Ent Mids Project Report

Mini Project Report(Pakistan Agriculture Sector) 1
Mid –Term Project Report

How to improve agriculture sector of Pakistan?
Submit to
Ma’am Bina –Ul- Haq
Course
Entrepreneurship Project (106473)
University Campus
North Nazimabad Campus
Acknowledgement
Starting with the name of Allah the most beneficent and the most merciful. We are grateful to
Almighty Allah who gave us all the strength, courage, preservation and patience to make this
project and its report. We are also thankful to our teacher who supported us in making this
report. As a part of BBA, and in order to gain practical knowledge in the field of
Entrepreneurship Project, this project report attempts to bring under one cover the entire
hard work and dedication put in by us being a team member. We would like to thank
Ma’am Bina Ul Haq for giving us the opportunity to do this interesting project, which has
become very beneficial for us. Doing this project helped us enhancing our knowledge about
the things we study in Entrepreneurship by applying it practically.

Contents
Acknowledgement................................................................................................................................2
Part 1: Introduction & Glance at Agricultural Sector of Pakistan..................................................8
Introduction.......................................................................................................................................8
Agriculture sector linked with international economy from report of world bank......................10
Agriculture Sector Contribution to Global Economy.......................................................................10
Agriculture Sector Contribution to Other International Economies.................................................12
Agriculture sector contribution to Pakistan economy:.....................................................................14
Agriculture and the world bank.......................................................................................................16
Top Agriculture Crops of the World Vs Pakistan Crops...............................................................18
The 10 Most Important Crops in The World....................................................................................18
Top ranking.....................................................................................................................................19
Top Agricultural Producing Countries in World............................................................................19
Country Is Best for Agriculture Jobs...............................................................................................20
Country Has the Most Advanced Agriculture Technology..............................................................20
Top 10 Largest Crops in The World................................................................................................20
Pakistan crops....................................................................................................................................21
Pakistan’s global contribution and ranking among the world in agricultural sector.........................21
Top Ranking Crops of Pakistan.......................................................................................................22
Rice production in Pakistan.............................................................................................................22
The Main Crops Grown in Pakistan................................................................................................23
We increase the agricultural products of Pakistan?..........................................................................24
Pakistan GDP share of agriculture..................................................................................................25
Contribution in GDP.........................................................................................................................25
Agricultural Growth.........................................................................................................................26
Important Crops................................................................................................................................26
Cotton..............................................................................................................................................26
Sugarcane........................................................................................................................................27
Rice.................................................................................................................................................27
Wheat..............................................................................................................................................28
Maize...............................................................................................................................................28
Imports...............................................................................................................................................29
Exports...............................................................................................................................................31
Agricultural statistics of Pakistan with other countries..................................................................33
World Cotton Outlook......................................................................................................................33
Agricultural Sector Companies of Pakistan....................................................................................34
Major Exports of Pakistan in Agriculture Sector...........................................................................36

Introduction.....................................................................................................................................36
Foreign Trade in Figures.................................................................................................................37
Wheat Trade....................................................................................................................................40
Rice Trade.......................................................................................................................................41
Corn Trade.......................................................................................................................................44
Research methods..............................................................................................................................45
Part 2: objective, literature review, problem & solutions...............................................................46
Objectives...........................................................................................................................................46
Improving agriculture productivity..................................................................................................46
Diversification into high-value agriculture......................................................................................46
Improving sector governance...........................................................................................................47
Improving water-use efficiency.......................................................................................................47
Improving land resources................................................................................................................48
Agricultural biodiversity..................................................................................................................48
Mitigating impact of climate change...............................................................................................49
Literature review...............................................................................................................................49
1) Exploiting local, regional and international demand................................................................50
2) Improving Value Chain...........................................................................................................50
3) Stimulating private participation..............................................................................................51
4) Improving infrastructure and energy access.............................................................................51
5) Promoting effective and innovative financing.........................................................................51
Major Problems.................................................................................................................................52
1) Limited Cultivable Area..........................................................................................................52
2) Inadequate Infrastructure.........................................................................................................52
3) Old Methods of Production......................................................................................................52
4) Lack of Irrigation Facilities.....................................................................................................52
5) Low Cropping Intensity...........................................................................................................53
6) Various Plant Diseases.............................................................................................................53
7) Scarcity of HYV Seeds............................................................................................................53
8) Lack of Credit..........................................................................................................................53
9) Water Logging and Salinity.....................................................................................................53
Solutions to Problem.........................................................................................................................54
1) Supply of Agriculture Credit...................................................................................................54
2) Water Logging and Salinity Control........................................................................................54
3) Provision of HYV Seed...........................................................................................................54
4) Mechanization.........................................................................................................................54
5) Modern techniques of irrigation...............................................................................................54
Part 3: Business Model......................................................................................................................55
Pestle Analysis....................................................................................................................................55
Economical factor............................................................................................................................58
Social factors...................................................................................................................................58
Technological factor........................................................................................................................59
Environmental Factors.....................................................................................................................59
Legal Factors...................................................................................................................................61
Part 4: Contributions of Entrepreneur in an Agriculture Sector..................................................62
What Entrepreneur Can Do to Improvise Agriculture Sector.......................................................62
Creating Biogas through Agriculture Waste....................................................................................62
Vertical Farming..............................................................................................................................62
Usage of Drones..............................................................................................................................63
GIS-Based Agriculture....................................................................................................................63
Agri-tourism....................................................................................................................................63
Agricultural technical vocational education and training (ATVET)................................................64
Windmills, renewable energies & bio-technologies.........................................................................65
Windmills........................................................................................................................................65
Wind Mill as Entrepreneur in agriculture........................................................................................65
Renewable Resources in Agriculture Sector of Pakistan........................................................66
Wind Energy....................................................................................................................................66
Solar Energy....................................................................................................................................67
Biomass Energy...............................................................................................................................68
Bio Technology in Agriculture Sector of Pakistan..........................................................................68
Part 5: Recent Achievements............................................................................................................71
Basmati Rice Patent Won Against India in the EU.........................................................................71
Part 6: Operations.............................................................................................................................72
Agricultural Policies..........................................................................................................................72
For Maximizing Agricultural Production in Line with Consumer Demand.........................................72
A. Some of the major policies.........................................................................................................72
 Short-Term..........................................................................................................................72
 Long-Term...........................................................................................................................72
B. Sub-Policies................................................................................................................................72
C. Sub-sub-policies..........................................................................................................................72
For Achieving National Self-Sufficiency in Food............................................................................73
Some of the major policies..............................................................................................................73

Sub-Policies.....................................................................................................................................73
Raising the Living Standard of the Farm People............................................................................73
Some of the major policies..............................................................................................................73
Conservation of Agricultural Resources..........................................................................................74
To Reduce the Pressure of Population in the Agricultural Sector.................................................74
Terms & Conditions for Agriculture Sector....................................................................................74
Business Continuity Plan..................................................................................................................76
Business Continuity Plan in Agriculture..........................................................................................76
Steps in Developing Business Continuity Plan................................................................................77
Determine the scope of the plan.......................................................................................................77
Determine the critical functions that the business cannot operate without.......................................77
Maintain information.......................................................................................................................78
How Entrepreneur Improve Continuity Plan Regularly.......................................................................79
Contingency Planning.......................................................................................................................80
Pakistan agricultural sector provision policies................................................................................82
 Crop loan insurance scheme (CLIS)........................................................................................82
 Area Yield Index Insurance (AYII) In Punjab.........................................................................83
 Livestock insurance scheme for borrowers (LISB)..................................................................83
 Farmers Insurance....................................................................................................................83
 land insurance..........................................................................................................................84
 Revenue Insurance...................................................................................................................84
Training Employees for Every Scenario..........................................................................................84
Part 7 Supply Chain..........................................................................................................................86
Network of Multiple Suppliers.........................................................................................................86
AMI Traders................................................................................................................................86
AMIR SONS...............................................................................................................................86
Aa Corp.......................................................................................................................................86
AQ Enterprises............................................................................................................................87
Abdullah Corporation..................................................................................................................87
Adorn Trading Shipping Agencies Pvt Ltd..................................................................................87
Afk Associate..............................................................................................................................87
Ahad Group.................................................................................................................................87
Air Sea Worldwide Logistics Pakistan........................................................................................88
Zs international............................................................................................................................88
United agro Chemicals................................................................................................................88

Ul Hassan And Co.......................................................................................................................89
Vital Agri nutrients......................................................................................................................89
Rational.......................................................................................................................................89
Risk Transfer Method..........................................................................................................................89
Health risks for farmers and farmworkers include........................................................................91
Supply Chain Department................................................................................................................93
Delivery system in agriculture sector...............................................................................................96
Nanocides: smart delivery system in agriculture.............................................................................96
Part 8 Forecasting and Risk Management.......................................................................................98
Risk Transfer Method......................................................................................................................98
Health risks for farmers and farmworkers include.........................................................................101
Future of agriculture sector in Pakistan........................................................................................102
Present Condition of Agriculture in Pakistan:................................................................................102
Improvement Required in Agriculture...........................................................................................102
Role of Government to the Agriculture:........................................................................................103
 Policies:.............................................................................................................................103
 Price:.................................................................................................................................103
 Research Plan:.................................................................................................................103
 Flood protection:..............................................................................................................103
Present Policies According to Future Vision of Agriculture:.......................................................103
What its policies should be? (Recommendations).........................................................................103
How Agriculture Sector Can Be Improve with the Help of “Technology”........................................105
Technology Integration in Agriculture:.........................................................................................105
Role of AI & IOT in Agriculture....................................................................................................105
Decrease Pesticide Usage..............................................................................................................105
AI Agriculture Bots:......................................................................................................................105
Financing..........................................................................................................................................106
Information....................................................................................................................................106
Challenges of Agricultural Financing:...........................................................................................106
Who Needs Finance in the Agriculture Sector?............................................................................107
Farmers and small agricultural entrepreneurs:............................................................................107
Actors Along the Value Chain........................................................................................................107
Rural infrastructure........................................................................................................................108
Research and development.............................................................................................................108
Internal finance................................................................................................................................108
External finance...............................................................................................................................108
Part 9 Taxation & Waste Management.........................................................................................108
Taxation & Duties............................................................................................................................108
Brief Background: Structure & Performance of Pakistan in Agricultural Sector:................108
Historical Growth Rates of Pakistan’s Agriculture Sector (By Decade).....................................110
Irrigation on Water Availability in Pakistan, 2004-11..................................................................110
Pakistan Food Export (US$ Million) by Selected Product Groups, 2004-11...............................111
Trade and Pricing Policies Related to Agriculture.......................................................................112
Import Taxes....................................................................................................................................113
Basic Pakistan Custom Duties and Taxes (%) on Selected Agricultural Product, 2010”..........114
Export Policy....................................................................................................................................115
Pakistan Export Policies Related to Selected Agricultural Products...........................................115
Waste Material Management.........................................................................................................116
Part 10 Conclusion..........................................................................................................................117
Findings.........................................................................................................................................117
Results...........................................................................................................................................117
Recommendation...........................................................................................................................118
Conclusion........................................................................................................................................119
References........................................................................................................................................120
Part 1: Introduction & Glance at Agricultural Sector of Pakistan
Introduction
The agriculture sector is the bedrock of Pakistan's economy, accounting for 21% of GDP and
almost 44% of jobs. Generally speaking, agricultural production is split into two groups, such
as food crops and cash crops. Food crops are those that have been grown by Farmers for their
own consumption, and commercially produced cash crops. Rice is the second staple food
after wheat and contributes 3.1 percent to farming and 0.7 percent to livestock GDP to
(Farooq & wasti, 2014)
Since Pakistan's economy is mainly linked to agriculture, due to the non-liberalization of
trade policies of developed countries, the sector has faced difficulties in free trade of
agricultural products in most developing countries. Recently, measures have been taken by
the Government of Pakistan to ensure Development of the agricultural sector with a view to
improving the quantity and quality of agricultural products in the country in order to conform
with international food safety and security requirements which, through rising exports of
agricultural commodities, will increase foreign reserves. In Pakistan's economy, rice plays a
vibrant role because it is a major source of staple food, rural employment, and foreign
exchange profits. Stable rice production growth has helped Pakistan meet rising demand and
export earnings locally. Pakistan is in the world's top ten rice exporting countries, its export
production has improved on average in the last two decades, but due to certain factors it has
faced significant annual fluctuations (Shareef, Hassan, javed, abbas, & salam, 2008)
In 2013, agricultural exports stood at US$5.6 billion; rice is the single most valuable crop,
with US$2 billion in exports. Pakistan has historically been a net importer of grains, but in
2013 it incurred a surplus of food items for the first time in several years. (klau, pedrson, &
khilji, 2015)
Because of its long grain range, taste and aroma, Basmati rice is liked on world markets. A
few e-exporters, such as Pakistan, India, Thailand and Vietnam, have dominated the world
rice market since 60 to 70 per cent of exports are from these countries. Pakistani rice exports
report a 19% fall in 2013, with the UAE becoming a big importer of rice after Iran and Saudi
Arabia with a market share of 13%, 7% and 6% respectively. (memon, 2013)
Pakistan's share of basmati rice in Pakistan has declined by 15 percent. Instead of focusing on
only a few import markets, the international economy. The reasoning behind this decline is
that Pakistan has not retained its Basmati rice export comparative advantage position in the
market and has not pursued new markets.
In his mind, the farmer-entrepreneur creates a clear vision of what is possible and the future
he desires. He recognizes that the consumer decides what is possible. The entrepreneur-
farmer is still hunting for Opportunities new. He understands that in the market, new
prospects are discovered. The farmer-entrepreneur needs money to be made. He understands
that in the market, gains are made. The initiative, push, has an entrepreneurial farmer
Capacity and willingness to profit from possibilities.
Agriculture sector linked with international economy from report of world bank
Agriculture Sector Contribution to Global Economy
The economic base of most of the developing countries like Pakistan is dominated by
agriculture and livelihood of majority of the people depend on farm output. The share of
agriculture in total output of the country is shrinking because of the ongoing process of the
structural transformation. Agriculture constitutes the largest sector of our economy. Majority
of the population, directly or indirectly, dependent on this sector. Agriculture is also crucial
to economic growth: in 2018, it accounted for 4 percent of global gross domestic product
(GDP) and in some developing countries, it can account for more than 25% of GDP. It
contributes about 24 percent of Gross Domestic Product (GDP) and accounts for half of
employed labor force and is the largest source of foreign exchange earnings. It feeds whole
rural and urban population. Realizing its importance, planners and policy makers are always
keen to have reliable area and production statistics of agricultural crops well in time. Policy
makers primarily need accurate and timely statistics for the important crops such as wheat,
cotton, rice, sugarcane, maize etc. However, in recent years, due to persistent hikes in the
prices of essential commodities like pulses, onions, potatoes, chilies and tomatoes these crops
have also gained in economic importance.
Agriculture, through agricultural productivity and job creation as a result of its connectivity
with the rest of the economy, play an important role in contributing to economic
development. It is vital to developing countries' economies, as it is the primary source of
food, revenue, and jobs for their rural communities. When compared to other sectors,
agriculture growth is two to four times more successful in raising incomes among the poorest.
Multiple primary measures, such as revenue, wages, sales, value added, and economic
multipliers, may and have been used to assess the agricultural sector's development.
Agriculture is also essential for economic growth: as it accounted for 4% of global GDP in
2018, and can account for more than 25% of GDP in some developed countries. According to
the World Bank, agriculture is responsible for feeding 80 percent of the world's poor living in
rural areas. Under the pre-COVID-19 scenario, agriculture is projected to feed 9.7 billion
people by 2050, create job opportunities for poor working adults, and reduce extreme
poverty. New IBRD/IDA contributions to agriculture and associated industries total $5.8
billion in 2020. In 2020, 128 projects would have contributed to the provision of agricultural
assets and facilities to 7.2 million farmers. Improved farming technology was adopted by
three million farmers. On 986,000 hectares of agricultural land, farmers increased irrigation
and drainage.
18
16.23
16 15.35
14
12
10
6 4.85 4.91
4.46
4
1.6 1.57 1.95
2 0.92
0
North EU Euro Area Europe & East Asia Latin Arab Africa Sub South Asia
America Central & Pacific America & World Sahara
Asia Carribean
Column2
The above figure depicts the proportion of economic sectors in selected global regions' gross
domestic product (GDP) in 2019. Agriculture contributed 1.57 percent, industry
approximately 21.76 percent, and services approximately 66.18 percent to the gross domestic
product in the Eurozone.
Agriculture Sector Contribution to Other International Economies
The graphs show the agricultural sector's share of gross domestic product (GDP) in various
countries in 2019. In 2019, the agriculture sector contributed 1.6 percent of France's GDP.
18
15.96
16
14
12
10
8 7.11
6
4.44
4 3.45
2 1.6
1.24 0.92
0.82 0.61
0
Brazil China France Germany India Japan Russia UK US
Column2
Agriculture sector contribution to Pakistan economy:
Pakistan GDP Last Previous Highest Lowest Unit
GDP Annual -0.38 1.91 10.22 -1.80 percent
Growth Rate
GDP 278.22 314.57 314.57 3.71 USD Billion
GDP From 2362209.00 2342373.00 2362209.00 1775346.00 PKR Million
Agriculture
The agriculture sector is a unique industry in which our way of life and our commercial
activity is combined.
Pakistan's agriculture sector plays a vital role to the country's economy, accounting for 19.3%
of GDP and employing the majority of workers directly and indirectly. Despite the overall
negative growth, the agriculture sector increased by 2.67 percent in the current fiscal year,
according to the Economic Survey of Pakistan 2019-20. The government has set a 3.5 percent
growth rate goal for the agriculture sector for the coming year.
Wheat is one of Pakistan's most important crops. It contributes 8.9% to agricultural value
addition and 1.6 percent to Pakistan's overall GDP. In 2020, both paddy and sugarcane
experienced ups and downs. Sugarcane crop acreage was lower this year than last year,
resulting in a higher price for farmers. Reforms in the sugarcane buying process have also
been implemented, and have helped farmers significantly.
Rather than maximization of income, the agriculture sector's main priority is on ensuring
food security for our country. It provides us with a source of income and connects us to the
rest of the world. The agricultural sector's primary goal is to reduce hunger and create jobs,
which is something that every country desire.
Agriculture and the world bank
Agriculture is also crucial to economic growth: in 2018, it accounted for 4 percent of global
gross domestic product (GDP) and in some developing countries, it can account for more
than 25% of GDP.
But agriculture-driven growth, poverty reduction, and food security are at risk: Climate
change could cut crop yields, especially in the world’s most food-insecure regions.
Agriculture, forestry and land use change are responsible for about 25 percent of greenhouse
gas emissions. Mitigation in the agriculture sector is part of the solution to climate change.
The current food system also threatens the health of people and the planet: agriculture
accounts for 70 percent of water use and generates unsustainable levels of pollution and
waste. 1/3 of food produced globally is either lost or wasted. Addressing food loss and waste
is critical to improving food and nutrition security, as well as helping to meet climate goals
and reduce stress on the environment. Risks associated with poor diets are also the leading
cause of death worldwide. Millions of people are either not eating enough or eating the wrong
types of food, resulting in a double burden of malnutrition that can lead to illnesses and
health crises. A 2020 report found that nearly 690 million people—or 8.9 percent of the
global population—are hungry, up by nearly 60 million in five years. Food insecurity can
worsen diet quality and increase the risk of various forms of malnutrition, potentially leading
to undernutrition as well as people being overweight and obese. The cost of healthy diets is
unaffordable for more than 3 billion people in the world.
The World Bank Group works with countries, providing innovation, infrastructure and
resources so that the food and agriculture sector:
 is climate-smart: more productive and resilient in the face of climate change while
reducing emissions, both from crops and livestock;
 improves livelihoods and creates more and better jobs, including for women and
youth;
 boosts agribusiness by building inclusive and efficient value chains; and
 improves food security and produces enough safe, nutritious food for everyone,
everywhere, every day and is nutrition-smart.
In 2020, there was US$5.8 billion in new IBRD/IDA commitments to agriculture and related
sectors. In 2020, 128 projects helped provide 7.2 million farmers with agricultural assets and
services. Three million farmers adopted improved agricultural technology. Farmers improved
irrigation and drainage on 986,000 hectares of agricultural land.
International Finance Corporation’s (IFC) investments were US$ 4.2 billion. IFC financing
goes to agribusiness, food companies, and banks. IFC also helps clients improve productivity,
climate-smart practices and food safety.
The Bank is a partner in the CGIAR, Global Agriculture and Food Security Program
(GAFSP), the Global Food Safety Partnership (GFSP) and Global Alliance for Climate Smart
Agriculture.
The recent food and financial crises, the continuing challenges of poverty reduction, and the
expected doubling of food demand by 2050 have put increasing pressure on developing
countries to enhance agricultural productivity, and on the World Bank Group to assist
proactively in that effort. During the decade from June 1997 to July 2008 (fiscal years 1998–
2008), the period coved by this evaluation, the World Bank Group provided $23.7 billion in
financing for agricultural and agribusiness activities in 108 countries, as well as non-lending
services and support for important global and regional programs and partnerships in the
agricultural sector. only a share of World Bank interventions that included support for
agricultural activities focused on improving agricultural growth and productivity in poor,
agriculture-based economies. The Bank’s strategy shifted in the early 1990s from a narrower
focus on agriculture to a broader one encompassing poverty and rural development, and this
led to a broader definition of objectives in lending to the rural sector and a less direct focus
on food production and agricultural productivity. IFC investments focused on agribusiness
growth and development but were concentrated primarily in urbanized and transforming
economies in Latin America, Eastern Europe, and Central Asia.
Top Agriculture Crops of the World Vs Pakistan Crops
The 10 Most Important Crops in The World
 Rice.
 Potatoes.
 Cassava.
 Soybeans.
 Sweet potatoes. Annual Production 2008: 110,128,298 tons. ...
 Sorghum. Wikimedia. Annual Production 2008: 65,534,273 tons. ...
 Yams. Wikimedia. Annual Production 2008: 51,728,233 tons. ...

 Plantains. Wikimedia. Annual Production 2008: 34,343,343 tons.
Top ranking
China
Agriculture, value added (current US$) - Country Ranking
RANK COUNTRY YEAR

1 China 2018
2 India 2018
3 United States 2017
4 Indonesia 2018
Top Agricultural Producing Countries in World
1. China. China has 7% of the arable land and with that, they feed 22% of the world's
population....
2. United States. The United States is known for its agriculture science and provides
some advanced agriculture technology in the world. ...
3. Brazil.
4. India. ...
5. Russia. ...
6. France. ...
7. Mexico. ...
8. Japan.
Country Is Best for Agriculture Jobs
Many of the most popular destinations for an agriculture job abroad are located in Europe.
Countries such as France, Spain, Ireland, and Germany offer international workers the
opportunity to develop their trade amidst beautiful scenery and rich agricultural landscapes.
Country Has the Most Advanced Agriculture Technology
Japan: This high-quality agricultural production is the key to success achieved by Japan
because agricultural technology is more advanced than in other countries. Japanese
agricultural technology is arguably very comprehensive both from the planting process to the
harvesting process.
Top 10 Largest Crops in The World
The largest crop in the world is sugar cane from Brazil followed by corn from the United
States. Brazil produces over 700 million tons of sugar cane. Brazil produces twice as much
sugar cane as the U.S. produces corn.
 China produces five (5) of the most produced crops in the world: corn, rice,
vegetables, sugar cane and wheat.
 India produces two (2) of the most produced crops in the world: sugar cane and rice.
Pakistan crops
Pakistan’s global contribution and ranking among the world in agricultural sector
Agriculture is considered the backbone of Pakistan’s economy, which relies heavily on its
major crops. Pakistan’s principal natural resources are arable land and water. Agriculture
account for about 18.9% of Pakistan’s GDP and employees 42.3% of the labour force. In
Pakistan, the most agricultural province is Punjab where wheat and cotton are the most
grown. Mango orchards are mostly found in Sindh and Punjab provinces that make Pakistan
the world’s 4th largest producer of mangoes.
Productions: The Following table represent the Amount of Productions of Each crop along
with their Rank as compare to the World. Where Sugarcane, Wheat, Rice, Maize and Cotton
Are the Top 5 Crops Produces in Pakistan.
Crops Weight Ranks

Sugarcane 67.1 Million tons 5th largest producer in the world after Brazil, India,
China and Thailand

Wheat 25.0 Million tons 7th Largest Producer in the world
Rice 10.8 Million tons 10th largest producer in the world
Maize 6.3 Million tons 20th largest producer in the world
Cotton 4.8 Million tons 5th largest Producer in the world
Potatoes 4.6 Million tons 18th largest Producer in the world
Mango 2.3 Million tons 5th largest Producer in the world After India, China,
Thailand and Indonesia

Onion 2.1 Million tons 6th Largest Producer in the World
Oranges 1.6 Million tons 12th Largest Producer in the World
Tomatoes 1601 thousand tons
Tangerine 593 thousand tons
Apple 545 thousand tons
Watermelon 540 thousand tons
Carrot 501 thousand
Date 471 thousand 6th largest producer in the world
Top Ranking Crops of Pakistan
1) Chickpea (3rd) 7) Onion (7th)
2) Apricot (6th) 8) Kienow, mandarin oranges,
3) Cotton (4th) clementine (6th)
4) Milk (4th) 9) Mango (4th)
5) Date Palm (5th) 10) Wheat (7th)
6) Sugarcane (5th) 11) Rice (11th)
Rice production in Pakistan
Pakistan is the 10th largest producer of rice in the country. Pakistan's exports account for
more than 8% of the world's overall rice trade. It is an important crop in Pakistan's
agricultural economy. Rice is an important crop in Kharif.
Pakistan produced 7.5 million tonnes of rice in 2019 and ranked 10th in the largest rice-
producing countries. Pakistan produced 6.7 million tonnes in 2016/17, of which some 4
million were exported, primarily to neighboring countries, the Middle East and Africa. Rice
is grown in the fertile lands of Sindh and Punjab, where millions of farmers depend on rice
cultivation as their main source of employment. Among the most popular varieties grown in
Pakistan, this includes Basmati, known for its taste and consistency. Pakistan is the main
producer of this variety.
The Main Crops Grown in Pakistan
The major agricultural crops include cotton, wheat, rice, sugarcane, fruits and vegetables. The
irrigation system of Pakistan belongs to one of the world's largest systems to support
agricultural production.
The main cultivated crops of Pakistan are wheat, barley, rice, maize, sorghum, millet, cotton,
Brassica, sunhemp, jute, tobacco, sugarcane, sugarbeat, mung & mash, lentil, chickpea,
groundnut, sessamum, lin seed, chilies, onion, garlic, corriander, turmeric, tomato, potato and
fruit & vegetables.
In Pakistan rice is an important cash crop of the country and the overall national economy.
Rice accounts 2.7% of the value added in agriculture and 0.6% of GDP.
In Pakistan rice is an important cash crop of the country and the overall national economy.
Rice accounts 2.7% of the value added in agriculture and 0.6% of GDP. Rice ranks as second
amongst the staple food grain crop in Pakistan and it has been a major source of foreign
exchange earnings in recent years.
The economic importance of agriculture has declined since independence, when its share of
GDP was around 53%. Following the poor harvest of 1993, the government introduced
agriculture assistance policies, including increased support prices for many agricultural
commodities and expanded availability of agricultural credit. From 1993 to 1997, real growth
in the agricultural sector averaged 5.7% but has since declined to about 4%. Agricultural
reforms, including increased wheat and oilseed production, play a central role in the
government's economic reform package.
Outdated irrigation practices have led to inefficient water usage in Pakistan. 25 percent of the
water withdrawn for use in the agricultural sector is lost through leakages and line losses in
the canals. Only a limited amount of the remaining water is actually absorbed and used by the
crops due to poor soil texture and unlevelled fields.
Much of the Pakistan's agriculture output is utilized by the country's growing processed-food
industry. The value of processed retail food sales has grown 12 percent annually during the
Nineties and was estimated at over $1 billion in 2000, although supermarkets accounted for
just over 10% of the outlets.

The Federal Bureau of Statistics provisionally valued major crop yields at Rs. 504,868
million in 2005 thus registering over 55% growth since 2005. while minor crop yields were
valued at Rs. 184,707 million in 2005 thus registering over 41% growth since 2000. The
exports related to the agriculture sector in 2009–10 are Rs 288.18 billion including food
grains, vegetables, fruits, tobacco, fisheries products, spices and livestock.
Population: The total population of Pakistan is 188,020,000, where its account is 2.59% in
the World. Pakistan stands in the 6 ranks in the World Population. Pakistan’s nominal GDP is
793,779 Billion which is at the 22nd Highest GDP in the World.
Contribution: Pakistan is also amongst the world’s top ten producers of wheat, cotton,
sugarcane, mango, dates and oranges, and is ranked 10th in rice production. Major crops
(wheat, rice, cotton and sugar cane) contribute is around 4.9 %, while minor crops contribute
2.1 percent to the country’s total GDP.
We increase the agricultural products of Pakistan?
Recommendations include improving agricultural research and extension systems,
accelerating diffusion and adoption of latest agriculture technologies and inputs, enhancing
good quality seed production, improving irrigation water management and improving
reclamation and drainage.

Pakistan GDP share of agriculture
Pakistan: Value added in the agricultural sector as percent of GD 2010-2019: For that
indicator, we provide data for Pakistan from 2010 to 2019. The minimum of 22.08 percent in
2006 and a maximum of 23.83 percent in 2013. The latest value from is percent. For
comparison, the world average in based on countries is 0.00 percent.[ CITATION Pak2 \l 1033 ]
Contribution in GDP
0
2015-16 2016-17 2017-18 2018-19 2019-20
Series 2 Series 3
There was no significant impact of COVID-19 on the Agriculture sector. The agriculture
sector grew by 2.67 percent. Positive growth of 2.90 percent in important crops was observed
due to an increase in production of wheat, rice, and maize at 2.45 percent, 2.89 percent, and
6.01 percent, respectively. While cotton and sugarcane posted negative growth of 6.92
percent and 0.44 percent respectively. Other crops have shown growth of 4.57 percent mainly
because of an increase in the production of pulses, oilseeds, and vegetables. Cotton ginning
has declined by 4.61 percent due to a decrease in the production of the cotton crops while the
Livestock sector has shown a growth of 2.58 percent. The growth in forestry and Fishing
remained 2.29 and 0.60 percent respectively.
Agricultural Growth
Important Crops
Cotton
Being a major cash crop of Pakistan, cotton is considered the backbone of the economy. It
contributes about 0.8 percent to GDP and 4.1 percent of total value addition in agriculture.
During 2019-20, was sown on an area of 2,527 hectares, which increased by 6.5 percent over
last year’s area (2,373 hectares). Cotton production is estimated at around 9.178 million
bales, which is lower by 6.9 percent over the last year’s production of 9.861 million bales.
Even though the overall area increased over last year, the overall performance remained
below due to unfavorable weather and low water availability during important stages of plant
development along with pest attacks.

Sugarcane
Sugarcane is a high value cash crop significance for sugar and sugar related industries in
Pakistan. It contributes about 0.6 percent to GDP and 2.9 percent addition in agriculture.
During 2019 sugarcane production decreased by 0.4 to 66.880 million tons as compared to
67.174 million tons of last year. The output may depict the pattern of a decline of 5.6 percent,
with improved yields compared to 2018-19.
Rice
Being a main food as well as cash crop, rice holds an important place in the agriculture of
Pakistan. After wheat, it is the second main staple food crop and second major exportable
commodity after cotton. It contributes 3.1 percent of value added in agriculture and 0.6
percent in GDP. During 2019-20 cropped area of 3,034 million hectare increased by 8.0
percent compared to 2,810 thousand hectares of last year. The production increased by 2.9
percent to 7.410 million tons against 7.202 million tons of the last year due to an increase in
area under the crops.
Wheat
Wheat crop production increased by 2.5 million tons over last year’s production of 24.349
million tons. The area under cultivation increased by 1.7 percent to 8,825 thousand hectares
over last thousand hectares). The production increased due to increase in cultivation area,
healthy gain formation and better crop yield.
Maize
In Pakistan, after wheat and rice, Maize is the third important cereal crop. It contributes 2.9
percent to value addition in agriculture and 0.6 percent to GDP. During 2019-20, maize was
cultivated 1413 on thousand hectares and recorded an increase of 2.9 percent over last year’s
1,374 thousand hectares. Its production increased by 6.0 percent to 7.236 million tons
compared to last year’s production of 6.826 million tons. The production increased due to
increase in area and availability of improved variety of seed as well as economic returns.
[ CITATION DRI20 \l 1033 ]
Imports
Pakistan imported horticulture fruits of value PRs. 7.92 billion in 2018-19. While it was 4.41
billion in the year 2019-20 which was Rs.3.77 billion in 2012-13. Horticultural3 imports
increased with time. The percentage growth in the imports of horticultural fruits 2012-13 to
2014-15 was 109.82%. Moreover, the import value of vegetables also increased over time
which amounted to Rs.20.27 billion, Rs.27.61 billion and Rs.28.78 billion for the year 2018-
19, 2019-20. Vegetable4 imports increased by 42% from 2018-19 to 2019-20. The total value
of crops & pulses imported in 2013-14 was Rs.81.66.

Exports
Pakistan exports horticultural fruits, crops, and vegetables to different countries. Total
horticultural exports in 2018-19 were PRs. 32.52 billion. The horticulture export has declined
to (-)0.88 % as against the growth of 12.5% in the last year 2019-20. Furthermore, the total
value of crops exported in 2019-20 was Rs. 460.44 billion. The export of crops has also
declined sharply to (-)7.5% in as against the growth of 11.82% in the last year 2019-20.
However, the value of exports derived from vegetables was Rs. 14.84 billion in 2019-20.
Vegetable exports have a positive growth rate. The policymakers should pay attention to
increase the exports of crops and fruits for which the growth rate is negative.
Agricultural statistics of Pakistan with other countries
World Cotton Outlook
[ CITATION htt \l 1033 ]

Agricultural Sector Companies of Pakistan
S COMPANY PRODUCTS CONTACT No. ADDRESS
NO. NAME
1. Hanif Farm Massey +923334250884, 8-Km Sheikhupura Road
Industries Ferguson +923214907810 Lahore, Punjab, Pakistan.
Tractors, Disc
Plough HFI-765,
Disc Harrow
HFI-765
2. Maxim International Milkmax, +92563406335, 12 KM, Sheikhupura Road,
Meatmax, and +923234007000 Post Office Mannupur,
Rhodemax 39320, Punjab, Pakistan

3. Amritsar Seed Wheat Seed, 0685876124, Shahbazpur Road, Rahim
Cotton seed, and 03018770137 Yar Khan, Punjab, Pakistan
Mung Bean
Seed
4. Agro Asia Tractors - Massey +922132433296- Office # 15, 20 , 32 & 33,
AIMS Enterprises Ferguson 7, 2nd Floor, Al-Hafiz Centre,
Tractors Rampart Row, Adamjee
Dawood Road, Karachi,
Pakistan, Karachi, Sindh

5. Auriga Chemicals Pesticides, Bio +92423 5380256- 33-KM,Multan
Enterprises Products, Seeds, 7, 03013860988 Road, Lahore, Punjab,
and Fertilizers Pakistan

6. AGRIONA Wheat Straw 0614480903, Qasimpur Colony
+923336397759 Bahawalpur Road , Multan,
Punjab, Pakistan
7. Cloudagri Animal Feeds +920423597 655-F2 Johar Town,
9099, +92300 Lahore, Punjab, Pakistan

4025652
8. Agrizonepk AZ 786 - 03018283986, Khiali Bypass Lahore road
Combo 03157299999 near Madni road opposite
Bajwa filling station,
Gujranwala, Punjab,
Pakistan
9. Faizan Traders Tractors, +924237919510 9km Sheikhupura Road,
Tractors +924237932121 Lahore, Punjab, Pakistan
accessories,
tractor parts
10. Green Land Fertilizers 92526611164 Circular
Engineers 92526611364 Road, Daska, Punjab,
Pakistan
11. Rashid Seeds All types of 0554556691 Jilani Building,
seeds 0554556692 Sheikhupura
+923202801111 More, Gujranwala, Punjab,
Pakistan
12. Noorani Seeds All types of 92221617407 1/2 1336 Old Sabzi Market,
seeds +92 3310220000 Sindh, Hyderabad, Sindh,
Pakistan
13. Solex Chemicals Fertilizing 920616514183 25/A-II Industrial Estate,
(Pvt) Ltd. Chemicals 920616514162 Multan, Punjab, Pakistan
+9261111 176
539
14. Federal Seed All types of 03006777071, Zamad Seed Corporation.
Certification & seeds 03006777071 Pvt. Ltd K.L.P Road K.L.P
Registration Road Grand Trunk Rd
Department Sadiqabad 64350 Pakistan,
Sadiqabad, Punjab
15. Arain zari traders Flower and +923224033937, Jump stop badian road Dha
vegetable seeds +923224033937 phase 5 near Nawaz Sharif
Interchange lahore, Lahore,
Punjab, Pakistan
Major Exports of Pakistan in Agriculture Sector
Introduction
Agricultural is the backbone of Pakistan’s economy. About 68% of the population is engaged
in farming directly or indirectly through production, processing and distribution of major
agricultural commodities. Agriculture contributes about 21 percent of our Gross Domestic
Product (GDP), provides livelihood to about 68 percent people living in rural areas and
employs about 45 percent of the total national labor force. The agriculture sector is the major
contributor in the overall export earnings of Pakistan. The share of Food Group alone in the
total export of Pakistan for the year 2010-11 stood at 17.5 percent. Agriculture is equally
important for industrial development. Out of about 5000 industrial establishments in
Pakistan, about 60 percent are agro-based. The agriculture provides raw material for domestic
industries like rugs and carpets, sugar, leather, foot ware and food products etc.
Foreign Trade in Figures
The share of foreign trade in Pakistan's GDP continues to be low, at 29% (World Bank,
2018). Despite economic and political difficulties, Pakistan has taken steps to liberalize its
trade and investment framework as part of commitments made with the WTO, IMF and the
World Bank. Textile products accounted by far for the largest share of exports (around 23%),
followed by cotton and rice. In regards to imports, the largest item was petroleum products,
followed by palm oil, gas and ferrous waste.
The United States is the top destination for Pakistani exports (mainly textile), followed by
China, United Kingdom, Afghanistan and Germany. China is by far the largest supplier of
goods and services in Pakistan, followed by United Arab Emirates, Saudi Arabia, the United
States and Indonesia. The free trade agreement (FTA) with China has been detrimental to
Pakistani manufacturing exports, which have declined continuously in recent years, and local
businesses worry the completion of China–Pakistan Economic Corridor would further
increase the share of Chinese products in the domestic market. Pakistan signed a series of
trade and financing agreements with Saudi Arabia in February 2019; however, the expected
free trade agreement between both countries has yet to be formalized. At the same time,
Pakistan and Qatar announced in December 2019 plans to enter into a free trade agreement.
Pakistan's trade structure has been structurally in deficit, with exports remaining sluggish on
the back of low global demand for Pakistani crops. Trade deficit, including services, widened
to USD 32.6 billion in 2018 (WTO) as imports grew much faster than exports. The imports of
goods reached USD 60.5 billion in 2018, while the exports were only USD 23.5 billion.
Concerning the trade of services, imports were USD 9.6 billion, whereas exports amounted to
USD 4 billion. Nonetheless, trade deficit narrowed to USD 11.6 billion in the first half of
2019-20 fiscal year from USD 16.8 billion in the same time a year earlier (Pakistan’s fiscal
year runs from 1 July until 30 June) (Pakistan Bureau of Statistics - PBS). However, this was
mainly due to lower imports as exports edged up by a mere USD 354 million to USD 11.5
billion during the period despite the depreciation of the Pakistani rupee. At the same time,
imports contracted by USD 4.8 billion to USD 23.2 billion. Exports reached 43% of the
annual target of USD 26.8 billion while imports were at 45% of the target of USD 51.7
billion.
Wheat Trade: Pakistan’s MY 2019/20 wheat exports are now estimated to be around 600,000
tons. The wheat is mainly exported to Sri Lanka, Bangladesh, Gulf countries, Afghanistan,
and some African countries. Due to depleting stocks and rise in prices, the government
banned wheat exports in October 2019 and since then, Pakistan has not exported wheat. The
Pakistan government announced that it would allow 300,000 tons of duty-free wheat imports
until March 2020. As the harvest of the local wheat crops started in late February in some
parts of Sindh, the imports during this current marketing year are not likely to exceed
100,000 tons. Pakistan supports the domestic wheat industry with a guaranteed wheat price of
$226 per metric ton. While the government only procures about a quarter of the crop (half
remains in villages and a quarter enters the “open” market directly), the procurement price
effectively sets the market price of wheat in Pakistan. The domestic market is insulated from
imports by a 60 percent regulatory duty (temporarily waived this year in January till March).
The tariff is well below Pakistan’s bound tariff rate (the maximum tariff rate Pakistan can
establish) for wheat of 150 percent.
Rice Trade: Pakistan, in the current marketing year, has so far exported 1.2 MMT of rice
compared to 1.3 MMT during the same period a year ago. Vietnam, Thailand, and India are
the main export competitors for Pakistani rice. MY 2019/20 and 2020/2021 rice exports are
projected at a steady 4.4 MMT.

Impact of COVID-19 on Rice Exports Unlike other rice exporting countries, Pakistan has not
banned export of rice due to COVID-19. Currently, Pakistan is under a stay-at-home decree
that is affecting transportation of commodities. Although the government has allowed
transportation of commodities, exporters are still facing other issues like labor shortages and
increased number of transportation checkpoints around the country. The rice industry has the
capacity to increase exports and may capitalize on trading bans implemented by other
countries. However, this scenario depends on the COVID -19 situation in Pakistan. Pakistan’s
rice exports during the current marketing year are provided below in Table 2. This data may
be subject to revisions. Pakistan imposes a tariff of 10 percent on rice imports.

Corn Trade: Corn production in Pakistan has almost doubled in the last decade. Corn is fast
becoming a major crop in Pakistan and is the third most important cereal after wheat and rice.
If the present growth trend in corn production continues, it is likely to overtake rice
production the next several years MY 2020/2021 production is forecast at 7 MMT while MY
19/20 production estimate is revised upward to 6.9 MMT in accordance with the government
data. Both the forecast and revised estimate reflect record production and depicts the
momentum for increase in Pakistan corn production and yields.
[ CITATION Asm20 \l 1033 ]

Research methods
Now we can realize the importance of agriculture and, at the same time, analysis of data of
agriculture, the analysis of which starts with data collection. Data collection is at the heart of
knowledge creation and its use in private decision making, public policy and applied
research. Yet, knowing what data to collect and how to analyze it can be difficult.
Our research is an explanatory research which is based on secondary data. We will be taking
data from internet sources and will be implementing it in a new way like what an
entrepreneur do. Existing data is summarized and collated to increase the overall
effectiveness of research. Secondary research includes research material published in
research reports and similar documents. These documents can be made available by public
libraries, websites, data obtained from already filled in surveys etc. Secondary research is
much more cost-effective than primary research, as it makes use of already existing data.
Part 2: objective, literature review, problem & solutions
Objectives
As a long-term development plan, the Vision seeks a country with ensured food security for
its inhabitants in the entire supply-chain. Food security has been included as a component of
Pillar IV along with Energy and Water in the Vision with an aim to provide sufficient,
reliable, safe and cost-effective food for present and the future needs. The Plan aims to
achieve food security for all by developing the agriculture sector into a modern, efficient and
diversified entity.
Improving agriculture productivity
There a lot of gaps in our agriculture sector that need to be filled regarding the quality of
production and cultivate, usually in high potential areas. So, improving agriculture
productivity with better support services it will help in achieving the target that are mentioned
in the plan. Improved access to agriculture credit, targeted subsidies to stimulate the use of
new technologies, better mechanisms for risk mitigation, and improved post-harvest
management and marketing facilities.
Diversification into high-value agriculture
Given the diversity of the agriculture sector and export competitiveness in high-value crops,
the strategy needs to balance food crops and higher-value horticultural crops. Fundamentally,
the growth must come from farmers’ enhanced capacity to modernize their production
systems based on optimal utilization of land and water resources and commercial approach to
agriculture production and value chain. This will require economies of scale at the farm
individual, corporate or cooperative level, adoption of modern production and post-harvest
technologies, and investment in the supply chain infrastructure.

Improving sector governance
The poor state of governance is common in the management of agriculture, both by the
public and private sectors. It has adverse impact on the agriculture productivity resulting from
litigations over land and water disputes, rent-seeking by the revenue functionaries, tempering
of water course outlets (mogaaz) by influential farmers upstream of distributaries, and market
failures, etc.
Improving water-use efficiency
Inefficient use of water is one of the serious issues of the agriculture sector. The irrigated
area in Pakistan has increased from 16.8 million hectares in 1990-91 to 18.9 million ha in
2012-13, and is expected to expand further. This happened because of increase in water
availability from 119.6 MAF to 137.5 MAF during the same period. Yet the water resources
available for agriculture continue to shrink due to increased demand from the urban and
industrial sectors. To overcome these problems, the Plan recommends a strategy of ‘More
Crop per Drop’ by increasing crop productivity per unit of water through promotion of water
saving technologies. These will include the lining of watercourses, drip and sprinkler
irrigation system, land levelling, permanent raised-beds, and substitution of high delta water
crops (sugarcane, rice) with low delta crops (maize, oil seeds, pulses, etc.). A multi-pronged
strategy will be adopted for improved water use efficiency to sustain food and water security.
The main components of this strategy will be:
• Reducing water losses (both at system and farm level) and improving conservation of
available resource to enhance water productivity.
• Minimizing system losses by improving operational management of canal system for wet,
average, and dry season scenarios and by monitoring of water discharges at mogaaz.
• Increasing the water storage capacity through development of on-farm storage tanks, small
dams, check dams, and spate irrigation (rod kohi) in rain fed, sailaba and mountainous areas.
Improving land resources
Pakistan faces serious issues of land degradation from water-logging, salinity, nutrient
mining and soil erosion. Inefficient irrigation and drainage systems, secondary salinization,
sea water intrusion, and lack of awareness are the major causes of land degradation. Rapid
urbanization is eroding arable land. About 3.2 million ha of canal command area are severely
affected by water-logging (water table less than 150 cm) and salinity. In spite of the huge
investment for reclaiming land fertility, the menace of water logging and salinity still persists.
In addition, soil fertility has badly affected by water and wind erosion and inefficient
application of fertilizers. For this purpose, strategies encompassing mitigation, rehabilitation
and better land-use planning will be adopted in order to protect land resources.
Agricultural biodiversity
Pakistan is rich in indigenous crop diversity with an estimated 3000 taxa of the cultivated
plants. There are around 500 wild relatives of the cultivated crops, mostly found in the
Northern Areas. Introduction of high-yielding varieties, expansion of land, deforestation and
dam constructions have threatened wild landraces of the crops, as agro ecological diversity of
the region is in danger due to modern agriculture. Pakistan has preserved 15,600 germplasm
accessions from more than 40 crops at the Pakistan Genetic Research Institute. Around 50 per
cent of the germplasm has been evaluated and catalogued. During the Plan period,
preservation of plant genetic resources will further be improved.

Mitigating impact of climate change
Manifestations of the climate change are already evident by changes in rainfall patterns,
occurrence of droughts and floods, extreme temperature, etc. It is predicted to have
significant negative impacts on agriculture production systems in different parts of the
country, particularly in the arid and semi-arid regions. (FOOD SECURITY AND
AGRICULTURAL DEVELOPMENT)
Literature review
Farmers’ roles are changing in developing and emerging economies where they need to
develop new skills to be competitive and more entrepreneurial .Entrepreneurship is a process
whereby individuals (entrepreneurs) and firms explore, create and exploit economic
opportunities leveraging their skills to push down uncertainties and enhance gains in a
proactive way .The emerging economies are highly characterized by growing market and
innovation orientation, and expanding their economic foundations in pursuit of global
opportunities overlooked so far simultaneously increasing market access, individual(s)
entrepreneurial capabilities and performance. In present century, the formation of regional
and global strategic ties has triggered the entrepreneurial opportunities and led the world
toward geo-economic partnerships to escalate infrastructural development, access to new
markets, and improved Agriculture Sector.[ CITATION Ali19 \l 1033 ]
The agriculture enterprises can create employment, increase in income, strengthening and
expanding the private sector, and increasing per capita GDP. Thus, agri entrepreneurship can
become an important element for economic growth, productivity, employment and poverty
alleviation. To promote agriculture entrepreneurship in rural areas of Pakistan following key
factors to be considered:
1) Exploiting local, regional and international demand
Although agriculture’s is a major contributor of Pakistan’s economy, the country’s share of
global agricultural exports is shrinking. Primary commodities with low or limited value
addition still count for a major portion of country agri based export of Pakistan. The profound
changes in domestic, regional and international markets are creating new opportunities for
trade in value added agricultural products and for agribusiness. In order to capitalize these
opportunities, there is need to promote agri entrepreneurship in the country with focus on
value addition and demand driven agribusiness product according to the domestic, regional
and international market requirement.
2) Improving Value Chain
In Pakistan there is very large market for commodities and processed goods which can be
strengthened though the competitiveness of firms and farms by improving value chains. The
following ways we can trigger and promote value chain development in agribusiness.
 Improving quality and creating a grading system for agri products
 Improving overall system efficiency for product delivery from farm to market.
 Enabling business environment which encourage high quality value addition at
different stages of delivery from farm to market.

3) Stimulating private participation
In every country of the world private sector has emerged as an increasingly important
element in stimulating economic growth, in response to opportunities for investment and
business innovation. For promoting agri entrepreneurship in Pakistan the participation of the
private sector in agro-industry can play an important role creating the environment of doing
sustainable agribusiness.
4) Improving infrastructure and energy access
The existence of a reliable and appropriate infrastructural system is an essential enabler for
any meaningful agro-industrial development in Pakistan. Infrastructure weaknesses in rural
areas of Pakistan has not only led to slower economic growth but also higher transaction
costs which is the key hurdle for completeness of agri based products. In such situation, even
marginal changes in infrastructural services have the potential to significantly accelerate
productivity and diversification. There is also need of providing affordable and reliable
energy for promoting agro based businesses, rural areas of Pakistan are the worse affecting
areas from load shedding and access to other energy resources in all seasons. Delivery of
pertinent energy, as opposed to simply improving energy access should be the guiding goal of
any development intervention to promote agri entrepreneurship in Pakistan.
5) Promoting effective and innovative financing
In order to promote agri entrepreneurship an engine o of economic growth for rural areas in
particular, the existence of private sector financing is almost negligible for agribusiness. The
lending processes in rural areas is mostly through informal networks such as family, friends,
arti and other relationship. The inability of banks and other financial institution to bring the
rural people into banking network and provide finance is one of the key hurdles in promoting
agri business. For this reason, there is need of paying close attention in developing and
promoting the policies and institutions in private as well as in public sector which are used in
developing the innovative financing product matching with needs of rural entrepreneurs.
[ CITATION DrA17 \l 1033 ]
Major Problems
1) Limited Cultivable Area
The total area of Pakistan is about 79.6 million hectares, out of which only 23.7 million
hectares (28%) area is used for agricultural purposes. About 8 million hectares’ area is idle
and un-utilized. There is vast sub-division and fragmentation of land holdings, as a result
modern technology cannot be applied in agriculture sector.
2) Inadequate Infrastructure
Rural infrastructure like, roads, storage facilities, transport, electricity, education, sanitation
and health facilities etc. is inadequate to meet the requirement of growth of agriculture. Total
length of farm-to-market road is not only shorter but their condition is also poor. Many
villages have no metal-led road at all. Electricity is available to only 3/4 rural populations.
3) Old Methods of Production
No doubt, mechanization of agriculture is increasing in Pakistan, but in most of the areas, the
old implements are still being used for agricultural production. Old and orthodox techniques
of production cannot increase the production according to international levels
4) Lack of Irrigation Facilities
Shortage of irrigation facilities causes a serious limitation in the expansion of crop area in
Pakistan. The lower water supplies, loses from water course in the fields are the serious
problems of farm sector. Actual surface water availability is 91.8-million-acre feet.

5) Low Cropping Intensity
Cropping intensity means the number of crops grown on a piece of land in one year. At the
present stage of our development, there is low level of cropping intensity as compared to
advanced countries. Cultivable area under double or multiple cropping is inadequate in
Pakistan.
6) Various Plant Diseases
Various agricultural crops like cotton, sugarcane, tobacco, wheat and rice often come under
attack of pests and insects. Pests and plant diseases reduce the annual productivity of
agriculture.
7) Scarcity of HYV Seeds
Our poor farmers have to use lower quality seeds due to non-availability of High Yielding
Variety (HYV) seeds. On the other hand, if seed is available, they cannot be purchased due to
low income. Agricultural production is badly affected because of inferior quality of seeds
8) Lack of Credit
Basically, our farmer is poor and he has low level of income. Agricultural credit facilities are
not common in Pakistan. Credit that can facilitate agriculture is not available easily.
Moreover, non-institutional sources are available but these are not reliable due to high rate of
interest. About 50.8% poor borrow from landlords in Pakistan.
9) Water Logging and Salinity
Water logging and salinity are twin problems of agricultural sector due to salinity, deposits of
salt in land have appeared on the surface of land and they have adversely affected the
performance of agricultural sector. Water logging and salinity affect about 0.10 million acres
of land in every year. It is not only waste of land but also reduction in productivity.
Solutions to Problem
1) Supply of Agriculture Credit
Poor farmers cannot afford the expensive technology from their own resources in Pakistan.
So, supply of agriculture credit at easy terms and conditions is very necessary
2) Water Logging and Salinity Control
Water logging and salinity destroys about one million acre of land every year in Punjab and
Sindh. It reduces our cultivable area. For this purpose, installation of tube wells, repair of
canal banks and drainage of water etc.
3) Provision of HYV Seed
High yielding variety seed is not available at suitable price in Pakistan. So, farmers have to
depend upon low quality of seeds that causes 20% reduction in total production.
4) Mechanization
Farm mechanization is necessary to remove the problems to agriculture sector. Sowing,
cultivation and harvesting of crops through agricultural machines increase the productive
quality and quantity.
5) 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 sum of money which
he pays for irrigation through tube wells and tractors.

Part 3: Business Model
Pestle Analysis
The announcement of sector-wise growth numbers provides confirmation of some of the
problems facing agriculture in Pakistan. A negative growth rate of 0.19pc, on the back of a
28pc drop in cotton production, is worrying not just because it chops off nearly 0.4pc from
overall GDP growth, but because nearly 40pc of the labor force is associated with the farm
economy.
Crisis in Pakistan’s agriculture sector is not a new development. In the last 15 years, the
sector has grown at an average of 2.2pc per annum. A slump in global food prices since 2008
along with weak demand of agricultural exports shoulders some of the blame for the
stagnation. In the same time period, production of cotton, the country’s most important crop,
has fluctuated rapidly.
Part of this is because it faced exogenous challenges in the shape of pest attacks and bad seed
quality, but partly because of an incentive problem — led by sugar mills — that pushes
farmers to switch cotton producing acreage to sugarcane. This persistent, decade-long slump
in the farming sector has invoked several reactions. The PPP, during its time in government,
responded by consistently raising support prices for wheat and sugar. This had the impact of
shifting the urban-rural terms of trade in favor of the latter, thus increasing cash flows
towards producers (while making commodities expensive for non-land-owning households).
The PML-N, in the face of protests by organizations representing medium and big farmers,
such as the Abadan Board and the Kissan Ittehad, first announced a farmer package, and has
now announced a bundle of pro-farmer measures in Friday’s budget. This includes input
subsidies, a reduction in the electricity tariff for tube-well use, removal of sales tax on
pesticides, and removal of duties on imported feed.

It is not difficult to understand why the PML-N, otherwise a party led by urban industrialists
and businessmen, jumped into action with this budget. Last year’s local government election
results in Punjab highlighted the importance of independent candidates and their electoral
panels, who ended up winning nearly 45pc of all rural seats. Most, if not all, of these
candidates belong to the market-oriented landed class, and hold diversified interests in cash
crop farming and agro-processing.
In rural Punjab, mid-sized landowners play an important role as political intermediaries. They
are responsible for organizing vote blocs, known as dharras, and negotiate with parties and
candidates for specific goods and services. While they are mostly self-serving in their
demands, they cannot ignore the interests of fellow farmers while making political decisions.
In a similar vein, large landowners, who may have political ambitions as candidates
themselves, cannot ignore the interests of these intermediaries if they intend on doing well
come election time.
In a scenario where the agricultural commodity crisis continues, it is completely plausible
that rising disaffection with the incumbent government’s inaction pushes many political
landowners — who’ve just joined the PML-N — to try their luck with other parties.
While traditionally, the PPP has represented rural interests in the province, the PTI currently
acts as the more attractive option for the politically aspirational. This is because of two
reasons. Firstly, in its new role as the predominant opposition party, it is in a better position
to capture anti-incumbent votes. There is countrywide recognition of the PTI as a staunchly
anti-PML-N option. Secondly, a segment of their leadership has strong roots in rural areas,
with leaders such as Shah Mehmood Qureshi being former office-bearers of several farmer
associations.
With general elections just two years away, and a number of other image-damaging problems
currently afflicting the government, PML-N cannot afford to alienate the rural elite and
middle class. What this likely means is that support to agriculture will go up, and in the next
year or so the government will pour in money into constituency-based development schemes
to keep its candidates, brokers, and integral supporters on board.
More broadly, the government providing subsidies and exemptions to farmers further
confirms the importance accorded to the elite and the middle class in political calculations.
To put this into some perspective, it is worth looking at a much bigger rural crisis plaguing
the country for the past many years: During the last four decades, an inter-generational
reduction in farm sizes at the bottom of the land pyramid has pushed many small cultivators,
tenant farmers and share-croppers into rural wage work.
Nearly 85pc of all farms are now smaller than 10 acres, and approximately 80pc of the rural
population is now landless. As a result, rural poverty — which is highly correlated with asset
ownership — remains above the 50pc mark, according to the new headcount methodology.
The long-standing condition of crippling rural poverty has not received even half as much
attention as the recent slump in farm prices. Apart from some social protection measures,
such as the BISP, there is little that this or any previous government has done to help out
landless workers in rural areas. In fact, there has been no concerted agenda to document and
ameliorate the conditions faced by an overwhelming majority of rural dwellers, which are
disorganized and unable to voice their concerns effectively.
If farmer packages and the sort of measures introduced in the budget are successful, the main
advantages will be accrued by large- and medium-sized landowners who produce for the
market. In the process, maybe some benefit will pass down to the perpetually ignored
landless artisans and rural wage workers. From a social justice perspective, however, this is
an inadequate strategy. If the government is serious about resolving the agricultural crisis, it
needs to move beyond a narrow political calculus and broaden its attention to include the
rural poor. Otherwise, the structural condition of rural poverty will continue to persist as it
has for the last so many years. [ CITATION Uma16 \l 1033 ]
Economical factor
 Agriculture is an important sector in any national economy. In the historical annals there
is evidence of the importance of the agriculture for the development of societies.
 Its emergence who played a key role in human civilization by creating surpluses of food
resources and giving the opportunity to increase the population density and complicate
the social organization, agriculture contributes to the improvement of public relations.
 Pakistan has extremely favorable in natural and climatic conditions for agricultural
development. The agricultural products produced food for the population, raw materials
for the food industry, biofuels, medicines and other products for various economic
sectors.
Social factors
Agricultural and other organizations must be mindful of the need to increase the efficiency
of this sector. Farmers' illiteracy, superstition, and other factors often prevent the adoption of
modern technology and the improvement of agricultural conditions in the region. Our
farmers are poor, and earns less money. In Pakistan, 50.8 percent of the poor borrow from
landlords. It is a common saying about our farmer that he born in debts, grows in debts and
dies in debts. This suggests that Pakistani farmers' financial condition is precarious.
According to the report, 57.4% of the poor work for feudal lords for no pay. Farmers in
Pakistan are not equipped with the appropriate needs in the agriculture sector, and other
organizations are taking a particular interest in addressing those needs. Farmers spend a
considerable amount of time caring for their crops and want to get the full yield from them,
but they are ignorant of modern methods of growing crops. They still have little
understanding of modern machineries that can boost the condition of the earth and increase
yield. It was discovered that no expert or organization is involved in educating farmers about
new approaches for growing healthy crops. This has a huge effect on our economy, and
farmers should be informed of other critical needs such as social and educational services, as
well as how to solve farmer problems.
Technological factor
It is vital that the agricultural sector continues to seek opportunities for innovation in order to
remain economically competitive and meet the challenges of sustainable development.
• Training machine and product testing institutes to be established.
• Demonstration of newly developed agricultural equipment’s
• Call center to be established for advice and technical help to assist farmers.
• A shift to transport and logistics automation, which will shorten the distance
between agricultural products and consumers and create the conditions for faster
and more accurate inventory management in warehouses and retail stores.
• Use cameras (for monitoring) and another technological solution can make
irrigation more efficient and save water.
• Data-based technologies, including satellite navigation tools and the Internet, can
help farmers manage crops and reduce the use of fertilizers and pesticides.
• Pakistani agriculture is lagging behind the pace of implementation of new
technologies by developed countries, however, farms should focus on
modernizing and creating more efficient and easier way manage.
Environmental Factors
Agriculture is a sensitive sector to environmental change and it is considered among the most
vulnerable sectors to the impacts of climate change. Extreme weather conditions and
precipitation changes are affecting the crop development, growth and yield of crops. Rise in
temperature reduces the grain filling duration, caused the grains sterility and yield reduction.
This sector in Pakistan faces serious challenges due to climate change which impacts in the
form of rising temperatures, floods, droughts, and yield losses. The continuously occurrence
of floods in Pakistan and other climate change impacts is costing the country 14 billion
dollars per year, which is around five% of gross domestic product (GDP) to its economy.
Climate change adaptation poses many complex governance questions and has therefore been
called a “wicked problem par excellence”. The “wicked problem” needs comprehensive and
proper solutions. Adaptation governance faces many difficulties, hindrances and
opportunities involved in dealing with the “wicked problems”
To face the risks in agriculture associated with climate change, adaptation is the key factor to
address the negative impacts of climate change. Adaptation strategies are important
opportunities to tackle climate change effectively and to sustain the crop production.
Adaptation is an important policy response to climate change in agriculture sector. The IPCC
emphasizes that it is very fundamental for the agricultural sector to adapt to climate change.
Number Adaptation
Drivers behind the initiatives
s initiatives
Awareness To educate farmers, control damages, improve productivity,
1
campaigns linkage with NGOs
Training programs To expedite implementation, enhance understanding of farmers, to
2
for farmers prepare the farmer’s community for climate change
Research and Understanding of climate change dynamics, to produce novel
3
innovation techniques
4 Institutional capacity Effective implementation of climate policies, to address the
Number Adaptation
Drivers behind the initiatives
s initiatives
challenge of lack of professionalism
Better research environment, promote climate research,
5 Role of academics
establishment of climate policies with sound scientific backing
Departmental To expedite implementation mechanism, comprehend the situation
6
coordination well in time
Legal Factors
1. Rules and Regulations should be established and followed.
2. Employment Law to be established.
Legal factors are represented by constitutions, laws, norms and regulations of the local
authorities, governments, international institutions, international community’s (European
Union, the North American Free Trade Agreement, the African Union and the
Association of South East Asian Nations). Agriculture law issues include the use of
pesticides, land use and zoning, environmental issues, and patents on genetically modified
seeds. Because agriculture law focuses on an entire industry, it can affect small family
farms as well as large commercial farming operations. The legal factors also impose laws
and regulations for pollution, social protection, work protection, work regulation,
competition regulation, anti-trust regulation, consumer protection, international trade
(trade agreements between nations or embargoes to some countries)

Part 4: Contributions of Entrepreneur in an Agriculture Sector
What Entrepreneur Can Do to Improvise Agriculture Sector
Creating Biogas through Agriculture Waste
Production of biogas and its business can be hugely successful in developing and agriculture-
oriented countries have many biogas plant businesses that flourishing. A biogas plant requires
agriculture waste like stubble, crop waste, dry leaves, animal waste, water and
microorganisms that help in decaying the mixture. The mixture after a while starts producing
methane that is stored in a container.
Vertical Farming
By 2050, the world’s population is expected to grow to 9.7 billion people, and feeding it will
be a huge challenge.1 Due to industrial development and urbanization, we are losing arable
lands every day. In 2015, scientists reported that the Earth had lost a third of its arable lands
over the previous 40 years.
Vertical farming is the practice of producing food on vertically inclined surfaces. Instead of
farming vegetables and other foods on a single level, such as in a field or a greenhouse, this
method produces foods in vertically stacked layers commonly integrated into other structures
like a skyscraper, shipping container or repurposed warehouse. Using Controlled
Environment Agriculture (CEA) technology, this modern idea uses indoor farming
techniques. The artificial control of temperature, light, humidity, and gases makes producing
foods and medicine indoor possible. In many ways, vertical farming is similar to greenhouses
where metal reflectors and artificial lighting augment natural sunlight. The primary goal of
vertical farming is maximizing crops output in a limited space.

Usage of Drones
Drone/UAV technology can be usefully deployed in the following agriculture sub-sectors: (a)
Applications of pesticides on crops; (b) Monitoring of weeds, pests, and nutritional
deficiencies; (c) Geographical survey of crops, area and water resources (d) Research and
development. In fact, the agricultural drone market is expected to grow over 38% in coming
years. Driven by growing population levels and changing climate patterns, the need for
efficient agriculture is only going to become more important.
GIS-Based Agriculture
Since fields are location-based, GIS software becomes an incredibly useful tool in terms of
precision farming. While using GIS software, farmers are able to map current and future
changes in precipitation, temperature, crop yields, plant health, and so on. It also enables the
use of GPS-based applications in-line with smart machinery to optimize fertilizer and
pesticide application; given that farmers don’t have to treat the entire field, but only deal with
certain areas, they are able to achieve conservation of money, effort, and time. Another great
benefit of GIS-based agriculture is the application of satellites and drones to collect valuable
data on vegetation, soil conditions, weather, and terrain from a bird’s-eye view. Such data
significantly improves the accuracy of decision-making.
Agri-tourism
Farm/ranch recreation refers to activities conducted on private agricultural lands, which
might include fee-hunting and fishing, overnight stays, educational activities, etc. This
category of tourism is a subset of a larger industry known as agritourism. Agritourism is "a
commercial enterprise at a working farm, ranch, or agricultural plant conducted for the
enjoyment of visitors that generates supplemental income for the owner."
Agritourism and nature-tourism enterprises might include:

 Outdoor recreation (fishing, hunting, wildlife study, horseback riding).
 Educational experiences (cannery tours, cooking classes).
 Entertainment (harvest festivals).
 Hospitality services (farm stays, guided tours or outfitter services).
 On-farm direct sales (u-pick operations or roadside stands).
Agritourism is a subset of a larger industry called rural tourism that includes resorts, off-site
farmers' markets, non-profit agricultural tours, and other leisure and hospitality businesses
that attract visitors to the countryside.
Rural Tourism differs from Agritourism in two ways. First, rural tourism enterprises do not
necessarily occur on a farm or ranch, or at an agricultural plant, they do not generate
supplemental income for the agricultural enterprise.
Agricultural technical vocational education and training (ATVET)
This was in large part due to the fact that vocational education and training was absent in
most government and donor-driven poverty reduction strategies in most developing countries,
i.e. vocational education and training has been receiving less political attention.
The link between poverty reduction and skills training and increased growth, productivity and
innovation, is particularly strong in the informal sector. ATVET thus plays a vital role in
developing the skills that are needed to improve output, quality, variety and occupational
safety, which in turn improve health outcomes, thereby increasing the incomes and
livelihoods of the poor. ATVET also helps the trainees to strengthen knowledge about the
informal sector, rural organizations and good governance. Access to training and relevant
skills is important in many ways; it leads to increased productivity in agriculture-related
sectors, links the poor rural population to profitable income generating activities, and attracts
young people to agricultural and rural futures. Effective ATVET systems that build linkages
between education, technical training, labor market entry, and lifelong learning are necessary
for sustainable productivity growth and for generating better paying jobs in rural areas and
beyond.
Windmills, renewable energies & bio-technologies
Windmills
Mankind has been using wind energy since ancient times – for sailing, water pumping and
grinding. Modern technology, such as a wind turbine is now used also for electricity
production in many parts of the world. Its global application has been increasing almost
exponentially over the past years. Wind, the result of global and local temperature difference,
represents another source of renewable energy. The governing principle of wind energy is the
transformation of wind flow into rotational movements.
Wind Mill as Entrepreneur in agriculture
As an Entrepreneur we can use the wind mills in the field of agriculture as we know that in
many of the villages there is a lot of problem of electricity and due to this farmer faces a lot
of problem for running their tube wells and other electrical equipment’s so if we plant a 1
wind mill across 1-acre land it will be very helpful for the agriculture sector to increase the
production of crops by using the proper electrical equipment’s and they safe their self-power.
Following are the wind mills that are currently running in Pakistan
 Jihmpir Wind Power Plant  Sapphire Wind Power Plant
 Foundation Wind Energy I & II  Tricon Boston Consulting
Corporation Wind Power Plant

 Artistic Energy (Pvt) Ltd.
 ACT Wind Farm

 Three Gorges First Wind Farm
Renewable Resources in Agriculture Sector of Pakistan
A natural resource qualifies as a renewable resource if it is replenished by natural processes
at a rate comparable with or faster than its rate of consumption by humans. Solar radiation,
tides, winds and hydroelectricity are perpetual resources that are in no danger of long-term
availability. Some natural renewable resources such as geothermal power, fresh water, timber
and biomass must be carefully managed to avoid exceeding the environment’s capacity to
replenish them.
Many farmers already produce renewable energy by growing corn to make ethanol. An
increasing number of farmers and ranchers are now adding to their incomes by harvesting the
wind that blows across their land to make electricity. And new options are becoming
available.
Renewable energy and farming are a winning combination. Wind, solar, and biomass energy
can be harvested forever, providing farmers with a long-term source of income. Renewable
energy can be used on the farm to replace other fuels or sold as a "cash crop."
Wind Energy
In countries where there is a lack of available land to build wind turbines, the agricultural
sector is playing a key role by providing enough spaces. For instance, in Denmark farmer
cooperatives are diversifying their incomes by investing in wind energy. Almost a quarter of
wind energy sourced from wind turbines are owned by the Danish farmers. The same trend is
taking place in Germany where farmers have established private companies to develop wind
energy projects. Wind farms can be built in farms without any harmful impact on agricultural
activities.
Wind energy potential is abundant across the Mediterranean region due to geographical
location marked by a long coastline. The integration of wind energy projects in the
agricultural sector is an interesting economic opportunity for agricultural enterprises in the
region. However, as wind energy projects demand heavy capital, there is a need to mobilize
funds to develop such projects.
In addition, there is need to create attractive financing mechanisms for farmers and to build
their capacities in developing and managing wind projects. The development of wind energy
projects owned by farmers will help them to have an extra revenue stream. It will also lead to
decentralization of electricity production, which will not only reduce transmission losses but
also decrease reliance on the national grid.
Solar Energy
The Mediterranean region receives one of the highest solar radiation in the world. Large
availability of unexploited lands in the region, especially in the Eastern and Southern
countries, makes solar energy systems, especially photovoltaics an attractive proposition for
regional countries. Agricultural farms in the Mediterranean region can use PV systems for
domestic as well as commercial power generation. In addition, there are a handful of
applications in agricultural sector such as water pumping and irrigation.
Off-grid photovoltaic systems ensure a reliable and completely autonomous water supply at
low cost – without fuel-powered generators, battery systems or long power lines. Solar
energy can make irrigation independent of grid power. Low-pressure drip irrigation systems
can be operated with any photovoltaic-powered pump, making them ideal for areas not
connected to the grid. Photovoltaic projects require low capital investment and can be
developed at small-to-medium scales.

Biomass Energy
A variety of fuels can be produced from agricultural biomass resources including liquid fuels,
such as ethanol, methanol, biodiesel, Fischer-Tropsch diesel, and gaseous fuels, such as
biogas, methane, hydrogen and methane. The agricultural resources include animal manure
and crop residues derived primarily from maize, corn and small grains. A variety of
regionally significant crops, such as cotton, sugarcane, rice, and fruit and nut orchards can
also be a source of crop residues.
Globally, biofuels are most commonly used to power vehicles, heat homes, and for cooking.
Biofuels are generally considered as offering many priorities, including sustainability,
reduction of greenhouse gas emissions, regional development, rural development, social
structure and agriculture, and security of supply.
The time has come for industries in the Mediterranean region, especially the agricultural
sector, to undertake the shift necessary to contribute to sustainable development of the
MENA region by making the best use of latest technological developments in renewable
energy sector
Bio Technology in Agriculture Sector of Pakistan
Throughout the long-term Biotechnology has been characterized in numerous structures, in
some writing it has been characterized as the use of living frameworks-based innovations to
create business cycles and items. Though, more included method of characterizing it would
be the utilization of microbial, creature or plant cells or chemicals to incorporate, breakdown
or change material for creation of products and enterprises to the humanity. It is the study of
advancement for the government assistance of living beings.

Biotechnology is a multidisciplinary field; it assimilates with other fields like Biology,
Biochemistry, Microbiology, Molecular Biology, Chemical Engineering and Process
Engineering in a way that makes sure of getting the desired benefit from each discipline.
Because of it being multidisciplinary in nature, the scope and opportunities of Biotechnology
are wide and infinite in the areas of agriculture, industry, food and beverages, health,
environment and energy.
In Pakistan, Biotechnology has contributed tremendously in Agriculture area. Items have
been created both from customary Biotechnology and present-day Biotechnology in light of
the fact that huge extent of venture has gone to rural Biotechnology. A portion of the items
have been popularized or are prepared for showcasing. Horticulture establishes the biggest
area of Pakistan's economy and with the commitment of Biotechnology this area has
improved and still has massive capability of doing marvels to flourish the economy.
Conventional Agricultural Biotechnology centers around Bio pesticides, Bio composts and
Tissue culture. As of late, the expansion in the utilization of substance pesticides raise a
worry of heightening significantly more in present moment. There is an utter need of
developing alternative methods of crop protection. Being environmentally friendly nothing
can be more suitable substitute than Bio pesticides. Some important Bio pesticides are
mentioned here on which the R&D work has been done:
 Trichogramma (egg parasitoid) to control lepidopteran pests, such as sugarcane
internode borer;
 Fungi (Trichoderma and Gliocladium) to control root rot and wilt disease in pulses;
 Baculoviruses;
 Nuclear polyhedrosis virus (NPV) of Heliothis armigera for cotton, oil-seeds, pulses,
vegetables and millets;
 NPV of tobacco caterpillar (Spodoptera litura) for tobacco and cotton;
 Granulosis virus (GV) for sugarcane internode borer;
 Bacillus thuringiensis for lepidopteran insect control; and
 Neem (Melia azaderechta): its various extracts have been marketed.
Proceeding onward towards Bio fertilizers, a few microorganisms can possibly improve the
accessibility of supplements to trim plants, on the whole these organisms are called as Bio
fertilizers, Chemical composts are higher in cost and they do affect the climate also and this
has monstrously expanded the significance of Bio fertilizers. There are two kinds of Bio
fertilizers: advantageous and free-living. The previous one requires a harmonious relationship
with plants, are addressed by Rhizobium. The last mentioned, can fix nitrogen freely, and
incorporate Azobacter, Azospiririlium, blue green growth (BGA) and AZ olla. NIBGE has
delivered a bio fertilizer which is advertised under the business trademark of Bio Power. It
depends on the microscopic organisms from the rhizosphere of harvests which are discovered
liable for creating development chemicals, assemble fixed phosphorus in soil and can go
about as biocontrol specialists.
The last one in Traditional Agricultural Biotechnology is Tissue refined, In Pakistan the
offices were created in 1968 in the Botany Department of University of Peshawar. The mass
proliferation of sickness free plants in significant vegetative developed harvests, for example,
sugarcane, potato, banana and date-palm have a ton of degree in it. In Modern Agricultural
Biotechnology work has been done in Molecular Breeding and Genetically Modified Crops.
In Pakistan, with the assistance of primary and utilitarian genomics the hereditary variety of
the yield plants like wheat, cotton, rice and heartbeats have been evaluated.
In Pakistan, a large portion of the yield improvement exercises utilizing hereditarily
adjustment are centered around cotton, which is among the main five harvests. Presently
brassica, chickpea, chilies, cucurbits, potato, sugarcane, tobacco and tomato have taken up as
well. On the financial side, it is assessed that the monetary additions from biotech crops for
Pakistan for the time frame 2010 to 2015 was US$4.3 billion and US$398 million for 2015
alone. The results of Agricultural Biotechnology have been demonstrated gainful over and
over. They have been given wanted outcomes with no possible damage for humanity and
climate. Pakistan's economy can prosper more with the appropriation of all the more
hereditarily changed harvests in future.
Part 5: Recent Achievements
Basmati Rice Patent Won Against India in the EU
Since Basmati rice commands a higher price on international markets, India attempted to
stifle Pakistani trade in the EU by claiming that its Basmati was the geographically original
variety.
Pakistan was swift to respond, with the Rice Exporters Association of Pakistan (REAP)
preparing a book of Basmati requirements, setting out the criteria for Basmati characteristics
that must be followed by any producer or operator in Pakistan.
REAP was ideally placed to provide insight into Basmati's trade, characteristics, regions, and
history because it is a trade body that has been active in exporting Basmati to the world and
represents Pakistan's exporters of Basmati.
On January 26, 2021, Pakistan received the geographical indicator tag for Basmati.
Pakistan's case against India in the EU will be aided by the GI tag, as it has challenged India's
argument by registering its own GI for Basmati and will be seeking the same EU security for
its Basmati as India.
Part 6: Operations
Agricultural Policies
For Maximizing Agricultural Production in Line with Consumer Demand
In framing major agricultural policies, sub-policies and sub-sub-policies, we should always
bear in mind the distinction between long-run and short-run policies. Short-run policies are
designed to meet specific urgencies in the immediate future. The long-run policies on the
other hand, aim, at devising means to achieve the set goals eventually.
A. Some of the major policies
 Short-Term
Out of the two general ways to increase production, i.e. (i) by increasing the area
under production and (ii) by raising the yields per acre. The former may be expected
to yield better and surer results than the latter in the short-run
 Long-Term
Raising the yields per acre is a very desirable policy and perhaps the only practicable
policy for maximizing agricultural output in the long-run.

B. Sub-Policies
Area under production (our policy in the short-run) may be increased by (1) colonizing new
area and by (2) increasing the intensity of cropping on the presently cultivated area. Now, it is
rather difficult to say which one of them should be adopted as a sub-policy.
C. Sub-sub-policies
Subsidies for popularizing the use of fertilizers, improved seeds and other developmental
measures are considered desirable but only in the short-run. In our long-run policy they
should have no place.
For Achieving National Self-Sufficiency in Food
Some of the major policies
To achieve the goal of natural sufficiency in food production would be as given
1. Forward Pricing for rice and wheat
2. Proper storage facilities for building food-grain reserves.
3. Control of stored-grain pests.
Sub-Policies
1. Development of fisheries, poultry, fruits and vegetable etc.
2. Stoppage of exports and smuggling of food grains.
3. Over-hauling of the distributive machinery
Raising the Living Standard of the Farm People
In order to raise the living standard of the farmer, we have not only to raise production but
also to improve the distributive machinery so that the cultivators reap the benefits of their
hard work.
Some of the major policies
1. To prevent the prices of farm products from falling too low.
2. To guarantee to the farmer a fair share of the consumer’s rupee.
3. Equitable distribution of the product between the tenant and the landlord.
4. Revision of the current regressive agricultural taxation system.
Conservation of Agricultural Resources
Under agricultural resources, we will include (a) soil and (b) water. Some authors may like to
include farm labor also in the above list. From the point of view of conservation, however, it
is soil and water which would merit our attention most. Soil erosion and water-logging have
been described as ‘creeping death’ and ‘cancer of soil’ respectively by some authors. They
constitute a real threat to our agricultural and hence to our economy in general. It goes
without saying that the conservation and judicious utilization of these resources is not only
important for the coming generations but also and probably more so for the present
generation.
To Reduce the Pressure of Population in the Agricultural Sector
The scope of this goal is rather broad and the policies to achieve it do not necessarily lie in
the field of agriculture. Farming as a profession carries a prestige in spite of the low income
and lower wages in it as compared to other professions.[ CITATION DrB \l 1033 ]
Terms & Conditions for Agriculture Sector
Agriculture, known also as husbandry or farming, is the science of cultivating plants,
animals, and other life forms for food, fiber, and fuel. The agricultural industry, which
includes enterprises engaged in growing crops, raising fish and animals, and logging wood,
encompasses farms, dairies, hatcheries, and ranches. It is a major industry in the United
States.
The development of agriculture spans thousands of years and has been affected by human
cultures, climate variations, and evolving technologies. Despite the industry's evolution over
the centuries, all types of farming still rely on methods to maintain environments conducive
for raising domestic species. In terms of plants, the land must be sustained with a type of
irrigation system; for raising livestock, rangeland must be cultivated to support animal life.
Nowadays farm yields have greatly increased due to improvements in breeding, chemicals,
and technology. Yet some of these measures can cause damage to the environment and pose
health risks to humans.
A modern innovation in the agriculture industry is the Green Revolution, which began in the
second half of the 20th century. This development is cited for saving people around the world
from starvation through initiatives involving irrigation systems, production of high-yielding
crops, and better management strategies.
Today farming professionals face the daunting challenge of keeping current with increasingly
rapid changes in equipment technology and agricultural research. For instance, biotechnology
is being applied to industrial livestock operations to provide healthier animals and improve
breed development, resulting in more meat, eggs, and dairy products to meet consumer
demands.
Responsible for putting healthy food on consumers' tables, the agriculture industry is
regulated by strict policies. Farmers must be up to date on all legislation affecting their
product and their laborers. For example, at the end of the decade trade-related tensions
between the United States and China had caused commodities prices to plummet.
Subsequently, in December 2018 President Donald Trump signed a new $867 billion farm
bill (the Agriculture Improvement Act of 2018) that included billions of dollars in subsidies.
A farmer may work a single tract of land in addition to renting out a number of separate
tracts. The farmer may be the sole operator of the establishment or work within a partnership
or corporation. The agriculture industry employs a wide-range of workers including farm
laborers, veterinarians, scientists, salespeople, and soil managers.
Despite all the advances made in the agriculture field, it still remains a hazardous industry.
Fatalities and injuries due to machine operation as well as diseases and birth defects spawned
by exposure to pesticides and fertilizers are among the work-related dangers faced by
agricultural workers.
Business Continuity Plan
Business continuity deals with unexpected situations that arise primarily from organization’s
external rather than their internal environment and is targeted at preventing and suitably
responding to such situations. A business continuity plan is a COOP plan developed to keep a
business afloat during or following a disaster. It is a detailed logistics plan which costs
nothing to write and which should be a natural extension to any business plans that were
required at start-up. While a one-size-fits-all template can be used to build upon, each
business venture has variable factors that lead to the creation of a unique plan.
Business Continuity Plan in Agriculture
A business continuity plan is similar to a disaster preparedness plan because it contains
information to assist with preparation for what happens after a disaster. Its main use is to
provide specific guidelines that will enable a business to exist while it seems all else around it
(the farm or business site) is in a state of deterioration or chaos.

The concept of business continuity planning for agriculture arose in recent years to prevent
just that type of outcome. When a disease is localized or regionalized, critical satellite
industries (such as animal feed) can stay in operation which, in turn, allows farmers in
unaffected areas to stay in business and therefore minimize losses for everyone. Both the
U.S. Animal Health Association (USAHA) and the National Institute of Animal Agriculture
(NIAA) have proposed the development and implementation of a comprehensive national
agriculture and food continuity of business strategy/operational plan to be utilized in the
event of a major agriculture or food emergency. Such a plan, with input from industry as
well as all levels of government
and research facilities, would integrate necessary resources, initiatives, regulatory policies,
and emergency processes already in place to protect producers and allied industries from
losses associated with stop movement orders and downtime during such an event.
In agriculture the most common problems are associated with natural disasters and epidemics
that the organization in question cannot control. In industry and ICT, it is connected primarily
with technological defects. There are some steps in developing a business continuity plan in
agriculture sector.
Steps in Developing Business Continuity Plan
Determine the scope of the plan
o Is the plan written for a specific threat (e.g., fire, flood, disease) or for ‘all hazards’?
o Is it written to provide contingencies for the short-term (business interrupted for a few
days) or long-term (including the need to permanently re-locate and start over?
Determine the critical functions that the business cannot operate without
o List these essential functions first and then prioritize the rest from most to least vital.
The most critical functions are the ones that can tolerate the least amount of downtime.
o Then do the same with staff members, equipment, suppliers and clients.
o Identify off-site options for storage of originals and duplicates of data, legal documents,
insurance policies and other vital records.
o Determine how or if substitutions could be made for any of these if none were
available.
o Identify a temporary alternate work site where business operations be restored within a
reasonable period (including set up of computers, FAX, copier, printers), and where at
least some essential staff may have to relocate for weeks.
Maintain information
o Contact information inside and outside of the organization, regulatory agencies and
associated reporting requirements.
o Record account numbers and dates payments are due.
o Include maps as necessary.
o Give complete copies of the plan to essential personnel, but make sure that everyone
understands the delegation of authority so that they will be able to follow the decision-
makers should the plan have to be put into effect.
o Update the plan as necessary and exercise it if at all possible.
As your agriculture business evolves and new risks emerge, your business continuity plan
should be updated to keep pace with those changes. Test and update it regularly, at least once
a year and any time critical functions, facilities, suppliers or employees change. Train
employees to understand their roles and responsibilities in the plan as well.

How Entrepreneur Improve Continuity Plan Regularly
As our agriculture business evolves and new risks emerge, our business continuity plan
should be updated to keep pace with those changes. Test and update it regularly, at least once
a year and any time critical functions, facilities, suppliers or employees change. Train
employees to understand their roles and responsibilities in the plan as well.
o Technology evolves, and people come and go, so the plan needs to be updated, too.
Bring key personnel together at least annually to review the plan and discuss any
areas that must be modified.
o Advances in technology are revolutionizing farming. Update agribusiness continuity
plan to include potential new technology that might not have existed when your plan
was originally created, such as mobile milking stations that can be brought in when
other equipment is offline.
o It’s also important to be aware that newer technology presents new risks that should
be accounted for in your plan.

o Consider conducting hypothetical walk-throughs of different disruption scenarios,
simulations and discussions with employees. A well-thought through plan can help
your agribusiness get back up and running after an event.
o Prior to the review, solicit feedback from staff to incorporate into the plan. Ask all
departments or business units to review the plan, including branch locations or other
remote units. If you've had the misfortune of facing a disaster and had to put the plan
into action, be sure to incorporate lessons learned. Many organizations conduct a
review in tandem with a table-top exercise or structured walk-through.
Contingency Planning
It is vital to be prepared for some form of risk or mishap in any sector or company. To
prevent this, it is preferable to prepare preparations for multiple scenarios and circumstances.
Instead of being derailed, timely reaction and careful scenario preparation would keep the
process on course and on track to success.
The agriculture sector must establish effective contingency plans. Farmers will be more
relaxed if they have well-thought-out backup plans. Whatever occurs during the forthcoming
crop year, they had a plan in motion to keep farms going in the right direction. This is one of
the most powerful methods for coping with variables that no farmer can monitor, such as
temperature, costs, and foreign markets. The farmer will build more confidence with
successful scenario and contingency preparation for a new crop year. It will give them peace
of mind to know that they have a contingency in action in case any of the worst-case
situations arise.
1. Locust swarms destroyed huge areas of fertile land. Early-detection infrastructure —
tracking, control, and fast target of locust nymphal bands — should be part of the
contingency plan. The department should build its own policy rather than relying
exclusively on China.
2. Managing invasion swarms in a timely manner using existing equipment, which
helped them to save crops such as wheat and oilseeds. As an entrepreneur, stomach
poison pesticides can be used for managing nymphal stages of locusts, in addition to
spraying ULV formulations of Malathion 95 percent using cars and aircraft, as was
the case in the 1970s. This is a low-cost, simple method of locust management that
depends on inhabitants of the desert. Previously, bait preparation was performed with
the pesticide dieldrin. Since this pesticide is no longer available, some stomach poison
can be used to produce bait.
3. Pakistan is suffering a water crisis. Pakistan has the most unreliable irrigation
schemes, with more than 60% of water lost due to leakage and seepage, as well as
inadequate irrigation methods in the region.
4. As an entrepreneur, Inadequate irrigation contingency measures can be implemented
to further minimize water losses at the tertiary level, using strategies such as laser
leveling, ridge/bed sowing at the field level, and strengthened outlets to significantly
reduce losses from water channels. Rain gun, drip, and sprinkle irrigation may be
encouraged, particularly in hilly areas with sandy soils and for high-value crops.
5. To ensure that environmental resources are used in a safe way (land, water, and air).
For agriculture and development, land and soil quality must be assured. Dams should
be designed to collect rainwater for field irrigation.

6. Entrepreneurs can help in improving productivity by delivering high-quality inputs,
credit, and operation. Growing agricultural production requires greater access to high-
quality agricultural inputs and services.
7. To facilitate the production of nontraditional farming segments, activities, and
crops/livestock. As an entrepreneur sensors, computers, machines, and information
technology, as well as emerging technologies such as robotics, helicopters,
temperature and moisture sensors, advanced gene editing, automated agriculture, and
so on, can be used. Precision agriculture and advanced devices would make this sector
more lucrative and productive.
8. Engaging in research/knowledge programs and outreach on a long-term basis.
Promoting rural growth and alternative wages to enable rural women and youth to
work in sustainable jobs through skill development and off-farm activities.
Pakistan agricultural sector provision policies
Agricultural insurance plan provides crops and livestock from destruction or loss. It has a lot
of ability to support low-income farmers and their households, both in terms of protecting
them from threats and motivating them to spend more in crops. Agricultural insurance cover
insurers for damages, with farmers earning payouts based on the results of an index (such as a
rainfall gauge), rather than penalizing them for real crop losses. The agriculture sector in
Pakistan is the largest, but it is still largely uninsured; Adamjee Insurance took the initiative
to implement the idea of Crop Insurance. For farmers, the time between planting and
harvesting crops is important. Floods, droughts, rainstorms, and hailstorms are all threats in
the agricultural field so Insurance policy is necessary because farmer's assets are secured also
it brings stability to farmer's income. Further, in case of crop damage, insurance company
covers loans taken from bank & farmers get financial aid for re-cropping and it also gives
them a secured and peaceful life. Three main insurance policies or schemes, which have been
successfully implemented in Pakistan, are:
 Crop loan insurance scheme (CLIS)
Crop insurance is a relatively new concept that was launched in 2008 as part of a
public-private initiative to establish a national (in scope) crop loan insurance system
to support farmers and borrowers who take out agricultural development loans from
banks and microfinance institutions in Pakistan. Non-loaned farmers are not able to
participate in CLIS because it is compulsory for all borrowers only those who receive
an agricultural loan from a bank. The crops that are covered in this scheme includes
wheat, rice, sugarcane, maize and cotton which can be destroyed by natural calamities
like excessive rain, hailstorm, frost, flood, drought or crop related diseases such as
viral and bacterial attacks, or other damage caused to the crop by infestation for
example, locust attack. Crop insurance offers financial cover from natural hazards,
such as fire and lightning, as well as pest and pet attacks on crop production.
 Area Yield Index Insurance (AYII) In Punjab
The Punjab Government introduced the Punjab Fasal Bema Scheme, a crop insurance
program focused on the field yield index, in 2018 (AYII). AYII seeks to boost Punjabi
farmers' resistance to yield losses due to calamities, disasters, and other causes. Crops
covered includes three major crops in Punjab: cotton, rice, and wheat. The covered
persons are Mandatory for landowners of e-credit; Optional for loaned (other than e-
credit) and non-loaned landowners of selected districts.
 Livestock insurance scheme for borrowers (LISB)
The LISB scheme, which started in 2013, seeks to enhance access to financing for the
livestock and dairy sectors by reducing the risk of livestock loss due to disease,
natural hazards, and injuries. The LISB is a threating tool that encourages banks to
improve credit flow to this high-potential but underserved sector by ensuring all
livestock loans up to PKR 5 million for animal purchases. Animals covered are all
local dairy and fattening animals (cows, buffaloes and bulls) aged 9 months to 7
years. The loan will be provided only for the death from natural causes, diseases,
accidents, floods, heavy rains, storms and drought.
Pakistan is also working on a National Crop Insurance Scheme (NCIS) that will be launched
in 2023 to improve agricultural income in the country.
Other than these, as an entrepreneur, here are several provision policies that can be applied to
the agricultural sector;
 Farmers Insurance: Our top priority is the safety of human life. Nothing compares to
the importance of a person's life. Farmer insurance takes on similar value in this
regard. Farmers are responsible for all crops and livestock that are needed for our
survival, but if a farmer develops a disease or falls ill, the government should pay the
whole medical bill. Without food, the world will slowly collapse, and farmers work
tirelessly every day to ensure that plenty of crops and dairy protein are available in
market. Likewise, if a farmer dies, the government should provide payments to his
family, or the government can cover the farmer's family's household and educational
expenses.
 land insurance: as an entrepreneur, we can put forward the suggestion of land
insurance for farmers. If a farmer experiences from soil erosion (the removal of
precious top soil, which is the most fertile component of the soil surface for
agricultural purposes), the government should reimburse them or offer a loan to
compensate for the loss of crops or plants.

 Revenue Insurance: As sometimes the crops get damaged or sometimes due to the
change in season, the price of crops decreases and the farmers instead of getting profit
bears the loss. So, this insurance can provide coverage against changes in farm
revenues which means the farmers should get the original amount they demand.
Revenue insurance covers against both price and quantity fluctuations when revenue
equals price times quantity.
Training Employees for Every Scenario
Agriculture is a vast system in which we produce all the natural resources and this requires
huge amount of efforts and practice. Agriculture is the second greatest source of employment
worldwide after services and it accounts 28% of global employment.
Agriculture is based on farming system which includes traditional, semi-commercial and
commercial systems and these 3 major systems involves cropping systems, mixed systems
perennial crops, livestock and shifting cultivation and much more. Training employees is the
need of this system as they can work more efficiently and they can extract more value or can
learn to make profit from it. Establishing agriculture in a nation provide opportunities to get
people out of the poverty. f arming creates more jobs, beginning with farmers and continue
with farm equipment makers, food processing plants, transportation, infrastructure, and
manufacturing.
Now a day there is a lot being said about extension employee becoming entrepreneur and
helping farmers to become an entrepreneur. There are two parts to entrepreneurship. The first
is the managerial skills which are needed to start and run a profitable farm business. The
second is the entrepreneurial spirit which cannot be taught but managerial skills can teach.
Many farmers are already great managers and many also have spirit of an entrepreneur. As
(price takers) many farmers have developed outstanding abilities to make the most of their
resources. But being price takers suggest these price takers are not innovative which is not
good because a successful farmer-entrepreneurs are technically competent, innovative and
they plan further to steer their farm business through the stages of enterprise development
from establishment and rapid growth and maturity. Entrepreneurship, value chains and
market linkages are terms that are being used more and more when talking about agriculture
and farming. Small-scale farmers and extension organizations understand that there is little
future for farmers unless they become more entrepreneurial in the way they run their farms.
They must increasingly produce for markets and for profits. Becoming more entrepreneurial
can be a challenge for small-scale farmers. They will need help from extension workers and
other institutions.
Part 7 Supply Chain
Network of Multiple Suppliers
S SUPPLIER NAMES PRODUCT CONTACT ADDRESS
NO. AND NUMBER
SERVICES
Animal & Plant +92 - 021 SUIT # R-639
Based Organic -32061786 SECTOR 10
Fertilizers, SHADAB
AMI Traders
1. Fertilizers, TOWN
Inorganic NORTH
Fertilizers, KARACHI
Micronutrient
Fertilizers
Fertilizers +92 - 021 - 5a, Manzoor
2. 32722524 square plaza

AMIR SONS
quarters,
Karachi
Fertilizers, +92 - 042 - Lahore Pakistan
3. Mineral-Based 36601694 Lahore, 54600

Aa Corp
Organic Pakistan,
Fertilizers,
Fertilizers, NK +92 - 042 - 356-F/2, Johar
4. Fertilizers, NP 35311519 Town

AQ Enterprises
Fertilizers, etc. Lahore, 54000
Pakistan
Agriculture +92 - 021 Suite # 5, 2nd
Fertilizers, -3008250853 Floor Khanani
5. Agriculture Chamber,
Abdullah Corporation
Supplies, Muhammad
Feroz street
Jodia bazar
Karachi, 74000
Pakistan
Agriculture +92 - 021 Suite # M-1,
Supplies -32472290 Mezzanine

Adorn Trading Shipping
6. Floor, Trade
Agencies Pvt Ltd
Avenue, Tower
1, Hasrat
Mohani Road,
Karachi - PK
Agriculture +92 - 021 - III-H, 2/14,
7. Supplies 36613091 Nazimabad

Afk Associate
Karachi, 74600
Pakistan
8. Ahad Group Ammonia +92 021 70/2 STREET
Fertilizers, 35244324 22, DHA
Ammonium KARACHI,
Nitrate 74000
Pakistan
9. Air Sea Worldwide Fertilizers, +92 021 Flat No 1, 1st
Logistics Pakistan Nitrogen 34550444 Floor, 17/C,
Fertilizers, Urea Commercial
Fertilizers Area, Block A,
SMCHS,
Karachi.
10. Akbar Ali & Co Agriculture +92 021 Unit No 4,
Supplies 36673354 Babuji Arcade.
North
Nazimabad,
Karachi
11. Zs international Agriculture +92 021 suite 14 9th
Supplies 3112763710 floor ak square
new challi
12. United agro Chemicals Agriculture +92 021 3nd Floor
Supplies, 35651781-2 Khanani
Fertilizers, Chamber,
Horticulture Muhammad
Supplies Feroz street
Jodia bazar
Karachi, 74000
Pakistan
13. Ul Hassan And Co. Agriculture +92 021 95 / 1, 9th
Supplies 34529678 Commercial
Street, Ph. Iv,
D. H. A.
14. Vital Agri nutrients Agriculture +92 0322 47 km off
Supplies 4603902 Multan road
near Bhai pheru.
Lahore Pakistan
15. Rational Agriculture +92 021 D-228, Site
Supplies 32419341 Karachi, 75400
Pakistan
Risk Transfer Method
Agricultural business owners may feel they have risk under control, but even seasoned
ranchers and farmers can miss an important aspect of risk mitigation. This involves protecting
your business from potential liability for the mistakes made by third parties who supply
services or products, such as subcontractors, suppliers or farm labor workers.
The concept of risk transfer refers to precautions you can take to help hold third parties
financially responsible should their materials, products or services cause or contribute to a
liability claim. The transfer of risk can be accomplished through contractual arrangements
that include requiring third parties to have insurance coverage sufficient to protect your
interests. When implementing a risk transfer program, you should work with your insurance
agent as well as an attorney experienced in contract law in your state.
The risk management for agricultural products supply chain is more complex than that for
typical manufacturing supply chain. Agricultural production is vulnerable to severe weather
such as heavy rain, cyclones, and cold wave, which challenges the matching of random
output with random demand for agricultural products supply chains. The goal of this paper is
to design an effective risk transfer mechanism for managing severe weather risks so as to
ensure the stable operation of the agricultural products supply chain. We study the
coordination of two-level agricultural products supply chain with a single company and a
single farmer under the influence of severe weather. Taking rainstorm weather as an example,
this paper designs a risk transfer mechanism based on weather index (rainfall) insurance:
“rainfall index insurance + revenue sharing + risk transfer fee.” It is found that this risk
transfer mechanism can overcome distortion of the farmer’s agricultural investment level
under the influence of severe weather. When the contract parameters meet certain conditions,
using the risk transfer mechanism can achieve the supply chain coordination and a win-win
situation. More importantly, weather change does not affect the Pareto improvement of the
company and the farmer under the risk transfer mechanism. In addition, we also find that the
company can incentivize the farmer to purchase weather index insurance and use the
insurance market to shift the severe weather risk encountered during the agricultural
production to protect the company’s and farmer’s income and the stable operation of the
supply chain.
These include climate and weather risks, natural catastrophes pest and diseases, which cause
highly variable production outcomes. Production risks are exacerbated by price risks, credit
risks, technological risks and institutional risks.

In response to the weather risk encountered in agricultural production activities, some experts
studied the design of the corresponding contract mechanism from the dimension of supply
chain operational hedging in order to minimize the losses caused by weather risk. However,
these studies mainly focus on the design of coordination mechanisms among supply chain
members, lacking effective risk externalization mechanisms. Some scholars use financial
derivative market to transfer the weather risk and study the (weather) option contract design
of the agricultural products supply chain. Although the option-based risk externalization
mechanism can transfer uncontrollable risks encountered within the supply chain, weather
option is mainly used to counter adverse weather risks such as warm winter and cold spring
[8]. For heavy rain and other severe weather encountered during agricultural production, the
option mechanism is difficult to hedge relative risk effectively. In addition, the development
of the financial derivative market in developing economies lags behind. These make it
difficult to transfer disastrous weather risk during agricultural production through weather
option in agricultural practice.
Agricultural insurance provides a solution to managing the severe weather risk encountered
in agricultural production in developing economies. However, traditional agricultural
insurance faces two major problems in the practice of agricultural production. One is
insurance fraud caused by moral hazard and information asymmetry; the other is that
policyholders cannot get compensation for losses due to basis risk. In contrast, weather index
insurance takes the weather index (such as rainfall and temperature) as an object of
compensation. It can effectively overcome the information asymmetry in traditional
agricultural insurance, avoiding moral hazard and adverse selection.

Health risks for farmers and farmworkers include
It's important to have health insurance as a safety net. If you unexpectedly get sick or injured,
health insurance is there to help cover costs that you likely can't afford to pay on your own.
Health care can be very expensive. It can be an enormous financial burden.
At the same time, agriculture can be linked with poor health, including malnutrition, malaria,
foodborne illnesses, human immunodeficiency virus/acquired immunodeficiency syndrome
(HIV/AIDS), livestock-related diseases, chronic diseases and occupational ill-health.
 Exposure to farm chemicals, such as pesticides and fertilizers, as well as toxic gases
which may be produced from common farm practices like manure decomposition and
silo crop storage
 Exposure to high levels of dust, which can contain mold, bacteria, and animal
droppings, among other things
 Falls from ladders, farm equipment, grain bins, or other heights
 Exposure to ultraviolet rays from the sun, which can result in skin cancer
 Joint and ligament injuries, which can result in arthritic conditions affecting mobility
 Exposure to loud noises and sounds from machinery and equipment which can result
in hearing loss
 Stress from environmental factors, such as droughts, floods, wildfires, pests, and
diseases affecting crops and livestock, as well as from working long hours, financial
concerns, and feelings of isolation and frustration
 Risk of suffocation in a grain bin if a person is engulfed by the grain
 Risk of heatstroke, frostbite, or hypothermia from working outside in extreme weather
conditions
 Risk of injury from operating farm equipment and motorized vehicles

 Risk of injury from working with livestock
 Risk of electrocution to persons operating large equipment that can contact overhead
power lines
Supply Chain Department
Every crop has its unique characteristics and traits. There are some crops which are being
bought directly from the farmer by the retailers like vegetables. Similarly, there are other
crops which go through different chains and processes before reaching the end user like
Cotton and sugarcane. Every crop is different from another crop. Similarly, there are some
crops which are processed through different process till they reach the end consumer like
cotton and sugarcane. On the other hand, there are some crops which are sold directly to the
retailers by the farmers or the land owners like vegetables. Furthermore, there are also some
of the crops which are taken from the farmers or the land owners by the contractors who then
sell them to the retailers. The examples of such crops include banana and mango.
Supplier Supplier Supplier
Farmer / Land Owner

Farmer / Land Owner Farmer / Land Owner
Retailer Contractor Manufacturer / Factory
Customer Retailer Retailer
Customer Customer
Vegetable
Banana / Sugarcane
Mango / Cotton
Uncertainty is the major threat faced by the agriculture. The natural disasters severely affect
the crops. There is lack of planning to avoid the natural disasters. It destroyed most of the
agricultural land of Sindh, Punjab, Baluchistan and KPK. There was shortage of the basic
commodities which were imported on higher rates. There is a need of a proper planning to
avoid the natural disasters. Moreover, the farmers should also be provided the crop insurance
by the government.
The following chart to quantify the potential for value chain development in agriculture. Two
main sources of value chain development of individual agricultural commodities
commercially grown in Pakistan are identified. These are, first is expansion in production
through improvement in yield to the world average-yield level, and second is improvement in
quality to the world average quality levels by taking world prices as a measure of quality. The
improvement in yields of various crops will generate additional production which can go into
three directions: i) expansion in export, ii) import substitution, and iii) domestic market.
Potential in Agricultural
Commodities
Expansion in production base at Improvement in quality at world

world average yield level average quality level
Expansion Expansion in
in domestic export-base Existing
Market export
Import
quality (Pak.
substitution
Export-Int’l
(Domestic
Export
import
quality)
quality)
Import
substitution
Improvement of 10% of
domestic market (Domestic-
Domestic)
Improvement in quality can be attempted at four points of the value chain: i) where expansion
in domestic production goes to export; ii) where expansion in domestic production goes to
import substitution, iii) where Pakistani export fetches lower than the world average prices,
and iv) ten percent of the domestic production, both original and expanded production
destined to domestic market after export expansion and import substitution. The above
framework is developed in a manner to minimize the disturbance in domestic market so that
domestic wholesale prices will not change with the expansion in domestic production or
improvement in the quality of ten percent domestic production. It is assumed that increased in
yield to the world average level will not change the existing cropping pattern in the country
so that existing production pattern will not change. Moreover, it is assumed that Pakistan is
small player in international market, so expansion in Pakistani export or its quality will not
disturb the international market. Estimating the Pakistan’s cluster development potential by
bringing the country at the world average yield, export, and quality levels is only the
minimum that Pakistan should attempt in the first phase of its development. Of course, in the
later stage the country can go to the higher levels. The data on area, production quantity,
production value, export and import quantities, and value of export and import of all
agricultural commodities commercially grown in Pakistan during the year 2013 and
comparable data for the same commodities at world level were obtained from FAOSTAT
website of the Food and Agricultural Organization (FAO). In case any such data is missing, it
was obtained from the Agricultural Statistics of Pakistan, Pakistan Economic Survey, and
Punjab Agricultural Information Services (AMIS) websites. Only those commodities are
considered commercial agricultural commodities in Pakistan for which all the above data are
available from any of the above source.

Delivery system in agriculture sector
Nanocides: smart delivery system in agriculture
The word “Nano” comes from the Greek for “dwarf”. A nanometer is a thousandth of a
thousandth of a thousandth of a meter (10-9 m). One nanometer is about 60,000 times smaller
than a human hair in diameter or the size of a virus, a typical sheet of paper is about 100,000
nm thick, a red blood cell is about 2,000 to 5,000nm in size, and the diameter of DNA is in
the range of 2.5nm. Therefore, nanotechnology deals with matter that ranges from one-half
the diameter of DNA up to 1/20 the size of a red blood cell. Further, it is interesting to note
that nonmaterial are so small, even bacteria would need a microscope to see them.
Nanoparticles are generally accepted as those with a particle size below 100 nanometers
where unique phenomena enable novel applications and benefits. Nanomaterials on which
most of the research has been carried out are normally powders composed of nanoparticles
which exhibit properties that are different from powders of the same chemical composition,
but with much larger particles. The current global population is nearly 6billion with 50%
living in Asia. A large proportion of those living in developing countries face daily food
shortages as a result of environmental impacts or political instability, while in the developed
world there is a food surplus. The challenge is how to feed the growing population by
producing more on a stagnant or shrinking landscape; with lesser input costs and with lesser
hazards to the eco-system. Another adjunct to this problem is how to add to the income of
agricultural producers so as to sustain their motivation to grow crops. Nanotechnology has
answers to many of these challenges. In agriculture, some of the world’s largest makers of
pesticides, fertilizers, and other farm inputs and technologies are betting on nanotechnology
to bring unprecedented precision to crop and livestock production. Potential applications of
nanotechnology in crop protection include controlled release of encapsulated pesticide,
fertilizer and other agrochemicals in protection against pests and pathogens, early detection
of plant disease and pollutants including pesticide residues by using Nano sensors. The
potential applications of nanomaterials in crop protection, helps in the development of
efficient and potential approaches for the management of plant pathogens. Nanotechnology
has emerged as one of the most innovative scientific field in agriculture.
It provides opportunity to develop improved systems for monitoring environmental
conditions and delivering nutrients or pesticides as appropriate, improve our understanding of
the biology of different crops and thus potentially enhance yields or nutritional values.
Precision farming- Nanotechnology application here makes farming more targeted and
scientific. Precision farming makes use of computers, global satellite positioning systems,
and remote sensing devices to measure various parameters. Accurate information through
applications of Nanotechnology for real time monitoring of soil conditions, environmental
changes and diseases and plant health issues. Nanoscale devices with novel properties could
be used to make agricultural systems “smart”. For example, devices could be used to identify
plant health issues before these become visible to the farmer. Such devices may be capable of
responding to different situations by taking appropriate remedial action. If not, they will alert
the farmer to the problems. In this way, smart devices will act as both a preventive and an
early warning system. Such devices could be used to deliver chemicals in a controlled and
targeted manner in the same way as Nano medicine has implications for drug delivery in
humans. Nanotechnology has the potential to revolutionize the agricultural and food industry
with new tools for the molecular treatment of diseases, rapid disease detection, enhancing the
ability of plants to absorb nutrients etc. Smart sensors and smart delivery systems will help
the agricultural industry combat viruses and other crop pathogens. In the near future
nanostructured catalysts will be available which will increase the efficiency of pesticides and
herbicides, allowing lower doses to be used. However, currently there is a limited
understanding of human health and safety risks associated with this technology. The potential
application of Nanocides in different agricultural applications needs further research
investigation with respect to synthesis, toxicology and its effective application at field level.
Nanotechnology has got applicability in various fields, but research and development is still
at bench-top scale. Great efforts are required in commercialization of Nanocides for
agricultural applications, which requires proper protection needs, testing priorities, risk
assessment and regulatory guidance at global level. Controlled use of the technology will
open opportunities for developing new materials and methods that will enhance our ability to
develop faster, more reliable and more sensitive analytical systems. Overall the scenario
presents us with the view that nanotechnology is here to stay.
Part 8 Forecasting and Risk Management
Risk Transfer Method
Agricultural business owners may feel they have risk under control, but even seasoned
ranchers and farmers can miss an important aspect of risk mitigation. This involves protecting
your business from potential liability for the mistakes made by third parties who supply
services or products, such as subcontractors, suppliers or farm labor workers.
The concept of risk transfer refers to precautions you can take to help hold third parties
financially responsible should their materials, products or services cause or contribute to a
liability claim. The transfer of risk can be accomplished through contractual arrangements
that include requiring third parties to have insurance coverage sufficient to protect your
interests. When implementing a risk transfer program, you should work with your insurance
agent as well as an attorney experienced in contract law in your state.
The risk management for agricultural products supply chain is more complex than that for
typical manufacturing supply chain. Agricultural production is vulnerable to severe weather
such as heavy rain, cyclones, and cold wave, which challenges the matching of random
output with random demand for agricultural products supply chains. The goal of this paper is
to design an effective risk transfer mechanism for managing severe weather risks so as to
ensure the stable operation of the agricultural products supply chain. We study the
coordination of two-level agricultural products supply chain with a single company and a
single farmer under the influence of severe weather. Taking rainstorm weather as an example,
this paper designs a risk transfer mechanism based on weather index (rainfall) insurance
rainfall index insurance + revenue sharing + risk transfer fee.” It is found that this risk transfer
mechanism can overcome distortion of the farmer’s agricultural investment level under the
influence of severe weather. When the contract parameters meet certain conditions, using the
risk transfer mechanism can achieve the supply chain coordination and a win-win situation.
More importantly, weather change does not affect the Pareto improvement of the company
and the farmer under the risk transfer mechanism. In addition, we also find that the company
can incentivize the farmer to purchase weather index insurance and use the insurance market
to shift the severe weather risk encountered during the agricultural production to protect the
company’s and farmer’s income and the stable operation of the supply chain.
These include climate and weather risks, natural catastrophes pest and diseases, which cause
highly variable production outcomes. Production risks are exacerbated by price risks, credit
risks, technological risks and institutional risks.
In response to the weather risk encountered in agricultural production activities, some experts
studied the design of the corresponding contract mechanism from the dimension of supply
chain operational hedging in order to minimize the losses caused by weather risk. However,
these studies mainly focus on the design of coordination mechanisms among supply chain
members, lacking effective risk externalization mechanisms. Some scholars use financial
derivative market to transfer the weather risk and study the weather option contract design of
the agricultural products supply chain. Although the option-based risk externalization
mechanism can transfer uncontrollable risks encountered within the supply chain, weather
option is mainly used to counter adverse weather risks such as warm winter and cold spring.
For heavy rain and other severe weather encountered during agricultural production, the
option mechanism is difficult to hedge relative risk effectively. In addition, the development
of the financial derivative market in developing economies lags behind. These make it
difficult to transfer disastrous weather risk during agricultural production through weather
option in agricultural practice.
Agricultural insurance provides a solution to managing the severe weather risk encountered
in agricultural production in developing economies. However, traditional agricultural
insurance faces two major problems in the practice of agricultural production. One is
insurance fraud caused by moral hazard and information asymmetry; the other is that
policyholders cannot get compensation for losses due to basis risk. In contrast, weather index
insurance takes the weather index (such as rainfall and temperature) as an object of
compensation. It can effectively overcome the information asymmetry in traditional
agricultural insurance, avoiding moral hazard and adverse selection.

Health risks for farmers and farmworkers include
It's important to have health insurance as a safety net. If you unexpectedly get sick or injured,
health insurance is there to help cover costs that you likely can't afford to pay on your own.
Health care can be very expensive. It can be an enormous financial burden.
At the same time, agriculture can be linked with poor health, including malnutrition, malaria,
foodborne illnesses, human immunodeficiency virus/acquired immunodeficiency syndrome
(HIV/AIDS), livestock-related diseases, chronic diseases and occupational ill-health.
 Exposure to farm chemicals, such as pesticides and fertilizers, as well as toxic gases
which may be produced from common farm practices like manure decomposition and
silo crop storage
 Exposure to high levels of dust, which can contain mold, bacteria, and animal
droppings, among other things
 Falls from ladders, farm equipment, grain bins, or other heights
 Exposure to ultraviolet rays from the sun, which can result in skin cancer
 Joint and ligament injuries, which can result in arthritic conditions affecting mobility
 Exposure to loud noises and sounds from machinery and equipment which can result
in hearing loss
 Stress from environmental factors, such as droughts, floods, wildfires, pests, and
diseases affecting crops and livestock, as well as from working long hours, financial
concerns, and feelings of isolation and frustration
 Risk of suffocation in a grain bin if a person is engulfed by the grain
 Risk of heatstroke, frostbite, or hypothermia from working outside in extreme weather
conditions
 Risk of injury from operating farm equipment and motorized vehicles

 Risk of injury from working with livestock
 Risk of electrocution to persons operating large equipment that can contact overhead
power lines
Future of agriculture sector in Pakistan
Pakistan is a development country and Agriculture is the backbone of Country’s economy. It
is currently seventh most populous country in the world. Its agricultural sector occupies an
important position in its economy and contributes about 25% GDP. Since at the end of World
War 2, the public institute of developed countries have helped transfer agricultural
technologies to developing countries.
Agriculture is the main source to improve economy in most developing countries Agricultural
sector is basically the backbone of the economy of the country. It provides food and raw
materials to humans and cattle. It also provides employment opportunities to very large
percentage of the population. The major crops of Pakistan are wheat, sugarcane, cotton, and
rice, which provide more than 75% of the value of total crop output. Pakistan's largest food
crop is wheat. The major export crops are cotton and rice. There are seven basic branches of
agriculture are; Agronomy, Horticulture, Plant Breeding/Genetics, Soil Science, Agro-
meteorology, Agricultural Biotechnology, Agricultural Engineering, Agricultural Extension.
Present Condition of Agriculture in Pakistan: Currently Agriculture providing more than 25%
Contribution in the GDP of Pakistan. Which is Productive but it should further be improved.
To make the economy of the country better in agricultural sector after few decades in the
future.
Improvement Required in Agriculture: In Pakistan, Crop productivity can be enhanced
significantly by improving the quality of agriculture input, like seeds, fertilizers, pesticides,
herbicides water and their efficient, judicious and balanced use.

Role of Government to the Agriculture:
 Policies: Government policies are same for agriculture sector from past few years. No
new policies are formed from many years. First of all, marketing is the major problem
for the farmer while the government is constructing good quality road only in cities
but there is no attention of the government towards the major marketing problem.
 Price: The price of all the input reaches the heights of
the sky but there is no proper selling price at the end of
the season of the crops and farmer suffers a great loss
after suffering major problem of transfer of
commodities from one place to another.
 Research Plan: Secondly, there is no research plan in the process of policy
development in Pakistan and hence, the economic plan also diminishes.
 Flood protection: Its necessary to take immediate planning to prevent the prepared
crop from unexpected flood which ruins the Hard work of farmer.
Present Policies According to Future Vision of Agriculture:
Due to present situation/ condition of agriculture, no awareness to the farmer and no policies
from several years, agriculture in future will face a lot of problem including water crisis,
energy crisis and high costs of all inputs related to agriculture.
Due to the lack of the common platform for the farmer, there will be no content development
in agriculture; no partnership will be among the public and private sector and hence, no
institutional capacity will lead toward fewer support facilities.
What its policies should be? (Recommendations)
Due to change in environmental factor and climate, land requirement also changing and
hence agriculture needs new policies according to the present environmental condition.
There is only one association for agriculture and dairy industry in Pakistan, which is acting as
a bridge among the people in the government sector and farmer. The name of that
Association is PADRA. This association is trying to improve agriculture sector in Pakistan
by providing training to the farmers to raise awareness among the people.
Our farmer only needs clear vision and proper guidance to get success in future and that
vision may be clear only to our representatives and authorities.
 Government should defend people’s life as well as properties and also settle their
disputes for the healthy agricultural environments.
 The government should be the caretaker of the people in the agriculture sector
(Produces, entrepreneurs, workers, labours, savers and consumers) to make their life
better and easier.

How Agriculture Sector Can Be Improve with the Help of “Technology”
Technology Integration in Agriculture: Today’s
agriculture routinely uses sophisticated technologies such
as robots, temperature and moisture sensors, aerial
images, and GPS technology. These advanced devices
and precision agriculture and robotic systems allow
businesses to be more profitable, efficient, safer and more
environmentally friendly.
Some of the Newest Technologies Introduce in Agriculture are following:
 GIS Software and GPS Agriculture.
 Drone and Other aerial imagery and sprays.
 Farming software and online data.
 Merging dataset.
Role of AI & IOT in Agriculture
Decrease Pesticide Usage: Farmer can use AI to manage weeds by implementing computer
visions, robots and machine learning. With the help of the AI, data are gathered to keep a
check on the weed which helps the farmer to spray chemical only where the weeds are. This
directly reduced the usage of chemical spraying on entire field. As a result, AI reduces
herbicide usage in the field comparatively the volume of chemical normally sprayed.
AI Agriculture Bots:
AI-Enable agriculture bots helps farmer to find more efficient way to protect their crops from
weeds. This is also helping to overcome the labour challenge.AI bots in the Agriculture field
can harvest crops at a higher volume and faster pace than human labour. By leveraging
computer vision helps to monitor the weed and spray them. Thus AI is helping farmer find
more efficient ways to protect their crops from weeds.
Financing
Information
For the agriculture sector to expand, it requires access to capital. The transition from
subsistence to industrial agriculture necessitates economic capital In developed countries, on
the other hand, Agriculture is a source of revenue for 86% of the population (International
Finance Corporation) of rural citizens [ CITATION Mar15 \l 1033 ], Financing for agricultural
investments is insufficient, except for major buyers. Agricultural credit accounts for less than
1% of commercial lending in Africa. Financial organizations are slow to consider agricultural
threats such as droughts, flooding, pests, and diseases, as well as the transaction costs of
covering large geographic distances. As a result, although policymakers are now attempting
to draw investment into agriculture, a lack of awareness
of the financial threats and opportunities in the sector
tends to deprive the sector of much-needed funds to
improve production, manufacturing, and marketing.
Challenges of Agricultural Financing:
 Rural areas in most developing countries lack
solid financial services. Financial services are difficult to provide in rural areas due to
a more dispersed population with weak infrastructure. Many rural areas have higher
transaction costs than urban areas.

 Risk factors inherent in agriculture often inhibit financial institutions from lending.
These include production risks linked to natural hazards and farmers' weak ability to
provide collateral.
 Third, the financial sector may not be sophisticated enough in some developing
countries. The availability and innovation on sector-specific financial instruments and
services is usually poor.
Who Needs Finance in the Agriculture Sector?
Agriculture encompasses a broad range of activities from small-scale farming to
infrastructure projects to research and development. As a result, when referring to agriculture
finance, the market clusters it in four groups. The groupings correspond to different
approaches to addressing the needs of the sectors: (1) the needs of farmers and entrepreneurs,
(2) the transactions between the actors along the value chain, (3) infrastructure needs and (4)
generating knowledge to support the sector.
Farmers and small agricultural entrepreneurs:
This policy focuses on the players in the agriculture sector that need financial assistance.
Farmers and small business managers, Small supply businesses, for example, need
financing to allow them to increase production and/or extend your product range. This may
include, for example, Finance for inputs (such as seeds and fertilizer) is an example.
fertilizers), and processing (machinery and other equipment) and marketing (processing,
delivery, etc.)
Actors Along the Value Chain
The focus is on the relations between numerous actors along a given route. chain of value
Agriculture entails a set of intertwined activities—transactions—in a chain that begins with
seed and fertilizer supply. It all comes to a head in the mouth of the customer. There are
numerous financial instruments available. Built explicitly to reinforce the relations that exist
between the different players in the value chain.
Rural infrastructure
Financing can be also concentrated on the infrastructure needed to carry out agricultural
activities. The sector depends heavily on infrastructure such as rural transport systems,
irrigation systems, water supply, sanitation, electricity, storage and telecommunication
facilities. These projects are costly and require large amounts of financing.
Research and development
This last approach focuses on financially supporting knowledge generation for the sector.
R&D also provides valuable knowledge to help producers prepare business plans for banks.
Internal finance
This occurs between participants along the value chain based on their relationships, such as
when a fertilizer company provides fertilizers and the farmer only pays after selling their
harvest. Consumer finance, exchange credits, input-supplier credits, marketing company
credits, and lead business credits are all part of this policy.
External finance
This comes from outside the value chain—for example, a microcredit bank will cover the
costs of purchasing the fertilizer for the farmer.
Part 9 Taxation & Waste Management
Taxation & Duties
Brief Background: Structure & Performance of Pakistan in Agricultural Sector:
 The incentive framework for Pakistani agriculture, with emphasis on trade and price
policies. The direct and indirect impacts of such policies are often underappreciated.
Possible trade and price policies reforms, in the context of a highly tradable activity
such as agriculture, by altering returns, would likely affect the performance of the
whole sector by influencing the returns on infrastructure and other investments; and
this in turn would have impacts on factor markets, such as for labor, land and water.
 Agriculture contributes a substantial share of national GDP, approximately 25% of
National income, and the sector employs 45 % of the total labor force. About two-
thirds of Pakistan’s population resides in rural areas, and rural household primary
depends on agriculture for their livelihoods. The average farm size is 3.1 hectares; but
small farms (of about 1.4 hectares or fewer) make up 87 % of all farms and cultivate
38% of all cropland. Large farms (of about 145 hectares or more) represent only 6%
of all farms, but occupy 45 % of total cultivated land. Beyond the farm gate,
Pakistan’s agriculture is a major source of raw materials for the manufacturing
industry, contributing over 50% of basic inputs to downstream industries. On the
demand side, the sector is a large market for industrial products such as fertilizers,
pesticides, machinery and equipment.
 Overall, the agricultural sector’s growth has declined gradually over the past three
decades, as shown in Figure 1. In more recent years and there is some evidence that
agricultural growth has been slowing since early 2000s. The causality behind this
decline is uncertain, but possible factors include the inequality in farm sizes, limited
investment in irrigation systems, the slowing of adoption of new technology and
techniques, a weak extension service, and perhaps the effect of changes to trade and
price policies on agricultural investment.

Historical Growth Rates of Pakistan’s Agriculture Sector (By Decade)
6
5.4
5.1
5
4.4
3.2
Percent
3
2.4
0
1960's 1970's 1980's 1990's 2000's
`
Irrigation on Water Availability in Pakistan, 2004-11
120 10%
100
5%
Million acre feet available
80
0%
60
-5%
40
-10%
20
0 -15%
2004 2005 2006 2007 2008 2009 2010 2011
Million acre feet available Availability as % of average

Pakistan Food Export (US$ Million) by Selected Product Groups, 2004-11
Others Vegetables Fruits Fish Rice
4000
3000
2000
1000
0
FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11
 The major field crops—notably cotton, wheat, sugarcane, and rice—are the back bone
of rural economy, and are sources of foreign exchange earnings for Pakistan. About
44 percent of agricultural exports are due to rice and 20 percent due to wheat and
cotton (see Figure 4). Leather, leather products and carpets account roughly for 4
percent of total exports. A rough estimate suggests that, over all, agriculture
contributes to around 80 percent of export earnings directly and indirectly through
forward linkages to agro-based industries (such as textiles). The largest agricultural
import is vegetable oil; other major imported agricultural products include long staple
cotton, sugar, pulses, tea, milk and milk products. For 2010-11, the food group, textile
group and agricultural & other chemicals group accounted for roughly US$ 14.2
billion of imports (35 percent of total).
 Although Pakistan is a net food importer, it would be unlikely that Pakistan would
face a foreign exchange constraint in food imports, given the low share of such
imports relative to total export revenues and workers’ remittances. For example,
workers’ remittances in 2009-10 were US$ 8.9 billion and US$ 11.2 billion in 2010-
11.
Trade and Pricing Policies Related to Agriculture
 By 2003 Pakistan’s trade liberalization, which began in 1996, had simplified the tariff
structure, nearly eliminating all quantitative restrictions, and lowering rates; and state
trading monopolies were abolished for agricultural products. Beginning in 2006,
however, exceptions were introduced, and—according to the IGC report of June 2011
—there was a “reversal of a number of the more important liberalizing reforms in
agriculture, notably of wheat, sugar and fertilizer policies.” In 2008 several
Regulatory Duties were introduced, in addition to the expanded use of
 SROs—Statutory Regulatory Orders—which, since 2006, had been used to give both
partial or full exemptions to normal tariffs, in some cases, and increased tariffs, in
others. Tariff exemptions influence agriculture primarily through inputs; and most
SROs are aimed at specified firms, not generally available for all importers. Such
exemptions are yet another complication to a highly discretionary, and continually
changing, trade regime, made all the more complex by preferential trade agreements
(with China, Sri Lanka and other South Asian countries 1). In addition to the
uncertainty produced by the trade regime’s discretionary nature, the complexity of
various tariffs, regulatory duties, and SROs, generates a variety of dispersed price
impacts across both products and inputs, which in turn leads to a dispersion of
effective rates of protection—that is, the incentives for resource allocation.
1
account that simple customs duties—as reported, say, by the WTO—only tell a part of
the story with respect to trade policies’ real impacts on incentives. The varied profile
of tariffs and para-tariffs—SROs, regulatory duties, tax withholdings, export bans,
and subsidies on some exports and inputs—requires an analysis at the product level
that would capture the effect of the trade regime on returns.
Import Taxes
The trade regime has six basic types of taxes:
 The Customs Duty (CD), the standard tariff assessed on an import’s CIF value.
 A Regulatory Duty (RD), a special Federal Government border tax, which is
applicable to the CIF value, applicable in some cases to exports.
 The Federal Excise Duty, FED, and the Special FED on CIF value.
 The Provincial Excise Duty (PED) on CIF value.
 The Sales Tax (ST) on the duty paid value.
 The Withholding Tax (WHT) on duty and the sales tax paid value.
Note that Withholding Tax is an ‘advance tax’ charged at the time of import (or export) and
subsequently is credited when traders file a final return to the tax authorities. The sales tax
should be paid on transactions involving goods derived both from domestic and foreign
sources; and so conceptually should not be involved in calculations of protection of domestic
products. There are various exemptions to taxes detailed by Special Regulatory Orders
(SROs).
The above is the duty structure, and also known as Tariff Information, is:
Duties Rate
 Custom Duty 20%

 Additional Custom Duty 7%
 Regulatory Duty 10%
 Sales Tax 17%
 Additional Sales Tax 3%
 Income Tax 12%
Basic Pakistan Custom Duties and Taxes (%) on Selected Agricultural Product, 2010”
Customs duties Sales tax Withholding tax

Product Statutory Applied Statutory Applied
Wheat 10 0 16 0 5
Cane sugar 25 0 16 0 5
Milk 25 0 16 0 5
Rice seed 0 0 16 0 5
Rice seed 10 0 16 0 5
Cotton not carded 0 0 16 0 5
Cotton carded 5 0 16 0 5
Farm equipment 5 0 16 0 5
Insecticides 5 0 16 0 5
Tractors 5 0 16 0 5
Fertilizers 0 0 16 0 5
Export Policy
Pakistan’s export policy introduces few restrictions to trade; the most important being bans
on some ‘essential’ products ostensibly to ensure local availability and official approval for
exports in some cases. Export commodities are not subject to export taxes, with some
exceptions subject to regulatory duty: molasses has a regulatory duty of 15%,
 Wheat flour (and other wheat products) is subject to 35% duty
 Exporters are also required to pay a withholding tax of 1% of the sale proceeds
 Commission agents pay 5% of commissions.
Pakistan Export Policies Related to Selected Agricultural Products
Products Status
Rice Exports subject to procedures of the Ministry of Commerce.
Obligatory pre-shipment inspection by Quality Review
Committee. Trade with Europe by the Trading Corporation of
Pakistan which conducts PSI.

Wheat Since 2011 exports of wheat freely allowed.
Wheat, Flour, Suji and Export is permissible in accordance with the Ministry of
Maida Commerce procedures.

Sugar Banned for export, but in 2011, 100,000 MT allowed for
exports, allocated on a first-come basis (5,000MT limit).

Urea Banned for export except with the permission of Economic
Coordination Committee (ECC) of the cabinet.

DAP, NP, and other Banned for export. These products imported by UN and other
Fertilizers relief agencies are permissible for re-export to Afghanistan.

Cotton Exports subject to (a) registered contract with Trade
Development Authority of Pakistan (TDAP) against 1% of
the value of contract as security, (b) an irrevocable letter of
credit with the TDAP to be opened within 35 days of the
registration of the contract, the failure of which leads to the
security deposit confiscated, and (c) exports shall be allowed

against type as well as grade.

Milk and Dairy Products Freely exportable.
Waste Material Management
The waste residue produced by the agricultural industries are unutilized and untreated, they
are disposed by unplanned landfilling, burning or by dumping contribute towards polluting
the environment and poses harmful effect on human and animals health. The waste residues
are rich in bioactive compounds and nutrients. To optimize these waste residues, the
industries should evaluate and opt such measures that would help them in reutilizing the
waste products for a cleaner and better environment. The measures that the industries can opt
are as follows:
 The organic residue can be used as anti-oxidants and helps in the production of
antimicrobial and antibiotics, resulting in low-cost production. They are safer and
have properties such as antiviral, anti-inflammatory, anti-cancer, anti-tumor, and
hepatoprotective properties. The waste from the fruits such as the peel of orange,
lemon, pomegranate and the husk of green walnut can be utilized as natural
antimicrobials as per Adámez. The antibiotics production is done through using raw
materials i.e. corn cobs, sawdust, and rice hulls.
 The agricultural waste can be used as bio-fuel instead of fossil fuels, which
contributes in the reduction of deforestation. The residues of rice straw, sweet potato
waste, sawdust, potato waste, corn stalks, sugarcane bagasse, and sugar beet waste is
used instead of forest woody biomass.
 The best substitute of protein-rich human food is the waste from soya-beans.
 The valuable enzymes can be produced through the fermentation of many agro-
industrial waste residues such as Rice bran, Corn bran, Fruits peel waste, wheat bran,
black gram bran, and soybean etc.

 The waste through microbial fermentation can be used as Bio-fertilizer, Tempeh,
Animal feed, Petrochemicals and chemicals etc.
They should be termed as “raw material” instead of “waste residue” as it is composed of
proteins, minerals and sugars. The utilization of these raw materials can help in the reduction
of production cost and will contribute towards making our environment eco-friendly through
recycling.
Part 10 Conclusion
Findings
The findings of this research is that as our country is agricultural country. But we still not
meet the international standard in terms of output. The reason is that we are far behind in
technology. Due to the declining its performance due to the political, social, environmental
and climate conditions its production yield goes down gradually.
Results
The area in which we are lacking are water deficiency and drought conditions, long duration
load shedding issue, poor extension services, absence of land reforms, absence of distribution
of certified varieties, high price of fertilizers, deliberate use of adulterated, non-recommended
and expired insecticides, non-utilization of cultivable waste land, conventional farming
practices.
According to Pakistan Academy of Sciences, Islamabad, Pakistan has one of the world’s
largest groundwater aquifers (4th after China, India and the USA). It provides more than 60
percent of irrigation water supplies and over 90 percent of drinking water. “It is the only
reliable resource that provides resilience against droughts and climate change impacts.
However, this resource is freely accessible”.

Biotechnology has come a long way and several useful traits can now be introduced in plants
that would provide protection against pests, increase drought tolerance and improve
nutritional value of the crop.
Experts believe that bringing innovative solutions to the growers and help them achieve
sustainable farming is the only option for coping with the challenges that today’s agriculture
sector.
Recommendation
Following recommendation should be done to develop the good agricultural production.
 Modern technology should be used
 Use the new methods of cultivation and avoid the ancient methods
 Agricultural workshop should be held to educate the farmers so that they may
cultivate the crops in a good manner
 Proper and certified fertilizers should be used to save the crops from the insects
 More lands should be provided to the farmers for the cultivations of crop.
Conclusion
Pakistan’s agricultural sector contributes significantly to the country’s economic
development both in terms of its growth and in terms of income generation for the rural poor
and poverty reduction. About two-thirds of Pakistan’s population reside in rural areas and
depend primarily on agriculture for its livelihood; overall, agriculture contributes
approximately 21 percent of Pakistan’s national GDP, employing 45 percent of the total labor
force. Beyond the farm gate, agriculture is a major source of raw materials for manufacturing
industry, contributing over 50 percent of basic inputs to downstream industries. The major
subsectors are livestock, cotton, wheat, sugarcane, and rice, serving as the back bone of rural
economy and as sources of foreign exchange earnings for the country as a whole.
Rice represents 44 percent of agricultural export earnings. Agricultural exports, however,
amount to only approximately US$ 4.8 billion, a value that is relatively small compared to
the size of the larger economy and to the importance of agriculture in total income
generation. The total agricultural import bill by contrast is approximately US$ 6 billion, the
largest import being vegetable oils.
Overall, the agricultural sector’s growth rate has declined gradually over the past three
decades, with the most notable decline in output growth rates being in crops in spite of higher
world prices during the late 2000s. The reasons for this slowing of growth are uncertain, but
possible factors include limited investment in irrigation systems, the slowing of the adoption
of new technologies, a weak extension service, and perhaps the effect of changes to trade and
price policies on agricultural investment.
Labor productivity in agriculture is below the average for the rest of the economy. The
sector's labor share is much greater than its share in national value added implying that value
added per worker in agriculture is very low. This observation further supports the policy
recommendation below of reducing overall protection of tradable inputs for agriculture.
In short Agriculture is the important sector of the economy of Pakistan. And technology has
made a lot of progress not only in the field of robotics but also in the field of agriculture as
we can see that seasonal fruits are also available in the market for the whole year by making
the artificial season in the labs. This research tells us how we can fulfil our agricultural
demands as we know that we are the nation of an agricultural country so we should have to
work on the betterment of agriculture as we mentioned above in this research.

References
DR. IMTIAZ AHMAD. (2020). Pakistan Economic Survey.
Ali Sher ,Saman Mazhar ,Azhar Abbas,Muhammad Amjed Iqbal andXiangmei. (2019).
Linking Entrepreneurial Skills and Opportunity Recognition with Improved Food
Distribution in the Context of the CPEC: A Case of Pakistan. mdpi.
Dr. ALTAF SAMO. (2017). Agri Entrepreneurship in Rural Areas: A Way to Eradicate
Poverty. linkedin.
Dr. B. A. Azhar. (n.d.). Agricultural Policy . edu.
http://www.finance.gov.pk/survey/chapters_18/02-Agriculture.pdf. (n.d.). agriculture.
Javed, U. (2016). The Politics of Agriculture . The Politics of Agriculture .
Pakistan: GDP share of agriculture. (n.d.). theglobaleconomy.
Raza, A. (2020). Grain and Feed Annual.
Ruete, M. (2015). Financing for Agriculture: How to boost. INTERNATIONAL INSTITUTE
SUSTAINABLE DEVELOPMENT , 1.

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Mini Project Report(Pakistan Agriculture Sector) 1

Mid –Term Project Report

the things we study in Entrepreneurship by applying it practically.

Major Exports of Pakistan in Agriculture Sector...........................................................................36

Some of the major policies..............................................................................................................73

United agro Chemicals................................................................................................................88

Part 1: Introduction & Glance at Agricultural Sector of Pakistan

(Farooq & wasti, 2014)

Since Pakistan's economy is mainly linked to agriculture, due to the non-liberalization of

Arabia with a market share of 13%, 7% and 6% respectively. (memon, 2013)

market and has not pursued new markets.

prospects are discovered. The farmer-entrepreneur needs money to be made. He understands

Capacity and willingness to profit from possibilities.

Agriculture Sector Contribution to Global Economy

of the population, directly or indirectly, dependent on this sector. Agriculture is also crucial

have also gained in economic importance.

development. It is vital to developing countries' economies, as it is the primary source of

domestic product (GDP) in 2019. Agriculture contributed 1.57 percent, industry

product in the Eurozone.

Agriculture Sector Contribution to Other International Economies

Agriculture sector contribution to Pakistan economy:

Pakistan GDP Last Previous Highest Lowest Unit

GDP Annual -0.38 1.91 10.22 -1.80 percent

GDP 278.22 314.57 314.57 3.71 USD Billion

GDP From 2362209.00 2342373.00 2362209.00 1775346.00 PKR Million

been implemented, and have helped farmers significantly.

which is something that every country desire.

Agriculture and the world bank

than 25% of GDP.

global population—are hungry, up by nearly 60 million in five years. Food insecurity can

unaffordable for more than 3 billion people in the world.

resources so that the food and agriculture sector:

 is climate-smart: more productive and resilient in the face of climate change while

reducing emissions, both from crops and livestock;

 boosts agribusiness by building inclusive and efficient value chains; and

 improves food security and produces enough safe, nutritious food for everyone,

everywhere, every day and is nutrition-smart.

irrigation and drainage on 986,000 hectares of agricultural land.

International Finance Corporation’s (IFC) investments were US$ 4.2 billion. IFC financing

climate-smart practices and food safety.

agricultural activities focused on improving agricultural growth and productivity in poor,

on food production and agricultural productivity. IFC investments focused on agribusiness

economies in Latin America, Eastern Europe, and Central Asia.

Top Agriculture Crops of the World Vs Pakistan Crops

The 10 Most Important Crops in The World

 Sweet potatoes. Annual Production 2008: 110,128,298 tons. ...

 Sorghum. Wikimedia. Annual Production 2008: 65,534,273 tons. ...

 Yams. Wikimedia. Annual Production 2008: 51,728,233 tons. ...

 Plantains. Wikimedia. Annual Production 2008: 34,343,343 tons.

Agriculture, value added (current US$) - Country Ranking

RANK COUNTRY YEAR

Top Agricultural Producing Countries in World

some advanced agriculture technology in the world. ...

Country Is Best for Agriculture Jobs

Country Has the Most Advanced Agriculture Technology

because agricultural technology is more advanced than in other countries. Japanese

Top 10 Largest Crops in The World

sugar cane as the U.S. produces corn.

vegetables, sugar cane and wheat.

the world’s 4th largest producer of mangoes.

Are the Top 5 Crops Produces in Pakistan.

Crops Weight Ranks

China and Thailand