Lec 03 pak economy


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Economy of Pakistan-Agriculture Sector

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  • 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

    1. 1.  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
    2. 2. Agriculture in Pakistan Pakistan's principal natural resources are arable land and water. 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
    3. 3. 3rd Largest 3rd Largest Producer of Dates Herd of Livestock 5th Largest Producer of Mango 5th Largest Producer of Cotton 5th Largest Producer of Milk The Largest Producer of Kinnow Pakistan’s Agriculture is
    4. 4. Forms of Agriculture in Pakistan Livestock Fishing Crops
    5. 5. 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%
    6. 6. Crops The most important crops are wheat, sugarcane, cotton, and rice. Pakistan's largest food crop is wheat. 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
    7. 7. Wheat Wheat being the staple diet of most of the people of Pakistan it dominates all crops in acreage and production. It accounts for over 70 % of the gross cereals and over 36 % of the country's acreage is devoted to wheat cultivation. Wheat is the most popular cash crop of Pakistan. Support price was increased to 1200 from 1050, Growth of 3.2% than last year
    8. 8. Rice Rice holds an important position among the cash crops of Pakistan. 2nd 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 for cattle. Cultivation area decline by 10.1% compare to last year Reasons being monsoon rain, late receding of water and prolonged sowing
    9. 9. Cotton Cotton is considered to be the most important cash crop of Pakistan. Pakistan ranks fifth in world cotton production. Cotton is also known as the "Silver Fiber". 7% of GDP Production declined by 4.2% compared to last year
    10. 10. Sugarcane 3.2% of Agriculture Area under cultivation increased by 6.2% Due to increased economic return Increased of 5.9(%
    11. 11. Other Crops Oilseeds:
    12. 12. Other crops:
    13. 13. Fishing 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 earning. 15.3% export increased compared to last year earning US $ 222.6 million EU has lifted ban
    14. 14. Livestock The livestock sector contributes about half of the value added in the agriculture sector, amounting to nearly 11 per cent of Pakistan's GDP. The world's fifth largest milk producing country and Asia’s largest camel market.
    15. 15. Livestock contributes 55.1% of Agriculture Livestock accounts for 11.5% of GDP. 2nd Largest 3rd Largest Herd of Livestock Sector of economy 4th Largest Exports Products 5th Largest Producer of Milk 1st Largest Segment of rural economy Pakistan’s Livestock
    16. 16. 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.
    17. 17. 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 products. • 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%
    18. 18. 42.00% 51.00% 7.00% ShareinRuralEconomy Livestock Agric Others Livestock’s Contribution 42.00% 55.10% 1.30% 1.60% Contribu onofSubSectors Crops LiveStock Fisheries Forestry
    19. 19. Dairy Sub-sector Total milk production (09-10) 36.299 m tons Milk market: Producers (self or direct selling) 68.0 % Informal market (Gawala operated) 28.5 % Formal dairy industry 3.5 % Dairy industry: 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
    20. 20. Meat Sub-sector 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 Meat market Butchers operated shops, many slaughter at shops Main players at slaughter house are artees Fresh meat sold, only a few chilled meat selling establishments Meat industry 80 % slaughtering done outside out side slaughterhouses 11 private sector slaughter houses registered by Animal Quarantine Deptt. Total export is <0.6 percent of the production
    21. 21. Pakistan –Export of Meat & Meat 2009-102009-10 2010-112010-11 QuantityQuantity (MT)(MT) In millionIn million US DollarUS Dollar QuantityQuantity (MT)(MT) In million USIn million US DollarDollar 20,08120,081 53.953.9 29,28129,281 82.382.3
    23. 23. Livestock Products • Milk Production = 49 million tonnes annually. • Beef Production = 16 million tonnes / anum • Mutton Production = 6 million tonnes / anum • Poultry Meat = 7 million tonnes/ anum Exportable Commodities: 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 foreign exchange)
    24. 24. Problems of Agriculture Water logging and salinity Water shortage / Drought Irrigation Lack of funds Monopoly Of Foreign Companies Soil erosion Hoarding and Smuggling Outcome is Food Insecurity, Incompetitiveness, low productivity
    25. 25. Waterlogging and salinity It is caused when the water table rises to 1.5 meter. Water evaporation leave salt on surface making land unproductive. Stagnant water then adversely effect the growth of plants. Solution: Install tubewells pump out extra and access water from agricultural land. Deploy drainage systems for control of water in farms.
    26. 26. Water shortage / Drought It is caused by poor irrigation system and unpredictable rainfall. Solution: Government should improve irrigation system. Take legal notice on stealing of water. Improve canals, dams and barrages.
    27. 27. 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 small farmers. Solution: Pakistani government should build chemical fertilizer and pesticide industries. Control price of fertilizers.
    28. 28. Lack of funds The farmers in Pakistan are not financially strong to manage their cultivation. Improper loan system by government. Solution: Government should improve system of providing loan. Also help farmers to purchase machinery and acquire latest technology.
    29. 29. Modernization and Green Revolution Corporate Farming: Farm mechanization is one of the packages of Green Revolution. Farm mechanization means the use of mechanical technology in the varied farming operations. This technology includes Chemical, Hydrological and Mechanical Technology. The policy has been framed to accelerate the pace of agricultural mechanization in the country.
    30. 30. 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 methods.  By using this technique the farmers can save a huge some of money which he pays for irrigation through tubewells and tracktors.
    31. 31. Potential
    32. 32. • Productivity Enhancement • Value Addition • Milk Processing Plants • Modern Abattoirs & Processing Units • Building Supply Chains ~ market linkages • Genetics, breed improvement • Vaccine, Drugs, Semen & Embryo Production & Marketing Units
    33. 33. • Global Halal market
    34. 34. World Muslim population of 1.83 billion in 2009 out of 6.5 billion World population 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
    35. 35. 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
    36. 36.  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 largest port  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
    38. 38. • 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.
    39. 39. • 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.
    41. 41. • 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.
    43. 43. • Establishment of Exotic Poultry Grand Parent, Breeding Services in Pakistan. • 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 Pakistan.