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Pakistan has an agricultural economy and the main contributor to the GDP is this sector. Industry has, therefore, perforce been based on agricultural products. Since the mineral base in Pakistan has yet to be exploited, industry is mainly dependent on agriculture. For Pakistan, an agro-based industry means that the country's production can be utilized in these industries.As changes occur in agriculture and economy, diversification of manufacturing, transport, chemicals, cement, steel, petrochemicals and pharmaceuticals are new areas of manufacturing. The agro-based industry, however, remains the largest contributor to the economy. For the last five decades the agriculture sector has been a major source of economic growth, fuelling growth in agro-based industry. Consequently, economic prosperity is inextricably linked to the performance of agriculture and any inefficiency in agriculture places the economy in a difficult situation. The major crops are cotton and wheat, grown in almost equal share (approximately 12% of major crops). The agricultural sector is dependent on major crops and livestock which together account for 75% of the sect oral output. In case of low production of any of the major crops, the economy is affected badly. If the cotton crop is below projection, it causes extreme imbalances in the balance of payments of cotton, as cotton based products.


Pakistan is one of the world's largest producers of the following commodities according to FAOSTAT, the statistical arm of the Food and Agriculture Organization of The United Nations, given here with the 2008 ranking:

Apricot (3rd) Buffalo Milk (2nd) Chickpea (3rd) Cotton, lint (4th) Cotton, Seed (3rd) Dates (5th) Mango (6th) Onion, dry (4th) Oranges (11th) Rice,paddy (11th) Sugarcane (5th) Tangerines, mandarin orange, clementine (9th) Wheat (10th)

Pakistan's principal natural resources are arable land and water. About 25% of Pakistan's total land area is under cultivation and is watered by one of the largest irrigation systems in the world. Pakistan irrigates three times more acres than Russia. Agriculture accounts for

about 23% of GDP and employs about 44% of the labor force. Zarai Taraqiati Bank Limited is the largest financial institution geared towards the development of agriculture sector through provision of financial services and technical know how.

Sugar Industry:
The Sugar Industry In Pakistan Is The Second Largest Agro Based Industry After Textiles Pakistan Is An Important Cane Producing Country And Is Ranked Fifth In World Cane Acreage And 15th In Sugar Production. Its Share In Value Added Of Agriculture And Gdp Are 3.4 Percent And 0.7 Percent, Respectively .The Sugar Sector Constitutes 4.2 Per Cent Of Manufacturing The Sugar Industry Employs Over 1.5 Million People, Including Management Experts, Technologists, Engineers, Financial Experts, Skilled, Semiskilled And Unskilled Workers. No. Of Mills 81 Contribution To Economy Share In Gdp : 0.7% Employment : 1.5million Total Investment : Pkr 100 Billion Average Yield Per Hector 46.8 Tonnes Total Cane Production 45.0-55.0 Million Tonnes Cane Available 30-43 Million Tonnes Per Capita Consumption 25.8 Kgs Cra Production MY 2008/09, sugarcane production is estimated at 51.5 MMT, a decrease of 19 percent over the previous year due to both a reduction in area harvested and yield. Pakistan's MY 2009/10 sugar production is forecast at 3.65 million tonnes up about three per cent from the current year estimate of 3.56 million tonnes, according to the USDA Foreign Agricultural Service.

Consumption MY 2008/09 sugar consumption is forecast at 4.2 MMT due to population increase and enhanced industrial use. MY 2009/10 sugar consumption is forecast at 4.35 MMT. Total

per capita refined sugar consumption is estimated at 25 kilograms, based on improved domestic supply and strong demand. Imports at 730,000 tonnes. Trade MY 2009/10 sugar imports are forecast at 730,000 MT, and MY 2008/09 sugar imports estimated at 700,000 MT. The government has traditionally imported sugar through the Trading Corporation of Pakistan (TCP) in an effort to moderate sugar prices. Imports of raw sugar are subject to a 25 percent import duty, a 16 percent sales tax, a 10 percent regulatory duty, a 2 percent withholding tax, and a one percent central excise duty (total tax = 54 percent).

Textile Industry
Historically, Pakistans textile industry and clothing sector has always been a major contributor to the foreign exchange earner and still contributes about 55% to the total export proceeds.

The Economist reports that Pakistan is the 4th largest producer of cotton in the world and the 6th largest importer of raw cotton, the 3rd largest consumer of cotton, and the 1st largest exporter of cotton yarn. Over 1.3 million farmers, out of total of 5 million are involved in cultivation of this crop.

Textile exports in 1999 were $5.2 billion and rose to become $10.5 billion by 2007. Textile exports managed to increase at a very decent growth of 16% in 2006. In the period July 2007 June 2008, textile exports were US$ 10.62 Billion. Textile exports share in total export of Pakistan has declined from 67% in 1997 to 55% in 2008, as exports of other nontextile sectors grew. UN reports 102 countries import textile and apparel products and 104 countries export these products. Global trade in textile and apparel products account for an approximately $440 billion. Pakistan is bogged down in the 5% textile requirement of the world, by dedicating 62% of its GDP share for textile. An anti-dumping of 5.8% has been imposed by the European Union, which has put Pakistan in a desperate position to match competitiveness posed by Bangladesh, India, China, Sri-Lanka and Vietnam. The top buyers of Pakistani textile goods are: USA, EU, Gulf region, UK, Hong Kong, Japan, Korea, Saudi Arabia, Italy, Turkey, Germany, Norway, France, Canada, Sweden, Australia, etc. 2008-09 Performance According to data by Federal Bureau of Statistics, Textile exports during the first eight months of current financial registered negative growth of 5.6% as against the exports recorded corresponding period of the last financial year. Exports during July-February (2008-09) totaled $ 6.47 billion against the exports of $6.85 billion recorded during JulyFebruary (2007-08). During the time under review, the highest negative growth of 51.24 percent was recorded in the exports of yarn (other than cotton yarn) while exports of art, silk and synthetic textile were decreased by 23.45 percent. Similarly, exports of cotton yarn declined by 15.28 percent, cotton (carded or combed) by 13.81 percent, knitwear by 2.66 percent, bed wear by 10.44 percent, tents, canvas and tarpaulin by 21.18 percent, readymade garments by 12.43 percent, made up articles by 0.3 percent while the exports of other textile materials declined by 15.28 percent during the period.

However, the exports of raw cotton witnessed increase of 154.5 percent during the time under review while exports of cotton cloth increase by 5.57 percent and towels by 10.02 percent.

Faisal industries (Pvt) Ltp:

Faisal flour Mill:
The roller flour mill was the first project to come under the company wings. By investing into a world scale grain flour mill and locating the plant in the heart of Sindh at a place called Tando Adam, gave the company many competitive advantages by having access to the countrys best raw materials, efficient supply chain networks, and access to the largest consuming markets of Sindh and Punjab in addition to international markets. The plant being of Swiss origin(Buhler) and maintaining quality certifications, like ISO 9001:2000 produces a premium range of Wheat Flour, Bakery Flours, Semolina, Bran and Animal feed products. Some of our famous brand names include 313 Baking Flour, 515 Atta Flour, Al-Khubz Atta, and others. Our client list extends to more than 500 Bakeries, 2500 Retail Outlets, Governments, Hospitals, Military institutions, Hotels, Restaurants, and many other Institutional Buyers in addition to our international clients that range across 5 continents. Due to our surpassed quality commitments and timely deliveries to customers at the best prices possible, our client list is increasing volumetrically on a day-to-day basis. Managing a supply chain and distribution network over a 500 K.M. Radius (excluding international markets), and with over 300 employees, Faisal Flour mills are one of the largest and oldest establishments in the flour milling and Grain Processing industry of Pakistan.

Faisal cotton Mills:

The first Cotton Ginning unit that the company set up was in Mian Chanu, Punjab in the year 1972. Between 1972 and 1986, the company invested into seven ginning factories, all of them mostly located in Punjab. However, one ginning unit was setup in Tando Adam, Sindh. This move was mainly because of the concentration of the cotton growing areas in that particular region giving FIL competitive advantage in managing good quality raw materials and now giving access to Sindh and International markets. In 2004 Faisal Cotton

Ginning Factories were the first in Sindh to obtain the ISO 9001:2000 certifications. Giving suppliers and customers quality assurances by complying with international quality standards and managing a vast network, Faisal Cotton Ginning has evolved to be one of the major players in the local and international markets. Our clientele in local markets are mainly Textile mills that operate with a focus on quality. Some of our customers include Gulistan, Saffhire, Gul Ahmed, Al Karam, Shadman Cotton, Zara Textiles, Tritax, along with many others. Our international markets are mainly Japan and Spain.

Mitchells fruit Farm Limited

Mitchells was incorporated as a Joint stock Company in 1933 by introducing fruit squashes under the brand name of Mitchells" Kissan".In 1947, as a result of emergence of Pakistan, Mitchells lost three fourth of its market to India, however the company readjust and carved to a substantial niche in the new country. The Mitchells family sold majority of its shares to the Pakistani investors in1957. Since then many new chapters have been added to this story. Sophisticated food processing machinery was installed and additional products were added to a growing range of preserves, fruit, drinks, juices, canned fruits, sauces and vinegar. In 1980 came the sweetest chapter of all with diversification on confectionery industry. Soon Mitchells confectionery products comprising toffee, Eclairs, hard candy and fruit Bon Bons favor with nationwide. In 1983 Mitchells golden jubilee was celebrated with a fanfare and a chocolate bar, appropriately named as "Jubilee" was launched to commemorate the event. In the year of 1994 it was ISO certified. In 2001, Mitchells launched moulded chocolate and launched products like gift box of pralines, golden hearts and top milk was accepted by consumer.

Fruity and vegetable:

Agro Industries has not only maintained its own citrus orchards in Sargodha but also established a state of the art technological Citrus processing unit to help control the

wastage of fruit in the heartland of Pakistans citrus region. The citrus grown in Sargodha has a special flavor, aroma, and taste due to the unique climatic conditions and rich fertile soil of this locality. The sweet aroma of citrus blossom spreads everywhere announcing the forthcoming harvest. Don't miss the season-only opportunity to enjoy the most delicious mandarin THE KINNOW of the world. It's been a favorite for generations and is sure to be welcomed for many more years to come. We specialize in Growing, Processing, and Packing, Pre-cooling, storage and Export of KINNOW (Mandarin). Our Orchards, Pack house, and Cold Storage are located in Sargodha, Punjab, Pakistan. We export to the internationally known brands and other customers all over the globe.

Bunnys Food industries

It was established in 1984, and is situated in the kotlakh pat industrial area 85-86s. it is a member of AIB (American institute of baking), a well-known training and research center in the world. It also has snack food association membership. From both these institutes it gets latest technical information and guidance to improve its product. Bunnys is first bakery and snack Food Company to achieve ISO-9002 certification in 2000 from Moddy International. it ensures that our product is manufactured according to the customer requirement and acceptations. It endeavors to maintain the high quality of the product at all stages of production and delivery from the beginning until the end. Ever since 1984, it has been presenting wholesome nutrition and quality products to its customer. These products are manufactured on modern equipment by highly qualified staff, according to the international standard under strict hygienic condition. It uses high-grade ingredients and advance processing techniques to ensure quality. It has a well-equipped laboratory and independent quality control department, that is why it say, quality is our major ingredient all the raw and packing material are tested and on prescribed subscription and substandard material are rejected. This department is playing a vital role on maintaining quality and development of new product. Snack food division was established in 1994 with the installation of imported machinery from Japan and America

and in this section, company is producing a large range of the products of quality of international standard.

Processed food industry has huge growth potential

LAHORE: The countrys processed food industry can become a top export sector provided we follow appropriate policies and try to capture the foreign market professionally using latest and innovative marketing strategies. Talking to Daily Times, Executive Director Marketing Trade Development Authority of Pakistan Riaz Khan said the food and its allied products industry, are considered as one of Pakistans largest industry, and are believed to account for 27 percent of its value-added production and 16 percent of the total employment by the manufacturing sector. He said only the exports of fruits and vegetables besides juices decreased to $11,064 million in 2005-06 against $13,944 million in 2004-05. Exports of spices, however, increased substantially in 2005-06 to $23,550 million compared with $14,347 million in 2004-05. The dairy product exports also increased to $23,169 million in 2005-06 against $10,081 million in 2004-05. Cereal and confectionary products exports also increased to $45,872 million in 2005-06 than $33,676 million in 2004-05 and exports of sugar. Syrup/glucose exports increased to $2,526 in 2005-06 against $1,130 million in 2004-05. Exports of beverages increased to $22,158 million in 2005-06 against $12,770 million in 2004-05 and exports of animal, Vegetable oil and fats has increased to $106,142 million in 2005-06 against $58,926 million in 2004-05. He further pointed out that the worlds processed food business runs into $3.2 trillion per year, whereas Pakistans share is extremely small as of today. The world in last 10 years, he said, has witnessed an unprecedented growth in supermarkets among developing countries, particularly in Asia and Latin America where rising income levels have increased consumer demand for many higher value processed food products.

According to him, recognizing the large potential in developing country markets, food manufacturers including MNCs are expanding their operations in those markets. Since they have several options for selling their products, exporting is just one option and, in many cases, not the preferred one. Most foreign food sales are generated by investing abroad and processing in foreign markets. That is why we see Nestle, Unilever and others investing heavily in Pakistan. staff report