Download - Agriculture and Industry Sector in Pakistan
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1Macro Economics
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2Macro Economics
Agriculture and Industry Sector In
Pakistan
Presented To :
Prof. M. Azmat
Presented By :
Bilawal Shabbir ( 1210 )
Waqas Sattar ( 1205 )
Ch. Awais Zahid ( 1211 )
Arham Javed ( 1215 )
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3Macro Economics
AGRICULTURE Economy of every state depends on three sectors i.e. agriculture,
industry and commerce.
These three are interrelated with each other as the progress orretrogress of one sector effects the other two.
Pakistan is an agricultural state thus agriculture gains are of muchimportance than any other sector.
Importance of this sector is manifold as it feeds people, provides rawmaterial for industry and is a base for foreign trade.
Foreign exchange earned from merchandise exports is 45% of totalexports of Pakistan. It contributes 26% of GDP and 52% of the total
populace is getting its livelihood from it. 67.5% people are living in the
rural areas of Pakistan and are directly involved in it.
The Backbone off Pakistan's Economy
Agriculture is the mainstay of Pakistan's economy. Nearly 26% of total output (GDP). 52% of total employment is generated in agriculture.
It also contributes substantially to Pakistans exports.
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There are two crops in Pakistan i.e. Rabi &Kharif.
Crop | Sowing season | Harvesting seasonKharif | AprilJune | OctDec
Rabi | Oct Dec | April May
Some Major Crops In Pakistan Cotton Wheat Rice Sugarcane
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Area Under Major Crops (000 Hectares)
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6Macro Economics
Major Causes of Agricultural Problems in
Pakistan
i. No mechanism has been adopted to eradicate the soil erosionand even after harvesting nothing is done to improve or restore
the soil energy. Therefore, the fertility of soil is decreasing day
by day. The thickness of fertile layer of soil in Pakistan ismore than 6 inches but the average yield is lower than other
countries where layer of fertile soil is only 4 inches.
ii. Water wastage is very high in our country. The archaicmethod of flood irrigation is still in practice in whole of the
country which wastes almost 50 to 60 percent of water. A new
irrigation system called drip irrigation system has been
introduced in many parts of the world. This not only saveswater but also gives proper quantity of water according to the
needs of plants.
iii. Owing old methods of cultivation and harvesting, Pakistan haslow yield per acre that means the average crop in Pakistan is
just 1/4th of that of advance states. Where as Nepal, India and
Bangladesh are using modern scientific methods to increase
their yield per acre. For this purpose, these states are using
modern machines to improve their yield.
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Iv . The small farmers are increasing in our country as the
lands are dividing generation by generation. So, there are large
number of farmers who own only 4 acres of land. These small
farmers do not get credit facilities to purchase seeds, pesticides,fertilizers etc. Additionally, a large area of land is owned by
feudal and the farmers who work on their lands, are just
tenants. This uncertain situation of occupancy neither creates
incentive of work nor does attract capital investment.
V . Water logging and salinity is increasing day by day. No
effective measures have been taken to curb it. As the storage
capacity of the dams is decreasing so the water availability peracre is also decreasing. Therefore, the farmers are installing
more and more tube wells to irrigate their crops. This is why
salinity is becoming the major issue in most parts of Punjab
and Sindh.
Vi . Focusing more on land, crops and yield problems the man
behind the plough is always ignored. While formulating the 5
or 10 years plan, no emphasize has been laid on the importance
of solving the problems of farmers. Most of the farmers are
illiterate, poor and ignorant. In this wake the loans issued by
ADBP or other banks are used by them in other fields like
repayment of debts, marriage of daughters etc, in spite of its
befitting use in agricultural sector.
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Vii . The only mean of communication in rural areas is T.V or
radio so it is urgently needed on the part of these mass
communication resources to air the programmes related to the
new agricultural techniques and allied sciences. But theseprogrammes should be telecast in regional or local languages.
Because lack of guidance is the main reason of farmers
backwardness. The communication gap between well qualified
experts and simple farmers have not been bridged. Availability
of these experts is not ensured in rural areas as they are
reluctant to go there.
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Solutions for Agricultural Problems in
Pakistan:
i. Feudalism should be abolished and lands should be allottedto poor farmers. This will enhance the productivity and per
acre yield of all the crops in Pakistan. Taxes should be levied
on Agricultural income but not without devising limit of
land holding. Otherwise it would directly effect poor
farmers.
ii. Federal Seed Certification and Federal Seed Registrationis approved but it should taken responsible steps in
approving seeds as it has already approved 36 new kinds of
seeds. Specially, those seeds should be banned which can
create pest problem in near future. These seeds are of cotton
mainly. International seed makers are providing those seeds
which are not successful in our country as these seeds arenot tested on our soil.
iii. A new Agricultural policy must be framed in whichfollowing steps should be focused on.
- Small farmer must be focused. The major problems of
small farmers should be solved first.
- Consumer friendly policy must be projected.
- Productivity enhancement programmes must beconstituted to adjust and support prices.
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iv. Surplus vegetables and fruits must be exported. A Rs 39million scheme has been approved for the current fiscal year
for establishment of agro export processing zone for fruits,
vegetables and flowers. This will also help in
commercializing agriculture.
v. Latest machinery should be provided to the farmers toincrease the per acre yield. This provision should be on easy
installments so that the farmers can avoid the burden of
loans. If possible subsidy should be given by the government
of modern machinery.
vi. Modern techniques of irrigation can solve the problems ofirrigation in Pakistan. 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 tube wells and tractors.
vii. More dams should be constructed on Indus, Jhelum andChenab rivers. This will enhance the storage capacity of
water and reduce the per acre cost of all the crops. This step
will also reduce the salinity chances of the lands as less tube
well water will be flooded to the lands which cause salinity.
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Industry
The government seeks to diversify the country's industrial baseand bolster export industries.
Net foreign investment in Pakistani industries is only 0.5% ofGDP. Pakistan's search for additional foreign direct
investment has been hampered by concerns about the security
situation, domestic and regional political uncertainties, and
questions about judicial transparency.
Some Major Industries in Pakistan
i. Textileii. Cement
iii. Fertilizeriv. Information Technologyv. Sugar
vi. CNG ( Compressed Natural Gas )vii. Tobacco
viii. Automobile
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Major Causes of Industrial Problems in
Pakistan
i. Power shortageIt is one of the most common issues in Pakistan. The shortage of
power is increasing day by day.
ii. Lack of trained manpowerThere are only few people, who are trained as they working,
There is also low level of literacy rate.
iii. Lack of proper infrastructureIt is common issue that there is no good infrastructure in Pakistan
like telephone, Electricity, Etc.
iv. InefficiencyIt is also big problem in industrial sector.
v. Lack of products innovation resulting in concentration ofindustries in some specific sectors.
There is no innovation in industry that any one start producing new
goods, All of them are try to make those product which are also
made by other ones.
vi. Changing political and economic policies.It is big issue in Pakistan that after every few years government
change their economic policies.
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vii. Bad law and order situation resulting in lower investment inindustries
In Pakistan the situation of law and order is so bad so thats why
people done take risk to invest in industries.
viii. Corruption in related government agencies and so many govt.agencies intervention.
There are lots of corruptions in government agencies which are
related with industries.
ix. Higher interest rate.Banks charge high rate of interest rate on loans.
x. SmugglingIt is also a big issue.
xi. Shortage of CapitalThere is a big problem in Pakistan is shortage of capital.
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Solutions for Industrial Problems in
Pakistan:
i. Increase Power resourcesii. Trained manpower
iii. Make A good infrastructureiv. Do not Change political and economic policies.v. Make Good law and order situation Which resulting in Higher
investment in industries
vi. Reduce Corruption in related government agencies and somany govt. agencies intervention and make take some strict
action against corruption.
vii. Interest rate on loans should be reduced.viii. Take some serious action against smuggling to stop it.