1. WHAT IS THE IMPORTANCE OF AGRICULTURE SECTOR IN ECONOMIC
DEVELOPMENT OF PAKISTAN.
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INTRODUCTION:> Agriculture is of immense importance for Pakistan. At the
time of independence Pakistan was primarily agriculture based country. But
as time progressed Pakistan turned into more diversified country as
industrialization took hold. But development of industries h a d n o t
eliminated the existence of agriculture in Pakistan although
t h e s h a r e o f a g r i c u l t u r e h a d d e c r e a s e d s i g n i f i c a n tl y s i n c e i t s
b i r t h . Th e r o l e o f a g r i c u l t u r e i n t he economic development of Pakistan
cannot be denied and Pakistan is still characterized as an agricultural country. In
the subsequent assignment I will be discussing the contribution of agriculture in
the economic development of Pakistan.
About 50 years earlier agriculture sector was not considered as a commercial sector
for economic development in a large number of developing and developed nations.
During the last 50 years this sector is realized as a major productive sector of
Pakistani economy. 61% population is living in more than 50,000 villages in Pakistan.
Latest information: (according to economic survey 2010-2011)
¡backward agricultural sector contributes 20.9% to GDP.
¡edits growth rate is as low as 1.2%.
¡eat employs the 45.0% net labor force.
¡eats contribution to exports (done group) is 8.62%.
ROLE OR IMPORTANCE IN ECONOMIC DEVELOPMENT: Importance of
agricultural sector can be shown as below:
1-INCREASE IN PER CAPITA INCOME: Per capita income is the annual average
income of the individuals of a nation. We derive it by dividing national income on
total population. Agricultural sector provided nor jobs to unemployed people. It
increases the individuals as well as national income.
2-MAJOR SOURCE OF EMPLOYMENT: Agriculture sector provides employment
to major portion of our labor force. More than 45.0% of our labor force is directly
involved in agriculture sector, while 66.7% of our rural population is dependent on
agriculture. This is the major sector which provides employment to a large portion of
our population. Agriculture sector is helpful to reduce the unemployment and
disguised unemployment.
3. REDUCTION IN POVERTY: Agriculture development has significant impact on
rural development. If productivity increases in agriculture it reduces poverty and

2. stimulates non-farm employment too. They as able to get basic services of life such as
water supply , sanitation , provision of health and educational facilitates. About 21.0%
population of Pakistan is much poor.
4. SUPPLY OF FOOD: Food is the first in basic necessities of life.The agriculture
sector is the sole provides of all type of food like
wheat,rice,corn,sugarcane,vegetables and fruits etc, to the population engaged in
various sectors of the economy. Agricultural sector also provides done to those
animals that provide milk,cheese,butter, and meat to population to maintain the
efficiency.
5. SOURCE OF NATIONAL INCOME: At the time of partition,contribution of
agriculture sector to GNP was 60%,which decreased to 29.4% in 1980-81.Now its
share to GDP is 20.9% in 2010-11. Accordingly agricultural sector is the major
contributor to Pakistan’s national income.
6. SUPPLY OF SAY MATERIAL:- Agricultural sector provides not only food but
also provides cotton, sugarcane, tobacco, rice, oil-seed, meat and milk to various agrobased, small scale and large scale industries as a raw material.
7.ECONOMIC DEVELOPMENT:- Economic development, progress and prosperity
can not achieve without agricultural sector. It provides employment opportunities to
alot of people. It produces exportable items which increases the foreign exchange
resources. So agricultural sector is helpful to make rapid economic development.
8. SELF RELIANCE POLICY:- Agriculture sector is helpful to achieve ve self
sufficiency.Our country will not only become self sufficient in food but supply of raw
materials for industries will also expand our industrial sector.
9. INCREASE IN GOVT. REVENUE:- There is on direct tax on the agricultural
income. But indirectly government receives a huge amount of tax from agricultural
sector. It imposed some duties on imported technologies applied in farming.It imposes
tax on chemicals etc. So agriculture sector is also a source of income for the govt.
10. CONTROLLING INFLATION:- Inflation peers to the increase in general price
level. It maybe due to increase in demand and shortage in supply. Agricultural sector
is very helpful to control the inflation. It produces more goods and maintains the
equilibrium in demand and supply. Rate of inflation is 14.1% in Pakistan.
11.DEMAND FOR INDUSTRIAL GOODS:- As the agriculture productivity
increases, the income of farmers goes up. With the rise in income the demand for both

3. agricultural goods (tractor, fertilizers, pesticides, tubewells etc) and industrial goods
(television, mobile, computer, etc) will increase in rural areas.
Infrastructure is a fuel to economic development. Well developed infrastructure
assures quick transportation of goods and services (which may include
raw material or finished
I n d u s t r i e s a r e o f ma j o r i mp o r t a n c e i n t h e e c o n o mi c d e v e l o p me n t
o f a n y c o u n t r y. Agriculture is helping many industries in Pakistan by
providing raw material to these i n d u s t r i e s . C o t t o n i s a ma jo r c r o p o f
P a k i s t a n wh i c h i s a l s o a n i mp o r t a n t e x p o r t o f Pakistan and raw
material of textile industry. Textile industry is significant and world famous industry of Pakistan. Likewise sugar industry uses sugar cane as raw
material
Agriculture is of immense importance for Pakistan. At the time of independence
Pakistan was primarily agriculture based country. But as time progressed
Pakistan turned into more diversified country as industrialization took
hold. But development of industries h a d n o t e l i m i n a t e d t h e
existence of agriculture in Pakistan although the share
o f a g r i c u l t u r e h a d d e c r e a s e d s i g n if i c a n t l y s i n c e i t s b i r t h . Th e
r o l e o f a g r i c u l t u re i n t h e economic development of Pakistan cannot be
denied and Pakistan is still characterized as an agricultural country. In the
subsequent assignment I will be discussing the contribution of agriculture in the
economic development of Pakistan.
IN SHORT :> Agriculture sector s playing an important sold in the economic
development of Pakistan. Our all economic activities are based on agricultural sector.
But unfortunately it is still backward and government should take some effective steps
for its improvement.
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