MID TERM ASSESSMENT SPRING 2021

Student’s Name Noor Nabi Shaikh Registration Number 1711125

Program: BBA Class/Section: (BBA-8-A)

Course Name: Pakistan Economy Course Code (BA3609)

Instructor’s Name: Prof.Dr.Asandas Instructor’s email dr.asandas@hyd.szabist.edu.pk

Total Marks: 15 Marks Obtained:

Comment: (This Section is for Faculty Use)

Mention Date & 6/4/21 Mention 6/4/21

Time of Sharing: 10:30am Submission Date:

Mention
Submission Time: 10:30am-12:00pm

File Type Allowed for submission: (MS Word, MS Excel, pdf, Images, Hand written)

IMPORTANT instructions:
 Read all the questions carefully and then solve in this file, if needed.
 Marks of each question are mentioned at the end of each question. Faculty Signature
 Solved Assignment must be emailed to the respective faculty by the due date and time, Late Receiving
will be marked Absent and Zero in Recap Sheet.
 The answer file must be attached in the email.
 Regardless of file type (image or document), email must include attachment for faculty to check.
 Non-submissions of the assignments will be considered as absent for the Final Term and will be marked “0”
on ZABDESK Recap Sheet.
 While checking of the Assignment, SZABIST Plagiarism policy is to be followed.
 Group assignments are not allowed.
_____________________________________________________________________________
Note: Attempt All Questions.

1. Explain the main problems of agriculture sector in Pakistan and suggest remedies. (3)

2. Define farm mechanization and discuss its advantages & disadvantages (3)

3. Discuss causes of “Population growth in Pakistan” and suggest measures. (3)

4. What is difference between rural finance and agricultural credit? (3)

5. Discuss the role of textile industry in the economy of Pakistan. Explain its main problems
and measures. (3)

THE END

Q1:
Answer:
The main Agricultural Problems in Pakistan are;
Problems:
1. low literacy Rate: Majority of the farmers lack the basic knowledge of reading and
writing, there are un-aware of which fertilizers to use, and which Additives should be used
for better crop productions. Therefore, their production per square kilometer is far below
the required capacity.

2. Increasing number of farmers: The rural population of Pakistan depends upon the
agricultural and farming processes. But the processes do not bring new areas in
construction and lack research. therefore, it has resulted in decrease in per square
kilometer area of cultivations.

3. Non-mechanical cultivation: Till today in the 21st century the era of machines and
automation. Automation which has influenced almost the entire world but in Pakistan
farmers still use old wooden plough, animal dung fertilizer and old method of ploughing
crops.

4. Livestock development: In Pakistan there is no focus on breeding mechanism and

mating. Therefore, there is low quality livestock and breeding the generic not genetic. And
they are also fed with poor fodder which affects their health.

5. Water-logging and salinity: water logging is the saturation of soil and water. And
Pakistan due to lack of proper facilitation is a victim. Large canal in the province of
Punjab and Sindh have been remembered useless due to water logging and salinity.
Salinity means dissolved inorganic salt in water of the saltiness of water. Which is not
good for the Crops.

Solutions of the problems of agricultural sector:

1. the land which is in-fertile due to salinity and water logging, should be treated with
some environment friendly method such as: tube-wells, plantation of the saline tree. The
canal water should be renovated with Bricks, double plaster bed and fabricated concrete to
avoid wastage and seepage.

2. Most of the farmers are un-trained and lack the knowledge of modern practices, also
there are not enough modern day facilities for farmers such as: credit, required good seed,
good quality fertilizers and modern agricultural equipment.

3. According to the requirement of the soil, Environment quality available in the country
the quantity of water and good seed should be provided to the farmers at lower price and
at the right time. Which will increase the yield of production and income of farmer.

Q2:
Answer:
Farm Mechanization is the use of large equipment to perform the farming and cultivation
operations. Or mechanized agriculture is the process of using agricultural machinery to
mechanize the work of agriculture, greatly increasing farm productivity.

Advantages:
1. Timeliness of the operation: Farm mechanization ensures that all the farm operation are
one completed within the given time period.
2. Mechanization saves time: In farm mechanization, all most human efforts are
substituted with machines. Hence a considerable amount of labor could be employed
somewhere else.

3. Mechanization reduces Health hazards: farmers are backbone of the economy therefore
there health care is very important. The use of mechanization also helps in improving the
health of the farmer. And protects the farmer from the hazards like: cutlass, hoe, digger,
knives, stumps and pest.

4. Mechanization reduces drudgery: The process of mechanization automates the difficult

and time-seeking tasks. And helps the farmer to use more of its energy in only the
operating part of the machinery. Which results in higher yield, like this the farmer is also
safe from doing rigorous tasks.

Disadvantages:

1. High cost of running: As farm mechanization is fully operational only on heavy

machinery. It is very expensive to maintain and operate due to the high cost of fuel and
maintenance parts. And there is not only one but numerous machines involved.

2. Displacement of workers: when farm mechanization was introduced many existing

workers lost their jobs. Because due to mechanization, very few workers are required on
the field and machines do the rest of the work.

3. compaction of soil: Mechanization lead to the compaction of the soil due to the
movement of the heavy machines on the soil of fertile land.

Q3:
Answer:
Pakistan has become the victim of over population. Since the past few decades and here
the causes of Pakistani over-population.

1. Lack of women empowerment: Due to the chauvinist beliefs of our society, it is

presumed that men have more authority over women. Women are required to accept
anything that is order by their man. If the man wants more kids. The wife has to obey
without questioning and second thoughts. There making the lady a baby-making
machines.

2. Poor response from the government: since the last census was conducted in 1998, the
government has no idea of what the current population is this shows the neglectful
behavior of the government and no head start and attention is paid to the causes of
population.
 3. Illiteracy among the masses in Pakistan: Pakistan’s adult literacy rate is at 65% that the
other 35% illiterate. Which means the adults cannot read and write even their own names.
Regarding the circumstances of over-population, one can only the what values the other
35% holds.

4. Imbalance between birth and death rate: since there is a vast imbalance between the
birth and death rate in Pakistan, more than 31/1000 at the peak of its time, more people are
being born than dying in the country. Which is leading to over-population in the country.

5. Lack of family planning: The masses of Pakistan have no idea about family planning –
they are not used to the term “bachay do hi achay!” – although there are several Sabz
Sitara clinics that provide ‘Chaabi wali goliyan’ for a controlled family.

6. strong religious beliefs of expanding the family: since there is concept of increasing and
expanding the family. Most of our people are driven by these concepts. Recently, there
was a man which has 50+ children from 3 wives and he planned to expand his family
further.

7. technological advancement in the fertility treatment: There have been some

breakthroughs in medical science lately that have led to advancement in fertility. These
can make barren women fertile and also increase the age of a woman to be able to give
birth, it is not rare seeing a couple in their late 50s giving birth to their 7th or 8th child.

Solution towards population growth:

1. empower women: It is proven by studies that empowered women are more likely to use birth
control and understand the anatomy of their own body in a much better way than men.

2, Promote family planning: simply educating men and women about the use the contraception can
have a huge impact of the nation’s population.

3. Government incentives: the government should provide incentives on being the responsible
parenthood and say subsides should be limited to the first rwo children unless the family is living
in the state of poverty.

4. One-child legislation: In order control the over-population one child policy as similar to china
should be implemented in Pakistan. As in china, the legislation proved to be effective and fertility
fell from six births per women in the 1960s to 1.5 in 2014.
Q4:
Answer:

Agricultural finance: Financing of agriculture related activities. From the start production till the
market. Not all agricultural finance is rural, and not all the rural finance is agricultural yet financial
service providers offering rural, micro or agricultural finance often have overlapping objectives
and opportunities.

In agricultural finance a government subsidy is paid to the farmers to stabilize the food process,
ensure plentiful food production, guarantee farmers basic incomes, and strengthen the overall
agricultural sector of the national economy.
Agricultural financing also includes the following:

 Contract farming: An agreement between farmers and processing/ marketing firms for the
production and supply agricultural products at a specified time in the future. Usually at
predetermined prices.

 Covariant risk: it arises when many farms in one area are adversely after by a single
phenomenon such as a natural disaster or epidemic. This is distinct from individual risk,
which randomly affect individual household.

Rural finance: Provision of financial services to a heterogeneous rural farms and non –farm
population at all income levels is known as rural financing. It includes formal, informal and semi-
formal institutional arrangement and diverse types of products and services including loans,
deposits, insurance and remittances. Rural finance includes both agricultural finance and rural
microfinance in the larger financial sub-sector of the population.
It includes:
 Secure lending: Pledging of an asset as collateral by the borrower to a lender until the loan
is paid back. And If the borrower defaults the lender has the right to seize the collateral.
 Trade credit: short term or seasonal loans between buyers and sellers of inputs or products.
It is typically provided in commodity value chains

Q5:
Answer:
The textile industry is the largest manufacturing industry in Pakistan. Pakistan is the 8th largest
exporter of textile commodities in Asia. Textile sector contributes 8.5% to the GDP of Pakistan. In
addition, the sector employs about 45% of the total labor force in the country (and 38% of the
manufacturing workers). Pakistan is the 4th largest producer of cotton with the third largest
spinning capacity in Asia after China and India and contributes 5% to the global spinning capacity.
At present, there are 1,221 ginning units, 442 spinning units, 124 large spinning units and 425
small units which produce textile

Problem in the textile industry:

a. Lack of Research & Development (R&D) in Cotton Sector

The lack of research & development (R&D) in the cotton sector of Pakistan has resulted in low
quality of cotton in comparison to rest of Asia. Because of the subsequent low profitability in
cotton crops, farmers are shifting to other cash crops, such as sugar cane. It is the lack of proper
R&D that has led to such a state. They further accuse cartels, especially the pesticide sector, for
hindering proper R&D. The pesticide sector stands to benefit from stunting local R&D as higher
yield cotton is more pesticide
resistant

b. Lack of Modernize Equipment

Moreover, critics argue that the textile industry has obsolete equipment and machinery. The
inability to timely modernize the equipment and machinery has led to the decline of Pakistani
textile competitiveness. Due to obsolete technology the cost of production is higher in Pakistan as
compared to other countries like India, Bangladesh & china

c. Finance Bill to Burden Industry Further

All Pakistan Textile Mills Association (APTMA) has told that government’s actions are not
matching with its words for the textile industry. Referring to the Prime Minister Yusuf Raza Gilani
speech at the launching ceremony of the Infrastructure Development of the Pakistan Textile City at
Port Qasim Industrial Area, where Prime Minister spoke high of the textile industry contribution
towards the country’s economy, Chairman APTMA Tariq Mehmood said the federal budget 2009-
10 is a total negation of the acknowledgement of the role of textile industry on the part of the
Prime Minister. According to him, reintroduction of minimum tax on domestic sales would invite
unavoidable liquidity problem, which is already reached to the alarming level. He said the textile
industry was facing negative generation of funds due to unaffordable mark-up rate on the one hand
and acute shortage of energy supply & unimaginable power tariff for industry

d. Increasing Cost of Production: The cost of production of textile rises due to many reasons like
increasing interest rate, double digit inflation & decreasing value of Pakistani rupee. The above all
reason increased the cost of production of textile industry which create problem for a textile
industry to compete in international market

The following steps should be taken to improve the overall situation of our industry and the textile
industry in particular.

1. The solution to the Energy crisis

Our government needs to start building new dams to overcome this menace of energy shortage.
Without energy no step for the betterment of the textile industry is viable. The government has
already started working on the CPEC with the help of China through which the Chinese
government is spending 34 US billion dollars only on energy projects.

2. Law and order situation

Betterment of law and order is the most important pre-requisite along with energy supply. The
government needs to provide full-proof to all the investors and especially foreign investors who
are not accustomed to the environment.

3. Gas load shedding

Constant gas supply with suitable pressure is very important for the growth of the textile industry.

4. Fluctuation in Yarn prices

The government should fix yarn prices for each year in order to help the textile sector to grow and
create more jobs. The fixation of the price will benefit the poor farmers the most.

5. Research and development

Research and development are one of the most important components of growth in any industry.
Government funds for this purpose can produce wonders if used properly.

6. Lack of training

The workforce should be trained in order to meet modern requirements.

7. Lack of modern equipment

The government should remove or at least reduce taxes on the import of modern equipment else
our textile industry will continue with its old methods of production. With old methods of
production, it would be impossible to expect our industry to compete with the developed world.

8. Government subsidies

The government can play a major role in the growth of industry both vertically and horizontally.
Young entrepreneurs should be provided with loans and subsidies to lure them towards this sector.

9. Introducing brands

We should make and promote our own brands instead of selling our products to international
brands.

10. Taking advantage of the tax incentives abroad

We can take advantage of these mechanisms if our government appoints competent ambassadors
who can lobby for economic interests in the developed world.

11. One-window solution

The government should provide one-window solution to deal with the problems of the industry.