agriculture of pakistan

PRESENTERSQALANDAR HUSSAIN 82 SAAD HUSSAIN 84UMAR FAYYAZ 94MUHAMMAD RIZWAN 71

GROUP NO. 1

SUPERVISOR SIR FAZAL ABBAS

AGRICULTURE

WHAT IS AGRICULTURE ?

DERIVED FROM “AGER” WHICH MEANS “FIELDS” SO AGRICULTURE MEANS “CULTURE THE FIELDS”.

AGRICULTURE“THE SCIENCE OR PRACTICE OF FARMING, INCLUDING CULTIVATION OF THE

SOIL FOR THE GROWING OF CROPS AND THE REARING OF ANIMALS TO PROVIDE FOOD, WOOL, AND OTHER PRODUCTS.”

INTRODUCTION

JOHN SALAZAR (FORMER US COMMISSIONER OF AGRICULTURE DEPARTMENT) SAID;

“THERE IS ONLY ONE THING THAT CAN BRING OUR NATION DOWN, OUR DEPENDENCE ON FOREIGN COUNTRIES FOR FOOD

AND ENERGY.” “AGRICULTURE IS THE BACKBONE OF OUR ECONOMY”.

INTRODUCTIONPAKISTAN HAS A RICH AND VAST NATURAL RESOURCE BASE, COVERING VARIOUS ECOLOGICAL AND CLIMATIC ZONES, HENCE THE COUNTRY HAS GREAT POTENTIAL FOR PRODUCING ALL TYPES OF FOOD COMMODITIES.AGRICULTURE HAS AN IMPORTANT DIRECT AND INDIRECT ROLE IN GENERATING ECONOMIC GROWTH.

THE IMPORTANCE OF AGRICULTURE TO THE ECONOMY IS SEEN IN THREE WAYS:

FIRST, IT PROVIDES FOOD TO CONSUMERS AND FIBERS FOR DOMESTIC INDUSTRY.SECOND, IT IS A SOURCE OF SCARCE FOREIGN EXCHANGE EARNINGS.THIRD, IT PROVIDES A MARKET FOR INDUSTRIAL GOODS.

INTRODUCTION

AGRICULTURE SECTOR PROVIDES THE OPPORTUNITIES TO MILLIONS OF RURAL PEOPLE TO STRIVE AGAINST POVERTY AND HUNGER. THIS SECTOR ALONE CANNOT ACHIEVE THE DESIRED LEVEL OF ECONOMIC DEVELOPMENT,

BUT ITS ROLE IN THE PROCESS OF ECONOMIC DEVELOPMENT IS VERY UNIQUE.

IT CAN WORK WITH OTHER SECTORS TO ACHIEVE THE FASTER RATE OF ECONOMIC GROWTH AND DEVELOPMENT. THEREFORE, AGRICULTURAL TERMS OF TRADE LINKING WITH OUTPUT, INVESTMENT, PRODUCTIVITY AND GROWTH IN AGRICULTURE AFFECT RURAL ECONOMY AND IMPROVEMENT IN AGRICULTURAL TERMS OF TRADE WOULD LEAD TO GAIN WELFARE OF FARMERS.

INTRODUCTIONAGRICULTURE SECTOR PROVIDES THE OPPORTUNITIES TO MILLIONS OF RURAL PEOPLE TO STRIVE AGAINST POVERTY AND HUNGER.IT IS THE LARGEST INCOME AND EMPLOYMENT GENERATING SECTOR OF PAKISTAN ECONOMY.

ABOUT 2/3 POPULATION RESIDES IN RURAL AREAS AND DIRECTLY OR INDIRECTLY DEPEND ON THIS SECTOR FOR THEIR LIVELIHOOD AND AS WELL AS ON LIVESTOCK.

AGRICULTURAL SECTOR WAS HIGHLY PROTECTED AND VARIOUS POLICIES OF SUPPORT PRICE AND SUBSIDIZING PROGRAMS WERE WORKING IN BOTH DEVELOPED AND LESS DEVELOPED COUNTRIES.

INTRODUCTION

Agriculture25.1%

Industry21%Service 53.6

Share in GDP

AGRICULTURE SECTOR IN PAKISTANPopulation depends 70%Labor Force Employment 44%Share in GDP 25%Total Area 79.6 million hectorTotal cultivated area 22 million hectorCountry Exports 80%

BACKGROUND

BACKGROUNDo In 1950, Contribution in GDP is 53% 80% share in Export Employed 68% of labor force o In 1960,

Growth rate is 5.10 % 2nd highest growth in Pakistan Factors: High yielding verities of crops Rice and

wheat Installation of private tube-wells Increased incentives and subsidies on

agriculture such as fertilizer

BACKGROUNDo In 1970-80, Growth performance was very dismal. Growth rate of agriculture output was 24%. Factors: Lack in new varities of seeds War and separation of East

Pakistan A virus attack on cotton Droughts and floods Sour relationship of Landlord and

tenants.

o In 1990s, Economic growth was slow down to 4.4%. Factors: Floods and virus attacks Rapid change of Government

and instable political environment

Sharp increase in cost of production

BACKGROUND

o In 2000s, In 2003-04 growth was declined by 2.4% and 2.2% respectively.

Factors: Due to wide spread rain. And pest attack on cotton crop.

BACKGROUND

In the years of 2005 and 2010 there were two most destructive natural disasters in Pakistan’s history namely the earthquake and the flood respectively which damages the economy of the Pakistan very badly particularly agriculture sector that cause to create volatility in it. According to the finance minister Mr. Hafeez Sheikh “the floods, the ongoing war against terrorism and a spurt in world oil prices pulled back the economy that grew by only 2.4% against a target of 4.5% in the outgoing financial year 2010-11” (Economic Survey of Pakistan, 2010-2011).

Sector 2008-09

2009-10

2010-11

2011-12

2012-13

2013-14

2014-15

Agriculture

3.5 0.2 2.0 3.6 2.7 2.7 2.9

Crops 3.5 -4.2 1.0 3.2 1.5 3.2 1.0Livestock

2.2 3.8 3.4 4.0 3.5 2.8 4.1

Forestry 2.6 -0.1 4.8 1.8 6.6 -6.7 3.2Fishing 2.6 1.4 -15.2 3.8 0.7 1.0 5.8

AGRICULTURE GROWTH PERCENTAGES (BASE 2005-06)

BACKGROUND

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CURRENT SITUATION( SURVEY 2014-15 )

CURRENT SITUATION

AGRICULTURE ACCOUNTS FOR 25 PERCENT OF GDP. AGRICULTURE STOOD AT 43.5 PERCENT OF EMPLOYMENT.

The agriculture growth stood at 2.9 percent during July- March, 2014-15 as compared to 2.7 percent during the last year.The agriculture sector has four sub sectors: crops, livestock, fisheries and forestry.

MAJOR CROPS

o COTTONo WHEATo RICEo SUGARCANEo OTHER CROPS

COTTON: During 2014-15, cotton production stood at 13,983 thousand bales as compared to 12,769 thousand bales in 2013-14 and registered an increase of 9.5 percent.

MAJOR CROPS

WHEATWHEAT PRODUCTION DECREASED TO 25,478 THOUSAND TONS IN 2014-15 AS COMPARED

TO 25,979 THOUSAND TONS IN 2013-14 SHOWING A DECREASE OF 1.9 PERCENT.

MAJOR CROPS

RICE:RICE PRODUCTION HAS INCREASED TO 7,005 THOUSAND TONS IN 2014-15 AS COMPARED TO 6,798 THOUSAND TONS IN 2013-14 SHOWING AN INCREASE OF 3.0 PERCENT.

MAJOR CROPS

SUGARCANESUGARCANE PRODUCTION HAS DECREASED TO 62,652 THOUSAND TONS IN 2014-15, AS COMPARED TO 67,460 THOUSAND TONS LAST YEAR, AND REGISTERED A DECREASE OF 7.1 PERCENT.

OTHER CROPS

Others Crops:

During July-March 2014-15, the production of Potatoes Moong, Onions and Chilies increased by 6.3 percent, 6.2 percent, 1.3 percent and 0.3 percent, respectively.

LIVESTOCK

LIVESTOCK

LIVESTOCK SHARE IN THE AGRICULTURE VALUE ADDED STOOD AT 56.3 PERCENT WHILE IT IS CONTRIBUTING 11.8 PERCENT TO THE GDP.

Livestock consists of cattle, buffalos, sheep, goat, camel, horses.

Livestock in during year recorded a growth of 4.12 percent as compared 2.76 percent last year.

FISHERY & FORESTRY

Fisheries

Fisheries sub-sector has 2.1 percent share in agriculture sector, it has recorded a growth of 5.75 percent against the growth of 0.98 percent last year.

ForestryThe contribution of this sub-sector in agriculture is 2.0 percent with main components of forestry, timber and fire wood. Growth of the forestry is registered at 3.15 percent as compared to -6.74 percent last year.

Causes of Agriculture Growth

CAUSES

AGRICULTURAL RESEARCHES AND DEVELOPMENT ACTIVITIES PLAY A IMPORTANT ROLE IN TRANSFER OF TECHNOLOGY AND KNOWLEDGE TO THE FARMING COMMUNITY.

New technology is being used in agriculture system that’s why agriculture sector is performing well.

All four weathers are very helpful to increase productivity of the agriculture land.

PROBLEMS OF AGRICULTURAL SECTOR

PROBLEMSo INADEQUATE SUPPLY OF AGRICULTURAL

INPUTSo OLD METHOD OF PRODUCTIONo LACK OF CREDITo POLITICAL INSTABILITYo INADEQUATE INFRASTRUCTURE

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Role and Importance of Agriculture

ROLE AND IMPORTANCE OF AGRICULTURE

INCREASE IN PER CAPITA INCOME:

PER CAPITA INCOME IS THE ANNUAL AVERAGE INCOME OF THE INDIVIDUALS OF A NATION. WE DERIVE IT BY DIVIDING NATIONAL INCOME ON TOTAL POPULATIONCURRENT PCI IS $ 1254 AT PRESENT.


MAJOR SOURCE OF EMPLOYMENT

AGRICULTURE SECTOR PROVIDES EMPLOYMENT TO MAJOR PORTION OF OUR LABOR FORCE.MORE THAN 45.0% OF OUR LABOR FORCE IS DIRECTLY INVOLVED IN AGRICULTURE SECTOR.66.7% OF OUR RURAL POPULATION IS DEPENDENT ON AGRICULTURE.

ROLE AND IMPORTANCE OF AGRICULTUREREDUCTION IN POVERTYAGRICULTURE DEVELOPMENT HAS SIGNIFICANT IMPACT ON RURAL DEVELOPMENT. PRODUCTIVITY INCREASES IN AGRICULTURE IT REDUCES POVERTY.21.0% POPULATION OF PAKISTAN IS MUCH POOR.

SOURCE OF FOREX EARNINGAgriculture sector is the main source of foreign exchange (forex) earning which is used to import capital goods.

Total forex resources of Pakistan is $ 17.1 billion out of which share of agriculture is $2007.3million

ROLE AND IMPORTANCE OF AGRICULTURESOURCE OF NATIONAL INCOMEAT THE TIME OF PARTITION, CONTRIBUTION OF AGRICULTURE SECTOR TO GNP WAS 60%, WHICH DECREASED TO 29.4% IN 1980-81.NOW ITS SHARE TO GDP IS 20.9%.AGRICULTURAL SECTOR IS THE MAJOR CONTRIBUTOR TO PAKISTAN’S NATIONAL INCOME.

INCREASE IN INVESTMENTTotal investment is only 13.4% of GDP

in Pakistan.This low investment is mainly due to low income and low savings. Agricultural sector increases the income of people that caused in more saving and more investment.

ROLE AND IMPORTANCE OF AGRICULTUREBALANCE OF PAYMENT POSITION

PROMOTION OF AGRICULTURE SECTOR WILL PROVIDE SURPLUS PRODUCTION FOR EXPORTS AND OUR FOREIGN EXCHANGE RESERVES WILL BE INCREASED.AT PRESENT PAKISTAN IS FACING A DEFICIT OF $8.3 BILLION IN ITS BALANCE OF PAYMENT.

•Supply of Raw Material

Agricultural sector provides not only food but also provides cotton, sugarcane, tobacco, rice, oil-seed, meat and milk to various agro-based, small scale and large-scale industries as a raw material.


ECONOMIC DEVELOPMENTECONOMIC DEVELOPMENT, PROGRESS AND PROSPERITY CANNOT ACHIEVE WITHOUT AGRICULTURAL SECTOR.IT PROVIDES EMPLOYMENT OPPORTUNITIES TO A LOT OF PEOPLE. IT PRODUCES EXPORTABLE ITEMS, WHICH INCREASES THE FOREIGN EXCHANGE RESOURCES.

DIRECT FOREIGN INVESTMENT

Now a day, use of advanced technologies in farming is common.It boost-up the industries like tractors, harvesters, thrashers, chemicals etc. It has increases the foreign direct investment in our country.Foreign investment is $ 1.8 billion in Pakistan.


INCREASE IN GOVT. REVENUETHERE IS NO DIRECT TAX ON THE AGRICULTURAL INCOME.INDIRECTLY GOVERNMENT RECEIVES A HUGE AMOUNT OF TAX FORM AGRICULTURAL SECTOR.IT IMPOSED SOME DUTIES ON IMPORTED TECHNOLOGIES APPLIED IN FARMING.

SWOT ANALYSIS

SWOT

Strength

Threats

Weakness

Opportunities

SWOT ANALYSISSTRENGTH :

WITH MORE THAN 22 MILLION HECTARES OF LAND UNDER CULTIVATION, AGRICULTURAL LAND OF PAKISTAN IS 35% OF THE TOTAL AREA, SUFFICIENT NOT ONLY FOR ITS FOOD SELF-SUFFICIENCY BUT ALSO ITS INDUSTRIAL AND EXPORTS NEEDS.

o IRRIGATION SYSTEM OF PAKISTAN IS BEST IRRIGATION AGRICULTURE SECTOR

o PAKISTAN IS BLESSED WITH ALL FOUR WEATHERS, VERY HELPFUL IN INCREASING PRODUCTIVITY OF AGRICULTURAL LAND.

o PAKISTAN IS FOURTH LARGEST PRODUCER OF COTTON, DATES, MANGOES WORLDWIDE

SWOT ANALYSISWEAKNESSES:

o WEAK FACTOR PRODUCTIVITY, STAGNANT YIELDS

o PREPONDERANCE OF SMALL FARMERS, LOW TECHNOLOGY BASE

o POOR SKILL DEVELOPMENT FOR MODERN AGRICULTURE

o INAPPROPRIATE USE OF NATURAL RESOURCES

o RURAL NON-FARM SECTOR PERFORMS BELOW POTENTIAL

SWOT ANALYSISOPPORTUNITIES:

o EXISTENCE OF PRODUCTIVITY GAPS - GREAT SCOPE FOR PRODUCTION ENHANCING

o WORLDWIDE INTEREST IN AGRICULTURE

o BURGEONING POPULATION - NEED FOR FOOD

o GROWING PROSPERITY - DEMAND FOR VALUE ADDED FOOD PRODUCTS

THREATS: o Rural Governance issues

o Climate change and environmental threat

o Use of arable land for non-agricultural use

o Low priority for agricultural development-urban bias

RESPONSE

RESPONSE

o Increase productivity by increasing efficiency in all agricultural operations through public as well as private sector investment in R&D and Extension.

o Increase profitability by rationalizing input and output prices, reducing production and post production losses and selective public procurement intervention.

o Making agricultural product competitive in the rapidly globalizing world by reducing cost of ‘production’ and by different techniques.

o Ensuring sustainability by promoting environment friendly good agricultural practices through, appropriate legal framework, awareness campaigns and incentives and rewards.

o EQUITABLE DISTRIBUTION OF GAINS IN ALL STAKEHOLDERS WITHOUT ANY DISTINCTION.

CONCLUSION

o Despite its declining importance: agriculture is a sector capable of accelerating growth, reducing poverty, containing inflation and improving the quality of life of its citizens.

o Area needing urgent attention: are inputs use efficiency, reducing production cost , credit availability and bringing more areas under cultivation

o Areas needing attention in the short term are rural infrastructure, agricultural terms of trade, promoting investment, formulating land use policy.

o Areas needing attention in the long term are agricultural education, rural governance adapting to climate change threats and introducing modern forms of production.

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agriculture of pakistan

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