Agriculture in Pakistan

1. AGRICULTURE IN PAKISTAN:
By:
 Ali Ahmed
 Abdul Haseeb 04
 Rehman
 Shahjahan
 Muhammad Aslam
 Babar Ali
Agriculture is the main sector of
Pakistan’s economy. It actually acts
like backbone of Pakistan’s
economy. It contributes almost
around 20.8% of the GDP of
Pakistan. Around 63% of our
population is living in agriculture
sector and they are directly or
indirectly relying on the agriculture
sector. Almost 47% of the total
labour force of Pakistan is engaged
in this sector. We are not an
economy relying on industries but
the industries we have are mainly
agro-based industries which are
dependent on the production of
agriculture sector. So if due to any
reason like natural climatic changes
for example, if there is reduction in
agriculture production then there
would be a direct impact on
industrial sector and economy will
have a dual negative impact.
Although Agriculture is the main
sector of Pakistan’s economy but
due to different reasons many times
we were unable to satisfy our own
requirements. So, in that case we
had to import from different other
countries which impact badly our
Balance of Payment and our Foreign
Exchange Reserves.
Importance of Agriculture
Sector:
The agriculture sector of Pakistan
has great importance in the county
due to various reasons. Some of the
vital aspects of this sector are
discussed below.
Availability of Food:
Agriculture sector is very important
in making available of the food
items to the general public. Pakistan
is the 6th biggest country in the
world on the bases of population and

2. its population is rising at the rate of
around 1.94% annually. According
to recent studies of the UN
Pakistan’s population is 2.81% of
the world population. So, its
agriculture sector which is serving
as the last resort. It provides wheat,
rice, vegetables, edible oils etc to the
general public. Whenever due to
any crises agriculture sector lacks in
providing food items then there is an
additive burden on the import bill of
Pakistan and Balance of Payment
become more deficits.
Major Contribution to GDP:
Pakistan is an agrarian country so
agriculture is the main sector of the
Pakistan’s economy and economy’s
growth is directly or indirectly
dependent at the growth rate of this
sector. Agriculture sector according
to the recent statistics of Pakistan
Bureau of Statistics contributing
almost around 24 % of the GDP of
Pakistan.
Provides Raw Material:
Pakistan because an agriculture
country so, its industries are mainly
Agro-based industries which are
completely dependent at the
production of agriculture sector
because it provide raw material to its
main industries.
In case there is any climatic change
it will negatively affect agriculture
production then there would be
negative effect at the industrial
production also. Because if there is
less cotton, wheat, sugarcane
production then automatically there
would be less production of cotton
industry, flour mills, Sugar industry.
Helps in Industrial
Development:
On the one side agriculture sector is
providing raw material to industrial
sector and helps in its development
and on the other side agriculture
sector is having excessive labour
force which in not needed actually
and marginal productivity of the
labour decline with the each
additional unit employed. So,
agriculture sector provides
sufficient amount of labour to the
industry that also helps to develop it.
Foreign Exchange Earnings:
Agriculture sector is the main
source of foreign exchange earnings
of Pakistan, which is utilized for the
import of machinery, technology
products, and all other goods which
are not produced in the country. In
this way it helps to manage foreign
exchange earnings on the one side

3. and on the other side it helps to
improve balance of payment of the
country.
Helps in Extending Markets:
The existence of agriculture sector
becomes helpful in the extension of
markets. The expanding agriculture
sector means income of the farmer
is increasing. That income will be
spent to satisfy basic needs,
comforts and on luxuries like tv,
cars, houses etc. It increases the
consumption of industrial goods
that will push industrialist to
produce more that will increase their
income, overall employment,
profitability etc. So, automatically
markets will be extended.
Helps to Reduce
Unemployment:
Pakistan is basically an agrarian
country which have very limited
base of industries so, agriculture
sector serves as the big source of
employment. Pakistan is
predominantly a rural country with
almost 63 % of the population living
in rural areas and this is the main
reason that around 50 % of the total
labour force of Pakistan is engaged
in this sector. Due to the fact that
agriculture sector still running on
the basis of primitive production
techniques so, to get employment in
this sector you don’t need to have
latest skills. Even an un-educated
person can easily adjust in this
sector.
Helps to Reduce Rural Urban
Gap:
Agriculture sector development is
also very important in reducing gap
between rural and urban areas of the
country. Because if there is
agricultural development then that
will increase the income of
agriculturists so, they will spend
more on the improvement of living
standard. And because of
agriculture development more and
more agro-based industries would
be setup near rural areas which also
helps to develop rural areas and that
plays a vital role in reducing gap
between rural and urban areas.
Plays its Role in the Process of
Capital Formation:
Agriculture sector development
helps to increase the income of
agriculturist and that will promote
savings in the rural areas of the
country. More the savings there will
be more investment .So, the process
of capital formation in the country

4. increases because of the
development in the agriculture
sector. And that capital formation
process plays a very important part
in the overall economic
development of any country. So, the
funds provided through the savings
of agriculturists are given by the
institutions to the industrial sector
and in that way industrial sector also
develop.