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47. Pakistan Economic Survey 2011-12 - Consultancy Services in ...

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<strong>Pakistan</strong> <strong>Economic</strong> <strong>Survey</strong> <strong>2011</strong>-<strong>12</strong>aga<strong>in</strong>st the growth of 2.38 percent last year and0.62 percent <strong>in</strong> fiscal year 2009-10. The improvedperformance is ma<strong>in</strong>ly attributed to a sharp pick-up<strong>in</strong> the production of rice; cotton, and sugarcane.Livestock also registered a significant growth. Theagriculture sector consists of various sub-sectorswhich <strong>in</strong>clude crops, livestock, fisheries andforestry. The crop sub-sector is further divided <strong>in</strong>tomajor crops, namely, wheat, cotton, rice,sugarcane, maize and gram and m<strong>in</strong>or cropsnamely, pulses, potatoes, onions, chilies and garlicetc.Major Crops: Major crops account for 31.87 ofagricultural value added and registered anaccelerat<strong>in</strong>g growth of 3.18 percent compared to anegative growth of 0.23 percent last year and -2.28percent <strong>in</strong> fiscal year 2009-10. The major crops<strong>in</strong>clud<strong>in</strong>g cotton, sugarcane and rice witnessedgrowth <strong>in</strong> production of 18.6 percent, 4.9 percentand 27.7 percent respectively. However, wheatregistered a negative growth of -6.7 percent. Thema<strong>in</strong> reason for the negative growth of wheat is the2.6 percent decl<strong>in</strong>e <strong>in</strong> area under cultivation. Inlower S<strong>in</strong>dh, <strong>in</strong> particular, sow<strong>in</strong>g was delayedma<strong>in</strong>ly because of late reced<strong>in</strong>g ra<strong>in</strong> water whichresulted <strong>in</strong> a decl<strong>in</strong>e <strong>in</strong> both the acreage as well asthe yields. Moreover, <strong>in</strong> Punjab also the extendedfog season delayed the plant<strong>in</strong>g of seed beyond theoptimal period. The other major crops bajra, jowar,maize, sesamim, gram, barley, rapeseed andmustard and tobacco showed mixed trends buttheir share <strong>in</strong> the overall sector is small.M<strong>in</strong>or Crops: M<strong>in</strong>or crops contributed 10.11percent to value addition <strong>in</strong> overall agriculture.Production <strong>in</strong> this sub-sector decl<strong>in</strong>ed by -1.26percent. This negative growth is far below the 2.68percent positive growth last year. The ma<strong>in</strong> reasonfor this negative growth of m<strong>in</strong>or crops is theheavy flood <strong>in</strong> S<strong>in</strong>dh and Balochistan prov<strong>in</strong>ces.The growth of pulses is estimated at -3.50 percent,vegetables -10.0 percent, chilies -78.4 percent,onion -15.4 percent and oil seeds -26.9 percent.Livestock: Global <strong>in</strong>tegration, ris<strong>in</strong>g <strong>in</strong>come andliv<strong>in</strong>g standards as well as chang<strong>in</strong>g dietarypatterns across regions have brought a paradigmstructural shift. This shift is visible <strong>in</strong> <strong>Pakistan</strong>also. The share of livestock <strong>in</strong> agriculture has<strong>in</strong>creased to 55 percent. Livestock <strong>in</strong>cludes cattle,buffalos, sheep, goat, camel, horses, asses, mulesand poultry and their products. The demand forlivestock has grown at a phenomenal pace. The<strong>in</strong>crease <strong>in</strong> prices has provided <strong>in</strong>centive forgreater production and spurred growth. Theimportance of this sector may be recognized by thefact that the majority of people liv<strong>in</strong>g <strong>in</strong> rural areasdepend directly or <strong>in</strong>directly on the livestock anddairy sector. This sub-sector is highly labour<strong>in</strong>tensive. It has also emerged as a major source of<strong>in</strong>come for the small farmers as well as thelandless rural poor.Livestock has witnessed a marg<strong>in</strong>ally highergrowth of 4.04 percent aga<strong>in</strong>st the growth of 3.97percent last year. The production of milk, poultryproducts and other livestock items has <strong>in</strong>creased atthe rate of 3.3 percent, 7.1 percent and 2.24 percentrespectively.Fisheries: The fisheries sector witnessed a growthof 1.78 percent aga<strong>in</strong>st the growth of 1.94 percentlast year. Components of fisheries such as mar<strong>in</strong>efish<strong>in</strong>g and <strong>in</strong>-land fish<strong>in</strong>g, contributed to anoverall <strong>in</strong>crease <strong>in</strong> value addition <strong>in</strong> the fisheriessub-sector. The gross value addition of mar<strong>in</strong>e fish<strong>in</strong>creased by 1.35 percent and that of <strong>in</strong>land fish by1.96 percent.Forestry: The growth of the forestry sub-sector isrecorded at 0.95 percent as compared to thecontraction of -0.40 percent last year. Forests are akey component of our environment anddegradation of forests can pose severe socioeconomicchallenges for the com<strong>in</strong>g generations.The ma<strong>in</strong> components of forestry, timber and firewood, grew at 0.90 percent and 0.46 percentrespectively.Manufactur<strong>in</strong>g Sector: The manufactur<strong>in</strong>g sectorcontributes much to the progress of our economy.The manufactur<strong>in</strong>g sector has rema<strong>in</strong>ed understress for the last several years, due to energyshortages, poor law and order situation. The heavyfloods also depressed the supply cha<strong>in</strong> and affectedmarket demand. The share of the manufactur<strong>in</strong>gsector <strong>in</strong> GDP was 17.7 percent <strong>in</strong> 2001-02. Thishas <strong>in</strong>creased <strong>in</strong> <strong>2011</strong>-<strong>12</strong> to 18.6 percent of GDP.The manufactur<strong>in</strong>g sector has been hard hit by<strong>in</strong>ternational and domestic factors, which causedthe slow<strong>in</strong>g down of its output. The growth of the6

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