Friday, November 6, 2009

PakistanAgriculture Economy and Policy 2

The agriculture sector consists of crops, livestock, fishing and forestry. Major crops
include wheat, cotton, rice, sugarcane, corn and chickpeas. Minor crops include oilseeds,
other pulses, potatoes, onions, chilies and garlic. The crop sector has gradually declined
from 65 percent of agricultural activity in 1990-91 to 48 percent in 2006-07. By contrast,
the share of livestock in agriculture has increased from 30 percent to 50 percent over the
same period. The contributions of fishing and forestry have been insignificant at only 0.3
percent and 0.2 percent of the sector, respectively. Growth in the agricultural sector
bounced back from a modest 1.6 percent in 2005-06 to 5 percent during 2006-07.
Agriculture provides basic inputs for key industries, particularly textiles. Pakistan is the
world’s fourth largest producer and consumer of cotton. Overall, Pakistan is a net
importer of agricultural commodities.
Domestic Agricultural Policy Overview
About two-thirds of Pakistan’s live in rural areas and depend on agriculture for their
livelihood. Unlike India, land reform was limited in Pakistan. As a result, less than half
of arable land is held by a large number of small farmers, while the remainder is held by a
small number of large landowners. There are a large number of landless sharecroppers
and agricultural laborers.
Cotton, rice, and sugarcane are grown during the “kharif” season, (May-November) and
wheat and oilseeds are grown during the “rabi” season (November-May). About half of
all agricultural income is derived from livestock.
Amajority of Pakistani politicians and legislators are from rural backgrounds. These
political leaders, along with powerful industry groups including the All Pakistan Textile
Mills Association and the Pakistan Sugar Mills Association, heavily influence agricultural
policy. These pressure groups consider their own particular interests over those of small
famers.
Pakistan’s agricultural sector is characterized by low productivity, limited investment, and
a weak extension service. In addition, inefficient resource use, a skewed distribution of
farm holdings, a thin land market reflecting insecure tenure, inefficient non-price
allocation of water and irrigation systems in a drought-prone region, and poor quality
inputs and infrastructure continue to hinder the sector. Food security based on selfsufficiency
is a potentially costly policy and a major government priority.
Agricultural policy is aimed at maintaining a growth rate higher than population growth.
The average agricultural growth rate for the past forty years was 4.3 percent. As arable
land is limited to about 25% of total land area, increased productivity is critical. The GOP
plans to increase yields through biotechnology, better water and crop management
practices and focused research and extension. Availability of agricultural credit and inputs
has improved. Crop production is heavily dependent upon irrigated water systems fed by

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