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Page 1: Presentation New Agri 1997 2003

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Page 2: Presentation New Agri 1997 2003

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Agriculture Sector of Pakistan

Presented BY :

Anum Ashraf (M06BBA004) 

Maryam Ijaz Perji(M06BBA018)

 Rana Iram Tahir (M06BBA042)

 

Anum Ali Sheikh (M06BBA059

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Contents

• Introduction

• Performance of agriculture sector in

Pakistan• Salient Features of Pakistan’s Agriculture

• Different Phases of Agricultural growth

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Introduction

• Back ground and contribution to

GDP

• Impact of agriculture on poverty

reduction

• Impact of agriculture on overall

economy

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Performance of Agriculture sector in

Pakistan:

Unsatisfactory

Reasons:•Lack of motivation

•Illiteracy of farmers

•Natural disasters

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Sector Contribution(%) Growth

(%)

Major crops 34.2 -3Minor crops 12.4 7.1

livestock  49.1 3.8

fisheries 2.9 11.1forestry 1.4 -8.5

Performance in Year 2007-2008

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Salient Features of Pakistan’s

Agriculture

Climate; Irrigation and Land

utilizationProblems of water Logging and

salinity

Weights in Agriculture sector Institutional arrangements

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Climate

Total Geographical area of Pakistanis 79.6 million hectares

27% is under cultivation

80% irrigated

Cultivable waste lands amount to 8.9

million hectares

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Irrigation

• Total geographical area receives only250 mm of rain

• Two types of crops are being irrigated :

Kharif Rabi

• Canal system

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Land utilization

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Problems of Water logging and salinity

Provinc

e

Slight

lysaline

Saline-

sodic andsaline-Gypsiferous

Salin

e-sodic

Severel

ySaline

Very

severlysaline

Punjab 464.6

(28.8)

126.0

(7.8)

42.5

(2.6)

911.7

(56.5)

69.0

(4.3)Sindh 333.6

(22.1)112.3(7.5)

102.1(6.8)

846.5(56.2)

112.2(7.4)

NWFP 2.4

(17.5)

1.7

(12.4)

- 9.6

(70.1)

-

Baluchistan

0.6(2.5)

11.9(48.6)

- 12.0(48.9)

-

Total 801.2(25.4)

251.9(8.0)

144.6(4.6)

1779.8(56.3)

181.2(5.7)

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Weights in Agriculture Sector 

Major crops 34.2%

Minor crops 12.4%

Live stock 49.1%

Fisheries 1.4%

forestry 2.9%

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Institutional arrangement

• Owner self-Cultivation

• Owner-cum-tenant-Farms• Pure tenant farms

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Different Phases of Agriculture Growth

• 1960’s (strong growth)

• 1970’s (Reduction in growth)• 1980’s and 1990’s (Revival)

• 2000 (again reduction in growth)

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  AGRICULTURAL PRICE POLICY

Refers to determine the prices of agricultural

inputs and outputs

Incentives to produce certain goods

To control the abnormalities and to determine the

prices of inputs

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OBJECTIVES OF AGRICULTURAL PRICE POLICY

To remove uncertainty

To increase production

Economic activity

Lag Period

Lack of storage facilities

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Income disparities

To increase standard of living

Import substitute

Increasing output of exporting crops

Balanced cropping pattern

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PROBLEMS OF AGRICULTURAL PRICE

POLICY

  Climate

Plant diseases

Water logging and salinity

Illiteracy

Lack of transport and communication

Defective planning

Market functionaries

Political instability

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PRICE SUPPORT POLICY

  Government sets price level of 

commodities little higher than equilibrium

price, called support policyIT IS FOR

Giving incentives to the farmer 

Upward revision of minimum support prices

for selected crops like Wheat, Rice etc

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SETTLEMENT OF SUPPORT POLICY

  APCom has been setup by the

Federal Government of PakistanAPCom HAS TASKS

To formulate support price proposals

To facilitate final decision of Govt

about the level of support prices

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STANDARD FOR DETERMINATION OF SUPPORT

PRICES

  To observe prices of concerned goods

To observe changes in the prices To analyze the pattern of production

To observe the demand and supply

To observe the inflation rate To observe the terms of trade

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INCENTIVES OF PRICE SUPPORT POLICY

Compensation of cost production

Protection during harvesting

No storage facilities

Improvement in farm income

Elimination of middleman

Elimination of transport problems

Food self sufficiency

To save foreign exchange

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RURAL DEVELOPMENT PROGRAMSVillage Agricultural and Industrial Development

Programe(1953-1961) aimedTo encourage the villagers to respond to modernizing

normsTo achieve the self sufficiency in every

aspect To foster effective citizen participation in the ruralself help projects in the fields of agriculture, health, cottage

Industries etc 

To develop small projects such as approach or feeder roads,

repair or construction of small schools or dispensary buildings

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SECOND FIVE YEAR PLAN

RURAL WORK PROGRAME(RWD)

  Introduced in 1960

Showed good progressive signs

Public investment in rural infrastructure was boosted

There was increase in the economic prosperity and political

aspiration of the villagers

Large funds were channeled to villages

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THIRD FIVE YEAR PLAN

(1965-1970)

Objectives of the plan has two folds

First, building essential infrastructures

Second, generating temporary employment

opportunities

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FOURTH F IVE Y EA R PL AN

INTEG RATED R URAL DEV ELOPMEN TPROGRAM (1 970 -1978 )

Initiated by then PM Mr.Bhutto in 1972

IT AIMED AT Providing opportunities to improve social economic status of large

majority of small and medium villagers

Community development and development of local leadership

In rural areas

Convergence of rural development activities of people and their 

organizations, govt deptt, local govt institutions and professional

groups

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SIXTH FIVE YEAR PLAN

1983-1988

It earmarked 32% of public sector expenditure for the ruralsector 

A sum of Rs. 70 bn was originally allocated for ruraldevelopment

PHYSICAL ACHIEVEMENTS  TARGET ACHIEVEMENT

ROADS  10,000kms  14,957kms

ELETRIFIED 20,000 villages 16525 villages

VILLAGES

BHUs 2,600 BHUs 1803 BHUs

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SEVENTH FIFE YEAR PLAN

1988-1993

Total investment in rural development was estimated at Rs.112.2 bn

Aim was to bring about a substantial transformation in in rural

lives

PHYSICAL TARGETS

To construct 8,500 kms of rural roads

To increase rural literacy rate from 21.5% to 32.0%

To cover 55% of census villages bt electricity

Creation of 2.2 million 7 marla plots to allot them to landlessfamilies

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EIGHTH FIVE YEAR PLAN

(1993-1998)

 

OBJECTIVES Construct of about 10,000 kms of farm-to-market rural roads

Providing drinking water to about 27.41 million additional

population

Providing sanitation facilities to about 18.81 million additional

population

Providing primary education to about 4.2 million additionalchildren

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Providing teacher training to about 0.213 millionteachers in the rural areas

Providing non-formal education to about 6.0 million

adults in the rural areas

To engage 33,000 village health workers in the rural

areas

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AGRICULTURAL IMPORTS AND EXPORTS

Direct agricultural exports increased from32% in 1968-1970 to 38%

in 1982-83

Indirect agricultural exports decline from 45% to 40%

The share of wheat un imports declined from 14% in 1972-73 to

less than 1% in 1982-83

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Maryam Aijaz Perji

   M06BBA018 

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  Types of cropsMajor crops

In 2007-2008 growth is -3.0

Food crops

Non food crops

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  MILLETS

Cultivated on 438 thousand hectures.

Production is 221 thousand tons

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   NON FOOD CROPS

Cotton

Sugarcane

tobacco

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  FARM INPUTS Fertilizer 

Improved Seed

Mechanization

Plant Protection

Irrigation

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  MECHANIZATION

Mechanization as a tool for modernization of agriculture has been well recognized

The demand for tractors has increased

significantly. In order to meet tractor’s demand,

Federal Government allowed import of new andused tractors in CBU at zero tariffs. Other 

On the average, an increase of about 9

 percent in the prices of locally manufactured

tractors compared to last year has been recorded

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  PLANT PROTECTIONPlant protection is an important factor amongst the

agricultural inputs In this regard, the Department

of Plant Protection (DPP) provides facilities, such

as, Locust Survey and Control, Aerial Pest Control

and Pesticide Registration and Testing.

Pakistan remained free from gregarious

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  IRRIGATIONEfficient irrigation system is a pre-requisite for 

higher agricultural production since it helps

increase the crop intensity. Despite the existence of 

good irrigation canal network in the Pakistan, itstill suffers from wastage of a large amount of 

water in the irrigation process.

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OBJECTIVES OF LAND REFORMS

Land Reforms promote equality & justice.

These promote employment.

Land reforms redistribute national income. These help to stop rural-urban migration.

These increase productivity of agriculture sector.

Land reforms provide betterment of small farmers.

These provides improvements in social status. Economic development is shared by more people due to

level reform.

Elimination of large estates.

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  LAND REFORMS IN PAKISTANLand reforms of 1959

Land reforms of 1972

Land reforms of 1977

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Agriculture Credit

Credit requirements of the farming sector have been increasing over the

years with the rise in the use of fertilizers, pesticides and mechanizationand a hike in their prices

To cope with increasing demand for agricultural credit, institutional credit

is being provided through ZTBL, Commercial banks, Cooperatives and

Domestic Private banks

The Government has allocated Rs 200 billion for agriculture credit

disbursements for the year 2007-08 which is 25 percent higher than the

allocation of the preceding year i.e. Rs 160 billion. Out of the total credit

target of Rs 200 billion, Rs 96.5 billion were allocated to commercial

 banks, Rs 60 billion to ZTBL, Rs 8 billion to Punjab Provincial

Cooperative Bank Ltd., and Rs 35.5 billion to Domestic Private

Commercial Banks. The agricultural loans extended to the farming

community during July- March, 2007-08

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Types of agricultural credit: Short Term: (up to one year. )

 preparation of land, purchase of seeds, fertilizers, and feeds for livestock 

marketing, payment of rent, interest on loans and wages of labourers

Medium Term: (up to five years) bullocks, cattle’s, implements, repair work etc

Long Term: (ten or more than ten years)

 purchase or acquisition of lands, liquidation of old debts, for constructionof embankments, drainage, irrigation channels, warehouses, godowns,

reclamation of land, purchase of tractors, sinking of tube wells etc.

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Sources of Agricultural Credit:A. Non institutional sources:• Relative

• Friends

• Landlords

• Money lenders

• Shopkeepers• Commission agents

B. Institutional sources:

• Zarai Tarqiati Bank Limited

• Commercial Banks• Cooperatives.

• Domestic Private Banks

• Taccavi Loans

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Production and Development Loans:

Agricultural loans amounting to Rs. 138.6 billion were disbursedduring (July-March, 2007-08) as against Rs.111.2 billion during thecorresponding period last year 

Registering an increase of 24.6 percent. The share of ZTBL in supply of total agricultural credit by institutionsdecreased and was 28.6 percent during (July–March, 2007-08)

47 percent of the total agricultural credit disbursed during July– March 2007-08.

PPCBL has also decreased as it stood at 2.8 percent

Domestic private bank has increased by 21.6 percent of the totalagricultural credit

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Crop Maximization Project: Ministry of Food, Agriculture & livestock (MINFAL) launched an

integrated development programme entitled “Crop Maximization Project(CMP)” in 15 districts of the country.

The project aimed at providing inputs for crops through Revolving Fundfor the financial assistance of the farmers in the project area.

Under an agreement, the MINFAL will provide funds to the tune of Rs299.893 million to ZTBL for onward lending to the project farmers to meetthe input requirements for various crops and ZTBL will revolve thesefunds up till 30th June 2014.

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New Schemes/Initiatives

a. White RevolutionThe Bank has earmarked funds to the tune of Rs. 5,000 million for 

financing of 50,000 animals (buffaloes and imported cows) during the

five years period (2007- 2011).

c. Sairab Pakistan

ZTBL has financed over 144,478 tube wells by disbursing over Rs

14,713 million. 

e. Red Meat Financing Scheme

Initially the scheme is implemented in Multan, Faisalabad, Dera Ghazi

Khan, Dera Ismail Khan, Bhakkar, Nawabshah, Dadu, Sukkur,Peshawar, Lasbella, Loralai and Khuzdar Districts branches having

good potential and repayment culture. The loans are advanced @ Rs

5000/- per Sheep/Goat, RS 3500/- for Teddy Goat and Rs 1200/- per 

Kid (Sheep/Goat).

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Need For Agricultural Credit:

  To Purchase Inputs

To Purchase of Implements

Improvement of LandFluctuations of Prices

Marketing and storage facilities

For The Payment of Land Revenue and Water Rate

Buildings

Population GrowthUncertain Weather Condition

Balanced Growth:

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Problems of Agricultural Credit: Gap between Demand and Supply

Securities Problem

Complicated Procedure

High Interest Rate Bad Debts

Expansive Loans for Small Farmers:

Intermediaries

Unproductive Use of Credit No Provision of Loans for Marketing Storage and

Processing

Flow of Credit to Small Farmers

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Measures To Overcome the Problems Establishment of Zarai Tarqiati Bank Limited (Z.T.B.L.)

Role of Commercial Bank 

Role of Cooperatives

Taccavi Loans Role of State Bank of Pakistan

Easy Procedure

Timely Disbursement

Recovery Rate Package of All Inputs

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Live Stock 

The live stock include: cattle, buffaloes, sheep, goats, camels, horses,

asses, mules

livestock accounts for 52.2 percent of agricultural value added,

contributes 11 percent to GDP and affects the lives of 30 – 35 million

 people in rural areas. 

Apart from provincial Government programs, the federal government has

substantially increased public sector investment in livestock sector and as

initiated projects to the tune of Rs 7.1 billion for strengthening livestock 

services 

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Poultry:

Poultry sector is one of the most vibrant segments of agriculture sector of Pakistan. This sector generates employment (direct/indirect) andincome for about 1.5 million people. Poultry meat contributes 19

 percent of the total meat production in the country. The currentinvestment in Industry is about Rs 200 billion. Poultry sector hasshown a growth of 8-10 percent annually.

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Forestry:

Pakistan is a land of great diversity, which has yielded a variety of vegetation;

however, only 5.01 percent of total land area is under forest

Of this total forest area, commercial forest is just one-third (32.8%) and the

rest (67.2%) is under protection forests performing soil conservation, watershed

 protection and climatic functions

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Fisheries:

• Main buyers of fish and fish preparations are Japan, USA Middle East,

Sri Lanka, and China etc.

• Pakistan earned US$ 188.5 million during July-March (2007-08) and

over 100,000 M. tons of fish and fishery products were exported.

• During the period July-March 2007-08, the total marine and inland

fish production was estimated to be 640,000 M. tons. Out of which

share of marine fish is 390,000 M. tons and inland contributed is

250,000 M. tons.

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Green Revolution:

The green revolution had its impact on the various aspects of farming

including the relations of production and exchange. We however pay

attention to these aspects in particular;

Impact on agricultural production

Impact on employment

Impact on income distribution

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Mechanization of Agriculture In Pakistan:

The farm mechanical technology includes:

• Chemical technology---------------plant protection measures.

• Hydrological technology-----------tube wells• Mechanical technology-------------tractors, threshers, bulldozers etc.