TOPIC: AGRICULTURE IN PAKISTAN

PAKISTAN ECONOMIC
POLICY
GROUP MEMBERS:

Syeda Tahreem Basalat (20288)

Fatima Nadim (21292)
Ali Asmar (21082)
AGRICULTURAL SECTOR OF PAKISTAN
► A g r i c u l t u r e contributes 18.5 percent to country’s GDP and
provides 38.5% employment to national labour force.
► Increased to 2336888 PKR Million in 2019 from 2284561 PKR Million
in 2018
► the sector grew by 0.85 percent, much lower than the target of
3.8% set at the beginning of the year
► Agriculture sector recorded a remarkable growth of 3.81 percent in
previous year 2017-18 by 2.07% (2016-17)
► Agriculture income so standard of living increase demand for
durable product eventually industrialization increase
AGRICULTURAL SECTOR OF PAKISTAN
Growth Rate 2018-2019 Analysis
CROP GROWTH CROP GROWTH
RATE RATE
SUGARCANE 7.4 SUGARCANE -19.4
RICE 8.7 RICE -0.33
COTTON 11.8 COTTON -0.18
WHEAT -4.4 WHEAT 0.5
MAIZE -7.04 MAIZE 0.69
OTHER CROPS 3.33 OTHER CROPS 2.05

AGRICULTURAL SECTOR OF PAKISTAN

Growth Rate 2018-2019 Analysis
AGRICULTURAL SECTOR OF PAKISTAN
SIGNIFICANCE

Contribution to Source of Pre-Requisite Shift of

National Income Food for Raw Material Manpower
Supply

Source of
Extension of Employment
Creation of Foreign
market for Opportunities
Infrastructure Exchange for
industrial output for Rural People
the Country
 Water shortage

Agriculture income tax

ISSUES IN THE mixing of poor & good qualities are common

AGRICULTURAL Agriculture pricing policy

SECTOR storage facilities

sources of transportation are insufficient

Mechanization
 a big loss to the farmers.

Rural credit

Environmental constraint
ISSUES IN THE
AGRICULTURAL Technological constraint
SECTOR Agronomic constraint

Social economic

constraint
Institution constraint
5 MAJOR CROPS OF PAKISTAN
 5 Major Crops of Pakistan.
➢ Cotton
➢ Wheat
➢ Rice
➢ Sugarcane
➢ Maize
Other Crops
Bajra, Jowar, Gram, Barley, Rapeseeds and
Mustard and Tobacco etc
WHEAT
➢ Wheat accounts 8.9 percent value added in agriculture and 1.6 percent
of GDP.
➢ Wheat crop showed marginal increase of 0.5 percent to
25.195 million tonnes over last year’s production of
25.076 million tonnes but fell short of the target by 4.9 percent.
➢ The area under cultivation declined by 0.6 percent (to 8,740 over last
year’s 8,797 thousand hectares).
➢ This nominal decrease in area over previous year was due to shifting
of area to oilseed & other competitive crops. However, production
increased due to better crop yield and healthy grain formation
COTTON
➢ Cotton is considered as life line of economy of Pakistan.
➢ It has a 0.8 percent share in GDP and contributes 4.5 percent in
agriculture value addition.
➢ During 2018-19, cotton production remained moderate at 9.861 million
bales, a decrease of 17.5 percent over the last year’s production of
11.946 million bales, and 31.5 percent against the target of 14.4 million
bales.
➢ This below expectation performance of the cotton crop was largely due
to contraction in the cultivated area on account of less economic
incentive to the farmers by 12.1 percent to 2,373 thousand hectares
compared to last year’s area of 2,700 thousand hectares
RICE
➢ Rice is an important food as well as cash crop in Pakistan.
➢ It accounts for 3.0 percent of the value added in
agriculture and 0.6 percent of GDP.
➢ After wheat, it is the second main staple food crop.
➢ During 2018-19, rice crop area decreased by 3.1 percent (to 2,810
thousand hectares compared to 2,901 thousand hectares of last year).
➢ The production stood at 7,202 thousand tonnes against the target of 7.0
million tonnes and remained short of 3.3 percent to 7,450 thousand
tonnes against last year. The production declined due to decrease in area
cultivated, dry weather and shortage of water
SUGARCANE
➢ High value cash crop of Pakistan and provides raw material for sugar
Industry (which is the 2nd largest agro- industry sector after textiles) and
sugar related industries like molasses and press mud with an input for
paper and board industry.
➢ Its production accounts 3.6% in agriculture’s value addition
➢ And 0.7% in overall GDP.
➢ The production of Sugarcane stood at 81,102 million tonnes against the
production of 75,482 million tonnes showing an increase of 7.4 percent
over the last year.
➢ The sugarcane production increased due to increase in area sown as
good economic return encouraged the growers to bring more area under
cultivation and comparatively timely payments from sugar mills last year.
MAIZE
➢ Contributes 2.4% value added in agriculture
➢ And 0.5% to GDP.
➢ Maize crop production recorded a decline of 7.0% as its production
stood at 5.702 million tonnes compared to the last year’s production
of 6.134 million tonnes.
➢ The decline in production occurred due to decrease in area
cultivated as maize growers switched over to cotton, sugarcane and
rice crops.
Input and Output Analysis of Major Crops
 Livestock and Poultry
LIVESTOCK
 Presently it contributes 60.5% to the overall agricultural and 11.2% to the GDP during 2018-19.
 Gross value addition of livestock has increased from Rs. 1,384 billion (2017-18) to Rs.1,440 billion
(2018-19), showing an increase of 4.0% over the same period last year.
 The importance of livestock sector can be realized from the fact that it is not only a source of
foreign exchange earnings by contributing around 3.1% to the total exports, but also a source of
35-40% of income for over 8 million rural families and providing them food security by
supplementing high valve protein of animal origin and 11.6% during the corresponding period last
year, respectively.
 Gross value addition of livestock at constant cost factor of 2005-06 has increased from Rs. 1288
billion (2015-16) to Rs. 1333 billion (2016-17), showing an increase of 3.4% over the same period
last year.
 Nearly 8 million families are involved in livestock raising deriving more than 35% income from
livestock production activities.
ESTIMATED LIVESTOCK POPULATION
 POULTRY
► Poultry sector is one of the most vibrant subsectors of livestock sector. The current
investment in Poultry Industry is more than Rs. 700 billion.
► This industry is progressing at an impressive growth rate of 8 to 10% per annum over
last few years.
► Pakistan has become the 11th largest poultry producer in the world with the
production of 1,163 million broilers annually.
► This sector provides employment (direct/indirect) to over 1.5 million people.
► Poultry today has been a balancing force to keep check on the prices of mutton and
beef.
► Poultry meat contributes 34% (1,518 thousand tons) of the total meat production
(4,478 thousand tons) in the country. Poultry meat production showed a growth rate
of 9.1% whereas egg production showed a growth of 5.6% (19.0 billion Nos.) during
2018-19 as compared to previous year.
Estimated Domestic/Rural
&
Commercial Poultry
 CONCLUSION AND RECOMMENDATION
► The agriculture growth is not consistent as observed over the decades.
► The rural transformation pace remained very slow resulted in problems like food insecurity,
poverty, unemployment, illiteracy etc.
► It is very important that focus should remain on raising food production through efficient
irrigation and innovative technology, agriculture diversification, agriculture support services,
SME development in rural areas and creating small cities in rural areas.
► The present government’s resolve is to enhance productivity and value change development.
More R&D on seed varieties, improving resource use efficiency, promoting modern
technologies, starting skill development Program to support rural enterprises is the need of
time.
► Climate Smart Agriculture is an approach used worldwide focusing on enhancing agriculture
productivity and incomes while simultaneously building resilience to climate vulnerability and
changes.