discussion regarding connectivity between agriculture and rural development

1. Dr. Gohar Saeed
PARD
12/11/2022 1
Nexus of
Agriculture and Rural Development
in
Pakistan

2. “It is the agricultural sector that the
battle for long-term economic development
will be won or lost”
Gunnar Myrdal,
Nobel Laureate in Economics
1984
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Agriculture and Rural Development

3. AGRICULTURE
Economy of every state depends on three sectors:
Agriculture
Industry
Commerce.
Sectors are interrelated
Progress or retrogress of one sector effects the others
Agriculture is the leading productive sector of Pakistan’s economy
This sector provides foods to people, raw material for industry and is a
base for foreign trade, contributes to national economic growth, to
better livelihoods of people in general and the poor in particular
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4. Pakistan is 33rd largest country in size. It is 10th times smaller than
Russia but its Canal system is 3 times bigger than Russia.
This country ranks 2nd in meat, 4th in term of milk production, 5th in
term of peas, Apricot, cotton and sugarcane production, 6th in term of
onion and dates.
7th in term of mangoes, 8th in term of wheat production, 9th in term of
rice production and 10th in term of oranges production.
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5. Its ranks 25th in term of agricultural production in the world.
The wheat production in this country is greater than the total
wheat production in Africa continent and equal to production
of south America.
It ranks 40th in term of industries. 4th in term of coal mines in
the world and 7th in term of silver production.
Pakistan has the world’s largest irrigation system
Pakistan ranks 4th in the world as for as irrigated area ( About
7%) is concerned. About 36 MA( About 75% of the cultivated
area) in Pakistan is irrigated land.
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6. Total area…………… 79.60 million hectares
Cultivated area………37.10%
Culturable waste…… 11.5%
Non-arable………….. 31.0% .
Area under horticultural crops is about 6%
(fruits sharing 69% ; vegetables 31%)
The average farm size 3.1 hectares
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7.  1960s 5.1
 1970s 2.4
 1980s 5.4
 1990s 4.4
 2001-02 3.1
 2002-03 4.3
 2003-04 2.3
 2004-05 6.5
 2005-06 1.6
 2006-07 5.0
 2007-08 1.5
 2008-09 4.7
 2009-10 3.2
 2010-11 2.4
 2011-12 3.1
 2012-13 2.6
 2013-14 2.5
 2014-15 2.1
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Economic Surveys of
Pakistan

8.  2015-16 0.2
 2016-17 2.2
 2017-18 3.9
 2018-19 0.9
 2019-20 2.6
 2020-21 2.7
 2021-22 4.4
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Economic Surveys of
Pakistan

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Agricultural Sector – Key Statistics
• Contribution to GDP 22.9%
(more than US$ 40 billion to the national economy)
• Labor Force Employment 45.0%
• Average Growth past 6 years 2.9%
• Contribution of different Sub-Sectors in Agriculture
1. Crops (Wheat, Rice, Cotton, Sugarcane) 32.8%
2. Livestock 53.2%
3. Fisheries 4.0%
4. Forestry 2.0%
• Share in Export Earnings (Raw/Processed)
1. Cotton + Cotton Based Products 64.7%
2. Fruits, Rice, Fish, Leather 18.2%
3. Others 17.1%

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Dairy Sector – Key Statistics
• With an estimated 33 billion liters of annual milk
production from 50 million animals, managed by over 8
million farming households, Pakistan is the 4th largest
milk economy in terms of value is over 27% of the total
Agriculture sector
• Additional potential of 3 billion producing country in the
world.
• Of the total 33 billion liters of milk produced, 71% is
rural based and 29% is urban based
• Of the total production, around 3% is processed and
marketed through formal channels

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Livestock Sector – Key Statistics
• Contributed approximately 53.2 percent of the agriculture
value added and 11.4 percent to national GDP during 2019‐20.
• Gross value addition of livestock 17.8 percent.
• Pakistan earned USD717 million from leather exports in FY19
and a meager USD96 million from meat exports.
• Poultry sector is one of the organized and vibrant segments of
agriculture industry of Pakistan.
• This sector generates employment (direct/indirect) and
income for about 1.5 million people.
• Poultry meat contributes 23.8 percent of the total meat
production in the country.
• The food industry attracted Foreign Direct Investment of US$
108.3 million in 2019-20.

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Fisheries Sector- Key Statistics
• Production: 0.6 MMT (marine 63% & inland 37%)
• Value: US$300 million
• Aquaculture: 45% (solely inland prod.)
• Consumption:
• - Domestic: 0.3MMT - 50%
• (1.8 vs. 16.1 kg/per capita pa world)
• - Export 0.12 MMT - 19 % ( $ 200 million)
• - Fish meal 0.18 MMT - 31 %
• Source of livelihood: 400,000 fishermen
• Potential for export : $ 1 billion pa
• Potential domestic consumption : 1 MMT

13. STRENGTHS
Rich Bio-diversity
Arable land
Various seasons
Strong and well dispersed research and
extension system
OPPORTUNITIES
Bridgeable yield crops
Exports
Agro-based Industry
Horticulture
Untapped potential
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WEAKNESS
 Fragmentation of land
 Low Technology Inputs
 Unsustainable Water Management
 Poor Infrastructure
 Low value addition
THREATS
 Unsustainable Resource Use
 Unsustainable Regional Development
 Imports
 Overpopulation
 Climate change

14. Ensuring food security for 220 million population growing
@2.2% per annum
Producing raw materials for agro based as well as allied
industries of an economy growing @ 6% pa.
Producing competitive exportable surplus in a rapidly
globalizing world
Alleviating rural poverty by increasing farmers profitability
and maintaining sector sustainability
Complying with sanitary and phyto-sanitary requirements of
new WTO regime
 Coping with water scarcity, environmental degradation and
climatic change
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15.  Pressure of the Population on Land
 Skewed distribution of operational holdings
 Land Degradation
 Water Balance
 Low level of mechanization
 Low Fertilizer Consumption
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Challenges to Agriculture

16.  Feudalism
 Industrialization
 Urbanization
 Non-comprehensive Policies
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Challenges to Agriculture

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Rural development is a strategy designed to improve
the economic and social life of a specific group of
people- the rural poor.
These people include small scale farmers, tenants, landless
labourers, and artisans

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Rural development is a multidimensional activity that entails
such diverse matters as
agriculture production,
livestock,
Forestry
water management,
marketing,
credit,
education,
communication,
health, and
village organization.
Above all it has to do with motivating humans toward a higher
quality of life

19. Over 50,000 villages
Population: 68% of total
Literacy: 37% (in women 10%)
Occupation: Agriculture (24% of GDP employs 48% of
total work force)
73 percent of poor live in rural areas
Even with rapid urbanization, more than 50% of the
poor will be in rural areas by 2035, and depend
significantly on agriculture
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Why is Agriculture so important for
the rural poor of Pakistan?

20. Economic sustainability & reducing poverty
Environmental sustainability
Appropriate Rural Development Interventions
Appropriate use of rural resources
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Agriculture and Rural
Development through…

21. Sixty Eight (68%) per cent of the poor live in rural areas, dependent
on agriculture and natural resources for their livelihoods.
Agricultural growth contributes to poverty reduction by improving
rural incomes, utilising the productive capacity of poor people’s
land and labour assets, and providing food for both urban and
rural poor.
Agriculture stimulates economic opportunities and diversification
into the non-farm sector where growth is generally faster and
labour productivity and wages are higher.
According to the World Development Report 2019 , GDP growth in
agriculture is about four times more effective in raising incomes
of extremely poor people than GDP growth originating outside
the sector.
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22. Agriculture in developing countries currently faces a number of challenges:
despite the recognised importance of agriculture for poverty reduction, only 4%
of official development assistance goes to agriculture
Small-holder producers now compete in globalised economies with higher
standards of food quality and safety
climate change and increasing population density are depleting the natural
resource base that rural livelihoods depend upon
significant gender inequalities exist in poor people’s access to key productive
assets and services including land, labour, financial services, markets, water,
rural infrastructure, technology, and other inputs.
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Economic Sustainability

23. Requires in-depth knowledge of farm and non-farm activities for devising the
rural livelihood strategies and consideration of ways to protect and promote
them.
agriculture plays four fundamental roles in the reduction of (rural) poverty:
 through contributing to economic growth in general and to the
benefits of that growth accruing to the poor in particular;
 as the basis for many livelihood strategies of the majority of
poor people;
 as a provider of locally available staple food;
 as a manager of natural resources and provider of
environmental services.
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24.  Integrating environmental concerns into the Rural Development aims to head
off the risks of environmental degradation and enhancing the sustainability of
agro-ecosystems.
 Three priority areas for action to protect environment
 Biodiversity and the preservation and development of 'natural'
farming and forestry systems, and traditional agricultural
landscapes;
 water management and use;
 rules compatible with environmental requirements and
measures promote the development of agricultural practices
preserving the environment and safeguarding the countryside.
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25. Environmental measures that form part of the Rural Development
Programmes. The priorities may be:
the promotion and support of environmentally-friendly farming practices and
systems that benefit biodiversity directly or indirectly;
the support of sustainable farming activities in biodiversity-rich areas;
the maintenance and enhancement of good ecological infrastructures, and the
promotion of actions to conserve local or threatened livestock breeds or plant
varieties.
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Sustainability of Agriculture
 Integrated Farm Management
 Soil fertility management
 Integrated pest management (IPM)
 Organic Farming
 Enhancing agricultural competitiveness
 Sustainable Forestry
Strategies

27. Process of combining multiple development
services into a coherent delivery system with the
aim of improving the well-being of rural populations
with major focus on farm and non-farm activities
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Integrated Rural Development

28. Correct the over-exploitation or inappropriate use of resources by
ensuring that all services are appropriately used.
Establish projects and policies on appropriate levels -- community, village,
regional, provincial and national level – generally with corresponding
implementation/ financing mechanisms
Incorporate institutional development and new technologies
Reduce risks and vulnerabilities of farming communities
 Diversify cropping systems for economic and
environmental resilience
 Weather forecasting to aid planting date and management
decisions.
 Weather and price crop insurance.
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29. Selection of Socially profitable and local resource –based
interventions for development
Pro-poor targeting mechanisms
Demand-driven: maximize private sector/community
involvement in priority setting and implementation
Co-financing by beneficiaries
Exit strategy where appropriate
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30. Reducing land degradation
Improving water management
Sustainable forestry
Sustainable fisheries
Incorporating local issues into development planning
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31. Assessment of the economic, social and
environmental situation, needs and gaps
Determining Strengths/weaknesses of agric: and
food sector
Rural diversification
Provision of rural infrastructure, renovation and
availability of basic services.
Local economic development
Local capacity building and implementing local
development strategies
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