Agriculture and Industry Sector in Pakistan

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1Macro Economics


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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 )


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AGRICULTURE Economy of every state depends on three sectors i.e. agriculture,

industry and commerce.

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

Pakistan is an agricultural state thus agriculture gains are of muchimportance than any other sector.

Importance of this sector is manifold as it feeds people, provides rawmaterial for industry and is a base for foreign trade.

Foreign exchange earned from merchandise exports is 45% of totalexports 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.

The Backbone off Pakistan's Economy

Agriculture is the mainstay of Pakistan's economy. Nearly 26% of total output (GDP). 52% of total employment is generated in agriculture.

It also contributes substantially to Pakistans exports.


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Area Under Major Crops (000 Hectares)


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Major Causes of Agricultural Problems in

Pakistan

i. No mechanism has been adopted to eradicate the soil erosionand 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 ismore 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 archaicmethod 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 saveswater but also gives proper quantity of water according to the

needs of plants.

iii. Owing old methods of cultivation and harvesting, Pakistan haslow 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.


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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 peracre 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.


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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 theseprogrammes 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.


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Solutions for Agricultural Problems in

Pakistan:

i. Feudalism should be abolished and lands should be allottedto 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. Otherwise it would directly effect poor

farmers.

ii. Federal Seed Certification and Federal Seed Registrationis 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 arenot tested on our soil.

iii. A new Agricultural policy must be framed in whichfollowing 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 beconstituted to adjust and support prices.


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iv. Surplus vegetables and fruits must be exported. A Rs 39million 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.

v. Latest machinery should be provided to the farmers toincrease 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.

vi. Modern techniques of irrigation can solve the problems ofirrigation 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.

vii. More dams should be constructed on Indus, Jhelum andChenab 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.


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Industry

The government seeks to diversify the country's industrial baseand bolster export industries.

Net foreign investment in Pakistani industries is only 0.5% ofGDP. 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. Textileii. Cement

iii. Fertilizeriv. Information Technologyv. Sugar

vi. CNG ( Compressed Natural Gas )vii. Tobacco

viii. Automobile


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Major Causes of Industrial Problems in

Pakistan

i. Power shortageIt is one of the most common issues in Pakistan. The shortage of

power is increasing day by day.

ii. Lack of trained manpowerThere are only few people, who are trained as they working,

There is also low level of literacy rate.

iii. Lack of proper infrastructureIt is common issue that there is no good infrastructure in Pakistan

like telephone, Electricity, Etc.

iv. InefficiencyIt is also big problem in industrial sector.

v. Lack of products innovation resulting in concentration ofindustries in some specific sectors.

There is no innovation in industry that any one start producing new

goods, All of them are try to make those product which are also

made by other ones.

vi. Changing political and economic policies.It is big issue in Pakistan that after every few years government

change their economic policies.


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vii. Bad law and order situation resulting in lower investment inindustries

In Pakistan the situation of law and order is so bad so thats why

people done take risk to invest in industries.

viii. Corruption in related government agencies and so many govt.agencies intervention.

There are lots of corruptions in government agencies which are

related with industries.

ix. Higher interest rate.Banks charge high rate of interest rate on loans.

x. SmugglingIt is also a big issue.

xi. Shortage of CapitalThere is a big problem in Pakistan is shortage of capital.


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Solutions for Industrial Problems in

Pakistan:

i. Increase Power resourcesii. Trained manpower

iii. Make A good infrastructureiv. Do not Change political and economic policies.v. Make Good law and order situation Which resulting in Higher

investment in industries

vi. Reduce Corruption in related government agencies and somany govt. agencies intervention and make take some strict

action against corruption.

vii. Interest rate on loans should be reduced.viii. Take some serious action against smuggling to stop it.

Agriculture and Industry Sector in Pakistan

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