Professional Documents
Culture Documents
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1 Introduction 1
2 Land use farming systems and institutions 1
3 Performance of Agriculture Sector 3
4 Agriculture sector important role in Pakistan¶s economy 4
5 Sub-Sector Identification 5
6 SWOT for Livestock/ Meat Sector 7
7 Comparison of current and past trends 8
8 Agriculture sector in India 9
9 Decline of Agriculture in Pakistan 10
10 Rural Development Program 11
11 Federal Budget on Agriculture in 2009 11
12 Government policies to improve Agriculture sector 12
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With a population of more than 160 million people, agriculture is the single
largest sector in Pakistan, contributing 21 percent to the gross domestic product (GDP)
and employing approximately 44 percent of the workforce. More than two-thirds of the
population lives in the rural areas and their livelihood continues to revolve around
agriculture and allied activities. Agriculture contributes substantially to Pakistan's export
earnings and as supplier of raw materials to industry. Because of its central importance
in reviving the economic growth and reducing poverty, the Government of Pakistan
(GOP) has identified agriculture as one of the major drivers of economic growth.
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A disappointing performance of major crops sub-sector is largely attributed to resource
management issues and absence of a clear pricing policy. For instances reduction in
cultivated area under cotton, wheat and rice was a result of water shortages at sowing
time. A significant 25.3 percent rise in agri-credit during FY08 helped farmers to partly
compensate the impact of high fertilizers prices.
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Contributing 24 percent towards GDP
Provide food to about 130 million people
Earning about 60 percent of the country¶s total export earning
Providing employment to 47 percent of the total wok force
Providing the main source of live hood for the rural population of Pakistan
Providing raw material for many industries and a market for many locally
produced industrial products.
Pakistan is one of the world's largest producers and suppliers of the following according
to the 2005 Food and Agriculture Organization of The United Nations and FAOSTAT
given here with ranking:
{ Chickpea (2nd)
{ Cotton (4th)
{ Sugarcane (4th)
{ Milk (5th)
{ Onion (5th)
{ Date Palm (6th)
{ Mango (3rd)
{ Tangerines, mandarin orange, Clementine (8th)
{ Rice (8th)
{ Wheat (9th)
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mmmmmmmmmmmmmmmmmm Improved performance of fisheries sector in FY08, owed to both marine
an inland fish catch, due to higher prices in domestic as well as international markets.
This growth is remarkable as better feed and management for inland fishing offset the
negative impact of water levels in reservoirs and rivers during the year. Fish production
from marine also recovered well in FY08 and posted a respectable growth 0f 10.5
percent as against 7.1 percent decline in FY07. Pakistan needs to improve hygiene and
environmental conditions in handling fish and its products, to increase its share in EU
and Japanese markets. Surveys suggest that suggest that huge fishing potential is
available in Pakistan territorial limits. Utilization of this, however, requires investments,
research and introduction of suitable technology. Further, there is an urgent need to
have a comprehensive long-term National Fisheries Policy for sustainable growth
management of fishery resources.
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Maine 353 390
Inland 225 250
Total 578 640
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Marine 3,470 3,836
Inland 13,136 14,595
Total value addition 16,606 18,431
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Value addition by forestry sub-sector declined for the fifth year in a row.
This continued disappointing performance is mainly due to massive deforestation
unabated cutting of trees and forests as well as poor law and order situation in Northern
areas. As a result, timber and fire wood production from forests fell to 280 thousand
cubic meters- lowest level ever. It is interesting with the rise in area under forests until
FY03. Since than the area increased by 4 percent, but production feel by massive 66
percent. The major reason of this delink is probably poor law and order situation
coupled with strong local demand FYO6 onwards due to massive reconstruction after
October 2005 earthquakes in affected areas. On the positive side, a gradual increase in
the area under forest during law few years is likely to start paying dividends in the years
to come. Therefore a strong recovery is possible in forestry in coming years.
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The most important crops are wheat, sugarcane, cotton, and rice, which
together account for more than 75% of the value of total crop output. Pakistan's largest
food crop is wheat. In 2005, Pakistan produced 21,591,400 metric tons of wheat, more
than all of Africa (20,304,585 metric tons) and nearly as much as all of South America
(24,557,784 metric tons), according to the FAO. Pakistan is a net food exporter, except
in occasional years when its harvest is adversely affected by droughts. Pakistan exports
rice, cotton, fish, fruits (especially Oranges and Mangoes), and vegetables and imports
vegetable oil, wheat, cotton, pulses and consumer foods.
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Pakistan claims to be the fifth largest producer of milk, yet there is still a
deficiency. The per annum milk production is around 2,200 liters. The known pure breed
is presently available at the farms in Friesian (mainly at the Army Dairy Farms) and the
cross breeds are Cholistan Jersey and Sahiwal Friesian. The low milk yield can be
attributed to a poor genetic pool and inappropriate feeding and farm management.
Engro Foods and local dairy farmers have imported dairy cows from Australia. Satisfied
with the quality of semen and embryos imported from Canada, the Remount Veterinary
and Farm Corps (RVFC) of the Pakistan Army may repeat the order for the same
products with Semex Alliance. Similarly the provincial livestock departments also have
similar demands for animal genetics.
The Canadian High Commission is also working with the GOP on finalizing
the health certificate for the export of Meat Bone Meal (MBM) and day old chicks from
Canada to Pakistan. Pakistan is also encouraging investors to establish modern export
quality slaughter houses and meat processing facilities.
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A low input production system prevails, with less veterinary products used.
The large size of national herd.
The population is growing fast and meat supply cannot keep pace.
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An important contributor to the slowdown in GDP growth was investment demand in the
country reflecting investors¶ cautious response to political uncertainty, law and order
situation and inflation expectations. The FY08 contribution of investment demand in
overall GDP remained the lowest in last four years at 0.7 percent. In contrast to a
relatively balanced FY07 growth, the major impetus to FY08 growth came from a sharp
rise in private consumption demand. This appears to have further strengthened
inflationary pressures in the economy.
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The developmental factors that contributed to the overall economic growth of India. The
period after 1990, witnessed progressive increase in the annual average Gross
Domestic Product (GDP) of the Indian economy hovering around 4.5% to 5%. The
astronomical rise of Indian Information Technology, Indian BPO and the Indian
telecommunication industry, propelled the growth of GDP of India to around 6%, during
the period from 1988 to 2003. After a long lull period, the agriculture sector of India
registered a strong growth of 4%.
The bullish run of the GDP India 2006-2007 was led by the following sectors -
Information Technology
Telecommunications
Electronics and hardware
Oil and natural gas
Pharmaceuticals and biotechnology
Retail
Textiles
Infrastructure
Construction
Airlines
Health care
Hospitality
Power and utilities
Transport and logistics
The stupendous rise of the Indian GDP during the financial year
2006 - 2007 can be credited to the simplified economic policy of the Government of
India. These economic policies simplified the process of business registration, cross-
border trade, and payment of taxes, eased access to credit and strengthened investor's
interest. These liberal economic policies of Government of India accelerated the growth
of Indian industries, especially manufacturing, construction, and service industry.
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Total Geographical area of Pakistan is 79.6 million hectares
27% is under cultivation
80% irrigated
Cultivable waste lands amount to 8.9 million hectares
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| Total geographical area receives only 250 mm of rain
| Two types of crops are being irrigated
| Kharif
| Rabi
| Canal system
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Agriculture package aims at reducing cost of production, increasing output,
enhancing water availability and raising income of faming sector.
The budgetary proposal has been positive for farming sector in the form higher
subsidy of 32 billion rupees compared with 25billion rupees last year.
Subsidy on DAP has been raised by Rs 530 to Rs 1000/50kg bag, would reduce
the price of DAP and encouraged use of fertilizers, in turn in enhancing crop
yields.
Exemption of general sale tax on fertilizers and pesticides, wood also boost
demand for urea, DAP and pesticides.
Elimination of 5 percent excise duty on crop insurance to encourage crop
insurance scheme.
Withdraw 10percent custom duty on import of rice seed-enhance plantation of
better seeds-increase rice yield.
Allow duty free import of bulldozers/laser land leveling technology help improve
water efficiency at farm gate.
Under white revolution program Rs.1.5 billion would be spend on dairy milk
development.
Farm level income world increase on the back of higher marker prices/demand.
Formal sector agri-credit disbursement increased, because of higher input
demand/prices.
Allocated Rs.75billion for building new dams and improve the existing irrigation
network-increase irrigation water availability.
If fully implemented the package would encouraged, mix use of fertilizers, increase use
of pesticides to cope with fast spreading disease, enhance grower confidence to
earn/save more, improve water availability at farm gate and increase agriculture
production. All this will help increase production, export, boost economy and reduce
poverty in rural economy.
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Government sets price level of commodities little higher than equilibrium price,
called support policy it is FOR Giving incentives to the farmer Upward revision of
minimum support prices for selected crops like Wheat, Rice etc. The Government
has allocated Rs 200 billion for agriculture credit disbursements for the year 2007-08
which is 25 percent higher than the allocation of the preceding year i.e. Rs 160
billion. Out of the total credit target of Rs 200 billion, Rs 96.5 billion were allocated to
commercial banks, Rs 60 billion to ZTBL, Rs 8 billion to Punjab Provincial
Cooperative Bank Ltd., and Rs 35.5 billion to Domestic Private Commercial Banks.
The agricultural loans extended to the farming community during July- March, 2007-
08.
Agricultural loans amounting to Rs. 138.6 billion were disbursed during (July-
March, 2007-08) as against Rs.111.2 billion during the corresponding period
last year
Registering an increase of 24.6 percent.
The share of ZTBL in supply of total agricultural credit by institutions
decreased and was 28.6 percent during (July±March, 2007-08)
47 percent of the total agricultural credit disbursed during July/March 07&08.
Domestic private bank has increased by 21.6 percent of the total agricultural
credit
Ministry of Food, Agriculture & livestock (MINFAL) launched an integrated
development programme entitled ³Crop Maximization Project (CMP)´ in 15
districts of the country.
The project aimed at providing inputs for crops through Revolving Fund for
the financial assistance of the farmers in the project area.
Establishment of Zarai Tarqiati Bank Limited (Z.T.B.L.)
Role of Commercial Bank
Role of State Bank of Pakistan
Easy Procedure
Timely Disbursement
Recovery Rate
Package of All Inputs
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