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Agriculture Sector of Pakistan

Presented BY :

Anum Ashraf (M06BBA004)

Maryam Ijaz Perji(M06BBA018)

Rana Iram Tahir (M06BBA042)

Anum Ali Sheikh (M06BBA059
Contents

• Introduction
• Performance of agriculture sector in
Pakistan
• Salient Features of Pakistan’s Agriculture
• Different Phases of Agricultural growth
Introduction

• Back ground and contribution to
GDP

• Impact of agriculture on poverty
reduction

• Impact of agriculture on overall
economy
Performance of Agriculture sector in
Pakistan:

Unsatisfactory
Reasons:
•Lack of motivation
•Illiteracy of farmers
•Natural disasters
Performance in Year 2007-2008

Sector Contribution(%) Growth
(%)
Major crops 34.2 -3
Minor crops 12.4 7.1
livestock 49.1 3.8
fisheries 2.9 11.1
forestry 1.4 -8.5
Salient Features of Pakistan’s
Agriculture

 Climate; Irrigation and Land
utilization
 Problems of water Logging and
salinity
 Weights in Agriculture sector
 Institutional arrangements
Climate
Total Geographical area of Pakistan
is 79.6 million hectares
27% is under cultivation
80% irrigated
Cultivable waste lands amount to 8.9
million hectares
Irrigation
• Total geographical area receives only
250 mm of rain
• Two types of crops are being irrigated :
 Kharif
 Rabi
• Canal system
Land utilization
Problems of Water logging and salinity
Provinc Slight Saline- Salin Severel Very
e ly sodic and e- y severl
saline saline- sodic Saline y
Gypsifero saline
Punjab 464.6 126.0
us 42.5 911.7 69.0
(28.8) (7.8) (2.6) (56.5) (4.3)
Sindh 333.6 112.3 102.1 846.5 112.2
(22.1) (7.5) (6.8) (56.2) (7.4)
NWFP 2.4 1.7 - 9.6 -
(17.5) (12.4) (70.1)
Baluchis 0.6 11.9 - 12.0 -
tan (2.5) (48.6) (48.9)
Total 801.2 251.9 144.6 1779.8 181.2
(25.4) (8.0) (4.6) (56.3) (5.7)
Weights in Agriculture Sector

Major crops 34.2%

Minor crops 12.4%

Live stock 49.1%

Fisheries 1.4%

forestry 2.9%
Institutional arrangement

• Owner self-Cultivation
• Owner-cum-tenant-Farms
• Pure tenant farms
Different Phases of Agriculture Growth

• 1960’s (strong growth)
• 1970’s (Reduction in growth)
• 1980’s and 1990’s (Revival)
• 2000 (again reduction in growth)
AGRICULTURAL PRICE POLICY

 Refers to determine the prices of agricultural
inputs and outputs

 Incentives to produce certain goods

 To control the abnormalities and to determine the
prices of inputs
OBJECTIVES OF AGRICULTURAL PRICE POLICY

 To remove uncertainty

 To increase production

 Economic activity

 Lag Period

 Lack of storage facilities
 Income disparities

 To increase standard of living

 Import substitute

 Increasing output of exporting crops

 Balanced cropping pattern
PROBLEMS OF AGRICULTURAL PRICE
POLICY
 Climate
 Plant diseases
 Water logging and salinity
 Illiteracy
 Lack of transport and communication
 Defective planning
 Market functionaries
 Political instability
PRICE SUPPORT POLICY
 Government sets price level of
commodities little higher than equilibrium
price, called support policy
IT IS FOR

 Giving incentives to the farmer

Upward revision of minimum support prices
for selected crops like Wheat, Rice etc
SETTLEMENT OF SUPPORT POLICY

 APCom has been setup by the
Federal Government of Pakistan
APCom HAS TASKS

 To formulate support price proposals

 To facilitate final decision of Govt
about the level of support prices
STANDARD FOR DETERMINATION OF SUPPORT
PRICES

 To observe prices of concerned goods
 To observe changes in the prices
 To analyze the pattern of production
 To observe the demand and supply
 To observe the inflation rate
 To observe the terms of trade
INCENTIVES OF PRICE SUPPORT POLICY
 Compensation of cost production
 Protection during harvesting
 No storage facilities
 Improvement in farm income
 Elimination of middleman
 Elimination of transport problems
 Food self sufficiency
 To save foreign exchange
RURAL DEVELOPMENT PROGRAMS
Village Agricultural and Industrial Development
Programe(1953-1961) aimed
To encourage the villagers to respond to modernizing
norms
To achieve the self sufficiency in every
aspect
To foster effective citizen participation in the rural
self help projects in the fields of agriculture, health, cottage
Industries etc
To develop small projects such as approach or feeder roads,
repair or construction of small schools or dispensary buildings
SECOND FIVE YEAR PLAN
RURAL WORK PROGRAME
(RWD)
 Introduced in 1960

 Showed good progressive signs

 Public investment in rural infrastructure was boosted

 There was increase in the economic prosperity and political
aspiration of the villagers

 Large funds were channeled to villages
THIRD FIVE YEAR PLAN
(1965-1970)
Objectives of the plan has two folds

 First, building essential infrastructures

 Second, generating temporary employment
opportunities
FOURTH F IVE Y EA R PL AN
INTEG RATED R URAL DEV ELOPM EN T
PR OGRAM (1 970 -1978 )

 Initiated by then PM Mr.Bhutto in 1972

IT AIMED AT
 Providing opportunities to improve social economic status of large
majority of small and medium villagers
 Community development and development of local leadership
 In rural areas
 Convergence of rural development activities of people and their
organizations, govt deptt, local govt institutions and professional
groups
FIFTH FIVE YEAR PLAN
(1978-1983)
 It earmarked 25% of the public sector
expenditure to be directly spent to rural
areas
 Under this programe 8,200 mosque
schools were started
 An immunization programe reached
three million children
 Dai training added 5,000 trained
midwives
SIXTH FIVE YEAR PLAN
1983-1988
 It earmarked 32% of public sector expenditure for the rural
sector

 A sum of Rs. 70 bn was originally allocated for rural
development
PHYSICAL ACHIEVEMENTS
TARGET ACHIEVEMENT

ROADS 10,000kms 14,957kms

ELETRIFIED 20,000 villages 16525 villages
VILLAGES

BHUs 2,600 BHUs 1803 BHUs
SEVENTH FIFE YEAR PLAN
1988-1993
 Total investment in rural development was estimated at Rs.
112.2 bn
 Aim was to bring about a substantial transformation in in rural
lives

PHYSICAL TARGETS

 To construct 8,500 kms of rural roads

 To increase rural literacy rate from 21.5% to 32.0%

 To cover 55% of census villages bt electricity

 Creation of 2.2 million 7 marla plots to allot them to landless
families
EIGHTH FIVE YEAR PLAN
(1993-1998)

OBJECTIVES
 Construct of about 10,000 kms of farm-to-market rural roads

 Providing drinking water to about 27.41 million additional
population

 Providing sanitation facilities to about 18.81 million additional
population

 Providing primary education to about 4.2 million additional
children
 Providing teacher training to about 0.213 million
teachers in the rural areas

 Providing non-formal education to about 6.0 million
adults in the rural areas

 To engage 33,000 village health workers in the rural
areas
AGRICULTURAL IMPORTS AND EXPORTS

 Direct agricultural exports increased from32% in 1968-1970 to 38%
in 1982-83

 Indirect agricultural exports decline from 45% to 40%

 The share of wheat un imports declined from 14% in 1972-73 to
less than 1% in 1982-83
Maryam Aijaz Perji

M06BBA018
AGRICULTURAL GROWTH
In 2005-2006 growth is 6.3

In 2006-2007 growth is 3.7

In 2007-2008 growth is 1.5

That shows a decreasing trend
Types of crops
Major crops
In 2007-2008 growth is -3.0
 Food crops

 Non food crops
FOOD CROPS
 Rice

 Wheat

 Maize

 Millets

 Grams
RICE
Cultivated on 2515 thousand hectures

Production is 5563 thousand tons
WHEAT
Cultivated on 8414 thousands hectures

Production is 8578 thousand tons
MAIZE
Cultivated on 1015 thousands hectures

Production is 3313 thousands tons
MILLETS
Cultivated on 438 thousand hectures.

Production is 221 thousand tons
GRAMS
Cultivated on 1064 thousand hectures

Production is 527 thousand tons
NON FOOD CROPS
 Cotton

 Sugarcane

 tobacco
COTTON
Cultivated on 3054 thousand hectures

Production is 11655 thousand tons
SUGARCANE
Cultivated on 1241 thousand hectures

Production is 63920 thousand tons
TOBACCO
Cultivated on 45 thousand hectures

Production is 95 thousand tons
MINOR CROPS
 OIL SEEDS
Production is 833 thousands tons
FARM INPUTS
 Fertilizer

 Improved Seed

 Mechanization

 Plant Protection

 Irrigation
FERTILIZER
In 2007 -2008 the production of fertilizer is
2087 and off-take is 2389
IMPROVED SEEDS
During July-March 2007-08, about 231.67
thousand tones of improved seed of various
kharif/rabi/spring/winter season crops was
distributed.
MECHANIZATION

Mechanization as a tool for modernization of
agriculture has been well recognized
The demand for tractors has increased
significantly. In order to meet tractor’s demand,
Federal Government allowed import of new and
used tractors in CBU at zero tariffs. Other
On the average, an increase of about 9
percent in the prices of locally manufactured
tractors compared to last year has been recorded
PLANT PROTECTION
Plant protection is an important factor amongst the
agricultural inputs In this regard, the Department
of Plant Protection (DPP) provides facilities, such
as, Locust Survey and Control, Aerial Pest Control
and Pesticide Registration and Testing.
Pakistan remained free from gregarious
IRRIGATION
Efficient irrigation system is a pre-requisite for
higher agricultural production since it helps
increase the crop intensity. Despite the existence of
good irrigation canal network in the Pakistan, it
still suffers from wastage of a large amount of
water in the irrigation process.
LAND REFORMS
OBJECTIVES OF LAND REFORMS
 Land Reforms promote equality & justice.
 These promote employment.
 Land reforms redistribute national income.
 These help to stop rural-urban migration.
 These increase productivity of agriculture sector.
 Land reforms provide betterment of small farmers.
 These provides improvements in social status.
 Economic development is shared by more people due to
level reform.
 Elimination of large estates.
LAND REFORMS IN PAKISTAN
 Land reforms of 1959

 Land reforms of 1972

 Land reforms of 1977
Agriculture Credit
 Credit requirements of the farming sector have been increasing over the
years with the rise in the use of fertilizers, pesticides and mechanization
and a hike in their prices

 To cope with increasing demand for agricultural credit, institutional credit
is being provided through ZTBL, Commercial banks, Cooperatives and
Domestic Private banks

 The Government has allocated Rs 200 billion for agriculture credit
disbursements for the year 2007-08 which is 25 percent higher than the
allocation of the preceding year i.e. Rs 160 billion. Out of the total credit
target of Rs 200 billion, Rs 96.5 billion were allocated to commercial
banks, Rs 60 billion to ZTBL, Rs 8 billion to Punjab Provincial
Cooperative Bank Ltd., and Rs 35.5 billion to Domestic Private
Commercial Banks. The agricultural loans extended to the farming
community during July- March, 2007-08
Types of agricultural credit:
 Short Term: (up to one year. )
preparation of land, purchase of seeds, fertilizers, and feeds for livestock
marketing, payment of rent, interest on loans and wages of labourers
 Medium Term: (up to five years)
bullocks, cattle’s, implements, repair work etc
 Long Term: (ten or more than ten years)
purchase or acquisition of lands, liquidation of old debts, for construction
of embankments, drainage, irrigation channels, warehouses, godowns,
reclamation of land, purchase of tractors, sinking of tube wells etc.
A. Sources of Agricultural
Non institutional sources: Credit:
• Relative
• Friends
• Landlords
• Money lenders
• Shopkeepers
• Commission agents
B. Institutional sources:
• Zarai Tarqiati Bank Limited
• Commercial Banks
• Cooperatives.
• Domestic Private Banks
• Taccavi Loans
Production and Development Loans:
 Agricultural loans amounting to Rs. 138.6 billion were disbursed
during (July-March, 2007-08) as against Rs.111.2 billion during the
corresponding period last year
 Registering an increase of 24.6 percent.
 The share of ZTBL in supply of total agricultural credit by institutions
decreased and was 28.6 percent during (July–March, 2007-08)
 47 percent of the total agricultural credit disbursed during July–
March 2007-08.
 PPCBL has also decreased as it stood at 2.8 percent
 Domestic private bank has increased by 21.6 percent of the total
agricultural credit
Crop Maximization Project:
 Ministry of Food, Agriculture & livestock (MINFAL) launched an
integrated development programme entitled “Crop Maximization Project
(CMP)” in 15 districts of the country.

 The project aimed at providing inputs for crops through Revolving Fund
for the financial assistance of the farmers in the project area.

 Under an agreement, the MINFAL will provide funds to the tune of Rs
299.893 million to ZTBL for onward lending to the project farmers to meet
the input requirements for various crops and ZTBL will revolve these
funds up till 30th June 2014.
New Schemes/Initiatives
a. White Revolution
The Bank has earmarked funds to the tune of Rs. 5,000 million for
financing of 50,000 animals (buffaloes and imported cows) during the
five years period (2007- 2011).
c. Sairab Pakistan
ZTBL has financed over 144,478 tube wells by disbursing over Rs
14,713 million.
e. Red Meat Financing Scheme
Initially the scheme is implemented in Multan, Faisalabad, Dera Ghazi
Khan, Dera Ismail Khan, Bhakkar, Nawabshah, Dadu, Sukkur,
Peshawar, Lasbella, Loralai and Khuzdar Districts branches having
good potential and repayment culture. The loans are advanced @ Rs
5000/- per Sheep/Goat, RS 3500/- for Teddy Goat and Rs 1200/- per
Kid (Sheep/Goat).
Need For Agricultural Credit:

To Purchase Inputs
To Purchase of Implements
Improvement of Land
Fluctuations of Prices
Marketing and storage facilities
For The Payment of Land Revenue and Water Rate
Buildings
Population Growth
Uncertain Weather Condition
Balanced Growth:
Problems of Agricultural Credit:
 Gap between Demand and Supply
 Securities Problem
 Complicated Procedure
 High Interest Rate
 Bad Debts
 Expansive Loans for Small Farmers:
 Intermediaries
 Unproductive Use of Credit
 No Provision of Loans for Marketing Storage and
Processing
 Flow of Credit to Small Farmers
Measures To Overcome the Problems
 Establishment of Zarai Tarqiati Bank Limited (Z.T.B.L.)
 Role of Commercial Bank
 Role of Cooperatives
 Taccavi Loans
 Role of State Bank of Pakistan
 Easy Procedure
 Timely Disbursement
 Recovery Rate
 Package of All Inputs
Live Stock
The live stock include: cattle, buffaloes, sheep, goats, camels, horses,
asses, mules
livestock accounts for 52.2 percent of agricultural value added,
contributes 11 percent to GDP and affects the lives of 30 – 35 million
people in rural areas.
Apart from provincial Government programs, the federal government has
substantially increased public sector investment in livestock sector and as
initiated projects to the tune of Rs 7.1 billion for strengthening livestock
services
Poultry:

 Poultry sector is one of the most vibrant segments of agriculture sector
of Pakistan. This sector generates employment (direct/indirect) and
income for about 1.5 million people. Poultry meat contributes 19
percent of the total meat production in the country. The current
investment in Industry is about Rs 200 billion. Poultry sector has
shown a growth of 8-10 percent annually.
Forestry:
 Pakistan is a land of great diversity, which has yielded a variety of vegetation;
however, only 5.01 percent of total land area is under forest

 Of this total forest area, commercial forest is just one-third (32.8%) and the
rest (67.2%) is under protection forests performing soil conservation, watershed
protection and climatic functions
Fisheries:
• Main buyers of fish and fish preparations are Japan, USA Middle East,
Sri Lanka, and China etc.
• Pakistan earned US$ 188.5 million during July-March (2007-08) and
over 100,000 M. tons of fish and fishery products were exported.
• During the period July-March 2007-08, the total marine and inland
fish production was estimated to be 640,000 M. tons. Out of which
share of marine fish is 390,000 M. tons and inland contributed is
250,000 M. tons.
Green Revolution:

The green revolution had its impact on the various aspects of farming
including the relations of production and exchange. We however pay
attention to these aspects in particular;
 Impact on agricultural production
 Impact on employment
 Impact on income distribution
Mechanization of Agriculture In Pakistan:

The farm mechanical technology includes:
• Chemical technology---------------plant protection measures.
• Hydrological technology-----------tube wells
• Mechanical technology-------------tractors, threshers, bulldozers etc.