•Pakistan is basically an agrarian country and its economy revolves around
agriculture sector which contributes around 21 percent to Gross Domestic Produce
(GDP) and employs more than 44 per cent of the country’s total labor force and
supports directly or indirectly about 68.4 percent of the population for their
•Agriculture provided main impetus to economic growth by creating additional
demand of goods and services as a result of higher prices of agricultural produce
•Agriculture is the major source of foreign exchange earnings. About 64% of
exports are based on agriculture raw material Agriculture is a source of food for the
increasing population of our country. About 16 million tons wheat, 4 million tons
rice is produced in country. Agriculture is a source of revenues for the federal and
provincial government. Local bodies also get revenues from the agriculture
The agriculture has lost significant growth momentum as its growth slowed down to 2.7
percent in the 2000s as against 4.4 percent in 1990s and 5.4 percent in the 1980s. The
structural problems and lack of mechanization remained main impediment to growth. Major
crops remained victim of natural calamities during the last few years and three out of last
four years witnessed negative growth in the major crop sector.
The unprecedented floods in July 2010 destroyed two major crops, i.e. rice and cotton. As
reported by SUPARCO, an area of 2.364 million hectares under Kharif Crops 2010 was
60% of Pakistan’s rural poor are landless.
– 45% are non- agricultural households
– 15% are landless agricultural laborers
The agriculture growth this year stood at 3.1 percent as compared to 2.4 percent
Cotton production has increased to 13,595 thousand bales in 2011-12 from 11,460
thousand bales in 2010-11 showing an increase of 18.6 percent.
Wheat production has decreased to 23,517 thousand tons in 2011-12 from 25,214
thousand tons in 2010-11 showing a decrease of 6.7 percent.
Rice production has increased to 6,160 thousand tons in 2011-12 from 4,823
thousand tons in 2010-11 showing an increase of 27.7 percent.
Sugarcane production has increased by 4.9 percent to 58.0 million tons in 2011-12
from 55.3 million tons last year.
With Floods , The highest damage occurred in the agriculture, livestock and
fisheries sector, has been estimated at Rs.160 billion (US$ 1.84 billion).
Agriculture credit disbursement of Rs. 197.4 billion during July-March 2011-12 is
higher by 17.0 percent, as compared to Rs. 168.7 billion over the same period last
The total availability of urea during Rabi 2011-12 was 3,526 thousand tonnes
comprising of domestic production 2,160 thousand tonnes and imported supplies
of 1,202 thousand tonnes.The total offtake was 2,710 thousand tonnes, leaving a
stock of 800 thousand tonnes for next season. Likewise the total estimated
availability of urea during Kharif 2012 will be around 3487 thousand tonnes
comprising 800 thousand tonnes of opening stock, 2280 thousand tonnes of
domestic production and 407 thousand tonnes of imported supplies.The total
offtake is estimated around 3200 thousand tonnes during Kharif 2012 leaving a
stock around 287 thousand tonnes
In minor crops, the production of mung and potatoes increased by 22.0 percent
and 17.5 percent, respectively. However, the production of chillies, onion and
masoor decreased by 78.3 percent, 15.4 percent and 12.8 percent, respectively.
The agricultural sector in Pakistan is classified as containing 5 sub sectors:
THE MAJOR CROPS INCLUDE
67.5% of country
agriculture for their
44.8 percent of
is generated in
70% of our total
population is living in
the villages. The major
source of their living is
SUPPORT TO INDUSTRIES
improved growth in the
sub-sector or the
to Curtail Inflation
Force to Industry
The role of credit is instrumental in the agriculture sector where Pakistani farmers often
lack finances necessary for carrying out vital farming activities
From Different Studies Conducted from time to time, it is concluded that Farmers mostly
take the Credit facilities from Two Sources
1. Formal Sources like Financial Institutions and Commercial Banks
2. Informal Sources like Friends n Family or Landlords
10% among them take loan from Institutions and rest 90 Percent Take from Informal
From 90% , 11 percent of house holds like to take loans from Land lord and rest take it from
The both types of loan is for Same Short Term time period
Only reason of not preferring the Loan from institutions is the complex procedure required.
Source: Akbar Zaidi (Issues in Pakistan`s Economy)
well-established network of lending institutions operates to meet the financial
requirements of farmers in the rural areas. Currently 26 commercial and microfinance
banks, with around 3,900 agriculture designated branches, are facilitating farmers by
These include; ABL, Habib Bank Limited (HBL), Muslim Commercial Bank
(MCB), United Bank Limited (UBL), two specialized banks, viz, Zarai Tarqiti Bank
Limited (ZTBL), Punjab Provincial Corporative Bank Limited (PCBL), and 14 private
Mechanization means the use of new technology (machines) for conducting
agricultural operations like
sowing, harvesting, thrashing, leveling, watering, spraying, weeding etc, replacing
the traditional methods which involve human and animal labor.
• 3 technologies under Mechanization
CHEMICAL TECHNOLOGY: Plant Protection measures
HYDROLOGICAL TECHNOLOGY: Tube wells
MECHANICAL TECHNOLOGY: Tractors, Thrashers, Bulldozers etc.
The use of Mechanical Power in Pakistan`s Agriculture was first appeared in the Early Fifties
, when Private Tube wells were established in few quantity for Water Irrigation purpose ,
In 1959-60 The pace of the Tube well gained Momentum and reached to 25000 by mid 1964.
during same time Seed Fertilizer revolution and Introduction of Tractors become Essential
for Agriculture in Mid Sixties.
there is High growth rate for the Mechanization into Pakistan but Still the
process of Mechanization is not completed yet.
1. Except large Size of Tractors, Pakistan does not own other large size Agricultural
Equipments like Combine Harvesters, reapers and cotton pickers.
2. Per hector Horsepower in Pakistan is only 0.2 while its 2.0 in other western
3. The access of other technologies except tractors, Tube wells and Threshers is very
lower. Even the usage level of these three mainly used technology is only 34%. 38%
and 17% respectively of total farms.
Still about 63% of the Agricultural Output is dependent upon Bullocks and
traditional Farming Methods
To achieve required hp per hectare farm power availability, the government has
launched Benazir Tractor Scheme to deliver 20,000 tractors to the farmers all over
the country at subsidized rate of Rs. 200,000/- per beneficiary/ tractor.
During first year of the scheme, 10,000 tractors have been delivered among the
To promote use of efficient and quality machinery & equipment etc, the
government has also allowed import of agricultural machinery, not being
manufactured locally at zero tariffs.
Other interventions such as use of laser land levellers, ridge and broad bed
farming are being encouraged in the country through provision of farm
machinery to the farmers/services providers at subsidized rates.
Dr Gaffar Chaudary
Head research Pakistan Institute of Development Economics
• Low quality inputs
• Imperfect commodity markets
• Poor quality support services
• Poor delivery and sustainability of
• no a such proper policy from starting
• Inadequate rural infrastructure
• Deteriorating natural resources
• Water issue
• taxation issue
• THE FLOOD ISSUE (August2010)
problems arise like:
Shortage of food
Increase in unemployment
Around 7 Million people became shelter less
Wastage of land (opportunity for up coming year
Raw materials destroyed
live stock died (this also created milk problem)
drinking water in interior Sindh became impure
Traditional and old methods of cultivation
Scarcity of water and water management
• Inefficiency Of Farmers due to the illiteracy
Soil salinity problem is common in arid and semiarid regions, where
rainfall is insufficient to leach salts and excess sodium ions out of the
rhizosphere. Nearly 10% of the total land surface is covered with
different types of salt-affected soils. At present, there are nearly 954
million hectares of saline soils on the earth's surface.
The continuous expansion of the irrigation system over the past century
significantly altered the hydrological balance of the Indus River basin.
Seepage from the system and percolation from irrigated fields caused the
water table to rise, reaching crisis conditions for a substantial area.
• Water logging
By 1993 the government had installed around 15,000 tube wells. Private
farmers, however, had installed over 200,000 mostly small tube
wells, mainly for irrigation purposes but also to lower the water table.
Private wells probably pumped more than five times as much water as
• Traditional and old methods of cultivation
• Scarcity of water and water management
A substantial amount of water is also lost annually due to water
management inefficiency. Water losses are estimated to be
approximately 25 per cent from the canal head to the outlet and another
15 per cent from the outlet to the farm gate mainly due to poorly linked
canals and water courses.
Land reform is an often-controversial alteration in the societal
arrangements whereby government administers possession and use of
land. Land reform may consist of a government-initiated or governmentbacked real estate property redistribution, generally of agricultural
land, or be part of an even more revolutionary program that may include
forcible removal of an existing government that is seen to oppose such
These reforms are meant to put ceilings on landholdings and are
supposed to be an attempt to change tenancy regulations.
Pakistan has had a very extensive and diverse history of land reform. Most of the
efforts usually failed and ended without any serious purpose, the reason for this
was the great representation of the large landlords from the Punjab and Sindh in the
central council of the Muslim league in 1947. Land lords comprised 163 out of 503
parliamentary members in 1942 which was the most significant group. Foundation
of Pakistan only increased their power further, as many of them were able to
acquire large tracts of land from Minorities by fleeing them at Cheap rates
In the early 1950s, provincial governments attempted to eliminate some of the
absentee landlords or rent collectors, but they had little success in the face of strong
Before the land reforms of 1959 the distribution of land ownership was highly
skewed in favor of a few large landlords who controlled large tact’s of land.
The main reason to undertake land reforms by the Ayub regime was to
set a limit to the amount of land, a landowner could own.
The first was in 1959, when land reforms fixed the ceiling for private
ownership of land at 500 acres irrigated and 1,000 acres unirrigated.
However, this did little to better distribute the lands in the hands of the
country's prosperous rural elite. It was more of a cosmetic exercise than a
significant social change.
In all there were only 5,064 declarants, of which the ceilings on individual
holdings affected only 15 percent or 763.
The area of land owned by the affected declarants was 5.5 million
acres, of which only 1.9 million (35 percent) was resumed. The main
portion of their land was retained by the landlords due to numerous
provisions made in the law.
The 1972 reforms were different from those of 1959 in many respects.
Firstly, the philosophy Bhutto reforms was based on the social
democratic leanings of the Pakistan People’s Party. In March 1972, Z.A
Bhutto gave a speech in which he said his land reforms would ‘effectively
break up the iniquitous concentrations of landed wealth, reduce income
The land reforms were basically introduced in two ways:
1. Tenancy Regulation
2. The ceiling on Land ownership.
1. Tenancy Regulation
The reasons for the rejecting a tenant were:
failure to pay rent
• failure to cultivate land
• sublet tenancy, or
• rendered land unfit for cultivation.
The water rate and cost of seeds were to be borne by the landlord.
The cost of fertilizers and pesticides were to be shared equally by both parties.
Land revenue and other charges were to be paid by the landlords in the past.
Imposition of any cess and beggar was banned.
The owner was selling his right to pre-emption in the case of land under his cultivation.
That is, it gave tenants first rights of purchase.
Other regulations increased tenants' security of tenure and prescribed lower rent rates.
2. The ceiling on Land ownership.
In 1972 The Z.A Bhutto Government lowered the ceiling to 150-acres of irrigated and
300-acres of un-irrigated land of 12000 PIU, whichever was more for private ownership.
No exemptions were allowed for the retention of orchards, stud or livestock farms and
Exemption was only for owners of tractors and tubewells (of not less than 10 HP) who
could retain an additional 2000 PIUs.
Unlike in 1959, land resumed from landowners would not receive any compensation
and these lands were distributed among the landless tenants free of cost. In addition, all
those peasants who had acquired land under the 1959 reforms and had outstanding
dues, had their dues written off.
the land declared to be above ceiling by the landowners, only 42% was resumed in
Punjab, while in Sindh it was 59%. In all, 0.6 million acres was resumed, far less than the
1959 figure and constituted only 0.001 % of the total farm area in the country.
With other exemptions for tubewells and tractors, a family could have retained up to
932 irrigated areas in Punjab and 1120 in Sindh.
The compensation to landowners on resumed land was given at Rs 30 per PIU.
There was redistribution of wealth as it was in 1972.
Two views on land reforms
• Equalitarian view
The first view proposed on land reforms is equalitarian view. According to
this view land reforms are done to remove the income disparity. This
view has been propagated by liberals and the urban society at large.
According to this class landless peasants are suffering at the hand of
large land holders who are bent on exploiting them and not providing
them good compensation for the work.
• Rural elite view
The rural elite which consist of the feudal lords stand on land reforms are
that these measures of no good. In their understanding most of this
takes place due pressure from urban elite who are only interested in
destroying the power of the rural elite. They think all this leads to
changing the society which will have long term consequences.