First of all, that what is agriculture, Agriculture means the cultivation of land and rearing or rising of animals for the production purposes. Like all other fields which play very important role in the government GDP of Pakistan.
Agriculture is also play very important role in the GDP of Pakistan. Agriculture contributes about 25% in the GDP of Pakistan which is higher than all other sectors. According to a survey about 70% of the people of the Pakistan directly or indirectly links with this sector, about 40% labor is directly link with this sector.
All these above factors collectively play very important role in the GDP of Pakistan. Similarly, by the government of Pakistan implementation of agriculture policy except for centrally sponsored schemes is by and large in the hands of the state government, basically the policy is plans of five years which have great importance in all the fields of Pakistan.
There are some main points which have great importance in the economy of Pakistan.
Source of employment
Consistency of employment in any sector espically in agriculture sector has great importance in GDP of Pakistan. As employment also affect the GSP of economy as well as the per capita income.
As per capita increase the living style of the people also increase and similarly facilities of the people also increase also the education off the people also increase. These all are above factors affect the economic development. Since in this way agriculture have great importance in the development of Pakistan economy by providing the employment.
Pakistan population is increasing day by day; According to survey of UNDP Pakistan population is increasing 2% per year. As this rate if the population increase then the food requirement also increase.
Agriculture is the major field that fulfills the requirement of the population. It also reduces the import of food from other economies. By providing the food agriculture sector play very important role and support the economy growth.
Contribution in exports
Wheat, rice and cotton are the major exports of Pakistan. According to a study about 9.8 billion bales of cotton produced per year , similarly rice crop is produced 4.3 million tons is produced per year. These agriculture products are exported to the other countries against foreign exchange.
This foreign exchange is used to import the industrial or auto mobile machineries and other products. This foreign exchange is utilized to improve the development of economy to improve the other sectors like education, health and investment.
Raw material for industries
In Pakistan industries play very important role in development of economy. Raw material is used to produce to finish product. As agriculture also provide raw material to these industries. Cotton is major export of Pakistan whose raw material is used in textile industries and from these textile industries, the products is exported to other countries. In agriculture sector, livestock has also very important.
Their raw material likes sports product, leather from industries are used to export to other countries which help in the development of economy against foreign exchange. So in this way, agriculture helps to Pakistan economy and its development.
Like all above factor, infrastructure has also very importance. It acts as a fuel for the growth of economy. Agricultural products mean of transportation and communication is a key for the distribution of agricultural products.
Quick means of transportation, communication are required to improve the infrastructure. For the distribution of agricultural products, development of transportation is very important
Increase in GDP level:
Agriculture contributes about 25% in the total GDP of Pakistan which is higher than all other sectors of Pakistan. As the GDP increase the economy of Pakistan also increase. Since independence agriculture plays important role of GDP. Now agriculture has third largest contribution in GDP.
IN THE AGRICULTURE, fisheries livestock and other major crops like wheat rice cotton have huge sector in order to providing the employment. As employment contributes in GDP, increase in employment will increase the per capita income as a result the GDP rate of economy also increase.
Policies are the plans to regulate any system. It is made by the every new government for their next 5 years era which are directly controlled by the prime minister. Implementation of agricultural policies is very important because agriculture has great importance in the growth of GDP. The following are the major problems in the agriculture sector which highly need government policies
1- Yield collection problem:
In marketing the collection of yield from the small farmers is very difficult and expensive.
In Pakistan the storage facilities are not enough. In this way the farmers cannot their products and wait for the higher price of products.
3-Rough grading products:
In market the products which are graded have high price. As in Pakistan most of the farmers are poor so the grading problems must reduce.
4-Market advisory committee:
For the advice and information’s to the farmers MAC at district and tehsil level should be setup in the market. The agriculture and the other related departments should be the member of this committee.
Market system should be improved by the government. For the improvement of this system government should introduced strict rules and laws. This system checked agricultural products prices daily by the inspector.
Market economy is determined at large level.
Access to agriculture technology input and output is very important for the rural financial policy.
This policy is for the land tenure and for the management of resources like land, water, forests and fisheries.
Authors: Muhammad Adnan, Dr. Mubashar Nadeem, Akash Munawar, Mubashir Hussain, Mohsin Amin and Hassan Noorani
Department of agronomy, college of agriculture, university of Sargodha