Development of Agribusiness Enterprises - Asian Productivity ...

8. PAKISTAN
INTRODUCTION
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Maher Sher Mohammad
Deputy Secretary
Ministry of Food,
Agriculture and Livestock
Islamabad
Pakistan has 79.61 million ha of fertile land, a large network of irrigation canals, and
a climate that is favorable to the cultivation of all types of food and non-food crops. The
agrarian economy of the country can broadly be classified into two main activities: farming
and agribusiness. Farming in Pakistan is largely carried out by the private sector. Agribusiness
is operated by both private and public enterprises and includes the collection,
storage, manufacturing and distribution of farm and forestry products and inputs. A brief
review of the two sectors is given below.
Farming Sector
Previously, the sector was discriminated against and initial development efforts were
directed entirely towards industry. But agriculture is the single largest sector in Pakistan and
the driving force of the national economy. At present, it accounts for 26 percent of GDP.
It provides a livelihood for 68 percent of the rural population, employs 46 percent of the
workforce, and has a 60-percent share of export earnings, including processed agricultural
exports. The sector also serves as the base for major industries such as textile and sugar
production.
Agriculture will continue to be a dominating sector of the national economy, providing
food for the people, raw materials for industry, and exportable surpluses of agricultural
commodities. Future agricultural development strategies will be geared towards attaining
high growth rates in agriculture by providing the right policies and institutional support to
enable the sector to move forward and further enhance its contribution to the economy.
Accelerated growth and development of the agriculture sector will not only improve the
income, employment opportunities and living standards of the people in rural areas but also
provide a base for increasing production of agro-based industries.
Agricultural Growth
The agriculture sector achieved a growth rate of 7.2 percent compared with 1.9 percent
in 1998/99. The production of rice increased to 5,156,000 mt compared with 4,674,000 mt
(1998/99), while the production of cotton rose to 11,240,000 bales from 8,790,000 in
1998/99, an increase of 10.3 percent and 27.9 percent, respectively. The production of sugar
cane was an estimated 46,363,000 mt, which is a decline of about 16 percent compared with
figures for 1998/99. The production of wheat during 1999/2000 totaled 21 million mt, an
increase of 10 percent over the 1998/99 production of 17,856,000 mt. This increase was
attributed to the enhancement of the wheat support price from PRs.240-300 per 40 kg, or a
25-percent increase, as well as the timely disbursement of agricultural credit to growers. The