Local governments own and operate slaughter houses, generally rated as unhygienic 46 casing factories processing guts for export Bone meal / gelatin also being exported
Lec 03 pak economy
Vital sector of Pakistan's economy
Accounts for 21.4 percent of GDP
Directly supports three-quarters of the country's
population, employs 45% of the labor force, and
contributes a large share of foreign exchange earnings
Main agricultural products are cotton, wheat, rice,
sugarcane, fruit and vegetables, in addition to milk,
beef, mutton, and poultry.
Provider of raw material to industry, stimulates
domestic demand and major source of income for rural
population (80% of rural population directly or indirectly
depends upon agriculture for income and livelihood)
Agriculture Sector in Pakistan – An Overview
Agriculture in Pakistan
Pakistan's principal natural resources are arable land
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
Has shown growth of 3.3% in FY 2012-2013
Export of Mangoes increased by five times in 2013
Two seasons i-e Kharif and Rabi
Pakistan’s Agriculture is
Forms of Agriculture in Pakistan
Agricultural Sector – Key Statistics
• Contribution to GDP 21.4%
(more than US$37 billion to the national economy)
• Labor Force Employment 45.0%
• Average Growth past 6 years 3.7%
• Contribution of different Sub-Sectors in Agriculture
1. Crops (Wheat, Rice, Cotton, Sugarcane) 32.8%
2. Livestock 55.4%
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%
The most important crops
are wheat, sugarcane, cotton,
Pakistan's largest food crop is
Pakistan exports rice, cotton,
fish, fruits (especially
Oranges and Mangoes), and
vegetables, wheat, cotton,
pulses and consumer foods.
US, EU, China are first 3
major export destinations
Wheat being the staple diet of
most of the people of Pakistan it
dominates all crops in acreage
It accounts for over 70 % of the
gross cereals and over 36 % of the
country's acreage is devoted to
Wheat is the most popular cash
crop of Pakistan.
Support price was increased to
1200 from 1050,
Growth of 3.2% than last year
Rice holds an important position
among the cash crops of Pakistan.
largest staple food
2.7% of Agriculture contribution
It fulfills the food requirements of our
country but we also earn a lot of
foreign exchange from its export.
Besides it is an important raw
material for manufacturing grain as
well as its husk is also used as fodder
Cultivation area decline by 10.1%
compare to last year
Reasons being monsoon rain, late
receding of water and prolonged
Cotton is considered to be the most
important cash crop of Pakistan.
Pakistan ranks fifth in world cotton
Cotton is also known as the "Silver
7% of GDP
Production declined by 4.2%
compared to last year
3.2% of Agriculture
Area under cultivation increased by
Due to increased economic return
Increased of 5.9(%
Fishery and fishing industry plays an
important role in the national
economy of Pakistan.
With a coastline of about 814 km, is
also a major source of export
15.3% export increased compared to
last year earning US $ 222.6 million
EU has lifted ban
The livestock sector
contributes about half of the
value added in the
amounting to nearly 11 per
cent of Pakistan's GDP.
The world's fifth largest milk
producing country and Asia’s
largest camel market.
11.5% of GDP.
Livestock Sector – Key Statistics
• Contributed approximately 55.4% of agriculture value
added and 11.9% to national GDP in 2012‐13.
• Pakistan earned USD717 million from leather exports in
FY09 and a meager USD96 million from meat exports.
• The food industry attracted Foreign Direct Investment of
US$ 108.3 million in 2009‐10.
Livestock Sector – Key Statistics
• This sector generates employment (direct/indirect) and income for
about 1.5 million people.
• Population growth, increase in per capita income and export
revenue is fuelling the demand for livestock and livestock
• Poultry sector is one of the organized and vibrant segments of
agriculture industry of Pakistan.
• Poultry meat contributes 26.8 percent of the total meat
production in the country.
• Annual growth of 7‐8%
Total milk production (09-10) 36.299 m tons
Producers (self or direct selling) 68.0 %
Informal market (Gawala operated) 28.5 %
Formal dairy industry 3.5 %
Main products are UHT and Pasteurized milk, Milk powder, Yougurt,
Cream, Cheese, etc.
3.0 million litres per day being procurement
Rs 63 million daily going to rural economy
25 out of 49 dairy plants are operational
Main players are Nestle, Engro, Haleeb, Engro, Millac
Total meat production (09-10) 2.965 ml. tons
Beef Production 1.655 ml. tons
Mutton Production 0.603 ml. tons
Poultry Meat 0.707 ml. tons
Butchers operated shops, many slaughter at shops
Main players at slaughter house are artees
Fresh meat sold, only a few chilled meat selling establishments
80 % slaughtering done outside out side slaughterhouses
11 private sector slaughter houses registered by Animal
Total export is <0.6 percent of the production
Pakistan –Export of Meat & Meat
In millionIn million
US DollarUS Dollar
In million USIn million US
20,08120,081 53.953.9 29,28129,281 82.382.3
• Milk Production = 49 million tonnes annually.
• Beef Production = 16 million tonnes / anum
• Mutton Production = 6 million tonnes / anum
• Poultry Meat = 7 million tonnes/ anum
Meat = 60.2 million US $( year 2009-10 )
Animal Export = 13.9 million US $ ( 2009-10 )
( Total export is about 40 billion rupees 11% of the total
Problems of Agriculture
Water logging and salinity
Water shortage / Drought
Lack of funds
Monopoly Of Foreign Companies
Hoarding and Smuggling
Outcome is Food Insecurity, Incompetitiveness, low
Waterlogging and salinity
It is caused when the water
table rises to 1.5 meter.
Water evaporation leave salt
on surface making land
Stagnant water then
adversely effect the growth of
Solution: Install tubewells
pump out extra and access
water from agricultural land.
Deploy drainage systems for
control of water in farms.
Water shortage / Drought
It is caused by poor irrigation
system and unpredictable
Solution: Government should
improve irrigation system.
Take legal notice on stealing
Improve canals, dams and
Poor fertilizers and pesticides
The quality of pesticides and
fertilizers in Pakistan is poor.
Although the available
fertilizers and pesticides in
Pakistan are out of reach of
government should build
chemical fertilizer and
Control price of fertilizers.
Lack of funds
The farmers in Pakistan are
not financially strong to
manage their cultivation.
Improper loan system by
Solution: Government should
improve system of providing
Also help farmers to
purchase machinery and
acquire latest technology.
Modernization and Green
Farm mechanization is one of the packages of
Farm mechanization means the use of
mechanical technology in the varied farming
This technology includes Chemical,
Hydrological and Mechanical Technology.
The policy has been framed to accelerate the
pace of agricultural mechanization in the
Latest mechinery should be provided to the farmers
to increase the per acre yield on easy installments
If possible subsidy should be given by the
government of modern machinery
This includes drip irrigation and sprinkle irrigation
By using this technique the farmers can save a huge
some of money which he pays for irrigation through
tubewells and tracktors.
World Muslim population of 1.83 billion in 2009 out of 6.5 billion
With average annual growth rate of about 1.80% per annum.
approximately 117,000,000 per yr. increase which does not
include conversion which on the rise currently.
Global Halal products market is estimated at US$2.3 trillion
excluding Islamic banking.
If we include service sectors for the Halal market, the potential
size of total market is ASTRONOMICAL…
The trade in Halal food is enormous with est.
annual halal food value at US $347 billion globally
Global Market forfor Halal
Key Halal Market
Algeria Bahrain Egypt Indonesia Iran
Iraq Jordan Kuwait Lebanon Malaysia
Morocco Oman Qatar Saudi Arabia Syria
Tunisia Turkey UAE Yemen Pakistan
Key Halal Markets in Non-Muslim countries
India 140million France 6 million
China 40 million Germany 3 million
USA 8 million UK 1.5 million
Phillippines 6 million Canada 800,000
Global Halal Market
Nestle – world’s largest food manufacturing corporation
McDonalds – the world’s largest leading restaurant chain
KFC – fully integrated poultry chain
Tesco & Carrefour – world’s number one & two retail chain
Port Rotterdam – Europe’s largest & the world’s 3rd
Westports – one of SEA top 10 ports
MISC – the world second biggest shipping company
CIMB – SEA biggest investment bank
Allanasons – India’s biggest meat exporter
Al-Islami – UAE halal food produces
Some Notable Players
• 49,512 million tonnes of milk provide a promising enterprise, where
only 3% is being processing.
• Small scale farming is not covering the full economic cost.
• Significant element of economies of scales exist resulting in cost
reduction by 30-50% between the small and large scale farms.
• Huge consumer market exists.
• Creation of milk collection network and transportation facilities in
the milk catchments ~ Nestle
• Establishment of milk processing plants leading to production of
value added exportable products like reconstitute able milk
powder, cheese, butter and yogurt.
• Establishment of mini pasteurization plants in Peri-Urban Areas.
• Establishment of Modern Abattoirs in big cities of Pakistan for
value addition of the meat.
• Creation of disease free zones for supply of quality meat.
• Organization of the environmentally controlled meat markets &
provision of cold chain facilities.
• Establishment of leather tanning units in Punjab.
• Establishment of Exotic Poultry Grand Parent, Breeding Services
• Introduction and Marketing of Modern Hatcheries for Grand
Parent and Breeder Poultry.
• Establishment of Poultry Meat Processing Plants in Pakistan.
• Establishment of Poultry Disease Diagnostic Laboratories in