Agricultural System in Pakistan!!

Kamran Shaukat Gondal
AGRICULTURAL SYSTEM OF
PAKISTAN
Kamran Shaukat Gondal
14
Ch.Kamran Shaukat Gondal

 BACKGROUND
 IMPORTANCE OF AGRICULTURAL SYSTEM IN
PAKISTAN
 WHY AGRICULTURAL SYSTEM IS LESS-
DEVELOPED IN PAKISTAN
 HOW THIS SYSTEM CAN BE IMPROVED BY
DIFFERENT PROCESSES
 INVESTMET PROSPECTS IN AGRICULTURE
SECTOR

AGRICULTURAL SYSTEM IN PAKISTAN

BACKGROUND/IMPORTANCE
Economy of every state depends on three sectors i.e
 Agriculture
 Industry
 Commerce.
These three are interrelated with each other as the progress or retrogress of one sector effects the other two.
Pakistan is an agricultural state thus agriculture gains are of much importance than any other sector.
Importance of this sector is manifold as it feeds people, provides raw material for industry and is a base for
foreign trade.
Foreign exchange earned from merchandise exports is 45% of total exports of Pakistan. It
contributes 26% of GDP and 52% of the total populace is getting its livelihood from it. 67.5% people are living
in the rural areas of Pakistan and are directly involved in it. There are two crops in Pakistan i.e.
 Crop | Sowing season | Harvesting season

Kharif | April – June | Oct – Dec
Rabi | Oct – Dec | April – May
Pakistan has a rich and vast natural resource base, covering various ecological and climatic zones; hence
the country has great potential for producing all types of food commodities.
 Agriculture has an important direct and indirect role in generating economic growth. The
importance of agriculture to the economy is seen in three ways: first,
 it provides food to consumers and fibres for domestic industry;
 second, it is a source of scarce foreign exchange earnings;
 and third, it provides a market for industrial goods.

Major crops of Pakistan are wheat, rice, maize, cotton and sugar cane. These major
crops contributed 7.7% last year against the set target of 4.5%. Minor crops are canola, onions,
mangoes and pulses which contributed 3.6% as there was no virus attack last year. Fishery and
Forestry contributes 16.6% and 8.8% respectively.
SIGNIFICANCE OF AGRICULTURAL SECTOR IN THE ECONOMY
Agriculture is an important sector, providing food to the fast-growing population of the country.
According the 1998 census, the total population of Pakistan is 130 million.
 With a population growth rate of 2.6 percent there is a net addition of 3.4 million people each
year. In 1947 the population of Pakistan was 32.5 million; in 50 years it has increased fourfold.
 During this period the production of wheat, the major food crop, has increased only 2.9 fold.
 During 1970/71 the amount of wheat imported was 0.3 million tonnes;
 It has
increased to 4.1 million tonnes in 1997. Tremendous efforts have been carried out to narrow
the gap between population growth and food production.
Agriculture contributes about;
 24 percent of the gross domestic product (GDP) and employs 47 percent of the national employed
labour force. The contribution of the agricultural sector to the GDP has declined gradually since
Pakistan came into existence, from over 50 percent in 1949-50 to about 24 percent in 1996-97.
 Agriculture still remains the major sector of the GDP composition. A major part of the economy
depends on farming through production, processing and distribution of major agricultural
commodities.
 In foreign trade agriculture again dominates, through exports of raw products such as rice and
cotton and semi-processed and processed products such as cotton yarn, cloth, carpets and leather
production .Agriculture is essential for sustainable improvements in internal and external balances.
Of the total export earnings, the share of primary commodities and processed and semi-processed
products constituted
almost 60 percent of the total exports. There have been some structural changes over time, but the
contribution of agro-based products has more or less sustained its position .
More specifically; the agricultural sector plays an important part in Pakistan's economy by:
• contributing 24 percent towards GDP;

• providing food to about 130 million people;
• earning about 60 percent of the country's total export earnings;
• providing employment to 47 percent of the total work force;
 WHY AGRICULTURAL SYSTEM IS LESS-

DEVELOPED IN PAKISTAN?
Agricultural sector is the backbone of our economy. But the growth of agriculture in Pakistan is facing
a lot of problems. Due to various causes, per acre yield is very low in Pakistan as compare to other
developed countries
PROBLEMS OF AGRICULTURAL SECTOR IN PAKISTAN
Problems of agricultural sector are categorized as below:
A. Techno-Economic 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) 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 acre of land in every year. It is not
only waste of land but also reduction in productivity.
3) Slow Growth of Allied Products
Allied products refer to those productions, which are not agricultural but indirectly, help the
farmer to improve his living standard. Pakistan is in-sufficient in the production of fruits, milk, poultry,
fisheries, livestock and forestry. As a result not only our food quality is poor but also industries such as
furniture, textiles and dairy cannot be developed.
4) Low Per Hectare Yield

The most important problem of agriculture is its low yield per hectare for almost every major crop.
45.0% of labour force is engaged in this sector in Pakistan while it is less than 5% in developed countries.
But, other countries of world are getting higher yield per hectare due to use of modern technology and
trained labour.
5) 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.
6) Uneconomic Land Holdings
Due to increasing population and division of land under the law of inheritance, landholdings are
subdivided over and over again. The result is that very large number of farmers has less than 2 hectares of
area. Moreover holdings are scattered. It is difficult to use modern machinery on small pieces of land.
7) 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.
8) Inadequate Supply of Agricultural Inputs
The supply of modern inputs like high yielding variety (HYV) seeds, chemical fertilizers, pesticides,
mechanized machinery etc. not only costly but also inadequate and irregular in Pakistan. Numbers of
fertilizer producing units are just 10 in Pakistan.
9) 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.
10) Inadequate Agricultural Research
The average crop yield in Pakistan is very low as compared to the production levels of the advanced
countries of the world. In order to raise the potential of agricultural production, there should be
continuous improvement in the research for agricultural growth. Total agricultural universities and
colleges are only 16 in Pakistan.
11) Problem of Land Reforms
Land reforms have been implemented against the will of people. There is an urgent need to
conduct a proper land reform for improving agricultural growth. Due to this problem agricultural
production cannot increase to desired level.
12) Defective Land Tenure System

Defective land tenure system is also responsible for low yield per acre in agricultural sector.
Landlords and feudal-lords live in posh urban areas while tenants and peasants have no or less incentive
for their hard work. So, the productivity in agricultural sector remains low.
13) Subsistence Farming

Our farmer is attached with subsistence farming; a huge of portion of production is consumed at
farmer’s own house to support large family. Hence, less portion of the production is available for market
supply. It causes low income of the farmers. Farming is not conducted at commercial level in Pakistan.
14) 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.
15) Improper Crop Rotation
Proper turning round of crops is essential to re-establish the fertility of the land. The constant
cultivation of one crop or two; exhausts the fertility of the soil. Proper rotation of crops is necessary in
order to restore the fertility.
B.NATURAL PROBLEMS
16) 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.
17) Natural Calamities
Labour is in the hand of mankind but its result is in the hands of ALLAH in agriculture sector. So, growth of
agriculture is dominated by nature. In case if there is too much rain, reduction in the productivity. There is
20% reduction in productivity due to unnecessary rain and unfavourable climatic situations in Pakistan.
18) 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 .

19) Under Utilization of Land

Mostly poor population is attached with agricultural sector in Pakistan. They are using orthodox
and traditional means of cultivation. Our farmer is not interested to use the advanced and modern means
of farming, as a result area under cultivation remains under utilized, un-utilized or mis-utilized .
C.Socio-Economic Problems
20) Consumption Oriented

Our farmers have no proper records of their incomes and expenses. Mostly, they spend more when
they have more due to illiteracy. A huge part of the farmer’s income is consumed on occasions of
marriage, birth, death and several other rural ceremonies and festivals in Pakistan.
21) Farmer’s Litigation
There are frequent and continuous litigations among the farmers directly or indirectly. They are often
seen in courts, police stations, irrigation offices, revenue boards and other official problems. Due to
mentioned problems, our farmer cannot devote his time, energy, efficiency and labour to agricultural
productions.
22) Joint Family System

Joint family system is also a big problem in agricultural sector. Our farmer is poor; on the other
hand he has to support his big family. It creates deficiency in saving and investment. A huge part of
farmer’s productivity is consumed at his own house.
23) Illiteracy and Ill-health
Most of the farmers, labourers and tenants in our country are illiterate. They are untrained and
inefficient to boost up the agricultural productivity. On the other side, the health of our farmers is
improper due to rural backwardness. Literacy rate is only 57.7 % in Pakistan. Economic Survey of Pakistan
shows that literacy remains higher in urban areas (73.2 percent) than in rural areas (49.2 percent).
24) Political Instability
Political instability has affected development in all economic and social sectors. Unfortunately, the
political situations in Pakistan are not stable. It creates unrest among the farmers to sell the productions

to various industries as a raw material. On the other hand, people hesitate to invest in agricultural sector
due to political unrest.
D.FINANCIAL PROBLEMS
25) 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.
26) Poor Financial Position of Farmers
It is a common saying about our farmer that he borns in debts, grows in debts and dies in debts. It
means that financial position of Pakistani farmer is weak and poor. According to “Pakistan Human
Development Report 2003” about 57.4% poor are working for feudal-lords without wages.
27) Instability in Market Prices

The price market of agricultural goods generally remains unstable in the country. Cobweb theorem
is very popular in case of market prices; it means that a price of one commodity is much high in this year
and much low in the next year and vice versa. The farmers, do not get due reward from the sale of their
productions. So, they remain unsatisfied.
28) Shortage of Agricultural Finance
Agricultural credit facilities are not sufficient in Pakistan. Rate of interest on agricultural credit is high and
loan is not provided in time. According to “Pakistan Human Development Report 2003” in Pakistan about
50.8% poor borrow from landlords at very high rate of interest .
Apart form these issues the monopoly of Foreign Big Wigs and false policies of government cannot be
ignored.
MONOPOLY OF FOREIGN COMPANIES
The pesticides companies are sorting partnership with “World Bank”. These companies are selling
adulterated but expensive pesticides to a poor farmer thus leaving him helpless.
These pesticides are not only hazardous for health but also a filling the pockets of companies. By
moving according to world bank these companies are gaining their own aims. Moreover there is a conflict of
interests. It is not ensured that either the company conducting agreement is basically trying to get access to
international market or just working according to their aims.

91% of genetically engineered (GE) seeds is made and owned by one US Company called Monsanto. The vast
majority of consumers around the world are against GE foods and crop as GE has been associated with health
risks, loss of biodiversity, increased use of toxic weed killers and other environmental problems.
85% of GE crops are concentrated in just 3 countries i-e United States, Argentina and Canada. Globally
G.E crops cover less than one percent of arable land. Farmer around the world have experienced problems
with Monsanto’s BT cotton.
Researchers from Cornell University reported that Chinese GM cotton farmers are losing money due to
secondary pests. After seven years, populations of other insects such as mi rids, have increased so much that
farmers are now having to spray their crops up to 20 times per season to control them, according to the study
of 481 Chinese farmers in five major cotton producing provinces.
This cotton seed does not show any resistance against virus attacks and needs 8 months to give yield
thus no other crop can be cultivated on that land. This seed of cotton needs more water. Therefore,
Pakistan has asked Monsanto to provide seeds which consume less water as Pakistan is moving towards the
abyss of water shortage.
It is a notorious organization that took the farmers to courts many times as it did not give ownership
right to farmers to preserve seed. Even the seed of harvested crop cannot be used again for cultivation.
Monopoly of Monsanto is clear when it is selling seed at RS 1700 per kg to Pakistan and RS 700 per kg to India.
Glaringly, the Indian ministry of health asking to ban B.T cotton seed whereas in Kerala & Orrisa it is already
banned. Not to ignore the gloomy side of this organization is that in the Vietnam where it provided “Agent
Orange” dioxin bomb to U.S that is responsible for sever skin and genetic diseases.
Non-comprehensice Policies Of Pakistan:
18 billion in budget was allocated for agricultural sector of Pakistan but the withdrawal of subsidy on
pesticides and electricity on the conditions of IMF has done serious damage to this sector.
Whereas America and European Union are giving a huge amount of subsidy to their farmers and that is
a greatest hurdle in the implementation of W.T.O rules. Additionally, price policy is very weak.
In Punjab sugar cane is sold 200 Rs. per 40 kilograms. It was purchased and later on stocked by
Industrialist in their stores. When Brazil bought sugarcane from International Market and prices become high,
the Pakistan sugar mills owners projected demand of selling sugar at high prices, thus Pakistan faced sugar
crisis. Then Pakistan had to import Sugar at high prices therefore, the prices of sugar went high in local
markets.
MEASURES TO REMOVE THESE PROBLEMS

Following measures are suggested to improve the agriculture:

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. An amount of Rs. 85,177 million is
disbursed by commercial banks in 2009 and Rs. 49 billion was distributed by ZTBL. ZTBL issued credit or
Rs. 37.4 billions during 2010-11.
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. are needed. The Ministry of Agriculture proposed to invest Rs. 18.5 billion with the
objective of converting 2,00,000 acres of irrigated land to drip and shower irrigation system.
3) Construction of Dames
Sometimes, due to heavy unwanted rains and floods agricultural productivities destroys. To tackle
this problem it is necessary to construct dames and bands on rivers.
4) 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. Government should provide HYV
seed at minimum price in this case .
5) 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.
6) Agricultural Research
Agricultural research is compulsory to remove the backwardness of agriculture sector. Major
agricultural colleges and universities are only about 16 in Pakistan. Government should increase the
research work in the field of agriculture.
7) Agro-based Industries
Agro-based industries like poultry, fisheries, dairy and livestock should establish. These industries
indirectly lead to improve the agricultural sector.
8) Tax Concessions

Mechanization is necessary to remove the problems of agriculture sector. Government should give
tax concession on imports of agricultural technologies to enhance the process of farm mechanization.
9) Training of Farmers
Our farmers are illiterate and ill trained so, their efficiencies are poor. Government should start
special education programme for farmers and give them training about farming.
10) Prices of Agricultural Productivities

Sometimes, our farmers receive low prices of their crops. There is no proper effective price policy
of government. Government should set reasonable prices of agricultural productions to develop the living
standard of farmers.
Conclusion:
Being an agrarian country, agricultural sector of Pakistan’s economy is still backward. Use of
modern techniques, provision of credit facilities, basic infrastructure and agriculture research facilities are
needed to remove all the problems of agriculture sector.
INVESTMENT PROSPECTS IN AGRICULTURE SECTOR
Federal and Provisional Government of Pakistan have good understanding on appreciating of
investment in agriculture sector. So Pakistan agriculture sector offers big opportunity for investment. It is
positively hoped the investment when policy of Government will defiantly encourage invest in agriculture
sector of Pakistan.
Specially Government policy to support agriculture by exempting and income generating by agriculture
production is a big facilitation.
PRESERVATION OF FOOD AND VEGETABLES
Government is placing great emphasis to promote agro-based projects to enhance exports and
minimize post harvest losses with the overall objective of the welfare of the farming community.
Pakistan is blessed with a variety of ecological conditions suitable for the production of various crops
including fruits and vegetables. Annual production of the fruits and vegetables is generally 2.0 million ton.
Major fruits & vegetables of Pakistan are mango, citrus, guava, apple, dates, potatoes, tomato and onion etc.
Fruits and vegetables are perishable in nature and cannot be stored for longer time in fresh form.
At present, the processed and packed forms of these commodities is hardly about 1-2% and enormous
losses (30-40%) worth billion of rupees occur annually due to inadequate facilities for pre and post harvest
processing and preservation.
If the fruits and vegetables are preserved properly, this can help in decreased post harvest losses,
increased shelf life, off season availability and better marketing. Some of the proposed value addition

techniques for fruits & vegetables include dehydration, extrusion, candying and canning. Squashes, jams,
jellies, juices, marmalade, ketchup and sauces etc. are the most common processed products.
GRADING PACKING AND STORAGE OF MANGOES
Mango enjoys a unique status among tropical fruits. The data reported by FAO indicates that world trade
including re-export of mangoes has increased manifolds during the period of last decade.
During the year 2005, Pakistan stood at fourth position in the production of mangoes by sharing
6.0% of total world production, with the same position in the total world export. The existing main mango
markets for Pakistani mangoes are UAE, Saudi Arabia, Oman, UK and Kuwait while emerging new markets
include China, Iran, South Africa, Australia, Russian Federation and Eastern Europe. Although it seems that
there is huge market to capitalize the potential, the mango industry has to comply with the quarantine
requirements of these countries which mean adapting apex quality standards throughout post-harvest
requirements.
The adaptation of post harvest technology is a pre-requisite stipulation in the WTO regime. The
proposed unit will cover all the aspects of post harvest technology of mango including ripening, washing,
grading, packing, hot water treatment (HWT) or vapour heat treatment (VHT) and storage/ handling through
CFC free and CA (controlled atmospheric) cool chain infrastructure for export and domestic markets.
Government of the Pakistan, Agriculture Department pledge to facilitate the foreign investors alongwith
provision of technical services through its Field (Engineering), Research and Marketing Wings to establish joint
ventures with local counterparts in the Pakistan.
Production of Replacement Parts of Ginning Machinery
Pakistan is one of the largest producer of cotton in the world with an annual production of about 10 million
bales. Inspite of the fact that 100% cotton in Pakistan is picked manually and contains minimum trash but its
quality is not preserved through ginning.
As a result of poor quality of ginning, Pakistani cotton in the international market is sold at
discounted rates resulting in loss of billions of rupees to the government as well as the growers. For ginning of
cotton in Pakistan saw gin technology is used which requires frequent replacement of saws and ribs. Since the
quality & performance of locally produced components is not satisfactory and the imported components are
quite expensive, therefore, it is a common practice among the ginners to use rebuilt replacement parts such as
saws, ribs, spacers and channel saws.
If the quality replacement parts for ginning industry are produced locally to meet the
international standards of quality, the proposed facility beside meeting the local demand can also catch the
export market in the neighboring countries for marketing of these parts. There is great potential for the
private investors to invest in establishment of manufacturing facilities for local production of proposed
replacement parts for the ginning industry.
Production of Resource Conservation Technologies
The farmers in Pakistan are unable to face the challenges of global markets under WTO regime due to lower
yields and high production costs for various corps. The issue can be tackled by introduction of innovative
resource conservation technologies (RCTs) developed and successfully adopted in various countries of the
world including New Zealand, Brazil, Australia, Mexico and India etc.
Major constraints in the adoption of these technologies in Pakistan are high equipment costs and
availability of low cost & appropriate equipment affordable by the small farmers. The issue can, however be
resolved through development of low cost equipment for successful adaptation by the farmers for field crops
like wheat, maize, rice etc.
The private sector needs to be mobilized through foreign investment for acquisition, pilot testing,
indigenization and manufacturing of low cost quality equipment for successful adoption of resource
conservation technologies. Some of the proposed resource conservation technologies which need to be
promoted locally are bed & furrow seed drill, zero tillage seed drill, happy seeder and wheat straw chopper
blower.
MANUFACTURING AND FORMULATION OF PESTICIDES
The estimated cost of Pesticides imported in Pakistan is about Rs.10.00 billion annually which are mostly used
on cotton, vegetables and orchards.
The country has not only to spend precious foreign exchange on import of pesticides but the landed cost is
also high. Resultantly the cost of production of the crop has increased to a level that growing of these crops is
not very profitable.
In order to reduce the cost of production of crops on which these pesticides are used, the only option is to
manufacture active ingredients (a.i.) and formulate pesticides locally. Some of the pesticides which are
generally used in Pakistan belong to Organochlorines, Carbamates, Synthetic Parathyroids and Insect Growth
Regulators groups.
The cost incurred on pesticides manufacturing may be low in Pakistan owing to lower wages and investor
friendly duty structure both on the raw material import and locally produced finished products. There are
many opportunities to export surplus active ingredients as well as the intermediate process products to the
Central Asian States, Middle East, Turkey and Iran.
Production of High Value Crops Under Controlled Environment

The world market for food and other crops is expanding with the increase in global population. Therefore, dire
need is to invest more for the purpose of food security. Pakistan is also one of the highly populated country in
the world due to which its consumption for different fruits & vegetables is also increasing day by day.
Due to limited shelf life of fruits and vegetables, their availability in off seasons is not only uncertain
but these are also quite expensive. In order to meet the growing demand of vegetables and other high value
crops including medicinal plants, spices and flowers, hi-tech and environmentally controlled green houses for
growing these products have been developed in the world.
Growing of these crops in conventional or hydroponics green houses helps increase in productivity by
several times beside cheaper and ensured availability in fresh form during off-seasons. It is proposed that
growing of high value crops and flowers in environmentally controlled green houses, specially in the areas
where summer temperature do not rise beyond 35 oC can be very economical and profitable.
Some of the parameters which require environmental control in green house include corbon-di-oxide,
light, humidity and temperature.

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Kamran Shaukat Gondal

Ch.Kamran Shaukat Gondal

Ch.Kamran Shaukat Gondal