ROLE OF FARM MECHANIZATION IN THE ECONOMIC DEVELOPMENT OF PAKISTAN

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ROLE OF FARM MECHANIZATION IN THE ECONOMIC DEVELOPMENT OF PAKISTAN

  1. 1. ROLE OF FARM MECHANIZATION IN THE ECONOMIC DEVELOPMENT OF PAKISTANTITLEROLE OF FARM MECHANIZATION IN THE ECONOMIC DEVELOPMENT OF PAKISTANwhat is agricultural economicsAgricultural economics originally applied the principles of economics to the production of crops and livestock— a discipline known as agronomics. Agronomics was a branch of economics that specifically dealt with landusage. It focused on maximizing the crop yield while maintaining a good soil ecosystem. Throughout the 20thcentury the discipline expanded and the current scope of the discipline is much broader. Agricultural economicstoday includes a variety of applied areas, having considerable overlap with conventional economics.Farm Mechanization:-Farm mechanization means the use of machines and technology in the agriculture sector. The use of tractor,tube-wells and plant protection measures are included in the farm mechanization. So in the farmmechanization the use of machinery is greater as compared to the labour.Development in Farm MechanizationThe conventional production practices in the agricultural sector in Pakistan still dominantly remain to be highdoses of labour and land with relatively small input and other items responsible in increasing unit yields. Thisconcept is incompatible with the growth requirements as it does not ensure the optimum exploitation of landresources, mechanization therefore emerges as an essential element of development in determining the growthstrategy on all size of farms including small ones of subsistence holding. The introduction of cooperativefarming linked with marketing has never been in the light of cooperative principles resulting minimizing thepossibility of pooling resources for joint investment for further production. In the context of the FAOindicative world plan suggesting that all developing economics like Pakistan should contrive to achieve aminimum desirable level of 0.2 H.P. per cultivated acre (0.47) hectare as against nearly 0.1 H.P. Thus scopefor mechanization of farms becomes very wide and obvious. Despite this background, the basic constraints inthe adoption of mechanization in Pakistan has been the paucity of foreign exchange and availability ofstandardized agricultural machinery. To over-come these shortcomings ADBP during 1965-69 arrangedforeign credit which were primarily for the importation of popular makes of tractors and for financing theinstallation of tubewells act of which in fact is the milestone in the history of this part of sub-continent. Itwill not be out of place to mention that the first IDA/World Bank credit of $ 27 million was utilized by thebank much ahead of schedule and fully reimbursed long before the stipulated period i.e. by January 1968against the closing date of June 30, 1969. In view of the fast increasing demand for the banks loans formechanization items the bank obtained second IDA credit of $ 15 million (which includes $ 5 million fromSweden) forgiving loans for farm machinery and farm equipments. The borrowing from World Bankcontinued uptil now enabling to enter into VIIth project know as Agricultural Credit Project (APC) in whichPrepared by FAIZ SARWAT Page 1
  2. 2. ROLE OF FARM MECHANIZATION IN THE ECONOMIC DEVELOPMENT OF PAKISTANshare of IBRD/World Bank is $113.6 million and that of IFAD is $ 21 million starting from Fy90 which ismainly meant for the weaker section of society including small farmer and the landless with special referenceto women, to meet their overall production needs including giving boost to small scale enterprise (SSE).However, in case World Bank has shown reluctantness in releasing of timely funds then not only theseimportant projects, meant for the development of weaker sections specially creating income generatingactivities by "Establishing Small Scale Enterprises" relied on by-products and residuals of crops in rural areas,but will reduce the refinancing capacity for a development bank like ADBP. This will ultimately effect thecommitment for effective utilization and reimbursement of dues. There is a need for fulfilling the commitmentby the World Bank on being conscious that in the absence of judiciary legislation giving protection to banksand development finance institutions and specialised banks it become difficult to work in a desired mannerspecially when political decision over rule the economic one as has been done in the recent past.ConclusionFarm mechanization is an important factor in agricultural development. Increased production can result fromnew techniques put into practice on farm. Thus the modernization of our agriculture cannot take placewithout the transfer of technology aspect of which to greater extent become possible mainly through worldbank as is evident from foregoing narration of this text. Empirical evidence suggests that an increase in thequality of physical inputs based on traditional cum intermediate technology largely accounts for less than halfof the increase in farm output; the remainder occurs as a result of the use of efficient innovative devices.However, there is need for implementing such a dispassionate strategy, that suit to our local conditionswithout which no gainful result can be conceived as has happened in the past. It is thus recognised that realeconomic development cannot be assured without the modernization of agriculture and that this process canbe broad based only if high emphasis is given towards transfer of efficient technology that help in bringingreduction in social costs and increasing yield and income in relative terms. This alone can help in alleviatingpoverty ensuring unemployment and underemployment the menace that our nation faces today.Prepared by FAIZ SARWAT Page 2

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