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While policy makers, media, and the international community focus their attention on Pakistan’s ongoing security challenges, the potential of the rural economy, and particularly the agricultural sector, to improve Pakistanis’ well-being is being neglected. Agriculture is crucial to Pakistan’s economy. Almost half of the country’s labor force works in the agricultural sector, which produces food and inputs for industry (such as cotton for textiles) and accounts for over a third of Pakistan’s total export earnings. Equally important are nonfarm economic activities in rural areas, such as retail sales in small village shops, transportation services, and education and health services in local schools and clinics. Rural nonfarm activities account for between 40 and 57 percent of total rural household income. Their large share of income means that the agricultural sector and the rural nonfarm economy have vital roles to play in promoting growth and reducing poverty in Pakistan.
Agriculture plays a pivotal role in the economy and development of Pakistan providing food to consumers, raw materials to industries, and a market for industrial goods. Unfortunately, agricultural production is stagnant due to several barriers including a fixed cropping pattern, reliance on a few major crops, a narrow genetic pool, poor seed quality, and a changing climate. In addition, the high cost of production, weak phytosanitary compliance mechanisms, and a lack of cold chain facilities makes Pakistan agriculturally uncompetitive in export markets. Despite all these issues, agriculture is the primary industry in Pakistan and small farmers continue to dominate the business. Small farmers...
"Future prospects for the agricultural sector in Pakistan depend on its ability to increase output and income of producers." Agriculture remains the backbone of the Pakistani economy, employing more than half the labor force and accounting for 70 per cent of export revenues. However, agriculture faces two sets of constraints in Pakistan: resource constraints and policy distortions. This volume deals with the major resource and policy constraints currently facing Pakistani agriculture. Government involvement in Pakistan's agricultural sector has been excessive and often inappropriate, and agricultural reforms are a key part of the adjustment program underway in Pakistan. Some of the principal...
Historically, agriculture has been crucial to Pakistan's economic growth and development and remains so even today. The sector employs almost half of the country's labor force, supplies key inputs to the country's manufacturing sector, generates a significant share of export earnings, and nourishes a rapidly growing population. Further, beyond agriculture is the wider rural economy, including nonfarm economic activities such as small enterprises, transport services, village retail shops, local schools, and clinics, all of which account for an estimated 40 to 57 percent of total rural household income. Given the importance of these rural activities, the slow growth of agriculture in recent ye...
Irrigation is central to Pakistans agriculture; and managing the countrys canal, ground, and surface water resources in a more efficient, equitable, and sustainable way will be crucial to meeting agricultural production challenges, including increasing agricultural productivity and adapting to climate change. The water component of the International Food Policy Research Institutes Pakistan Strategy Support Program (PSSP) is working to address these topics through high-quality research and policy engagement. As one of the first activities of this program, the PSSP undertook this assessment of the policy landscape for agricultural water management in Pakistan, to better understand how to...