Agriculture is the of process of cultivation of land or soil for production purpose”. Agriculture plays a very vital role for economy of Pakistan and its development. 48% of labor force is engaged directly with agriculture. So it is the main source of living or income of the major part of economy population. About 70% of population is relates to agriculture directly or indirectly. Agriculture is the major source of food of huge population of Pakistan. Agriculture is also the major source of provision of raw martial to industrial sector of Pakistan. Its contribution towards GDP is about 25% which is higher than contribution of any other sector. Following are the main points of importance of agriculture for Pakistan economy.
Source
of employment:
Pakistan as developing economy the employment on consistent level
has much importance. In this behalf agriculture has much importance because it
provides employment directly or indirectly to the public. Employment directly
affects the GSP of economy as well as the per capita income. With the increase
in per capita income living standard increases, higher hygiene facilities &
better education facilities are also increases. All these signs are the factors
of economic development. So we can say that agriculture has a great contribution
toward economic development by providing the employment.
Food
requirement:
Population growth rate of Pakistan is increasing rapidly. According
to UNDP human development report population growth rate of Pakistan is 2% per
year. So with the rapidly increasing population the food requirement is also
increasing rapidly. In this behalf agriculture is the only the major sector
which is the meeting the increasing requirement of food. It also reduces the
import of food from other economies. So we can say that agriculture sector is
playing very vital role in development of Pakistan by providing the food for
massive population as well as supporting the economic growth.
Contribution
in exports:
Major exports or cash crops of Pakistan are wheat, rice and cotton.
9.8 billion Bales of cotton are produced per year. Rice crop is produced 4.3
million ton per year. These agricultural commodities are exported to various
countries against foreign exchange. This foreign exchange is utilized for the
import of industrial or technological equipment’s
such as machinery or automobiles. Further this foreign exchange is utilized to
improve the infrastructure of economy or for improving the other sector of
economy like education, health and investments.
Raw
material for industries:
Industries have great importance for the development of any country
specially for developing economies like Pakistan. Industries need raw material
to produce finish goods. In Pakistan agriculture provides raw material to
industries. Cotton is very important agricultural production which is also
major export of Pakistan. It is used as raw material in textile industries. The
production of these textile industries is exported to various countries against
foreign exchange. Live stock is also an agricultural sector. It also plays very
important role to export goods by providing the raw material to various
industries like sports goods industries and leather industries. So in this way
agriculture helps to Pakistan economy and its growth toward development.
Infrastructural
development:
Infrastructure plays very important role to development of any
economy. It is fuel to the economy development. Well organized infrastructure
is a key to development because of quick means of transportation of
agricultural goods or commodities (raw material or finish goods) and
communication. On distribution purpose of agricultural products good and quick
means of transportation are required this intends to improve the infrastructure
rapidly. So agriculture play important role to the development of
transportation for the purpose of distribution of goods.
Increase
in GDP level:
Agriculture has huge contribution toward GDP of Pakistan economy. It
contributes about 25% of total GDP, which is larger than other sectors of
Pakistan. Increase in GDP shows the developing progress of the economy. It has
played very important role since independence toward GDP of Pakistan. Now
agriculture is the 3rd largest sector of contributing to GDP. Livestock and
fisheries are the huge sector of agriculture in order to providing the
employment. Employment contribute to GDP, it is as with the increase in
employment the per capita income will increase which results to increase in GDP
rate of the economy.
Decreasing
in rural poverty:
Agriculture sector has played very important role in order to
reduction of rural poverty. Since 1975 to 2000 the GDP growth rate of
agriculture was about 4.1% per year. Green revolution technology in irrigation,
improved seeds and fertilizers played very vital role to increase the
agricultural production which results in increase in GDP. Through this
technology farmers with land gain the opportunity to increase their production.
So in this way arable lands became cultivated lands and farmers got the market
of agricultural products against some return.
Development
of banking sector:
Agriculture has also contributed a great role toward the
development of banking sector. As the government realized the importance of
agriculture, it takes steps to improve the productivity of crops by providing
the credit facilities to the farmers at low interest rates. With utilizing
these credits farmers can produce more and more crops. For this purpose
government established the ZTBL and other financial institutes for the
provision of credit facilities. So in this way development of banking sector
takes place.
Farm
mechanization:
Introduction of farm mechanization in agricultural sector had
played very effective role in the development of economy. With the use of
modern machinery in agricultural lands causes more and high quality production
of crops. So the provision of raw material to the industries increases. Due to
increase in productivity level the export rate of major export crops is
increased which causes foreign exchange and economic development.
Use
of Nanotechnology:
In agricultural sector use of modern technology like nanotechnology
has played very vital role in the development of economy. This technology is
used for producing the high yielding variety with high quality products. High
quality products results into high rate of return to the farmers and the per
capita income of farmer increases. Increase in per capita income shows the
growth of economy toward development.
Role
of dairy farming:
Dairy farming from agricultural sector has also played a great role
in economic development. Livestock or dairy farming has huge contribution
toward economic growth. The annual protein per capita is 18 kg of meat and 155
litters of milk. This is the highest rate in South Asia. Milk and meat and
their byproducts have a good market. Farmers can receive a good return by
producing and providing these products to the market. This process results into
increase in per capita income as well as increase in national income of the
economy.
Role
of textile industries:
In economic development textile industries plays very important
role. These industries totally depend on agriculture production in raw form.
Cotton is the major crop which is used as raw material for these industries for
production purpose. Further these products are exported to many economies
against foreign exchange. So cotton as raw material from agriculture side
contributes toward increase in NI (National Income). Textile industries also
provide employment level which increases the per capita income of the person.
So we can say that contribution of textile industries in the development of
economy has much importance.
Role
of sugar industries:
Sugar industry is also one of the major sectors of economy which
has great importance according to development of economy. This is totally
agricultural based industry. Sugar cane is produced on very large scale in many
areas of Pakistan. This further supplies to sugar industries for the production
of sugar and other by products which has great market. As large scale
industries these also helps to provide employment level to the public. This
results into increase in per capita income as well as improves living standards.
Rice
Export Corporation:
Many areas of Pakistan have much importance according to the
production of rice crop. In some areas the world most famous rice crop is
produced. A huge quantity is exported to many economies against foreign
exchange. This foreign exchange is further utilized in import of some other
products like modern technology or machinery or this is utilized for the
improvement of infrastructure of the economy.
Role
of fishery:
Fishing industry plays very important role in the development of national
economy. With a coastline of 814 km Pakistan has enough resources for that
remains to fully development. This is also the major export of Pakistan.
Forestry:
About 4% of land is covered with forests in Pakistan. This is the
major source of paper, lumber, fuel wood, and latex medicine. It is also used
for the purpose of wildlife conservation and ecotourism.
Measure to improve the efficiency of agricultural
sector for development of economy:
Yield
collection problems:
The collection of yield from small farmers is very expensive &
difficult process. So it is a great problem of marketing. There should be some
easy way for collection of yield from the farmers.
Rough
grading Products:
Commodities or products which are graded have higher price in the
market. In Pakistan mixing of poor & good qualities are common. So grading
problems must reduce.
Storage
problems:
The storage facilities in markets are not enough, seller cannot
store & wait for a higher price of the product due to lack of warehouses.
Because of this some perishable produce suffers loss.
Middleman’s role:
The middleman takes a big share of farmer crop without doing
anything. The farmers borrow the money from them & sell their products at
low prices. So this is a big loss to the farmers.
Transportation
problems:
Our sources of transportation are insufficient, so regular supply
of product is not possible to the market. The village are not properly linked
to the markets. For proper provision of products to the market there must be
sufficient as well as fast means of transportation.
Revenue
system:
Our farmers have to pay land revenue after the harvesting of each
crop, so it forces the farmers to sell their produce at low price.
Market
Advisory Committee (MAC):
MAC (Market Advisory Committee) at district and tehsil level should
be set up to provide technical advice and information to co-operative marketing
societies. The officers of co-operative & agriculture department should be
the members of the committee.
Market
reforms:
The government should improve the markets system. Strict rules and
laws should be introduced. The prices of agricultural products should be
checked by the inspectors in the market.
