Agriculture Sector

Back Bone of the Economy

Outlines
 Introduction and Importance of Agriculture Sector
 Performance of Agriculture Sector
 Major Issues & problems of Agriculture sector
 Suggestions/Solutions of Agriculture Problems

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 Agriculture Sector
Back Bone of the Economy
Importance of Agriculture
Agriculture sector is indispensable to Pakistan’s economic growth,
food security, employment generation and poverty alleviation.
65-70 percent of the population depends on agriculture for its
livelihood (PES-2020-21)
 GDP contribution
 Agriculture accounts for about 19.2 % of GDP
 Employment Contribution
 Employs about 38.5 % of the labor force
 Product contribution
 Provision of cheaper intermediate inputs to other sectors of economy
 Factor contribution
 Releases labor for other sectors of economy
 Foreign exchange Contribution
 Agriculture products and agro-based manufacturing are the key
exports of Pakistan---------- Accumulate foreign exchange reserve 2
 Agriculture Sector
Back Bone of the Economy

Year Agriculture growth

1956-58 2.1
1958-69 4.1
1969-71 3.6
1971-73 2.6
1973-78 2.4
1978-88 4.1
1988-93 3.8
1993-97 5.9
1998-01 4.2
2001-08 3.0
2008-13 2.3
2014-20 2.2 3
 Agriculture Sector
Back Bone of the Economy

Year Agriculture percentage

share in GDP
1949-50 53.2
1959-60 45.8
1969-70 38.9
1979-80 30.6
1989-90 25.8
2000-01 24.0
2006-07 21.9
2013-14 21.0
2014-15 20.7
2016-17 19.27
2017-18 18.99
2020-21 19.19 4
 Agriculture Sector
Back Bone of the Economy

1. Major Crops
1. Cotton: Provides input to textile industries
 0.6 percent contribution in GDP & 3.1 percent stake in agriculture value
addition
 Pakistan ranked at 5th position in the production of cotton
In the last couple of years a significant decline has been observed in the
cotton crop production due to multiple challenges
i.Non-profitability of the crop as compared to maize, paddy, and sugarcane
ii.Biotic stresses (insect attack) of white fly and pink bollworm
iii.Abiotic stresses (climate change, heat stresses, extreme rainfalls etc.)
iv.Poor agricultural practices
v.High cost of inputs
vi.Lack of research (inadequate progression for new varieties of seeds) which can
withstand pests, diseases and climate stresses.
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 Agriculture Sector
Back Bone of the Economy
2. Sugarcane:
Sugarcane is a high value cash crop of Pakistan-----provides
inputs to sugar industries…….the second largest agro-industry after
textile.
Contributes 3.4 percent in agriculture’s value addition and 0.7 in

GDP (2021).
During 2020-21 sugarcane was cultivated on 1,165 thousand

hectares-------that production is 81 million tonnes.

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 Agriculture Sector
Back Bone of the Economy

3. Rice:
Rice is an important food as well as cash crop…the
second main food crop after wheat and the second major
exportable commodity after cotton.
Rice contributes 3.5 percent of value added in agriculture

and 0.7 percent in GDP.

In 2020-21 rice was cultivated on 3,335 thousand hectares

with the 8.4 million tonnes.

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 Agriculture Sector
Back Bone of the Economy

4. Wheat:
Wheat is Pakistan’s main staple crop…..essential for the food
security of the country.
Wheat accounts for 9.2 percent of the value added in

agriculture , and 1.8 percent in GDP (2021).

During 2020-21 area under cultivation is 9,178 thousand

hectares with the production of 27.29 million tonnes.

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 Agriculture Sector
Back Bone of the Economy
5. Maize:
Maize is the third important cereal crop of Pakistan after
wheat and rice.
Maize contributes 3.4 percent to the value added in

agriculture and 0.6 percent to GDP.

During 2020-21 maize was cultivated on the of 1,418

thousands hectares with the production of 8.46 million

tonnes.

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 Agriculture Sector
Back Bone of the Economy

Other Crops:
Area and Production of other Crops (2020-21)
Crops Area (000 Hectares) Production (000 Tones)
Bajra 350 266
Jowar 126 96
Gram 873 261
Barley 41 47
Mustard 222 488
Tobacco 51 133
Masoor 6.5 4.9
Moong 231.1 204.5
Mash 11 7
Potato 234 4681
Onion 153.8 2099
Chilies 45.7 103.7

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 Agriculture Sector
Back Bone of the Economy

Oilseeds:
Area and Production of Major Oilseed Croups (2019-20)
Crops Area Production (000 Tonnes)
(000 Acres) Seed Oil
Cottonseed 6,243 2,342 281
Mustard 984 561 179
Sunflower 250 146 55
Canola 125 78 30
Total 7,602 3,127 545

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 Agriculture Sector
Back Bone of the Economy

2. Livestock & Poultry

 It contributes 11.5 per cent of Pakistan's GDP, which is more than the crop
sector.
 It contributes more than half of the value added (60.1%) in the agriculture
sector (2020-21).
 More than 8 Million rural families are engaged in livestock production……
and getting more than 35-40 percent of their income from this sector.
Estimated Livestock Population (2020-21)
Species Population (Million Nos)
Cattle 51.5
Buffalo 42.4
Sheep 31.6
Goat 80.3
Camels 1.1
Horses 0.4
Asses 5.6
Mules 0.2
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 Agriculture Sector
Back Bone of the Economy
Poultry
Poultry sector is one of the most important sub-sectors of livestock sector
as it provides employment to more than 1.5 million people.
During 2020-21 Poultry recorded Rs. 750 billion of investment…placed
11th position among the largest poultry producers o the world.
Estimated Domestic Poultry (2020-21)
Types Population (Million Nos)
(000 Tonns)
Domestic Poultry
Cocks 12.85
Hens 44.72
Chicken 33.65
Eggs 4472
Meat 127.22 (000 Tones)
Duck, Drake and Ducking
Eggs 16.47
Meat 0.50
Commercial Poultry
Layers 64.01
Broilers 1407.73
Breeding Stock 14.34
Day old chicks 1470
Eggs 16797
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 Agriculture Sector
Back Bone of the Economy
3. Fishery
Fisheries as a subsector of agriculture, plays an important role in
the national economy and towards food security of the country
by reducing pressure on demand for mutton, beef, and poultry.
 Pakistan have a coastline of about 814 km and fishery is a big
source of livelihood
 It is also a major source of export earning…During FY 2021 (July-
March), 136.37 thousand metric tonnes of fish and fishery
preparation valued at US$ 303.60 million were exported
 Major buyers are China, Thailand, Malaysia, Middle East, Sri-
Lanka, and Japan.

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 Agriculture Sector
Back Bone of the Economy
4. Forestry
 About 4% of land in Pakistan is covered with forest
 The forest of Pakistan are a source of food, lumber, paper, fuel
wood, medicine as well as used for purposes of wildlife
conservation
 Forestry accounts for 0.2 percent of GDP
According to World Wildlife Fund (WWF)
Every year thousands of hectares of forest is destroyed, making way for various
human activities. In areas where the forest remains, its richness and health is
declining.
Population boom coupled with poverty and lack of awareness has led to
illegal and unsustainable logging, overharvesting of wood for fuel and
charcoal, and increased small-scale farming that continues to reduce the
forest cover of Pakistan.
Forest fires, natural hazards along with pests and diseases further contribute
to the declining rate. All this threatens the survival of countless species, fuels
climate change, jeopardizes people’s livelihoods and undermines the vital 15
 Agriculture Sector
Back Bone of the Economy
Major Issues of Agriculture
 Uneconomic Landholdings
 Low Per Acre Yield
 Inadequate Agriculture Research and lack of Coordination
 Poor Rural Infrastructure
 Lack of water supply
 Insufficient use of inputs
 Lack of irrigation facilities
 Problems of Land Reforms
 Scarcity of High Yielding Varieties
 Subsistence Farming
 Improper Crop Rotation
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 Agriculture Sector
Back Bone of the Economy
Major Issues of Agriculture
 Low cropping intensity
 Defective land tenure system
 Limited Cultivable Area
 Water logging and Salinity
 Lack of Credit Facilities
 Consumption Oriented Problems
 Farmer Litigation
 Joint family System
 Political Instability
 Lack of Modern Technology
 Under Utilization of Land
 Lack of Education
 Natural Problems
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 Agriculture Sector
Back Bone of the Economy

Soil erosion
 Removal of top soil faster than the soil
forming processes can replace it, due to
natural, animal, and human activity (over
grazing, over cultivation, forest clearing,
mechanized farming, etc.).
 Soil erosion results in land infertility It is
estimated that 20 percent of the world's
top soil was lost during 1950-1990, and its
loss is continuing at a fast.
 Average yield in Pakistan is lower than
other countries where layer of fertile soil
is only 4 inches.
 Agriculture Sector
Back Bone of the Economy

Water wastage is very high

• The ancient method of flood irrigation is
still in practice in whole of the country
which wastes almost 50 to 60 percent of
water.
• The irrigation system of Pakistan needs
improvement as about 67% of the land is
irrigated with canals.
 Agriculture Sector
Back Bone of the Economy
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.
 Agriculture Sector
Back Bone of the Economy

Water logging and salinity

 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.
 Agriculture Sector
Back Bone of the Economy
Communication gap
 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 programs related to the new agricultural techniques and
allied sciences. But these programs 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.
 Availability of these experts is not ensured in rural areas as they are
reluctant to go there

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 Agriculture Sector
Back Bone of the Economy

Problems of farmers
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.
 Agriculture Sector
Back Bone of the Economy

Underutilization of cultivable land

 Pakistan is rich in fertile land yet the land is being wasted in different
ways.
 79.6% million hectors of land is cultivable where as only 20.43%
million hectors is cultivated.
 A major area is owned by feudal. It is difficult to manage such a huge
area so only that part is cultivated which is easy to manage, the rest is
left ignored.
 The rise of industrialization has given threat to this sector. People
are migrating to cities and cities are expanding, thus new towns and
colonies are constructed on fertile lands.

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 Agriculture Sector
Back Bone of the Economy

False policies of government

 18 billion in budget was allocated for agricultural sector
of Pakistan
 withdrawal of subsidy on pesticides and electricity on the
conditions of IMF has done serious damage to this sector.
 Whereas America and European union are giving a huge
amount of subsidy to their farmers
 Support price policy is very weak. In Punjab sugar cane is
sold 200 Rs. Per 40 kilograms. It was purchased and later
on stocked by industrialist .

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 i o ns
ol ut
S
 Feudalism should be abolished
 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.
 Federal Seed Certification and Federal
Seed Registration

 Should take 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.
 A new agricultural policy
 A new agricultural policy must be framed in which
following steps should be focused on.
 Small farmer must be focused
 Consumer friendly policy must be projected.
 Productivity enhancement program must be
constituted to adjust and support prices.
 Different agricultural zones should be
introduced
 As Multan in famous for its mangoes and citrus
fruits so it must be made mango, citrus zone by
which perishable products should be exported.
 This would enhance agro based industry and
increase foreign reserves.
 Pakistan agricultural storage & services
corporation needs to take steps in this regard.
 Latest machinery should be provided
to the farmers
• To increase the per acre yield , the availability of equipment
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.-
• 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.
 Dams should be constructed
 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.
 Some other Suggestions/ Solutions

 Provision of Credit Facilities

 Tax Concessions
 Training of farmers
 Agriculture Research
 Water Logging and Salinity Control
 Provision of HYV

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