThe government seeks to diversify the country's industrial base and

bolster export industries.

ãNet foreign investment in Pakistani industries is only 0.5% of GDP.

Pakistan's search for additional foreign direct investment has been
hampered by concerns about the security situation, domestic and
regional political uncertainties, and questions about judicial
transparency.
 Some Major Industries in Pakistan

i. Cotton

ii. Cement

iii. Fertilizer

iv. Edible Oil

v. Sugar

vi. Steel

vii. Tobacco

viii. Chemicals
Major Causes of Industrial Problems in
Pakistan
ã Power shortage

ã Lack of trained manpower

ã Lack of proper infrastructure

ã Inefficiency

ã Lack of products innovation resulting in concentration of

industries in some specific sectors.

ã Changing political and economic policies.

ã Bad law and order situation resulting in lower investment in

industries
Major Causes of Industrial Problems in
Pakistan

ã Corruption in related government agencies and so many govt.

agencies intervention.

ã Higher interest rate.

ã Progressive Taxation System i.e. more production, more tax.

ã Smuggling

ã Shortage of Capital
 Solutions For Industrial Problems In
Pakistan:
ã Increase Power resources

ã Trained manpower

ã Make A good infrastructure

ã Do not Change political and economic policies .

ã Make Good law and order situation Which resulting in

Higher investment in industries
 Solutions For Industrial Problems In
Pakistan:
ã Reduce Corruption in related government agencies and so many
govt. agencies intervention and make take some strict action
against corruption.

ã Interest rate on loans should be reduce.

ã Take some serious action against Smuggling to stop it.