Pakistan: A Developing Economy

PAKISTAN
-A
DEVELOPING
ECONOMY
EDITION
NEW
OF
ECONOMICS
OF
PAKISTAN
Volume
by
AKHTAR
Dr. S. M.
M.A.,
PUBLISHERS
PH.D.
UNITED
176, ANARKALI,
(LONDON)
LTD
LAHORE
COPYRIGHT
All
rights,includingthose
of
translation,
abridgement, reproduction, etc., reserved

by
the
publishers
1966
Printed
by
Sh.
Mohammad
Amin
Publishers
the
Publishers
United
published by
United, Ltd., 176, Anarkali, Lahore
Press, 9, Rattigan Road,

the
at
Lahore,
and
Printing
him
for
Preface
"PAKISTAN"
edition
of
changed
The
name.
of
study
well-known
my
title
passing
is
considered
and
new
for
appropriate
of
process
lOth
under
Pakistan,
more
the
through
the
of
Economics
work
new
economy
an
is
ECONOMY"
DEVELOPING
the
economic
planned
development.
Most
of
chapters
orientation
of
"Problems
of
book
the
possible,
Vol.
out
provide
to
been
has
work
is
at
the
on
beginning
the
studying
material,
statistical
preparation
under
version
Urdu
The
shortly.
The
chapter
new
for
backgrouad
necessary
Pakistan.
supplied
mental
develop-
as
far
as
upto-date.
brought
this
of
II
the
facing
been
give
to
entirely
An
has
Underdevelopment"
rewritten
been
have
material.
the
to
problems
economic
book
the
of
the
book
and
is
also
is
expected
being
be
to
published
soon.
indebted
am
of
production
to
this
Miss
A.N.
Sattar,
M.A.
for
helping
edition.
S.M.
Department
of
University
of
Economics
the
Lahore
July,
1,1966.
me
Panjab
AKHTAR
in
the
Contents
Chap.
Subject
Problems
1
1
2
3
4
5
2
2
2
"
"
"
2
2
The
Other
Land
Fuels
"
3
3
"
"
"
"
"
"
3*
3
"
"
"
and
11
of
Causes
Birth
Extent
Problems
Some
Literacy
and
of
18
22
.
25-63
....
25
...
26
28
-
30
Growth
33
.
35
Urbanisation
37
Urbanisation
Features
38
...
47
Education
Levels
Death.Rates
Structural
...
Population
of
Educational
20
-
Resources
and
16
Growth
of
...
Resources
Minerals
on
14
15
Wings
Significance
Population
14-24
-
Features
Resources
...
Two
Resources
Pressure
10
Its
Water
and
...
and
Economic
Geographical
Development
Resources
Consequences
Human
5
-
Location
and
Power
Pakistan
in
Land
Birth
4
.
Development
Economic
to
Conditions
"
Economic
Obstacles
1
...
Underdevelopment
of
of
Process
1-13
...
Underdevelopment
of
Consciousness
The
1
"
Underdevelopment
of
Extent
Pages
50
-
vi
Pakistan, A Developing Economy
Chap.
^"11
3
"
Subject
Labour
The
Force
13
4'
Population Problems
Problems
of Population Control
The
Agricultural Sector
1 The
Role
"
2 Causes
"
3 The
4
'
'
"
8 The
"
of Past
Neglect
The
Need
Need
Commercial
to Increase
Change in Cropping
64
65
Deficiency
Their
and
Foods
64-83
...
67
70
71
73
76
Production
Crops
Patterns
66
for
Balancing
60
Its Causes
and
Outlook
Increasing AgriculturalProduction
Past Trends
in Agricultural Production
Production
Need
for Increasing Food
4;
v"4
"
57
...
Agriculture in the Economy
of
New
52
...
12 Our
Pages
79
...
5
5
"
"
"
"
"
Extension
1 Two
of Cultivation
Broad
Approaches
The
in Pakistan
IrrigationMethods
Pre-Partition
IrrigationDevelopment
after
Partition
IrrigationDevelopment
Progress of Irrigationand Reclamation
5
6
for
Need
Irrigation
"
IrrigationProgramme
(1960-65)
"
Their
Period
"
Floods,
Causes
10
Waterlogging
and
11
Anti-Erosion
Measures
12
The
Role
13
The
Indus
Role
86
87
(1947-55)
during
5
5
"
"
of the
the
94
Second
Five-Year
and
Salinity
Plan
Control
cf WAPDA"
Basin
West
Project
15
Prospects of Increasing Cultivated
"
16
6
6"
6'
6
6
of VVAPDA
-East
Pakistan
Area
"
Better
Seed
103
106
108
113
]i3
105
111-130
...
"
101
104
Concluding
IncreasingAgricultural Yields
Cultivation
1 Scope for Intensive
in Pakistan
of Increasing Yield Per Acre
2 Methods
3 Improved Implements
Remarks
...
The
98
14
96
Pakistan
95
"
91
89
...
"
"
84
First Plan
84
....
"
84-110
Land
Utilisation
115
Contents
Manuring
Adequate
Plant
Protection
Other
Improved
Economic
The
of
the
13 West
14
Tenure
Importance of Land
Evolution
5
6
7
8
of Land
Tenure
Land
Reform
in East
The
Bengal
"
Implementation
Land
128
130
131
131
134
135
Tenure
Reform
Tenancy
Reform
Need
Ttie Land
State
Acquisition and
140
144
144
145
Tenancy
149
...
Pakistan
in West
in Siad
Legislation in
156
Frontier
Other
152
I53
...
Areas
of
161
West
163
-----
Under
for
138
144-163
-
Countries
Pakistan
136
140
...
Tenancy
Tenancy Legislation in the Punjab
Tenancy Legislation in the Norlh-West
1 The
of the Act
Reform
Land
146
Pakistan
127
.....
Reform
10
in Other
Province
"
System
Reform
of Pakistan
Concept of Land
East
126
....
Act, 1951
Tenure
Land
124
in Pakistan
Reform
121
tion
Corpora-
Tenure
121
1 The
Agricultural Classes
Problems
Created
by Land
Exploitation of the Tenant
Effects on Productivity
The Unit of Farming
Land
119
131-143
3 Land
-----
Concluding Remarks
Land
"
EPADC
ADC
Pakistan
116
of the
121
Plough
(EPADC)
...
Organisation
Agricultural Development
Pakistan
Working
Practices
behind
Man
Incentives
Importance
11 East
12
Pages
Subject
Chap.
10
vit
Mere
Reform
Martial
Radical
Law
Reforms
Commission,
1958
164-185
164
165
via
Chap.
3 Decision
of Government
Implementation
Adjustment of Property Rights in

Lands
Disposal of Resumed
167
...
Pages
Subject
of the
Scheme
Land
167
171
170
...
Compensation
Old
to
Owners
Relation
Regulation of Landlord-Tenant
9 The Concept of Economic
Holding
10 Maintenance
of Economic
11
Management
of
12
Restrictions
Alienations
on
178
of the Scheme
4
5
6
7
8
9
Village
Defects of the Present
System
Regulated Markets
Marketing of Fibres
Marketing of Foodgrains
11
180
182
186-217
186
187
188
190
....
201
....
202
Intervention
State
206
...
and Sugar
Marketing of Tea, Tobacco
Marketing of Fruits and Vegetables
10 Direct
11
in the
179
Sold
in
Marketing
Marketing Organisation of the Government

AgriculturalFinance
in Agriculture
The
Role of Finance
208
210
211
215
218-255
....
1
2
3
of Rural
Emergence
of Rural
Extent
Consequences
Remedies
Post
Debt
as
Problem
Debt
Applied
218
218
of the
220
222
...
224
in Pakistan
Legitimate
Sources
State Credit
for
10
Commercial
Banks
Credit
StatutoryAgricultural
of Credit
....
Position
Needs
"
of Indebtedness
Partition
176
177
...
and Country
Impact on Economy
AgricultureMarketing
1 Importance of Marketing
2 Essentials of Good
Marketing
3 Produce
Holdings
-
15
10
174
Subsistence
Impartible Holdings
Provisions
Other
and
172
regarding Inheritance
13 Provisions
14
167
Agriculturist
Agriculture
225
227
229
232
...
233
....
Agencies
"
ADFC
234
12
Agricultural
The
of
13
Findiags
14
The
15
Business
16
The
17
Supervised
18
Role
Bank
tfie Credit
Problem
Remarks
Co-operation
What
3 History
Credit
Compromise
Effect
Structure
Provincial
Central
of the
Primary
Co-operative Agricultural
10
Single versus
11
Multi-Village
12
Limited
13
Other
Types
16
Evaluation
of the
17
Conditions
of Success
18
Suggestions for Improvement
19
Co-operation
and
Role
The
Evolution
Farming
of the
of
the Plans
259
264
272
279
282
Partition
282
...
283
285
...
289
...
293
...
297
...
299
300
302-326
-
Agricultural Departments
in
302
British
303
Agriculture Provincialised
The
Royal Commission
of
256
270
.....
Impact
256-301
....
State
...
Movement
Agriculture
India
5 The
since
Liability
Primary Societies
Co-operative Marketing
253
268
15
250
267
Societies
Societies
Co-operative
State
244
...
Credit
14
13
241
257
Agricultural Credit
under
...
Multipurpose
of
266
Unlimited
or
240
...
Banks
"
in Pakistan
Societies
in India
Movement
Co-operative
254
Banks
...
Co-operation
of Partition
Co-operation
of
238
...
Land-holders
Co-operation
is
Bank
Agricultural Finance
Rural
on
"
236
246
in
Bank
Plan
....
State
Second
Concluding
Bank
of the
Credit
Commission
of Non-Subsistence
of the
20
Enquiry
Functions
and
The
Pakistan
19
12
of
on
Depressioa
Agriculture under
305
...
Provincial
Agriculture
307
...
Autonomy
306
308
Pakistan,
Bev^loping
Chcp.
Economy
Page
Suhprt
7
13
The
of
Impact
World
War
^08
11
-
13
13
13
Provincial
Village-AID
Rural
and
The
13
12
Assessment
13
13
Food
13
14
Measures
of
Introduction
14
Land
14
Works
The
14
Tax
14
Lines
14
Relief
14
Definition
322
Commission
-
324
-
and
327-348
Policy
327
System
...
in
Settlement
Permanent
....
332
Settlement
of
Incidence
...
of
to
334
Revenue
Land
336
Rent
or
Indo-Pak
the
328
Sub-continent
14
321
-
327
of
Temporary
....
History
Programme
Systems
Revenue
14
319
Implementation
Reve.iue
14
Agriculture
for
Land
14
317
Programme
and
Institutions
Works
11
313
Developmeat
13
309
Departments
Democratic
Basic
10
Agriculture
....
Small
the
Net
of
14
10
The
Sliding-scale
14
11
The
Present
3J7
Reform
Revenue
Land
'
33(8
Holders
-
343
Assets
System
343
-
347
Position
-
CHAPTER
Problems
"
Extent
of
the
of
which
and
and
the
economic
No
$70
for
is not
this
S50
noted
as
measure
in
that
position
the
of
computation
The
Pakistan
of
is per
the
1 sets
out
reveals
to
almost
of persons
per
capita
by
the
enormous
almost
at
capita
national
total
published
as
China
comes
the
"2,000
bottom
income.
economic
comparative
the
living
Table
and
Malaya
As
No.
in
various
in
by the number
dollars
U.S.
capita
its per
of
for
period
Table
1954-56.
period
from
be
concerned.
of
ever,
how-
indicators,
measure
value
have
to
development
or
material
used
the
or
year
countries
the
of
the
countries.
exists
various
are
level
by dividing
entirely satibfactory.
economic
in
will
annum
per
Even
the
It
A.
U.S
at
country
ranging
disparities
with
the
There
the
promotion
the
measure
commonly
most
particular
the
Nations
United
The
fifty-five
of
income
in
world.
present-day
the
with
underdevelopment
judge
may
is arrived
during
living
for
world.
the
product
we
of
the
of
idea
general
developing
the
satisfactory
development
have
to
of
problems
economic
associated
in
and
facts
worthwhile
be
growth
extent
of
which
which
income
of the
of
process
are
entirely
countries
from
of
and
and
the
underdevelopment
which
problems
idea
various
parts
of
extent
accurate
the
it will
passing,
development
comparative
the
and
of
study
the
upon
Pakistan
it is
nature
world
of
embark
we
economy
through
Underdevelopment
UnderdeTelopment
of
Before
the
of
matter
so-called
national
status
of
the
tries
coun-
of fact, it underestimates
underdeveloped
income
the
countries,
non-monetised
cause
be-
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sector, that is,the
through
the
market, is
by the products which do
constituted
sector
fullytaken
not
care
of. In
Pakistan
not
and
pass
other
similar countries,for example, many

goods and services are produced at
home
for direct consumption and they fail to be evaluated for purposes
for this and
of national income
allow
if we
accounting. Biit even
other difficultiesof
is
likelyto be modified
enjoyed by people in
not
standards
And
and
measurement
when
know
we
that these
that
sion
comparison, the general concludo exist in living
vast disparities
only averages,
are
of the
different countries
the
world.
majority of
the vast
the persons
livingin the poorer countries must be eking out a bare
subsistence. That enormous
fail to get adequate food, clothing,
masses
and recreation, is borne out by other indicators
shelter,education
which
show
correspondence between low per capita income,

life expectancy
resultingfrom high mortality, low degree of
literacyand meagre
supply of the most ordinary comforts of life.
a
direct
low
'
2 Consciousness
As
far back
mankind
have
fortunate
were
masses
man
Underdevelopment
one
as
look
can
always existed
at
of natural
owners
into
very
low
resources,
history,the vast majority of

livingstandard and only a few
most
important being land,
able to grow
fat on the fruit of the soil and of the labour
of the
whom
they held under their sway. Perhaps the average common
even
currently underdeveloped countries enjoys a better
in
existence
and
of
and,
importantly, a higher
more
of
sense
rial
mate-
self-respect
only a few centuries back. What

is new
at the present time is the general realisation of this state of
poverty, particularlyin comparison with the people of the more
advanced
countries, who have forged head to higher livingstandards
by taking advantage of the technologicaladvances ushered in by the
freedom, than his
Industrial
Revolution.
for economic
the vocal
comparable
This
development
and
effective
with
more
did
ancestors
consciousness
has
led
to
strong desire
the part of these
people,or at any rate

portion of them, for higher livingstandards
on
advanced
and
caused
industrialised
countries.
As
by and following the two great

developments
War
World
of colonial
world wars, particularly
II, a large number
world
countries
of
the
have
achieved
and
and dependent areas
cal
politiThe
led
this
nationalistic
which
to
ment
achieveindependence.
urge
the desire of these countries
is also the compelling force behind
to achieve economic
development which is regarded as the sine qua non
and maintaining their newly-won freedom. Fortunately,
or preserving
result of
the
Problems
the
political conditions
rather than
of
the
hindering
ideologicalconflict which
War
the
world
contemporary
helping
are
The
aspirations of these countries.
of
World
emerged since the end
new
has
the communist
II between
of Underdevelopment
and
blocks
non-communist
has
listed
en-
the support of the
developed countries to the desire for development

the part of underdeveloped nations. Each
ideologicalblock
on
is trying to enlist the sympathies and support of this huge multitude
which has no strong allegiancefor either side.
of mankind
Apart from politicalconsiderations,social and humanitarian
also something to do with the willingnesswith
have
motives
may
of the developed countries,particularly
which the generalmasses
where
are
their voices are effective,
supporting the policiesof their Governments
the
efforts
of
assist
the
to
development
developingcountries.
of the
existence
The
United
for gatheringinformation,
Nations
forum
has also provided
for the discussion
and
some
underdeveloped areas
help them in solvingtheir problems. The
are
now
well as underdeveloped countries
of
growth
economic
in
3 Process
This
to
of Economic
brings
us
to
simple process
social, politicaland
which
(a) Social elements.

a
achieve
result
is that
ready and
achieve
developed as
willingto take
worthwhile
and
areas,
to
of
rate
sizable efforts
this end.
Development
to be
but
of
the
process
of
economic
emphasised that economic
is
development
highlycomplicated and involves
economic
elements
to
the
velopment
de-
many
consideration
of
turn.
we
now
to
fortunate
the nature
itself.It needs
is not
order
less
the
already been made
have
"
in
measures
necessary
machinery
problems
important institutions
the
the
of the
To
Start
favourable social environment
with, economic development requires

which impliesseveral things.Firstly,
a
people of the country concerned, for material

improvement. Secondly, there must be a realisation that it is possible
improvement. And, thirdly,they must
have the
to achieve such an
conviction that their efforts at improvement will enable them
to
desire
enrich
on
the part of the
their
own
lives rather than
enable
somebody else
to
get fat
on
of
the past
partly a matter
experience of the
them.
the
of
institutions
under
which
they live.
people and partly that
that
the
attitudes and institutions
development requires
Economic
be
flexible
to
enough
change with the needs of the
of the people must
This
time. Such
is
is difficultto
flexibility
ensure
when
the vast
majorityof
the
people
illiterateand
are
new
ideas. The
and
transport within
hence
development
and
for
impact of
the
of communication
means
has, however, made this

expect. The frequency of foreign
countries
would
one
conditions favourable
in attitudes and
most
in the modern
easilyto
the influence of the Press, the radio
and
created
amenable
between
problem less difficultthan

travel
not
bringing about
and
the films have
changs
the necessary
institutions.
is the
stability
(b) Political elements. In the politicalfield,political
and Government
important factor. Frequent changes in Government
ment
development. The Governpoliciesare inimical for economic
has
to
be
and
strong, honest
interested in the welfare
of the
has to have
people.The administrative machinery of the Government
and itshould be incorruptible.
a high degree of efficiency
Unfortunately,
such conditions are not commonly found in underdeveloped countries.
is in the hands of
In most
underdeveloped countries politicalpower
who
vested interests,usuallybig landlords
not expected to favour
are
radical change
any
in the
institutional
set-up which
is
so
much
to
advantage. Where democratic institutions are tried,they create

advanfurther confusion by leavingthe field to unscrupulous political
and
of the illiteracy
turers because
lack of politicaltrainingof the
in such countries nepotism and corruption
In administration
masses.
their
partly due to limited opportunitiesfor honest

and
nsaterial advancement
partly to the decay of moral standards
under the irresponsibleimperialistic
regimes under which previously
the people have lived for generations.
are
rampant.
This
is
doubt, it is difficult
No
to
but
change attitudes and institutions,
historyof currentlyadvanced
that before they received the impact of economic
countries, we
development they were
subject to similar psychologicaland social
but
them
in due course
of time. Europe in
disabilities,
they overcame
Middle
in
of
the grip
the
Ages was
illiteracy,
ignorance and superstition.
it is not
impossible.If
we
look into the
find
Similar
of 1917
and
were
in
the
Japan
conditions
before
the
in Russia
before
the Revolution
of 1868. Underdeveloped
Meiji
favourable
today are
living under
more
and
because
influences
of
advanced countries
conditions,
more
examples
them
and
thus
to
available
can
they
bring about the change
are
time
and
of
with
shorter
period
a
greater smoothness.
over
Moreover,
mistakes
of
avoid
the
the
pioneers.Further,economic growth
they can
for
bringing about change. Economic
itselfis a great agent
developcountries
of
Restoration
Problems
involves urbanisation
ment
of Underdevelopment
and
which
industrialisation
bring
can
about
quick changes in the psychologicalattitudes and institutional

framework
of a society. Such
changes are actually occurring in
underdeveloped countries of today including Pakistan under
many
the impact of the development process.
growth implies long-run or
(c) Economic
factors. Economic
secular increase in per capita productivityresultingin the increase
Economic
in per capita income.
growth, as an increase in productivity,
is the function of the followingbasic elements:
(0 Quantity and qualityof natural resources.
(//)Quantity and qualityof labour^force and
incentives
available
for work.
{in)Quantity and qualityof the capitalstock available
or
tially
poten-
available.
(zV)The
state
Promotion
the human
of
technology.
of economic
impliesmobilisation of
growth, therefore,
material
and
of the country
resources
capitalaccumulation
(a) promoting
supplementing them,
and
through:
by mobilising domestic
if necessary,
from
ings
sav-
external
sources.
ib) improving the health,education

as
skills of the
population
force,
labour
(c) increase
and
in
technologicalknowledge through research
and
foreigntechnical assistance.
{d) improving the institutional and organisationalframework.
It is not
act
and
react
difficultto
each
on
see
that
other.
all these
factors
are
interrelatedand
important and most difficult

initial increase in per capita income,
The
most
problem is that of the start. An

makes
further increases easier. It
brought about in whatever manner,
increases the saving potentialand hence leads to a larger volume
of
and thus increases productivity
and capitalformation
investment
and
better food, better health
incomes. Higher per capitaincome ensures
and better education of the working force,and hence its greater productivity
and income-earningcapacity.The underdeveloped countries
are
or
thus involved in what

what
Professor
Nurkse
Leibenstein has
equilibrium.The problem is
the
process
of
calls the "vicious circle of
how
called the
to break
growth.
self-generating
"Take-off" stage has been
such
Once
poverty"
quasi-stablelow-level
a
circle and
what
reached, the economy
Rostow
is in
to
start
calls the
a
position
PaJcistan,A DevelopingEconomy
8
achieve
self-sustaining
growth. It is the initial push that is most
and difficult.
significant
have been emphasised as preconditionsfor the
Several elements
is
off." There
no
"Take
generalrule. Diff"erent countries have achieved
this stage under different conditions. In England it was
an
unplanned
Private
initiative
the
was
and unconscious
major agency for
process.
to
and the inventions

and discoveries
development. The enclosures movement
other things,established
of the eighteenth century, among
the fear of foreign
precoaditions for the take-off". In Japan it was
domination
which
sparked off" the forces leading to the political
the initiative
revolution and changed the character of the State. It was
of economic
started the process
of the State which
growth and laid
which
later
on
the foundations
private enterprisebuilt the
upon
the new
ideology which brought
superstructure. In the U.S.S.R.
the politicalrevolution
about
ultimately led to the establishment
of
system of centralised economy
central
and
complete
brought
through planning
development of U.S.A.
of
part
was
and
earnest
very
which
about
adventurous
achieved
economic
direction.
growth
economic
by
population, mainly
private initiative on
Europe. Their eff"orts were
from
The
the
conformist
non-
effective
emigrants
due
the
to
abundant
fruit
wealth
and
enormous
brought
natural
found
in
the
of
their
resources
they
adoption.
country
In the currentlyunderdeveloped countries the major propelling
made
and
force
the
and
desire for preserving
spiritof nationalism
freedom
their newly-found and hard-earned
by acquiring military
there
strength through economic
strength. Then
the growing
are
them
of livingstandards
between
and the more
disparities
advanced
is the
countries.
The
is
by
no
that
and
important and
capital formation.
most
means
the
It
needed
only
adequate proportion
an
strategicfactor for economic

an
factor.
of the
reinvested for further increase
that, in
is
essential
factor, though
Capital formation
national
in national
income
income.
ment
develop-
must
requires
be saved
It is believed
general way,
1%
output requires a
saving ratio 3% to 4% of the national income of the previous period.
The
saving ratio in underdeveloped countries is hardly 5% to 6"/.
a
This is enough
This
their
is
increase
to
increase the national
adequate
growing populations.In
not
even
to
maintain
most
in national
income
at
the current
the
most
by 1J%.
livingstandards
of
underdeveloped countries the
Problems
opulation is growing
of Underdevelopment
at the rate
of
This means
3% per annum.
hat,to maintain their current standards of livingor per capitaincome,
saving ratio of 10% to 12% of the national income is required.If the
is to increase at a modest
rate of 2%
er capitaincome
per annum,
savingrate of 15% to 20% would be needed. Thus Lewis's statement*
liatthe main task of economic development is to increase the saving ratio
2%
to
5% to 12% of the national income, is a most modest estimate,

"onsideringthat the saving rate in underdeveloped countries is 5% to
%, this leaves a huge gap to be filled to achieve the necessary
uantity of saving.This may partly be achieved through promoting
but a substantial portion of that
omestic saving by various means,
fill have
the more
to
be filled through loans and
grants from
eveloped countries. This emphasises the important role which
urrentlyadvanced countries must play with respect to capitalformaion in the underdeveloped countries of the world.
4 Obstacles
to Economic
Development
differ from each other in many
countries
Underdeveloped
respects
have
in
obstacles
to encounter
the way of
they
nd, therefore,the
There
evelopment are not necessarilythe same.
however,
are,
rom
'
ertain elements
3und
which
in
be listed
can
as
basic obstacles which
can
degrees in different countries.
be
varying
Among these are
Dllowing.
Natural
resources
are
com(a) Inadequacy of natural resources.
the
rised of
geographical configuration,climate, water
resources,
all
world
the
No
in
the
etc.
resources
linerals,
country
possesses
That
is
1 the necessary
why there is internaquantitiesand qualities.
is
base
needed to start and
onal trade. But a fair degree of resource
laintain the process of economic
growth.
The importance of this element should not, however, be overnot
are
icaggerated.
Firstly,because natural resources
absolutely;
xed. Their qualityand quantityand their very economic
significance
spend upon knowledge and technology.Countries meagerly giftedwith
have achieved remarkable
itural resources
degreesof economic growth,
xamples are the Netherlands and Switzerland. The former has even
lade land out
trough human
country
"eater
use
with
of
of the
sea.
The
latter has
overcome
skill.Secondly,inputs are
a
limited
capitaland
1, W- A: Lewis, The
area
may
labour.
the
resource
deficiencies
substitutable. For
increase
its
instance,
production through
Thirdly, natural
Theoryof Economy Growth,
resources
can
be
10
imported. For instance,Japan's industrial structure is based mainly on

trialisatio
imported raw materials. Even U.K., the leader in the field of induslacks non-ferrous
metals
and
has to depend on imports.
natural
Thus
resources
be
may
handicap but
it
can
be
come
over-
ingenuity.
through human
has both quantitativeand qualitative
(6) Labour resources.LahouT
aspects. Shortage of labour in sparsely populated countries may be
a handicap but in many
underdeveloped countries, the problem is of
population pressure leadingto unemployment and under-employment.
Here
the problem may
be of slowing down
the growth rate of population
in order to adjust it with the possiblegrowth rate of the economy.
results.
and does not give immediate
This is a long-periodprogramme
The second problem is that of the qualityand the skillsof the population.
The people of most underdeveloped countries suffer malnutrition.
The incidence of disease and ill-healthis high.Moreover, there is almost
and
universal illiteracy
and ignorance. All this leads to low efficiency
low productivity.
The need for improvement in sanitation,medical aid,
food supply is obvious. Further, there is the need for educational and
is both
a
traininginstitutions. Here again low per capita income
and
cause
an
effect and
(c) Limited
the vicious circle has
market.
there
Unless
are
buy the goods produced, the development

cannot
go
far. In fact, one
of the
reasons
to be broken.
enough
process
purchasers
in
the
to
country
ness
given for the unwilling-
developed
foreign private capitalto establish industries in the underwhich
is unlikely to absorb
is the limited market
areas
the products of
the
industries
at
profitable prices. Market
limitations are primarily the result of the low per capita income
of the people and
of adequate
of the absence
to some
extent
transport facilities. An
adequate investment in transport can serve
of
two
purposes
in this context.
the
it can
distribute incomes
Firstly,
among
these projects,thus increasing their
on
people who will work

and hence
purchasing power
secondly, by imparting
people it can widen the
In addition
have
access
to
to
demand
of all kinds.
And,
greater degree of mobility to products and
extent
of the market.
the domestic
foreign markets.
market, attempts should

for this the
But
competitivein priceand quality.

(d) Deficiency of savings. As
is crucial for economic
for goods
we
have
development and
be
products
made
to
must
be
already noted, saving
capitalformation, and
Problems of iJnderdevelopmenf
it is
function
when
income
in
even
of income.
is
very
low.
so
The
A
problem is how
certain amount
society. Measures
poor
of
to
saving
saving is possible
be
must
increase
taken
to
give
for
saving and investment and to create the necessary

institutions through which
be pooled and
mobilised
savings can
incentives
for investment.
Stable
monetary
and itspolicies
are
Government
conditions
and
confidence
in the
for promoting the savings

preconditions
habit among
the people.The Government
can
bringabout forced saving
aid
taxation
induce
to supplement domestic
and it can
foreign
through
of capitalformation
be
can
savings.Moreover, a certain amount
achieved through the use
of under-employed labour
the lines
on
difficulties and limitations
suggestedby Nurkse. But there are many
in the way
tryingit.
1
'
of this method.
This, however, is no
reason
for
not
5 Conditions in Pakistan
Pakistan
has been
passingthrough a
process
of economic
development
independent State.
during the seventeen years of her life as an

During the last ten years a more
systematiceffort has been made
through the first two Five- Year Plans. The period of the Sscond
Plan will end by 30th June, 1965. This will be followed
by tha
Third Plan which
the
moment.
is being prepared at
The rest of this
book
will be confined to the study of the economic
situation in
Pakistan and its problems as a developing economy.
In the lightof
above discussion,however, a few words will be in order about
our
the positionof Pakistan with respect to the elements
involved in
economic
growth alreadymentioned above.
On
the
are
not
might say that social environment

is not
in
Pakistan.
development
Culturally,Pakistanis
whole,
unfavourable
for
we
indifferent
to
material
advancement.
There
is
the people to raise their living

standards. The
strong desire among
the
of
the
British
rule
and
released
impact
energies
during the
with the recent foreigncontacts
strugglefor independence,combined
and influences,
have further stimulated
this innate desire. Some
institutional changes have
also been going on, partly through the
ieliberate effort of the Government
and partly through the process
of urbanisation
which has been quickened in recent years. There is,
still
hard
of conservatism
born
of
ignorance and
of
the
the
which
mass
needs"
lliteracy
people
to be broken.
among
This is slowlybeing achieved through the educational process.
lowever,
core
i2
Pakistan,A DevelopingEconorny
During
the
first
State, Pakistan
For
various
the
The
cost.
the
concerned
problem
of
life
failed
the
mainly
her
independent
an
as
instability.
period of political
country
politiciansat
exceptions)were
any
of
years
passed through
reasons
and
ten
(with
top
honourable
few
tution
consti-
its
frame
to
achieving personalpower at
development received only a
with
economic
by the fact that the First Fiveafter the beginning of its period to
secondary attention,which is shown

Year
Plan
achieve
three
the final
Since
a
took
years
approval of the Government.
October
stable Government
1958, the
which
is
has
country
giving due
attention
development. As regards the administrative

non-Muslim
element
inigration of the
it
seriouslydepleted
was
administrators
The
gaps
bad
available
were
to
be filled up
to
predominating
in
with
few
the
it,
seasoned
free.
became
country
of
problem of
machinery, due
the
when
the
to
independence. Only
at
advantage
the
had
inexperiencedpersonnel placed in
thus
was
highly responsiblejobs. The quality of administration
the order of the day.
lowered and corruption and nepotism became
The
present
eradicate this evil,but

tackled
On
and
taking office,took
after
Government,
it is doubtful
so far.
successfully
the other hand, some
reforms
fiscal systems of the country.

far
So
economic
the
as
concerned, Pakistan
in
and
minerals, though she
way
of
at the moment,
taken
of
elements
cultivable
has
fair
land,
to
problem has been
placein the monetary

situation
the
of
amount
water
are
iiatural
supply, climate
serious deficiencies in certain
speaking,
quantitatively
man-power,
than it can use
productively
plenty of it,in fact more
important metals. With respect

the country has
have
gifted with
resources
some
the
is
this
whether
measures
but there
are
to
deficiencies. There
qualitative
under-nourishment, high incidence
of
sickness
and
is widespread
comparatively
trends in
mortality,in spite of the recent downward
death rates. People have a good aptitude for acquiring skills when
tional
are
given,and attempts are being made to expand educaopportunities
and training institutions to improve the quality of the labour
force. The state of technology in the agriculturalsector is stillvery
primitiveand the rate of change is extremely slow. In the field of
industrial development,however, modern technologyis beingutilisedand
though the size of this sector is still
theindustiialsectorisforgingahead,
high
rate
of
Problems
13
of Underdevelopment
comparatively small in relation to the total economy.

As regards capitalaccumulation, the saving rate has now
increased
from about 5% of the national output ten years ago to about 8%. At
creased
present the marginal rate of saving (proportion saved from the inincome) is said to be 25%. Saving,however, is stillinadequate
to maintain
the necessary
degree of economic
growth. It has been
supplemented by foreignaid, thus achievingthe total investment rate of
about 12% to 13% of the national income. This is only slightlyabove
the level needed
for maintaining the current
per capita income,
because of the high rate of population growth
which
is well above
2% per annum.
In spiteof the sizable amount
of economic
development that has
taken place during the last fifteen years or so, Pakistan is stillamong
the poorest countries of the world. Its per capita income
of less than
Rs. 300 per annum
is hardly enough
to
maintain
the common
to
of
at
man
comforts. There
an
adequate subsistence level,not
speak
is still widespread ignorance, illiteracy,
disease
and
squalor,
mature
predeaths. Food is well below accepted nutritional standards,the
caloric intake being hardly above 2,000 calories per head per day,
while it should be nearer
3,000 calories. The consumption of cloth is
which is very inadequate. In
only fourteen yards per head per annum
urban areas
alone the housing shortage has been estimated at 700,000,
while rural housing is of a very low standard. The literacypercentage
is only 15 and the majority of children of school-going age are out
of schools. There is only one
doctor for 7,000 of population.
These conditions point towards the necessityof achievinga high
"
of economic
growth. Economic
growth is being obstructed by

high population pressure, lack of skilled workers, managers
and
administrators, primitive technology, particularly in agriculture,
floods, widespread waterloggingand
frequency of droughts and
and
of
certain
the
lack
important natural resources.
salinity
There
of
much
too
dependence on foreignaid, geoare, further,problems
graphical
rate
sectoral
and
and
under-employment
development
With
the
or
could
growth, increasingdegree of
A
unemployment.
tremendous
effort
at
is needed.
this
background,
problems
be tried.
we
sector
by
involved
and
of Pakistan
economy
in
imbalance
are
now
sector
in
position to
study the
in greater detail and
the solutions
which
are
to
being
point
pintried
CHAPTER
The
"
Land
Birth
and
Pakistan
)n
which
ty
areas
in
blocks,
two
from
each
These
(now)
other
and
has
area,
of
of
wings
two
resources
5'1%
was
that
State
of
East
Pakistan
place
separate
sub-continent.
Indian
the
by
of
middle
the
over
Since
Pakistan,
the
and
majorcountry
new
Pakistan,
West
thousand
as
principle
the
Muslim
contiguous
1947
August
miles
of
foreign
territory.
Indian)
he
form
in
existence
partition took
should
leparated
irea,
into
partition of
the
imerged
Its Resources
Location
came
of the
"esult
and
45
the
the
country
Thus
population.
of
8%
total
the
and
the
East
of
84'9%
with
Pakistan,
contains
country,
regards
as
with
Pakistan,
West
population
of
area
differently gifted
are
only
of its popu-
54"2%
ation.
East
:0"N.
and
ndian
he
Pakistan
26"
and
{engal
of
in
the
ountries
West
and
ontinent.
in the
wing
Bengal
and
of
Bengal
of
south.
of
west.
was
in the
Asia
lies
It
its
between
the
has
common
south-west
93"E.
the
by
east,
India
port
and
Assam
of
by
again
in the
and
division
is bounded
It
it has
and
is located
wing
In
of
provinces
Chalna/Mangla
Pakistan
This
Assam
88"E.
created
Assam.
Through
South-East
37"N.
longitudes
This
province
West
leveloped port
ran
30 'N.
provinces
Indian
Jihar
4"N.
lies between
latitudes
of
the
old
Burma
in
and
the
north,
west
and
the
Bay
Chittagong
and
the
newly-
by
access
to
sea
the
of
various
beyond.
parallels
to
the
61" E.
and
north-west
frontiers
lies the
75"E.
of
with
Arabian
the
and
latitudes
Indian
sub-
Afghanistan
and
Sea
which, through
The Land
the Persian
the Indian
2
Gulf, gives it
Ocean
and
and
access
the Red
15
Its Resources
to
Sea, to
and, through
Egypt and beyond.
Iraq and
Arabia
2 The
Consequences of Two Wings

The
disadvantages of having the country in the form of two
the country has to be
separate wings are quite serious. Politically,
managed as one integralwhole. This in itselfis not an easy task and
of delegation of political
points of conflict arise in the matter
many
ministrat
the distribution of portfoliosand appointments in the adpower,
machinery of the Central Government, the distribution,
of the real and financial burdens of defence,the location of Central
administrative
units, the balance of power in the National Assembly,
all
etc. It was
due to the difficulties in arriving at compromises on
these matters
that the framing of the Constitution of the country was
delayed.
and
politicaldiflSculties,
But, apart from these administrative
of
there are serious economic
implications
having two parts of the
and
same
country separatedby such a long distance. Obviously, men
materials cannot
move
the
so
easily,quickly and cheaply between
two
wings as thsy do within each of the wings. The land-route passes
through fndia with which the country'srelations have been strained
all along.In any case a distance of over
suming
1,000 miles would be time-conif there were
and expensive to cover, even
barriers
no
political
is still more
in the way.
The sea-route
lengthy,involvinga distance
'
of
over
3,000 miles. Added
to
this is the fact that Pakistan
has
no
It is cheaper for East

shipping facilitiesof its own worth the name.
to
Pakistan
Great
Britain
than
import certain articles from
from
from
"sea
Pakistan
because
West
Karachi
to Chittafreights
from
U.K."'
than
trade
Inter-wing
is,therefore,
gong are higher
very
much
restricted even
the
The
air-route
sea-route.
is
by
quicker but,
in spiteof the subsidy given by the airline (which is a burden
the
on
it
since
it
is
subsidised
is
still
Government),
tax-payer
by
beyond the
As
to
capacity of all but the highest income
groups.
commodities,
very few of them can bear such high transport costs.
The result of this lack of mobility of commodities
and factors
of production is that, for most
trade between
the two
purposes,
of international trade
wings of the same
country is of the nature
and
the two
li 0,M.K.
economies
fail to
adjust with each
Spate,India ancf Pakisian,Second
other in the matter
1957,p.
Edition,
309.
16
of
Pakistan, A DevelopingEconomy
pricesof factors and commodities.
between
levels
wage
Normally,
of labour
and
commodities
region in
scale
movement
and
such differences
the
the
between
and
same
other
Thus
there arise vast differences
goods.
prices, particularlyof consumer
movements
are
kept within limits due to
from
the
more
expensive
country. This does not

two
economic
occur
to
the
on
less
any
pensive
ex-
ficant
signi-
wings of Pakistan due to high cost of

frictions. Among
other things, one
created in the matter
of public expenditure,
complications are
which
particularlythe expenditure of the Central Government
is located in the western
wing. The huge defence expenditure particularly
in
the
western
is mainly incurred
wing where are found the
major defence installations and from which are derived the major
portion of the defence personnel. East Pakistan claims parity in such
ed,
expendituresto get equal advantage of the larger incomes thus generatresult is that
in
of the exigenciesof defence. Parity is also claimed
irrespective
of development expenditures irrespectiveof the fact
the matter
be productively absorbed
In
whether such expenditures can
not*
or
the
other words, the whole approach is not
basis of common
on
but on
the assumption of there being two
dependent
citizenship,
separate ineconomic
interests of which are opposed to
units,economic
each
other at several strategicpoints. Without
entering into the
merits of such claims, it is quite obvious
that the geographical
separationof the two parts of the country is a serious obstacle to the
rapid economic development of these areas
where
planning of a more
such
down
2
"
development
is feasible. The
of the rate of development
3 Other
result,therefore,is the slowing
of the country
as
whole.
Geographical Features
closelyfrom the geographical

Looking at each of these wings more
the
about
of the land surface,climate
nature
few
facts
point of view, a
and soils will not be out of place here, since these features have a deep
of a region. As
potentialities
for economic
significance
ragards the
generalnature
and
eastern
of the land, the country
flanks of the
In addition
soils which
are
it has
comprises of parts of western

mountains
of the sub-contiextra-peninsular
nent.
parts of Indo-Gangetic plains covered
with
regardedamong
the most
fertile in the world.
Through West Pakistan flows the mighty Indus with its tributaries
Ravi, Chenab and Jhelum. Before enteringPakistan these rivers
Sutlej,
or through the disputed
flow either through the Indian territory
territory
of
Indian-occupiedKashmir.
This fact is of great concern
for the
The. Land
and
17
Its Resources
future of Pakistan. In fact,India has claimed
(and obtained subjectto

the transitional arrangements) full waters
of Sutlej(along with its
tributaryBeas) and Ravi, and Pakistan has to bring water from the
other three rivers to irrigateareas
currentlybeing irrigatedby the
rivers claimed
The
by India.
ed,
Pakistan,where population is concentratIt is constituted
smaller area.
covers
a
mainly by the
relatively
delta formed
by the Ganges and Brahmaputra rivers. It is one of the
most
denselypopulated parts of the world. The region is intersected
by a network of waterways and is conspicuous by its heavy rainfall.
West
the two
Climatically,
wings present a complete contrast.
Pakistan is dry and much
of it is barren. The temperature in May
and June exceeds 120"F. at some
places.In winter, on the other hand,
in the plains,
the minimum
places, even
temperature in some
is several degrees below
freezing point. In East Pakistan, the
less uniform
throughout the year
or
more
temperature remains
ranging from 60"F. to 90"F. It has a tropicalclimate,humid and warm.
to about 160 inches in Sylhct
The rainfall varies from 75 inches in Dacca
greater part of East
against West Pakistan where the average is only 20 inches, and in

of south and west it is less than 3 inches per annum.:
large areas
Thus
West
Pakistan
depends to a high degree on artificial canalof time has confronted this wing with
irrigationwhich in due course
the twin problems of salinityand waterlogging.Most
of East,
areas
Pakistan
are
ever
supplied with water, making drainageof excess,
of the major problems of the area.
water
one
as
Due
to differences
in the
in climate
and
soils the two
wings specialise
of different
production
agriculturalproducts and fruits. TM
major foodgrain of West Pakistan is wheat and that of East Pakistan
rice. The major fibre of the eastern wing is jute and of the western wing
East Pakistan produces coconuts
cotton.
As regardsfruits.
and bananas,
and West Pakistan oranges, apricots,apples and dates. Different food
products have created differences in food habits. East Pakistanis are
in West
primarilyrice-eating
people,while the major cereal consumed
Pakistan
housing
is wheat. Climate
of the
East Pakistanis
can
has also determined
people of the two

hardlyneed
any
the weather
is
severe
clothingand
wings, which
warm
spend their lives in temporary
Pakistan
the type of
and
are
very much different.
clothingand the poorer classes
thatched
the
structures, while in West

people need warm
clothes and
well-protectedbowses. These factors need
to
be
kept in mind whei}
18
assessingthe minimum
material
regions,and comparing their

2
'
4 Land
Thus
and
Water
far the
per
needs
of
the
people of the
two
capitaincomes.
Resources
geographicalfeatures in general and
as regardsnatural resources,
(a) land and water resources;
these
are
their
constituted
(b) fuels and minerals;

facilities.
(c) hydro-electric
power
of Pakistan
As regards land, the total area
is
tion;
implica-
by:
365,529 or,
say,
366,000 sq. miles. Of this 55,000 sq. miles constitute the eastern wing
and 311,000 sq. miles the western
wing. In terms of acres the total area
of
in East
about
West
Pakistan
65%of
upon
and
than
rain. Most
in East
area
area
acres
of which
million
196"4
the total
Pakistan such
More
million
is 2338
Pakistan
only one
crop
area
rivers has
estimated
been
Pakistan.
While
cultivation,ia
is under
in East
at
925
depends
perennial,
Pakistan
year. The rivers
though the flow is rather slow in winter. The

in these
are
acres
only 20% of the total.
forms
of itbears
million
in West
acres
Pakistan
of the cultivated
97%
35*4
are
total volume
million
of water
acre-feet.
Very
is used for
littleof it at the moment
and flows into the sea

irrigation
and is wasted. The problems of land thus are: to develop these enormous
under
as
resources
as
possible,to extend the area
efficiently
under
irrigationto the present area
irrigation,to provide more
it possibleto have double cropping,and
cultivation in order to make
by floods through flood regulation
to reduce the destruction caused
and drainage schemes. Moreover,
large areas, which are subject to
af the tides,need
the invasion of saliae water

means
of
protection. The
transport in the province is through water.
This
chief
needs
improvement. Moreover, wherever possible,the water must be used

to increase the supply of electric power.
Steps have already been taken to achieve these ends under
Plans, though the results achieved
the First and the Second Five-Year
during the former were rather limited. During the Second Plan period,
will be given protection against floods.
3*5 million acres
however,
Another I'O million
and 2'0 million
West
on
will be protected against tidal inundation
will be
acres
Pakistan
1. This is based
acres
may
the
provided drainage.
be divided
into two
descriptiongiven by
ftndSecond Five-year Plan Chftp.8
"
broad
regions'for the
the First Five-Year
Plan,Chap. 19,
Desert
The
"
Indus
Kabul
Ravi, Beas
and
Basin
(a) the Indus

Streams Region.
present purpose:
and
19
and Its Resources
The Land
(b) the coastal Tributaries
taries
by the Indus and its msijor tributhe right bank, and Jhelum, Chenab,
the left. The total area "bf this region
Basin is constituted
and
and
Kurrum
on
Sutlejtowards
is 348,000 sq. miles of which 204,000 sq. miles lie in West Pakistan.
The plainsof the basin consist of alluvial deposits,consistingmostly
of sand and
The
some
average
of feet thick.
clay thousands
annual
rainfall is less than
15 inches
the whole
over
60% receivingless than 10 inches,and 16% less than

of this rain is concentrated
Most
during the period from
September.
area,
The
million
only
The
30
net
gross
acres
are
million
area
of
the
basin
cultivable. The
acres
irrigatedarea
of
annual
which
is 21
is 166
90%
million
net
million
area,
sown
produces
acres
on
acres
one
5 inches.
June
to
of which
90
however, is
crop
the average,
year.
which is
per
50% of ths cultivable and 76% of the cropped area.

Leaving aside the irrigatedland, the rest of the region suffers from
wind and water-erosion in varying degrees.The irrigated
have
areas
large tracts in which waterlogging and salinityare on the increase.
variations of flow the maximum
The rivers are subject to extreme
times the winter minimum.
Very littleis
being about a hundred
and their potentialities.
known
about the ground water
resources
During the First Five- Year Plan, provisionwas made for making
start regarding the regulationof the uncontrolled
flow of rivers
a
for irrigation
and power
for better use of their waters
development
and for reducing flood damage. Actually,however, little was
done
as
regards flood control and only modest results were achieved in the
reclamation of waterlogged and saline soils. Irrigatedarea, however,
increased by 1*1 million acres. During the Second Plan period,irrigated
is expected to increase by 1*6 million acres.
It is expected that
area
will be given protectionagainstfloods.
3'5 million acres
The Coastal Tributaries and Desert Streams
Region has a total
of 100,000 sq. miles. It consists mostly of barren surface with
area
riggedmountains
interspersedwith semi-desert valleys and plains.
Strong winds blow most of the year. Rainfall is scanty and badly
distributed" hardly 10 inches anywhere, going down
to 2 inches at
some
places.
The
area
agricultural
is found
in the form
of
scattere(i
pockets.
^^
Pakistan,
since
land
is divided
cultivable
of
area
than
the
about
The
2'5
The
and
and
of
of
modest
these
aims
are
being
5 Fuels
and
Minerals
results
Twenty-two
of
Republic.
Among
minerals
regards
only in
was
that
and
Pakistan
the
Second
many
such
gold,
the
during
areas
in
exclucively
the
and
reservoirs
discharges
the
open
and
First
Plan
into
exploration
tube
wells.
period
forming
now
minerals
and
copper
lands
and
Plan.
important
silver,
land
tion
construc-
thirty important
as
in
only
were
of
means
the
detention
for
be
to
the
to
for
million
available.
new
flood
minerals.
the
as
bauxite.
Pakistan
areas,
Indian
iron
ore,
Only
i.e.
two
antimony
minerals
which
the
of
had
case
found
were
chromite.
both
Fuller's
share.
predominant
in
India
earth,
It had
fair
and
salt
and
Pakistan,
gypsum
quantities
of
in
the
clays
petroleum.
independence
Since
of
limestone
to
by
as
found
made
provided
also
during
to
structures,
Plan
produced
supply
short-term
more
sulphur.
As
it
mica,
produced
were
diversion
land
said
not
are
water
was
total
to
is
water
water
irrigation
obtained
were
these
ore,
manganese
and
these
the
total
Not
of
average
ground
Provision
water
pursued
India
Pre-partition
'
provide
The
were
an
The
crops.
data, however,
converting
to
on
improve
to
power.
ground
Very
'
to
flow.
usable
development
Accurate
simple
view
is
the
cultivated.
with
sown
of
12%
are
recoverable
proposed
of
is
flow
of
i.e.
acres
average
barriers.
natural
acres,
million
stream
acre-feet.
nuihber
continuously
the
supply
with
by
units
million
the
irrigation,
the
canals
this
on
of
Plan
under
10
Of
area
million
expand
small
estimate
First
already
of
the
estimate
acre-feet.
to
region.
of
20%
The
into
about
is
area
Developing Economy
the
certain
and
list. The
Pakistan
minerals,
gypsum.
progress
Natural
has
made
good
particularly
gas
is indicated
has
by
petroleum
been
the
progress
an
table
products,
important
below.
duction
pro-
coal,
addition
The Land
21
and Its Resources
productionof crude petroleum,coal,limestone

and natural gas are noteworthy.
In spiteof these increases,however, domestic
production of fuels
and minerals
With
has not been adequate to satisfylocal demand.
will expand still further. Projececonomic
tions
development this demand
The
increases in the
of 1975
million
kWh
primary energy requirements show that if 10,625

supplied by hydel electricityother fuels needed
of
are
will be 4,800,000 tons
of coal, 154,945 million eft. of natural
and
gas
of
30,298,000barrels of petroleum.For the time being large amounts
foreign exchange are being spent on the import of some
important
minerals and fuels. According to the Second
domestic
the
coal
Plan,
coal
one-third
of
total
production hardly supplies
the
consumption of
the country and petroleum products only 20% of the total needs. Our
in 1957-58
imports of mineral oil alone increased from Rs. 8*2 crores
to
Rs. 36'3
for
1962-63, presumably due

spent Rs.
country
are
in 1960-61; since then it has fallen to Rs. 23*7
crores
not
crores
on
coke and
production. The
domestic
coal in 1959. Later
First
crores
Plan
allocated
for fuels and
53
Rs.
minerals.
and
crores
These
the Second
investments
of
responsiblefor the increase in production,particularly
limestone
and
crude
and
gas
over
tons
statistics
available.
The
Rs. 100
increased
to
crores
1965 target for coal
petroleum. The
100,000 million eft. These
have
Plan
been
coal,gypsum,
is 1,500,000
targets are
to
likely
be
fulfilled.
In the meantime
GeologicalSurvey Department has been busy

with its activities of discoveringnew
mineral deposits.As a result,
existence of about
been
proved and
the
130 million tons

a
of coal
reserVe of about
150
reserves
million
in Lakha
tons
of
area
has
chamosite-
22
siderite type of iron ore have been found to b3 available in KalabagiiChichali

been
In addition, more
area.
have
deposits of chromite
discovered
of 1*4
in
Reserves
Khanozai-Hindubagh-Nasai area.
million
of
baryteshave also been proved and

of natural gas have been discovered
at Titas and
Pakistan. Further
investigations
are
continuing
tons
substantial
reserves
East
in
Rashidpur
conclusion
In
The
Pakistan
has
country
encouraging in
this
considered
was
Another
now.
said
that
some
of coal and
reserves
regard.With
respect
very
important development
very
the country
like copper,
metals
of
import
in which
such
metals
is very
Pakistan
zinc,magaesium, and
yet been
The
since
But
an
discoveryof
greatlyimproved
regards non-ferrous
9
crores
thereof.
Such
year
on
metals
aluminium, tin,
inch-by-inch survey has
copper,
possible that
of the deficiencies
some
be rectified.
may
Government
include
better
are
has
Rs.
manufactures
deficient
nickel.
about
the
recently
been
has
issuing licences and
giving leases
to
interested in
firms
and
and
out, it is
carried
in this connection
spends
discoveries
new
prospects
has been
gas both in East and West Pakistan which

the prospects of solving the fuel problem. As
not
fairly good
iron ore, until
to
deficient in it, but
natural
the
has
Pakistan
sulphur, petroleum, arsenic,rock salt

compounds. Silica and glasssands are also found in the
sodium
country.
are
be
of chromite, gypsum,
resources
and
it may
efforts
developing the mineral wealth of the country,

minerals
being made to locate the unknown
available
are
in Pakistan.
An
important step
taken
was
in 1959
when
Bureau
of Mineral
by the Government.
It has been given the
of planning and co-ordinatingmineral development.
responsibility
Resources
"
6 Power
Power
set
was
up
Resources
is
of
the
most
important ingredientsof economic
for
all
development.
required
operations in agriculture,
industry
and transport. Sources of power
have been the human
muscle, animal
derived
from
wind
and
the
flow of water. These
power, power
one
It is
are
old
sources.
The
of modern
from
steam, gas and electricity

was
industrialisation. The atomic
is
power
power
and
is full of unlimited
very
the harbinger
quite recent
potentialities.
Electrical energy may be thermal (i.e.

produced through the use of
coal,oil or gas) or hydel (hydro-electricity)
which is generated by water
power. It is not possibleto assess the potential hydro-electric
resources
The Land
which
23
Its Resources
and
be available to Pakistan.
unlimited,
particularlyin West Pakistan and its mountaneous
regions.In this
section we
shall be concerned
with power
capacity that has already
been realised rather than the potentialities.
At independence, the installed capacityof different power-houses
in Pakistan was
of which only 11,000 kW
about 70,000 kW
was
hydel.
The
can
first assessment
target at 500,000 kW,

West
Pakistan.
200,000 kW,
to be almost
made
for power
was
Industries Conference,which
for East Pakistan
100,000 kW
This
160,000 kW
target
was
for West
Pakistan,as a result of a survey

a Consulting Engineer of repute.
Sir Henry
appear
of demand
1947 at the First Pakistan
for
They
Howard
made
December
fixed the total

and
400,000 kW
brought down
later
Pakistan
carried out
number
in
and
40,000 kW
to
about
for East
by Sir Henry Howard,
of recommendations
among
(o)the creation of a Central Engineering Authority for the

co-ordination of power development and utilisation of the water and
of the country; (6)appointment of ConsultingEngiresources
neers,
power
which
were:
of an All-Pakistan Power Plan; and (rf)

setting
(c)preparation
up
of a pool of generatingplant and equipment. These recommendations
and measures
taken for their
were
were
accepted by the Government
implementation.A Central Engineering Authority was set up with
sulting
reputed firms were
appointed as Coneifect from 1st July,1948. Two
Engineers to survey power requirement of the country and
ed
incorporatprepare a ten-year plan for development. These plans were
in the Six- Year
Development Plan 1951-57 (Colombo Plan). The
First Five- Year Plan (1955-60)gave due importance to this aspect of
the country'sdevelopment and so did the Second Plan (1960-65).
pressive
The progress in installed generatingcapacity has been very im1955 and 1960 it increased from 342,000 kW
to
Between
850,000 kW, nearly three times. During the Second Plan the target
was
fixed at
1,600,000kW.
It is
been put into service

Per capitaconsumption of
will have
to
some
expected that
by 1965.
rose
electricity
about
from
1,440,000 kW
10 units in 1955
units,but actual consumption

to
due
lower
be
delayed
implementation
to
of
is expected
that
also
is
It
schemes.
expected
only 3,000
of the distribution
30 units in I960. The
target for 1965
is 50
the target, will receive electricity

instead of 5,030, which was
villages
during the Second Plan period.
by the GoyernThe report of the Power Commission, appointed
Pakistan,
24
country,
The
by
determine
to
ment
consideration
by
progress
already
made
in
below.
It
given
depended
entirely
increased
partly
self-sufficient
than
more
will
the
be
this
in
ten-fold
Total
for
Prospects
bright.
country
needs.
It
is
will
unlikely
be
power
that
retarded
and
from
imported
total
The
pendence
inde-
at
has
India,
come
behas
consumption
1948.
Table
Consumption
which
Pakistan,
that
seen
respect.
since
the
is shown
electricity
of
generation
the
of
requirements
power
Government.
electricity
on
Economy
electric
long-range
is under
Table
the
the
Developing
No.
Production
Electricity
of
2,307,487
in
development
the
pace
through
of
lack
Pakistan
economic
of
power
thus
are
development
to
meet
the
very
in
the
growing
CHAPTER
Human
Resources
Economic
The
Significance
interest
activity and
as
has, ultimately
the
is determined
(during
by the demand
habits
of
the
the
things,
population
all
production,
the
population,
for
in
factor
the
community
along
and
tastes
rural
of
urban
and
the
the
of
rate
the
depends
the
into
the
process
will
have
total
of
too
of
To
population
production.
many
wants
ductivity
pro-
this
ductivity
pro-
quantitative
which
A
children
have
We
country.
of
the
upon
assess
the
the
end
fully the
How
country.
the
only
ultimately
account
fundamental,
equally
production.
population
of
instance,
the
structure
is not
Man
of
of
take
to
of
This
country.
distribution,
aspect
resource.
power
proportion
actively engaged
another
satisfied
labour
qualitative aspects
the
be
have
we
has
also
will
produced
be
The
the
age-groups,
occupational
productive
but
community
of
of
as
of
is distributed,
by
to
the
concerned.
people
wants
resources
will
of
income
determined
are
eflFort
etc.
however,
as
this
human
what
income
total
according
population,
i.e.
be
of
i.e. distribution
Population,
assess
way
tastes
other
the
the
and
population
the
upon
religious groupings,
character,
depends
and
among
population,
of
of
productive
all
by the
imposed
produced
be
of
satisfaction
the
of
end
an
activity. All economic
limitations
will
given period) and
the
the
as
that
promoting
product,
much
in its turn,
demand,
growth
its end
as
How
country.
habits,
of
means
it both
of
population
study of the
the
in
studies
He
possible, within
as
with
economist
the
is two-fold.
country
fully
of
is
or
and
to
can
rapidly growing
who
consume
(5
lit do
high birth-rate,
accompanied by high deathwaste
of resources
ite,means
of the nation. Rapid growth of populawhen
due to
be increased correspondingly
on,
productivitycannot
falling
defective social institutions,
or
mean
eagre resources
may
not
produce. A
ving standards
dstence at
'
ress
ed
size of the
the
This
upon.
involving
their consequences
an
insecure
Resources
on
upon
all
low level.
2 Pressure
The
with
population of
resources
degree of
country
available
for
pressure
may
be
may
it
large as
so
work
to
change
upon
with
to
and
resource
svelopment.
There
various
are
ways
of
measuring this
pressure.
Low
per
not
are
being properonly that the resources
utilised. For
be used
a
developing country two measures
may
idea of this pressure: (a) population density,i.e. average
) get an
of persons
umber
(b) cultivated
livingper square mile of territory;
of population or per worker engaged in agriculture.
rea per head
the
As regardsdensity,it varies enormously in Pakistan between
the different areas
and
regions in
NO
wings as well as between
ipitaincome
indicates
'
ach
wing.
According to the latest Census (1961), the over-all density of
opulationin Pakistan is 256 persons per square mile. This does not
to be very
favourably with India's 292
high and compares
ppear
But there is a great disparitybetween
the two
ersons.
wings, it
eing 922 in East Pakistan as againstonly 138 in West Pakistan.
Taking each province of Pakistan separately,we find-that in East
aklstan densityis as high as 1,288 in Dacca division. Even the lowest
in Khulna
to 782
omes
division. There
are
further variations between
having again the highestdensity.

The
degree of variation in West Pakistan is much
larger.The
ighestdensityis shown by Lahore both as a division and as a district
nd the lowest by Kalat. Average density for Lahore
division is 726
Dacca
istricts,
rhich is
then
lower
than
the lowest
density in the division of

are
very sparsely populated areas
t
he
1 West
Pakistan, particularly Quetta and Kalat divisions,
in which
We
need not pursue this matter
ensityis 14 and 7 respectively.
at the
even
Lhulna in East
Pakistan. But there
listrictlevel.
In
agriculturalcountries
aainlydetermined
by
the
like Pakistan
of the
fertility
density of population is
soil. The
low
densityareas
Human
in
Pakistan
West
produces
little to
Sargodha
from
possible.
soil and
low
at
the
level
found
are
in
irrigation.
or
the
other
If
large
numbers
high
density
in
For
instance,
with
per
urban
areas
with
of
and
obstacle
high
to
The
land
or
livelihood
another
an
average
purpose
of
as
or
arid
either
are
of
holding
area
have
countries.
much
in Germany
512
In
higher
even
the
required
we
shall
mere
resources
head
land
per
is
since
area
in another
be
be
be
can
better
an
taken
be
to
head
shall
of
where
man
agricultural
main
source
of
population
study
the
for
the
connection;
indicated.
measured
mile
square
this is the
per
We
pressure.
may
ment.
develop-
countries
can
density
and
Cultivated
in Pakistan
if
see.
cultivation
population
developed
under-
densities
of economic
such
income
currently
population
degree
for
pressure
the
words,
other
against
as
capita
per
per
countries.
with
their
Many
higher
and
areas
in U.K.,
533
for
accounts
256
by
per
This
area.
skills,
human
Pakistan's
on
than
and
populated
Belgium,
high pressure
mean
minerals
density
population
people.
such
cropped
rainfall
$510, respectively,
achieve
ratio
index
densities
good
industrialised
in
maintain
actually under
for
high
and
agricultural worker
area
ed
support-
$800, $780
population
pressure
for
can
development
by the land-man
stands
and
to
manage
But
in
respectively.
$70,
countries
can
be
to
density
small
sparsely
of
of 292
over
high
more
capita income
of
and
density is 737
density
either
necessarily
not
consist
supported
areas
India's
life
that
of low
areas
does
be
than
income
enables
said
fertility of
to
be
with
lands,
extreme
resources
can
and
countries
they
low
of
both.
or
resources.
$60
Generally
of alluvial
areas
Oa
which
it may
and
Lahore
concentration
high
high density is due
climate
density, however,
High
capita
humid
made
of
fertility resulting
agricultural
has
which
land
barren
densities
High
high
to
Pakistan's
East
warm
life.
which
of income.
mountainous
on
due
are
of
proportion
human
irrigation,
population
high
support
divisions
canal
the
contain
27
Resources
size
is
of
present
28
Table No.
Per
Capita Cropped
Total
Total
Popula-
Area
Area
(Reported'Area only)
Total
Total
Report-
tion2
(1,000
(1.000) acres) (1,000
acres)
ed Area
under
Cultivation^
Total-* Per
Capita
Cropped*
Crop-
ped
(1,000)1961
(1,000
acres
1951
acres
acres)
East Pakistan
Pakistan
West
Pakistan
In both
a
minimum
21,807
26,473
"52
'61
42,880 198.485 119,057 40,443
34,906
'81
'97
93.720 233,830 153,707 62,250
61,379
'65
'76
50,840
35,385
the
wings cropped
usuallyconsidered
34,650
area
per
necessary
is less than
head
for reasonable
one
acre,
subsistence
primitiveagriculturelike ours. The pressure in

its
the eastern
wing is higher but the land being rice-producing
is higher.Usually one
of rice land is equated with
acre
productivity
of dry wheat land of the type found in West Pakistan.
two to three acres
Further, the Table reveals that due to increase in population and
siderably
conFailure of cropped area to expand, per capita cropped area
was
under
conditions
of
lower in 1961 than in 1951.

3
PopulationGrowth
the point of view of economic development the rate of growth
From
af population is more
than its size at a particular
significant
point of
time. The aim of economic
development being ensuring a risingper
capita income for the people,it is a race between growth of national
and growth of population.A rapidlygrowing population will
income
require a larger investment ratio (investment as a proportion of
national income)and hence a higher rate of domestic savingassuming
that no foreignaid is available. Even if foreign aid can
supplement
domestic savings,that will imply arrangingfor a higher amount
of
3
'
1.
Average
for 1956-57 to 1958-59.
2. 1961 Census.
3. Area
under
4. Total
cropped
5. Added
iverages
cultivation=net
area
net
sown
sown+current
+ sown
more
for comparative purposes.

Calculated
for
three years ending 1949-50.
are
fallow.
than
on
once.
basis of 1951 population and
Human
finance
foreign
to
maintain
which
may
not
29
Resources
be
an
easy
matter.
If the country fails
the
required investment
(or saving) ratio,a rapidly
growing population will result in lowering of per capita income and
hence will depress livingstandards. The livingstandards
in underdeveloped
countries being already not much
above subsistence,
any
loweringof them will have serious socio-political
as well as economic
It
will
for
consequences.
one
mean,
thing,further difficultiesin the
of
t
he
of
lifting
the
out
vicious circle of poverty.
way
economy
A rapidlygrowing population reduces the rate of capital formation
in several ways. First, as already noted, it reduces per capita
income and hence the margin for saving.A largerpopulation has to
be fed, clothed and housed, etc. Hence
the propensity to consume
(consumptionas a proportion of income) rises which is the same
thing as to say that the propensityto save falls.Secondly,a rapidly
increasing
population raisesthe proportion of children to the total
population, thus reducing the relative proportion of the working
populationand raisingthe degree of dependency. Moreover, a higher
proportion of consumption expenditureis incurred on the supply of
goods and services to the non-working population (children)which
contributes littlein raisingproductivity
of the working force.
On
the other hand, a slowly growing population is not necessarily
favourable for economic
growth nor is it an indicator of
for
it;
instance, the world population increased at the rate of a
fraction of 1% per annum
during the first 1,600 years of the
Christian era
with
associated
mass
a
period not
prosperity
hundred
world
three
anywhere. During the last
population
years
has been increasingat an
and
has
increased
rate
several
increasing
1600
in
ad.
to
fold,i.e. from about
one
according
500,000,000
panied
estimate, to about
3,000,000,000 today. This has been accomrise in livingstandards in the industrialised
by an enormous
countries of the world. The slow rate of world population growth
but to high deathnot due to low^ birth-rates,
in earlier centuries was
low rate of population
for the relatively
rates. This also accounts
half of the present
the
first
growth in India and Pakistan during
century and earlier. A lower rate of population growth achieved in
.
"
not to speak
this way involves enormous
wastage of material resources
deaths.
And
when
of
frequent
of the psychologicalcosts
death-rate
the
which
is
the
usually
reflects high infant mortality,
degreeof
case,
infants is not
incurred
these
children and
compensatedby any contribution to national income
wastage is stillgreater since costs
on
30
during
cared
the
time
they have
to
be
fed
and
clothed
and
otherwise
for.
No.
Table
on
31
page
its provincesas recorded
by
population of Pakistan and

various Censuses
during the present
gives the
the
century.
3
'
of
4 Causes
PopulationGrowth
vitiatingpopulation statistics of the

sub-continent in the past which are of importance no longer.
Indo-Pak
there were
covered by the
In earlier decades
changes in the areas
for which adjustment had to be made.
various Censuses
Ignorance
lack
and
of the
people of the significance of the census
were
them
the time
of enumeration
at
of co-operation from
of
other factors which tended towards
under-counting, particularly
the females. Before the 1921
Census, however, the greatest factor
controllingpopulationgrowth was the high rate of mortalitycaused
mainly by famines and epidemics. This explains the small increase
during 1901-10 (1-19% per annum) and 1911-20 (0-68% per annum).
The former was a decade of widespread famines and the latter of the
factor
1921 onwards
the political
influenza epidemic of 1918-19. From
factors have
Various
been
complicatedthe situation and

populationstatisticsupwards or
there
deliberate
was
vitiation of the
downwards
by different communities
in Legislatures
(mainly Muslims and Hindus) to gain higherrepresentation
allocated on population basis. Attempts
and Services which were
but not always with success.
made to correct these errors
were
the decade
1911-20 was
The
comparatively small increase over
because
of
the "Non-Co-operation
due partlyto under-enumeration,
of
the
toll
life
taken by the influenza
heavy
Movement," and partlyto
death-rates
noted.
and lower birth-rates
Higher
epidemic as already
but presumably minor
another
factor. By
I was
due to World War
1931 the
peoplehad
the Census
become
Due
political
importance of
still stronger by the
each community trying to
became
to this reason,
numbers, it is generallybelieved that considerable
inflate its own
took
enumeration
Much
of the
consciousness
which
figures,
time of the 1941 Census.
conscious
place
at
the last
of the increase,however,
common
can
Census
over-
of the sub-continent.
be attributed to the fact that
widespread epidemicsand famines. The latest

inter-Census periodhas shown an unprecedented rate of growth. This is
in line with a universal trend in the developingcountries and is due
fall in death-rates because of the applicationof death
to the enormous
this decade
was
free from
Human
ao
P
ns
Oi
a
a
"U
CO
OS
"
"
is
53
^
O
"
os
"u
""
a,
so
31
to
o^"
Resources
0\
iH
U
0\
""
"^0
0
rt
!?
"N
(So a
a
o
'-
s s
^"
a
"
S
U|
"^
on
"u
^
"
="
i^H
"^
a
O
O
C
CO
"
s^
00
IS
"n
oo
"..2-2
o
0.
"
-"g
a
o
OS
IN
OS
OS
OS
OS
so
OS
32
control
cheaply suppliedby the
measures
developed countries of
more
sixtyyears of the present century as a whole, it

that during the first thirtyyears Pakistan's population
will be seen
annual
rate of 1%.
increased by 137 millions or 30% or an average
thirty-yearperiod the increase has been by
During the second
the world.
Taking
the
58'5% or an
last inter-Census period the
34"6 millions
high rate.
Confining ourselves
average
rate
has
annual
rate
been
2'38%
of
1"95%. During the
per
which
annum
is
very
facts
Pakistan
to
or
increased
whole
93,720,613,or
by West
Between
notable.
are
as
to the latest inter-Census
238%.
Pakistan
populationincreased
21
by
18
"2%
and
millions from
12-1%
Pakistan.
East
ing
interest-
1961, the population of
this increase
11-8%
by
and
by about
To
and
1951
period,some
West
was
75,672,496
contributed
East
Pakistan's
Pakistan's
by 27' 1%
Thus
the rate
of growth has
been
ten
higher in
over
years.
Pakistan than in East Pakistan. This is mainly due to higher
West
epidemics have been more
death-rates in the latter province, where
Frequent primarilydue to bad sanitation and lack of pure water for
drinking.
The rate of populationgrowth further shows diflference in diflFerent
parts of each province.Taking the district (or agency) as a unit, in
districtsshow an increase and two (Kharan and
West Pakistan sixty-six
indicate a decrease, the former of 22% over
of Kalat division)
Mekran
of this fall are being investiten years and the latter 0-31 %. The causes
is the Mohmand
At the other extreme
Agency of the Northjated.
recorded
the highest increase of 127'5% over
West Frontier, which
lowest
to migrations. The
increase was
ten years, presumably due
Pakistan,i.e.
shown by the Sibi district of Quetta division of West
)nly2-1% in ten years.
Variations
in
East
Pakistan
have
been
over
"a much
smaller
varying between 34% (Jessore district and Chittagong Hill

Tracts)and 14% (Faridpur district and Sylhetdistrict).
Of the ten districts showing the highestincrease only one
belongs
Hill
Pakistan (i.e.Chittagong
Tracts),which stands lowest on
o East
it
Karachi
topping with 79-7% in ten years.
he list with 33-9%,
of large variations in population growth in West
The significance
ange,
"akistan and
iast Pakistan
more
may
or
less
be noted
population
arge-scale
uniform
increase
here. In West
movements
among
the districts of
Pakistan, there have
between
different parts
of
been
the
33
Resources
Human
to tafee advantage of better
opportunitiesat placeswhere the

migration
rate of economic
growth is higher and recent. This explainsheavy iminto Karachi
(79'7% increase),
Hyderabad (44"1%), Rahim
Yar
Khan
(28-2%), Bahawalpur (393%) and
(52-7%), Multan
Khairpur (47'8%). Here greater job opportunities have appeared
urban
also appearing in most
areas
are
during the last decade. New
province
of these districts.The
East
Pakistan
in which
it is that the
Hence
mobility than
for such
scope
all
are
areas
population of
that of West
shifts is very much

limited in
almost equallyunder pressure.
Pakistan
East
Pakistan.
has shown
much
less
Moreover, the differences in
source
re-
largerin the various parts of the larger

western
compact eastern province.The
wing as compared to the more
western
wing contains much largerdisparityof temperature, rainfall,
water
supply, and elevation than the eastern wing of the country.
to mobility in the
Further, there are fewer physical obstructions
former province.People of East Pakistan are immobilised
for several
months
in the year due to floodingof almost the whole province.The
increase in population is
only areas which have shown a significant
distribution
Chittagong Hill
are
Tracts
much
and
Jessore
districts. In
the former
it is possibly
electric
rapid opening up of itsinterior and the Kaptai hydrohas
district
shown
increase
due to
high
project." Jessore
"due to the
migrations from border districts of India.*

3
"
5 Birth and Death-Rates
study of birth and death-rates^ is important because the

growth of population in any given period depends upon births and
deaths in that period in relation to the population at the beginningof
high birth and high death-rates indicate a
the period.Moreover,
sociallyand economically backward community. Until about 200 years
industrial revolutions,all countries of
ago, before the scientific and
the world showed
high birth and death-rates both ranging between 35
the beginning of the nineteenth century
From
and 40 per thousand.
advancing countries of
death-rates
began to fall in the industrially
The
Europe due
to better
diet,more
1961, Bulletin 2,
1. Census
and death-rates
2. Birth
No.
Crude
O"''""'"'"^-
deatn-rate=-.
p.
'
and greater political

and
care
10.
calculated
as
follows:
of the live births during

the middle
specifiedperiod x lOOQ
specifiedperiod
of the
population during
of deaths during a snecified period x 1000
Population during the middle of the specifiedperiod
No.
Crude
are
medical
34
social
Birth-rates began to fall about the last quarter of the

security.
and people
century as the higher standards of livingbecame
common
began to exercise deliberate control over the size of their families.
By the time the Second

the death-rate
had
World
fallen
to
to about
up
been
have
up
gone
about
thousand.
20 per
reduced, coming down
went
broke
War
about
to
to about
25 per
countries,
out, in advanced
12 per
Since
thousand
then
10 per
birth-rate
and
have
death-rates
still
rates
thousand, while birth-
thousand
in
advanced
some
countries like U.S.A.
underdeveloped countries,the stage of high birth

much
and high death-rates continued
longer: both nearabout 40 per
than birth-rate. In
thousand, though death-rate fluctuated much more
the Indian sub-continent death-rate began to fall about the middle of
the nineteenth century though rather slowly,as famines and epidemics
were
brought under control and conditions of securityof life were
established. Birth-rates,however, continued quitehigh since they are
much
diflScultto control by collective eflforts than death-rates,
more
and depend upon
the cultural level of the people and their social institution
which take a long time to change. The Census of 1941 gives
In the
of
case
34'3 per thousand

death-rate
as birth-rate, arnd 24*9
as
per thousand
for the Indo-Pak
sub-continent, both figuresbeing high when compared
the
to
corresponding figuresfor European
for 1951
Census
shows
substantial
countries. The
fall in death-rate
to
Indian
17
per
Corresponding figuresfor Pakistan as a whole are not available.

Provincial
Health
But, according to the
Department of former
and
birth
16*9
death-rate
rate
32'3. Actually,however, the
was
Punjab,
India
and
Pakistan
both
for
not
are
there being configures
reliable,
siderable
of
both
births
and
deaths.
Such
under-registration
underestimated
30
to
of
h
as
been
as
the
actual
registration
50%
number
of
thousand.
births.' A
deaths.
similar
recent
error
may
Sample
be
presumed
Survey of Lahore
for
the
registrationof
District in West
Pakistan
birth-rate to be 48 '2 per thousand and crude death-rate

2r2 per thousand
for the period from November
1955 to November
1956.2 On the whole, it is safe to conclude that, in spiteof the recent
shows
the crude
fall in death-rates
Indo-Pakistan
1. The
underdeveloped countries includingthe

its level is still high in Pakistan. Birthsub-continent,
First Five- Year
2. Social
Lahore
in several
Plan
Science Research
of Pakistan
Centre
(Revised),p. 189.
(Universityof the Panjab), VillageLife
District (SelectedSociological
Aspects),p. 6.
in
does
rate
the
show
not
population of the country will
hitherto
The
control
death
as
own
purpose
or
shall
we
are
'
at
become
higher rate
much
and
common
more
be considered
unless either birth-rates
are
blessingand
made
than
tive.
effecwill
respondingly
to fall cor-
growth is increased sufficiently

higher rate than population growth.
the rate of economic
to increase national
There
grow
measures
fall in death-rates cannot
defeat its
that
trend. It is likely,
therefore,
downward
any
35
Resources
Human
income
at a
difficultiesin the way
many
of both
of these solutions,as
see.
6 Extent of Urbanisation
Generally speaking,the relative proportionsof the population of

and urban
a country livingin rural
areas
respectivelyreflect the
degree of industrialisation achieved by it.The example of Japan may
be quoted to show
of the
and urbanisation
economic
how
progress
population go hand in hand. "In Japan at the beginning ef the Meiji
era," says a United Nations publication,"four-fifths of the population
and
one-twentieth
were
decidedlydependent upon
agriculture
lived in cities of 50,000 and more.
From
1868 to 1930, there was rapid
transition to an industrial and urban economy;
in 1930 only 47 per
cent of the total gainfully
employed population were engaged in agriculture.
In the two decades from 1921 to 1940, the ruraP
population
declined
from
persons,
roughly
absorbed
37'9 to 36"6 millions. In

entire natural
the
in urban
other
increase
words,
million
16'1
during 1921-40,^were
The
in Japan
progressive urbanisation
been
the countryside
accompanied by heavy migration from
the
to the city,
transition
from
by a
depressed level of subsistence
level of money
based on
to a moderate
agriculture
cultural
non-agrieconomy
and
of
the
work,
by change
traditionally
high fertility
pattern
of Japanese peasant to the rapidlydecliningfertility
of the citypeople.
Urbanisation
has prevented the development of increasingpressure of
of the peasant migrant in
population on the land,lowered the fertility
the city,and dififused the new
values of money
and lower
economy
in the rural areas. "3 Economic
tries
fertility
development of other counareas.
has
like U.K., U.S.A., Germany,

between
urbanisation
and
France
also shows
and industrialisation
pondence
corres-
accompanied by
risinglivingstandards.
population here refers to those livingoutside towns ol 10,000 or more.
population of Japan increased from 56 to 73 million, during 1921-40.
tf. Nations, Economic
Survey of Asia and the Far East (1950),
pp. 40-41.
1. Rural
2. The
3.
total
36
In
Pakistan
urbanisation
is still
quite
mearge,
reilecting the
country'spredominantly rural character. The degree of urbanisation,

recently.
more
however, has been on the increase,particularly
compared to that
The rate of growth of urban' population,when
cularly
in recent decades, partiof rural population, has been remarkable
and
1940,
1931
during the latest inter-Census period.Between
in
urban
population increased by 44-1% as against 17-0% increase
population. During 1941 to 1950 the difference was even more
42% when rural
remarkable, urban population increasingby almost
during the
of urbanisation
rate
population only by 50%. The
tion
period 1951-60 has surpassed all previous records. Rural popularural
during this period increased from 67-9 millions to 81*4 millions or

by 19-8% while urban population grew from 7*8 millions to 12-3
millions or by 56*4%.
Comparing the two provinces,the rate of urbanisation has been
1951
much
higher in West Pakistan than ia East Pakistan. Between
1960 urban
and
population in East Pakistan increased from 1"84
period in
rnillions to 264
millions or by 432%.
During the same
Pakistan it increased from 60 millions to 9 65 millions or by
West
tion
popula60"1%. Thus as a percentage of the total population, urban
from
increased
in West
during the
Pakistan
urbanised, its
more
4 4 to 5"2 in East
rate
Pakistan
and
of urbanisation
17"4
Pakistan
period. West
same
from
is also
to
22*5
only
is not
higher than that of
Pakistan.
East
An
number
The
and
growth
is
aspect of urbanisation
size of cities and
towns
of
larger urban
have
shown
centres.
remarkable
during the last two Census periods.Census figuresshow that

has decreased
the relative importance of the lower-sized urban areas
above
while of those of 50,000 and
population has increased. The
r
emarkable
as
increase has been particularly
regards towns of 100,000
1941
there
were
gory
only nine cities of this catepopulation and over. In
increase
with
1. Definition
Lines and
less
of
Urban,
in
included
in
not
houses
inhabited
Director
decide
to treat
also
forming
about
3%
of the
1961
the
Cantonments
may
in all
inhabitants
collection of
than
Census
million
2-3
Census, includes Municipalities, Civil

municipal limits, etc., and any other continuous
by
as
be
not
urban
treated
less than
for
census
5,000
persons
purposes.
which
Some
if they possess
the Provincial
areas
of
urban,
acteristics,
char5,000 persons may
e.g. roads, sanitation, schools, non-agriculturaloccupation of people.
1961, Bulletin No. 2, p. 13
as
urban
Human
37
Resources
population and 49 9%of the total urban population.By 1961 the

total population livingin such cities (now numbering sixteen)increased
to 6 9 millions or 7-4% of the total population and
56-1% of the
urban
creased
inof all urban areas
population of the country. The number
from 282 to 390 or by about a third between
1951 and 1960,
The percentage increase of population in some
of the largercities
has been tremendous.
remarkable
increase during the first
The most
inter-Census period,i.e. 1941-50, took place in the case
of Karachi
(144-2%), Lyallpur (156-2%), Sargodha (115-4%) and Hyderabad
(79 6%), mainly due to the largerincomings (as againstoutgoings)of
refugees.During the 1951-60 period the highest increases took place
in the case
of Lyallpur (137-4%), Narayanganj (137-0%), Khulna
Multan
(209-0%),
(88-4%),Hyderabad (79-7%), Karachi (79-7%), and
Dacca
This
has been due mainly to industrialisation. In 1941
(657%).
and in 1951 only two
East Pakistan had a population of
cities from
and Chittagong. By 1961 two
100,000 and over, i.e. Dacca
more
were
West
i.e.
and
Khulna.
Pakistan
had
such
seven
added,
Narayanganj
cities in 1941, nine in 1951 and twelve in 1961. The most
spectacular
of Lyallpur,due to its remarkable
increase has taken place in the case
industrial progress. Its population increased from 69,930 in 1941 to
425,248 in 1961, an increase of over 500% in twenty years.
total
of Urbanisation
7 Problems
When
urbanisation
gives rise
Pakistan
place,particularlyat
rapid rate, it
problems, and
multiplicityof social and economic

already confronted with them. With industrialisation and
to
is
takes
of
job opportunitiesin urban areas people from

in large numbers.
rural areas
Some
move
or
go only for the season
for a short period and keep their families in the village,but many
settle down
in towns
on
a
now
basis,driven out by the
permanent
pressure of population on their ancestral lands. Moving to an entirely
and to jobs requiringradicallydifferent techniques
environment
new
and behaviour-patterns,
they have to face many psychologicalproblems
of adjustment and take some
time to find their roots in their
Old community ties and moral
homes.
new
are
disciplines
relaxed;
of
moral
have
confusion
to
and
a
unsettlethey
period
pass through
sometimes
them
anti-social
to
activities.
This
leading
ment,
may
opening
result in
up
the
new
increase
in
the
incidence
of
crime
as
well
as
of less
serious misdemeanours.
Apart from
their
psychologicalmal^justments, more
material
38
consequences
of
without
demand
of urbanisation
proper
for
urban
on
tion
housing, deteriora-
houses
higher
and
daily use, like vegetables,fruit,

eisilystored or brought into such areas
articles of
be
cannot
and
wages
planned development. Greater
facilities and
short notice,leads to
for
pressure
tional
sanitation,scarcity of drinking water, pressure on educaand
training institutions,
haphazard expansion of towns
milk, etc., which

at
include
rise in cost
salaries
on
of
the
living leading
part
of
to
demand
townspeople. If
not
general discontent and, if met, the consequence

is higher production costs
expenditure
or
higher Government
leadingto higher taxation and further discontent. Such developments
to economic
conducive
not
growth. A very important aspect of
are
prehensive
comdevelopment planning is,therefore,town-planning in the most
the result is
met,
sense
the
of
term.
The
Government
is alive
to
these
town-planning have been started at Lahore,

in the national
and elsewhere. Provisions are always made
Karachi
development plans for housing facilitiesand other requirements of a
growing urban population either direct or through local bodies. To
are
house-building,tax concessions
given on newly-built
encourage
houses for a period. But the actual implementation of these policies
in
difficulties. Courses
has
not
respect. A
these
3
'
more
the
planned and
growing needs of the country in this

concentrated
efiFortis needed
to solve
problems.
8 Some
Structural Features
In this section
the
with
kept pace
we
shall
populationof Pakistan
brieflyconsider
of which
some
have
structural features of
social,others economic,
tribution
comprise: (a) age distribution;
(b) sex dismarital
(c)
status; (d) distribution according to religion.
distribution.
(a) Age
Age distribution has a direct impact on
the size of the working force, and has significance
from
the point
of view of economic
is
It
also
index of the rate
development.
an
is
and
at which
a
its
life expectancy. In less
population
increasing
life
at
birth is usually
developed communities,
expectancy
very
low (lessthan
in
India
and
Pakistan
forty years
as
against over
seventy years in U.S.A.). Birth rates are, however, so high that,in
spiteof high death-rates, provided there is reasonable
protection
famines
and
epidemics, population grows
against
rapidly.But the
the
i
s
with
result
that
the
short,
life-cycle
proportion of children
in such populationsis very high and
of old people
very low. The
These
significance.
will
some
Human
39
Resources
population, is therefore,extraordinarilyyoung with a low

age and a high degree of dependency.
(b) Sex distribution. Normally the sexes should balance
the
to
over-all
population,' but
have
of
due
social
to
average
countries
reasons
taking
tend
either
the other
in their
one
or
sex
predominance
The
balance
in
two
disturbed
the sex
populations.
great wars
Western
of males, thus decreasing
Europe by killinga large number
the
ratio, i.e. the number
sex
of males
per
100 females.
In the less
developed countries includingPakistan there is a shortage of females

females, as we shall see.
mainly due to higher mortalityamong
The predominance of females in the population,particularly
after
the First World
War, led to many
social and
of
in Europe. Economically, the number

or
labour
force increased.
Shortage of
women
economic
in
consequences
paid employments
in Pakistan, on
women
the other
the lower
income
has led to high
hand, particularlyamong
groups,
of marriage. As regards labour force,women
cost
only form a small
portion of the working population. This again implies a greater
degree of dependency. Thus both age and sex distribution in Pakistan
reflect a high degree of economic
dependency and correspondingly a
lower proportion of the population engaged in "gainfulemployment."
This so in spite of the fact that the "working age" in rural areas
is
rather low. Children
who
ought to be in schools are made to help
their parents at home

A
in the field.
or
statistics may
be given to substantiate
the above
now
Pakistan.
with respect to
According to the
few
observations
general
44'5% people in the age-group 0-14,40*2%

and
15-44
in the age-group
only 16-3% in the age-group
45
years
the
This
and
of
a
one
on
shows,
over.
hand, high degree
dependency
of
the
the
the
comparative youthfulness
other,
and, on
population.
Pakistan shares this feature with other developing countries. Taking
children under ten years of age who formed
35% of the total population
in 1961, the corresponding percentages for Malaya, Iran, Turkey
Census
and
of 1961, there
Thailand
countries
in this
is
33, 33, 29, 29. On
like U.S.A.
and
the
other
hand,
England (Wales) had only 22%
advanced
and
15%
age-group.2
1. Sex
females.
were
were
ratio at birth is slightlyin favour

in the
Of
males,
104 to
105 males
for 100
male
are
vigorous
beginningand their mortality rate
higher. This should create a sex balance at higher ages.
2. Census 1961,Bulletin 3, p. vii.
But
infants
less
^0
Pakistan,A Developing
Economy
This feature of
what
and
age
is called
bar
horizontal
population can
an
On
sex-group.
pyramid' of
age
chart in which
is
country, which
next
page
given age
are
structing
con-
piled
given
pyramids (for
bar represents the size of
each
the
graphicallypresentedby
be
females)for Pakistan and U.S.A. for a contrast. It will be

that the pyramid for Pakistan has a broader
base and quickly
seen
upwards, showing a high proportion of young
tapers off as we move
children. The pyramid for U.S.A.
has a comparapeople, particularly
tively
base and narrows
down
narrow
slowly as we move
up, showing
males
and
much
balanced
more
10-14 shows
survival after childhood
low
high death-rate among

and infants.^ In U.S.A. the majority of the children from
0-10 enter
the age-group
10-14, even
though the proportion
children
age-group
of children
birth-rate
below
compared
as
that
also shows
than
structure.
high proportion of children below ten years in Pakistan

while the sudden
fall for the age-group
high birth-rate,
The
reflects
age
At
females
the
to
infant and
males.
among
ten
representingmales
the
or
is lower.
years
Pakistan.
that
upper
much
during
bars
senting
repre-
than
more
more
sex
unfavourable
less the
or
the period of
and
a more
the
those
quickly
and
representingages fifty-five
except for those
childhood
also
age-groups
get smaller
female in Pakistan encounters
lower
age
attain
these groups
the two
sexes
proportion in the total population of each
shows
reflects
pyramid for Pakistan

child mortality among
females is higher
The
For
over.
This
same
respectively.This
reproduction the
social environment,
frequent child-bearingand child-bearing

under conditions of ignorance and carelessness. This also explainsthe
high sex ratio in Pakistan.
the number
mean
of males
By sex ratio,as already said,we
females
in
the population. In
Pakistan
in 1961, there
per 100
i.e.neglect,earlymarriage,
129
were
men
for every
According
areas.
for urban
and
126 urban
and
1. The
to
112
in urban
women
provinces,in
for rural
106
bars may
100
rural. Thus
World
as
mortality in
against only 269
Situaticn,N.Y., 1957.
Pakistan
for U.S.A.
in
ratio
sex
indicate either the absolute
2. Infant
Pakistan
while
areas,
regardstheir length.The width represents

1950-55
East
was
or
the
and
areas
higher
been
for
the
142
was
Pakistan
in urban
it
was
areas
relative size of the group
the size of the interval
has
in rural
ratio
sex
West
109
as
of age classification.
estimated
at
period
1953-55.
200
for
the
period
U.N. Report
on
Human
41
Eâounxs
in
UJ
"
ta
M
O
"
H
0\
u
CA
"
"
"
"
rf^
Pakistan, A. DevelopingEconomy
in both
the
wings, but it was

very much
higher in East Pakistan,
High proportion of males to females in urban areas has resulted from
for
of rural workers
to towils
move
large number
In West
employment while leavingtheir families back in the village.
of
Pakistan, this is partly offset by the fact that large numbers
settled with their families. Moreover, in
refugeeswho settled in towns
East Pakistan the proportion of urban
to rural population is smaller
and urban
less in numbers, transport difficulties are
are
areas
preferto keep
greater and thus a largerproportion of rural workers
high
their families in their villagehomes; hence the extraordinarily
the fact that
ratio in towns.
sex
cates
Speaking historically,
comparison with prevtous Censuses indiin
a
steady fall in sex ratio both in urban and rural areas
Pakistan
in
as
urban
whole
as
fell from
areas
rural areai it fellfrom

from
well
as
144
The
urban
and
to
areas
but
corresponding figuresfor
Pakistan
Pakistan
ratio
sex
1960, and in
1941 and
129 between
110 to 109. In East
150 ,to 142 for urban
areas.
In
province-wise.
there
was
fall
change .(at
J 06) for rural
no
West
Pakistan
were
142 to 126
116 to 112 rural.
developments in this context. The gap

males and females in the population is decreasingwith time,
between
is improving for the
in Pakistan
showing that the environment
females. And, secondly,a larger number
of people moving to urban
These
areas
with
move
their families. This shows
force in the urban
labour
and
statisticsreflect two
more
on
on
the
permanent
greater stabilityof the
areas, i.e.migration to urban
basis. This
have favourable
can
of the industrial workers

efficiency
is
areas
and alsaon
more
sions
repercusthe
general
the
where
areas
and other urban
living conditions in the towns
plannerscan provide facilitiesfor a less shiftingtype of population.
(c)Marital status. From the point of view of marital status the
population of a country is usually classified into single(or never
ed"
married),married, widowed, divorced. There is no category "separatunder Pakistani conditions. The study of marital status in Pakistan,
however, need not detain us long. It has only an indirect significance
from
the
poiat of view
of economic
development.
Marriage is
for the
universal "condition and the marriage age, particularly
countries. This has a
is much
advanced
lower than in more
on
the
rate
period,which
of
population growth,
makes
possiblemore
via
the
children
female,
bearing
longer child-bearing
per
married
female
43.
rHumaji-Beaoiirces
as
Well
to
the
population. On the other hand. du3

social prejudiceagainst widow
remarriage and tha fact
that miost men
if they get widowers
and remarry
women
remarry
much
than themselves (sinceexcept the widows
only very
younger
the
and
hence
available for marriage),the number
young girlsare
the females tends to be larger than in
proportion of widows among
as
advanced
more
At
female
per
in
the
countries.
the time of the 1961 Census
58,559,502 persons of
ten years of age and above in Pakistan. Of these 26 1% were
single(as
compared with 30'-9%m 1951).641% wire married (59'8% in 1951).
widowed
9*4% were
tively
relawere
(8-9% in 1951). Divorced
persons
few, being a littleless,
than one-half of 1% of all the persons
aged ten years and over in"both the Censuses. Thus in 1961 a higher
proportion of the populatipn of ten years and above was either married
widowed
or
and the proportion of singleones
smaller.
was
Marital status considered according to sex reveals that in 1961
35 3%
of the male population were
single(38 5% in 1951), 59-8%
there
were
were' married
and' 0"3%
(5^-4%in' 1959), 4 6%
widowed
were
(48%
in' 1951)
;1951).Thus there vyas.a shift

towards
the married
and
status
and away
from
single,widowed
divorced among
the males. Among the females also the proportion of
married was
higher in 1961 as compared to 1951, i.e.691% of the
total as against63" 7%. But there was
also an appreciablerise in the
proportion of widowed females in 1961, i.e. 148% as agaiinst.13-7%
in 1951. The percentage of divorced women
also slightlyhigher
was
in 1961 as compared to 1951, i.e.062% as against0 57% of (iie'
total
were
divorced
.(04%
in
of females of ten.years of age and above. As a result of this rise in

the proportion of married, widowed
and divorced, not only the profell in~196r as"
portloTrtat eTenlM"al)solule nurnber of singtewomen
The
fellfrom
compared to 1951.
proportion
22% to 15%. and actual
number
ten
of
and
(aged
fellfrom 5,345,944
singlewomen
over)
years
to
in
inJ9^1 4,241,137 1961.
Table No. 6 bh pages 44-45 shows that in the
age-groups teli
years
and
above, the number
number
of
singlefemales is about
of singlemales. Further,of the jotalnumber
of
.
onlyabout
10%
are
majorityof females
nineteen. This
married
women.
the age of nineteen. In other

married by the time they reach
is also clear fr.im the column
Almost
females
single
wordSj^TargT
above
are
third.of the
one-
one-flftb of them
the age
of
showingpercentage of
belongto age-group teD to
from Sutetteat 8, p.
l..^Câ^1961. "uir6tii!i:3,
xvi.
4(5-
Pakiatan, 4 Iêvelopijig
Economy
nineteen. 0n
the other
of the
25%
about
of
males
males,. This
total
males
nineteen years
to
ten
hand, singlemales aged twenty years

aged
are
shows-that-females
ten
or
years
above
or
and
above
ate
married
only about 3'5% of the total married

than
get married at an_i;3lJkiL.age.
.
"
males.
the other end,
At
loffgsto high
remarriage is much
of widowed
10% of
about
are
are
age-group
This
remarrtage of female
much
younger
than
and
females
total
married
about
were
above
females
to
than
in females
common
married
married
females
i*-due
Tfais-presinnably
less
Thus
25% of the
over
males.
widowed
males.
thietotal
widowed
In 1961
than females.
age-groups
fact that widow
largerproportion of married males be*
much
thfr
-"
marriage
re-
fiftyyears
mafei of this
married
males.
four
times
the number
of
again is explained by the prejudiceagainstthe

and
the habit of men
widows
ma'rying wives
themse'ves, panicalarly when
{d) Religiou!distribution. Only
few remarks
they remarry.
may
be made
as
gards
re-
though
population according to religion,even
this aspect of the population structure
has undergone a radical
change with the establishment of Pakistan. Pakistan "vas constituted
The
with a Muslim
by areas
majority population before partition.
distribution
movements
of
of population across
further reduced
the
the
frontiers of the two
population of non-Muslims
new
in Pakistan
States
arâs.
positionis that 97- 1% of the total populationin West

OftKe
Pakistan and SO 4% of the total in East Pakistan are Muslims.
restifl West Pakistan 1-4% are Christians, 1% are Scheduled Castes
are 0"3%,
and 05%
In East Pakistan these categ'ories
are Caste Hindus.
the
of
remaining 0 9% ai;e
9-8% and 8 6%. respectively the total;
Thus
the present
others,mostly Buddhists.
Taking Pakistan as a whole the proportion of non-Muslims in the

population fellfrom 29 2% in 1941 to 11 9% in 1961. In West Pakistan
less than 3% of the total population.
they are now
A remarkable
phenomenon of Pakist?in'spopulation has Ijeen
1901 and 1961
the rapid increase in the number
of Christians. Between
increased from 32,000 to 733,000 or twenty-threetimes,
their number
,
proporiion in-tbe-total populatioa-lias.-iiicriea"ejd-AbQ

ten times from 0 07% in 1901
to 0 78%. in 1961. During the dfcade
1951-1960 Christians increased by 35-8% in Pakistan" 39-8% iiiEast
and
their
Pakistan
West
and
34
9% in
West
Pakistan,i.e. 584,000
Pakistan.
out
Most
of them
of the total of 733,000.
are
located
in
Human
The
sub-continent
of India has had
rather Hindu-Muslim
conflict,
sub-continent
long history of communal

conflict. In fact,the partitionof the
direct result of that
was
^47
Resource's
generated in the minds
of
conflict and
the
fear of
ploitation
ex-
important and largeminority,

the Muslims.
of the population on
The present structure
the basis of
religionmakes such a conflict unlikely.The Hindu miaority is too
small to inspirefear and c^n b^ treated generously.The Christians have
taken
This bas
always bên peaceful citizens in the sub-continent.
element of civil strife,
though conflicts
one
away
an
sectarianism
and cultural differences
potentiallythere and
on
raise thair heads
loyaltyto
dace
integratedPakistani
an
geography,
in different parts of Pakistan

now
and
however, that with the passage of time necessary
place and
bases of
are
again. It is hoped,
adjustmentsvv illtake
that will put

will emerge
before all sectional loyalties.
This will con*
the motherland
nation
but also to social cohesion and

only to politicalstability,
economic
favourable for economic growth.
co-operation,factors most
3
9 Literacyand Edacation
in the 1961 Census
Literacyhas been defined difi'erently
as
pared
comto the Census
of 1951. In the firstpost-Independence Census a
classed as literate if he could read clear print in any
person was
without understanding it. Many people in Pakistan,
language, even
for instance,can read the Holy Quran without understanding it.They
counted
were
literates in the 1951 Census. According to the latest
Census, literacyhas baen defined as "the abilityto read with under'
a short statement
on
ffa/t(///"^
everyday life in any language. The iaabilityto Wfite the statemenr, however, does not exclude one from being
not
'
literate."' Due
the two
Censuses
Table
on
over
No.
to
are
on
this
not
change in definition literacysiati:"ticsof
comparable.
48 compares
page
in 1961
literacy
the basis of total
populatioa aid also on the basis of popuUtion

five years of age, according to sex and province.
It will be seen
that the vast majorityof the people of Pakistan are
stillilliterate.Less than one-.sixth

less than
above
the
percentage of
come
one-fifth
up
to
on
tae
basis of total
the basis of
the low
positionaccording to
percentage in the
on
eastern,
population and
population of five years of age and

for literacy.
standard laid down
Comparing
the
reveals
Table
a
higher
provinces,
literacy
western
in
the
of
than
the
part
wing
country.
4. Census
1961,Bulletin 4, p. vU.
48
Pakistan, A Develo;pmgEconomy
c
no
'3
u
u.
"a
a
a
"a
"o
"
"
h3
vo
oo
"n
3
a
o"
o
a
'"!
'^^
OO
cT
oo
"s
""
*o
-o
I
s
\e
""
U
K
"
49
Resources
Human
three times that

the males is over
Further,literacypercentage among
the females, whether we take Pakistan as a whole or consider
among
the provincesseparately.
the need for a greater
This points towards
effort to educate the female sex and to give more
attention towards
the spread of literacy
in the western
wing.
considerable
There
is a
diversityin the level of literacyin
different divisions
districts of
and
the
country.
On
the
basiis of
populationof five years of age and above, in East Pakistan,Chittagong

division has the highest literacy percentage (23'
7%), followed by
Khulna
division
division (23-4%), Rajshahi
(20*4%) and Dacca
division (19-3%). In West
Pakistan
the highest rate is shown
by
Karachi division (366%), followed by Rawalpindi division (229%),
Lahore
division (195%), and
Sargodha division (16'4%). Among
the districts the highest position in the country is with Karachi
district (38-1%).
If
buttwo
take six districts with the
we
are
in East
Pakistan.
On
highestpercentage of literacy,
all
the other hand, the six districtswith
literacy
percentage are all in West Pakistan.
in the districts of
The highest percentage of literacyis found
Karachi
(38-1%) and Rawalpindi (32-4%) in West Pakistan" maihljf
of Karachi and Rawalpindi. One has been the capitil
due to the towns
the temporary capitalof the
until recently and the other is now
the lowest
country. Otherwise,
most
districts of East
Pakistan
have
literacy
districts of West Pakistan. The

latter
percentage higher than most
of the lowest literacypercentage in the country.
province has areas
These are found mostly in Quetta and Kalat divisions. While there is
in East
not
singledistrict (out of a total of seventeen
a
districts)
Pakistan with a literacypercentage of less than 15, there are in West
districts (out of a total of 45) which fatt
Pakistan as miny
as thirty-one
below
this level.
expected, literacypercentage is much

higher in
of both the provinces of Pakistan. The
than in rural areas
urban
females than among
the males.
disparityis much higher among
the total literate population in 1961 is distributed in terms
When
As
could
be
urban
and rural areas, it is found that oneof percentages between
fourth of the total literate population of Pakistan lives in urban areas,
accounting for 358%

that,according
of Pakistan
to
of the urban
the Census
population. It should
of 1961, only
reside in urban
areas.
be
noted
13% of the total tion

populaAbout one-third of the female
^^
literates
reside
in urban
much
higher than
urban
population
of
view
it is among
is thus
literacy than
opportunities
Similar
literacy relating
nearly 95%
rural
in
only
202%.
45-7, though
males
in urban
i.e. 548
females,
female
total
bring
of
the
have
areas
literates
live
in
rural
people,
where
areas
examine
we
separately.
In
and
of
88"6%
literacy
the
literates
total
ment
employ-
But
rural
statistics
the
rate
rural
urban
in
live
literates
in
in
higher
than
live
areas
is
areas
urban
areas.
thafl
of
percentage
(13 "5%)
areas
of
Pakistan
East
higher literacy percentage
much
against 3r9.
as
tional
educa-
better
even
of
point
the
the
this, literacy percentage
11-4%
only
when
is rural
these
Against
The
better.
provinces
population
Even
areas.
to
The
the
of
urban
to
revealed
the
to
reflects
Moreover,
move
are
are
from
is
23*3%
at
only 7-2%.
is
advanced
areas.
to
them
conclusions
which
population. This
tend
for
females
more
in urban
they get educated,
literacy percentage,
rural
much
rural
facilities available
when
their
areas;
male
the
literates
(i.e.10-8%).
In
compared
areas
centage
in
it is in rural
total
female
this
literates
female
is
three
as
total
11*4%.
against
areas
literates
10'9%.
to
in
21
live
the
over
live
equal
population
Hence
is
Pakistan
West
times
literacy
higher
in
compared
in
urban
times
And
66-9%
urban
of what
of
rural
of
areas
against
as
areas
rural
the
making
areas
In
rural
to
urban,
three
"2%.
the
is
literacy per*
literacy is quite negligible (i.e.32%
literacy). Female
male
Pakistan
in
the
Pakistan
West
33-0%
in these
literacy rate
province
17%
areas
areas,
female
in
i.e.
of
Pakistan's
East
to
urban
23
(49"8) of its total
higher proportion
much
Pakistan, where
West
areas
of
of
East
West
Pakistan.
3
'
10
So
no
on
Educational
far
indication
the
attained
next
we
Levels
have
of the
page
by them.
been
speaking
level of attainments
classifies
literates
merely
of the
according
of
literacy. This
literates.
to
Table
educational
gives
No.
levels
Human
51
Resources
Table No. 8
Distributionof the Literates accordingto Educational
14% of the total literates in

no
schooling.In East Pakistan,the proPakistan have
portion
in
total
is
about
the
of such people
50% higher than in West
and a half times,i.e. 14'5
numbers
two
they are
Pakistan. In actual
tan
millions against5*7 millions. In the primary classes also East PakisThe
above
Table
had
shows
that
Level
over
formal
higher numbers than in West Pakistan. Beyond the

relatively
primary stage a higher percentage is found in the western wing. Thus,
a largerpercentage of the literates go in for
speaking,
proportionately
has
higher education in West
Pakistan
than
in East
university,both
B.A.,B.Sc, M.B.,B.S., B.E., B.Com., etc.
1. Means
first degree of the
Pakistan.
at
general and professional,

like
Ph.D., etc.
of theology and Oriental languages.
3. Includes higher standard
2. Includes M.A.,
While
6^.
Economy
primary level there were, in 1961, 5-69 million literates in East

Pakistan as against 2-53 millions in West Pakistan, at the Secondary
the
level their numbers
were
1'48 millions and
respectively.
millions
1-61
(-481million
mediates
the case
against -247 million).The same
was
regarding the Inter(i.e.102,370 against 52,782). There were
82,069 University
There
were
Graduates
twice
as
many
of whom
Matriculates
26,069
were
in East
in West
Pakistan
54,000 in West
and
Pakistan
31,470 in all,of whom

having higher degrees were
lessthan one-third belonged to East Pakistan, i.e. 7,146 against24,324.
The nunjber of those having Oriental qualifications
about equally
were
distributed between
the two
wings, i.e. 1,704 in East Pakistan and
2,099 in West Pakistan,
Thus, while the over-all literacypercentage was higher in East
Pakistan,at higher levels of education West Pakistan was ahead of
East Pakistan,not only proportionately,
but also in absolute numbers.
Pakistan. Those
3*11
The
The
Laboar
size and
Force
effectiveness of
the
labour
force
of
country
able and
of persons
who
are
depend upon: (a) the total number
workers.
as
willingto work and (6) their qualityand efiBciency
The
number
of working population is determined
by its age
distribution and the customs
and conventions
regarding work by the
Temale sex, and other practiceswhich
allow able-bodied
to
persons
be maintained
without working for their living."It is affected by
the changing level and quality of educational attainments,the extent
and accessibility
of work
of prevailing
opportunitiesand the nature
incentives to work."*
According
the
CeifStis
tjf ^1961,
the civilian labour
force
(including
all persons over twelve yearsôf age who are self-supporting
or
earningdependants or seekingwork) was 32*58% (asagainst30*7% in
advanced
countries
1951) of the total enumerated
population.In more
1. The
to
Second
2. In the 1961
f twelve
gure.
and over,
Plan, op. cit.,p. 329.

Census, working force is counted
which
was
the case
of ages
in the 1951 Census.
The
ten
and
above
over
instead
is an
adjusted
Human
the
oS'
Resources
40% of the total.*

usually well over
The smaller percentage of the working population in Pakistan may
be attributed to the
largerproportion of children under twelve years
of age, a very small proportion of women
in
who work for their living
the economic
of people who are parasites
and a large number
sense
the societyfor one reason
on
or another.
working population
Table
is
gives the populationaccordingto economic status in

1961 and 1951, according to provinces.Civilian labour force is here
taken to include persons
aged twelve years and over for purposes of
comparison.
The
No.
following
points are
(a) The
notable
in this Table:
force,as
proportion of civilian labour
defined,in the
slightlyhigher in 1961 than in 1951 in Pakistan

as well as in each of its provinces.
civilian labour force was
higher
proportionately
(b)Agriculturist
in East Pakistan and lower in West
Pakistan in 1961 as compared
total
population was
with 1951.
(c) Non-agriculturistcivilian labour

of
total in
the
East
Pakistan
force showed
and
lower percentage
higher percentage,in
compared with 1951.

(d) The degree of dependency decreased slightlyduring the
well as in its provinces taken
inter-Census period in Pakistan
as
West
Pakistan
in 1961
as
separately.
lation
(i)a higher proportionof Pakistan's popuwas
economically active in 1961, compared to the position in
showed
a tendency to decrease
1951,and (h)the pressure on agriculture
in West Pakistan while it markedly increased in East Pakistan. This
This would
that
mean
According to the United Nations Demographic Year Book

active population as a percentage of total population was
1.
advanced
as
under
in
some
countries:
Economically
Country and
Active
Year
U.
cally
(1955), economi-
K.
France
U.S.
(1951)
(1946)
A. (1950)
Japan (1950)
of Total
Population
Minimuin
Age
Limit taken into
Account
46-2
15
52-1
14
39-8
14
43-7
14
54
Economy
Human
may
be due to
sector
Si
slower pace of the developmentof the non-agricultura
in the latter
One
Resources
of the
province.
for the smaller
proportion of the workin:

force in the total population of Pakistan
as
compared to mor
advanced
countries
is the prejudice against the females
workinj
outside the home.
If housewives
excluded from the working force
are
the males and females in the civilian working force as percentage o:
the total population of each sex in 1961 was
as under:
It will be
of* the
reasons
that
seen
civilian labour
only a small proportion of females' is a par

force as against males about 66% of whon
working force.
A higher proportion of females in rural areas
constitutes thi
working force (civilianlabour force)as compared to urban areas.
the provinces a higher proportion of females is ii
As between
of East Pakistan.
the working force both in urban and rural areas
are
in the
In the 1961 Census

of ten
years of age and

looking for work. Labour
1. For
contrast
the
lation (labour force) in
some
the civilian labour

above
force in this
percentages of
other
U.S.A.(1950), 27-4%; U.K.

(1948).40-1%.
Source: U-N.
Demographic
either
force includes
working
sense
has been
in the
women
or
all personi
helpingin work o
shown
economically active
given below:
30-6%;
Japan (1950),386%;
(1951),
countries
Year Book
(1955)
accordiuj
popi
are
Philippin(
Economy
"P
whether
to
females, in
they
the
pages 58-59.
It will be
are
two
seen
males
agriculturists
or
non-agriculturists,
11
provinces of Pakistan in Table No.
from
this Table
that
in Pakistan
about
or
on
three
engaged in agriculture
and only justover
a quarter in non-agricultural
professions.
Among the
agriculturists,
by far the greatest majority are cultivators,only just
ing
over
2% of the labour force is engaged in allied activities like workin orchards, nurseries,
gardening, dairy-farming,poultry-keeping,
gardenlabour,etc.
tan,
totals,
85% in PakisAmong the female workers,of their respective
91*64% in East Pakistan and 70-45% in West Pakistan are engaged
Thus the majority of the working women
found
in agriculture.
are
This percentage is much
in agriculture.
higher in East than in West
quarters of the total civilian labour
force is
Pakistan.
of the total working force in
are
non-agriculturists
2570%
Piakistan,14-74% in East Pakistan and 40-69% in West
Pakistan,
the
diversification
of
West
Pakistan
indicating
a
again
greater
This is so whether
take both
the sexes
we
economy.
together or
of the non-agricultural
Further breakdown
separately.
populationi^
The
not available.
As
regardsthe qualitative
aspects of
the labour
force,statistics
showing the types of skills possessed by different workers are not

According to the 1961 Census (as we have already noted),
available.
oyer
84'1% of our people are completelyilliterate.The total number
of literates in 1961 was
14,335,805 of which 2,025,171(141%) were
formal
without
attainments, 8,221,733 (574%) had been tbrough
priniaryschools,3,087,415 (21-5%) had been through middle schools,
728,986 (6-2%) had attained the Matriculation level,82,069 (-6%) had
obtained degreesand 31,470 (-l%)had Post-Graduate
ing
degrees.Accordto the Census
of 1961, again,the proportion of persons

over
five
of
who
literate
were
to the extent
of being able to read clear
age
years
with
understanding was
print
192%. Since the labour force is
male
and
the literacyamong
predominantly
males
is higher, tlie
National
labour
Planning Commission
force
to
be
29.
has put the
literacy
percentage for the
As regards other skills,
statistics are
not
but at the time of the 1951 Census28% of the

available,
persons in the
labour
tton-agricultural
force were
classified as skilled
'
operators
Accordingto
the Man-P.ower
Survey conducted
by
the
Ministryof-
'.''
Laliotir in 1955, 32%
'Human
57
Resources
employed in largeestablishments were

s|dlledor semi-skilled
workers. On the whole, technical skill available
in the country is extremely meagre. We lack engineers,medical men,
business leaders,managers, and technicians.
factors
Apart from technical skillthere are other environmental
.which are responsible for the inefficiency
Pakistani
of an
average
worker.
of the year, encourages
most
Climate, which is rather warm
lazy habits arid saps energy. Diet is inadequate and poorly balanced,
and
hence
leads
of those
to
Added
vitality.
these are the high incidence of disease due to poverty, ignorance and
of living.
lack of medical
aid and the prevailiogunhygienic ways
The generalsocial environment
does not encourage
independence and
does it promote
nor
initiative,
co-operativeefforts,while illiteracy
leaves the mind
uncultivatfcd and hence unreceptive to new
ideas.
Above
all is the general-poverty of the people and hence the lack
of private and public resources
which could be applied for raising
their generalmaterial and cultural level.
3 12 Onr PopulationProblems
of the
state some
In the lightof the above analysiswe may
now
leadingproblems connected with our population which need solution,
plan the economic development of Pakistan.
as we
has been
(1) In the past the population growth in Pakistan
restricted mainly through high death-rates due to famines, diseases and
of more
epidemics.Famines are under control,thanks to the possibility
and through imports. Incidence of
food from surplusto deficit areas
have already
diseases and epidemicsis on the decline. Death-rates
from the thirties to the twenties and are likelyto fall more
comedown
to
under-nourishment
and
low
'
crease
a still greater indevelopment proceeds.This will mean
2%
in the rate of populationgrowth which is already well over
difficult
Higher rate of populationgrowth will make more
per annum.
development. A policy of
the already difficult process of economic
as
economic
populationcontrol
is thus indicated.
(2) Population in relation to area or density varies in Pakistan

of livelihood available,
with the means
from place to place in accordance
land fitfor producingcrops. The pressure of
mainly agricultural
populationon agricultureis heavy and rising.The non-agricultural
of West
in East Pakistan (and less developed areas
sector, particularly
Pakistan),is expanding rather slowly and is stilla minor
total economy.
This pressure
among
other
part of the
thingsis standingin the
58
Pakistan,
Developing
Economy
Table
Civilian
Labonr
Force
according
to
Human
No.
Economic
Resources
11
Category,
Sex
and
ProTince
(1961)
5i
so
agriculturalimpovement since it keeps the area per head of

the agricultural
labour
tural
force below the economic
limit. Non-agriculof employment need to be created.
avenues
(3) Due to the influx of refugeesand also due to the process of iniustrialisation towns
are
growing at a rapid rate creating all sorts of
of
way
social and
political,
problems for the country. This
of intelligent
the necessity
town-planning and provision
life to the growing urban population.
town
economic, if
pointstowards
jf amenities
of
not
pealed
(4) Among the structural defects of Pakistan's population,as reby our study,are: (a)a high degree of dependency due to high
children
in the population,(b)female shortage
iroportionof young
iue to higher female mortalityin childhood
during the reas well as
of
Droductive period; (c) a very low
of marriage in the case
age
verse
emales which
implieshigh potentialfor population increase and adeffects on the physicalgrowth and health of the female part of
he
rom
population.
(5) In spite of the fact that working age in Pakistan is counted
with developed countries
twelve years and above (in contrast
vhere it is counted
from
fourteen
fifteen years and
or
above), the proportion
total
population is much smaller in

advanced
countries
and
'akistan than in more
even
compared to
other less developed couiitries. This is due partly to the hijgh
ome
children in the population and partly to the
)roportion of young
against women
enteringthe labour force. This has increased
)rejudice
of
working population to
degree of dependency to over 70%.

(6) Qualitativelyspeaking, the labour force in Pakistan suffers
rom
handicaps. Due to the still high incidence of disease and
many
inder-nourishment, the physicalvigour of most of the working classes
of illiteracy,
to this is the high incidence
5 well below
par. Added
and in rural areas, lack of trainingand in
women
larticularly
among
he
cases
nany
lack of incentives
administrators
irocess.
Efforts
and
aestically
3W.
'
social factors. The

and
other
number
of
experts, managers
inadequate for the needs of the development

to create
being made
trainingopportunitiesdo-
is
are
to
to
high-classtachnicians
niddle-class and
nd
due
afford opportunities of
foreigntravel
to the selected
yet far to go in this direction.

of Population Control
13 Problems
We
have
We
have
already made
out
ation control in Pakistan. But
case
for
adopting a policyof
the establishment
popu-
of the need for such
policyis not enough.
Several
"1
Resources
Human
problems arise
in practice is concerned.
These
may
so
far
be
as
its implementation
discussed
under
five
major heads.
(0 Changing the attitudes of the people;
(h) Discovering the best techniques for familyplanning suited
in the country;
the conditions
people concerned with the necessary drugs

contraceptivesand arranging for instruction for their use;
(jv)Evaluation of the rusults;and
(/"")
Supplying
to
the
(v)Provision of the necessary

(0 Changing the attitudes of
financial
or
resources.
people towards familyplanning

is not an easy task under the conditions prevailingin Pakistan
where
the incidence of illiteracy
is so high and where people stick so hard to
conventions. People have to be convinced that family planning is not
the
againsttheir religion,that it will increase their material welfare and

of children at will. This is
that it is possible to restrict the number
of
of education
a matter
means
through all the available modern
like group
discussions,radio speeches,etc. Our
reaching the masses
what is good for them if a proper approach is
understand
masses
can
inade. The questionis of breaking down
prejudice.In the words of the
Plan, "The
Second
for fewer children and
motivation
more
abundant
of knowledge of the
dissemination
important than mere
of contraception.Widespread family planning will come
means
only
of livingare important
when people will realise that risingstandards
other thingsfrom
for them and their children."* This will result among
and
the slow educational process influencingboth men
cularly
partiwomen,
lifeis
more
the former.
It has beea
found
from
recent
researches
in rural
family control springsfrom the side

who
has
is obvious; it is the woman
of the males.
The
reason
and
of frequent child-births. All Government
to bear the burden
of mosques
and Pirs (ifthey
private agencies,school teachers.Imams
areas
can
that the main
be
resistance to
convinced) can
make
people in this respect. In Pakistan
we
have
in
the
influencing
already a Family Planning
their contributions
wings of the country which holds

for evolvingideas and propagating them in
conferences and seminars
with planned parenthood. It has also established clinics
connection
for practicalinstruction in the family planning methods. The activities
Association with branches
in the two
1. Second
Five-Year
Plan.
"
6^
of this
body,
unofBcial
though
commendable,
the
hardly touch
should
that the Government
fringe of the problem. It is necessary
adopt a more
vigorous policyin this matter. We are glad to note that
need for a conscious
has recognised the paramount
the Government
an
population pojicy. A family planning^campaign has been made
integralpart
(ij)The
Five-Year
of the Second
Plan.
important practicalaspect of family planning is,
most
however, the need of discoveringcontraceptivessuited

of developing countries
requirements
like Pakistan.
and
to conditions
The
ideal method
major conditions: (a)it must be simple which can be

easily used by an illiterate population; (6) it must be cheap so that
peopleof low incomes can use it without financial strain;(c)itshould in
must
no
three
meet
be harmful
way
to be
to
organism. Such a method yet remains

have been widely distributed and are
pills
the human
discovered, though
some
has been obtained in the

quite effective. Some success
of these pillsin some
countries,but there is stilla serious doubt
use
tion.
regarding the possible harmful results of their long-term administrafuture
The
scientists are, however, hopeful that in the near
this problem will be successfullysolved. If a cheap and
effective
method
is found, it will have revolutionaryresults,not only for the
advanced
countries
underdeveloped countries, but also for the more
of the world, where stillmany
children are born without
being really
to be
supposed
wanted.
should
In
the meantime,
be put to
use
as
whatever
far
as
imperfect methods
possible,and people made
are
available
conscious
of
necessityof exercisingcontrol over the size of their families.

{iUy The third problem is that of supplying these contraceptives
have to use them. For this purpose, as alreadynoted,
to the people who
has opened up a few
the Family Planning Association
of Pakistan
the
clinics the number
of which
can
be increased.
Under
the Second
Five-
family planning proprovision for a nationwide

of the Plan, "clinics will be established in all
gramme.
hospitals,dispensariesand maternity centres. In the rural areas the
V-AlD organisation(now replacedby Basic Democracies) will be linked
with thisprogramme."' A large-scale
scheme has already been prepared
and is under implementation for the trainingof doctors, nurses
and
Year
Plan
there is
In the words
health visitors for this purpose.

crbres for this purpose.
1. The
Second
The
Plan
Plan
made
an
(Outline),
p. 87.
allocation
of Rs.
"
Human
(iv) Family
to
yield quick
what
results.
the
extent
this
far
the
their
encountered
in
in
the
the
the
and
found
of
use
can
by
serve
good
as
in
of
birth-ratesi
similarly
for
births
birth-rates
earlier
guide
ing
ensur-
methods;
comparing
ether
some
and
of
being
are
decrease
with
contraceptives
in
the
find
mode
contraceptive
in
out
birth-rates
or
the
resulted
planning
be
of
as
opinion
For
to
necessary
difficulties
people's
use
people.
planning
(b) what
the
be
the
to
future
situated
policy
in
connection.
the
have
the
methods
a
can
be
the
Family
though
in
therefore,
national
interest.
must
amounts
the
paltry
be
sum
of
they
can
must
bear
In
the
Rs.
for
3
crores
this
stage
The
of
associations
are
by
likely
not
of
allocated
State.
to
the
like
Under
far
even
payer,
tax-
campaign
should
Second
go
"
task
The
plans
which
in
this
clinics,
people
contribution.
development
purpose
the
the
is reached
contraceptives.
valuable
they
themselves,
that
or
one
development'
of
responsibility
the
future
provided
of
is
and
establishment
Pakistan
agencies
do
of
voluntary
unofficial
Pakistan
in the
purchase
the
until
But
as
incomes
economic
contraceptives
involved
the
planning
capita
through
the
Association
Planning
whatever
be
by
either
undertaken
conditions
will
family
per
self-financing.
and
personnel
of
income
purchase
to
expenditure
considerable
training
of
become
will
programme
their
improving
level
them
enables
accepted
have
people
of
reached
which
than
family
periodically
on
will
areas
expected
is not
know
to
impact
accepted
influencing
may
surveys
(v) Once
of
in
the
locality
selected
have
family
of
period
locality. These
this
of
supplies
This
same
any
having
conditions;
practice
area.
during
is
people
necessary
the
necessary
surveys
and
programme
is, however,
economic
(c) thirdly, whether

in
long-term
programme
improving
the
is
It
pejiodic
purpose
(a) how
out
planning
63
Resources
substantial
be
Plan.
'
in
'
"
more
CHAPTER
The
Need
The
4*1
for
Role
The
Agriculture
of
of
total
our
the
rural
in
the
is
responsible
for
prosperity
the
and
the
from
actual
and
Pakistan's
we
are
developing
Apart
largely depends
growing
the
taxes
foreign
of
number
numbsr
growing
industrialisation.
capita
at
income
higher
rate
of
the
urban
of
exports.
for
of
the
and
still
in
sector
that
in
feed
rapidly
upon
proceeds
to
the
goods
must
more
consequent
population.
of
provincial
essential
likely
the
products.
Agriculture
is
of
industries
development
food
earnings.
produced
materials
population
of
the
importation
as
its
agricultural
population,
demand
growth
the
raw
Moreover,
the
and
land
Most
the
aid,
total
our
rises, the
than
indeed.
agricultural
our
upon
great
agricultural
use
from
of
role
potential
growing
per
agricultural
It
proportion
the
and
Central
the
at
on
is very
economy
country.
both
State,
living
foundation
high
the
country
exshange
is the
economy.
to
of
occupation.
this
on
foreign
agriculture
entire
our
the
50%
75%
to
of
people
total
our
over
employment
the
nant
predomi-
the
contributes
indirectly
or
stability of
levels, is derived
The
of
90%
stability of
of
revenues
of
90%
directly
nearly
and
prosperity
gives
It
bandry,
hus-
animal
constitutes
Pakistan.
and
of
occupations
allied
of
About
depend
areas
Economy
horticulture,
and
income
force.
the
the
economy
national
labour
civilian
in
including
forestry, fisheries
sector
Production
Increasing
Agriculture,
The
Sector
Agricultural
grow
the
and
even
Finally, without
65
Sector
Agricultural
The
agriculturalsector, no sizable industrial programme

prosperous
be sustained,since the increased industrial products must
find
can
a
markets
the rural
mainly within the country and particularly
among
For all these reasons
masses.
agriculturemust be given the highest
that agricultural
priorityin our development programmes,
so
duction
proof
needs
the
to
meet
growing
rapidly enough
may
grow
the country.
4
Causes
Neglect
Unfortunately,in the past the agriculturalsector
"
of Past
has
economy
Government.
not
due
received
attention
from
of Pakistan's
the
people and the

very tardy indeed,
Agriculturaldevelopment has been

made
in
particularlyas compared to the advances
sector. There have been in the first place some
basic
agricultural
organisationof the country inherited from
have
these most
notable
been
ence
days. Among
system
of
effort and
have
made
land
the
tenure
has
inhibited
it
if not
difficult,
impossible,to
ignorance
illiteracy,
cultivators, which
have
defects in the
pre-Independthe
incentives
defective
for
human
units of cultivation
capitalinvestment,uneconomic
techniques,the
of
which
the industrial
and
created
apply
productive
more
conservatism
resistance
which
of
the
mass
ideas,
one
inadequacy
supply,
hand, and
periodicfloods,on the other, which have prevented optimum land use
of water
and
irregularity
and
so
On
on
to
new
the
on.
top of these elements
which
have
been
there
all
along, the
further handicaps to the

partitionof the country brought some
newly-createdState, which delayedtacklingthese problems by the new
national Government.
these factors were
Among
migration of nonthe
and
Muslims
who
controlled
credit,banking
marketing structure
of these areas, dominated
administrative
connected
departments of
the Government
with
agricultural
development,
includingdepartments
like
the
Agricultural Departments, Co-operative Department,
Veterinary and Forest Deparments. This led to a paralysisof basic
administrative and developmental activitiesin the agricultural
sector
in other fields of national life. The incoming refugees failed to
as
fillthe gaps thus created, at any rate for a time. They were
a
to a land where
frightenedand resourceless set of people who came
not
in their old homes.
conditions
as
were
exactly the same
of
and techniques
not
identical.
the methods
farming were
Even
Naturally,they took
some
time
to
adjustthemselves
to
the
new
66
of titles to land created
delay in settlement
of uncertainty which
calculated to inspire
not
was
situation. Moreover,
general
sense
these
and
people to undertake hard work
capital investment, even
if they had
given
capital to invest. Finally,greater attention was
both by Government
and private capital and
enterpriseto trade,
and industry in the name
of balanced
commerce
growth, and due
to the attraction exercised by prospects of quicker and higher profits,
4
3 The
"
New
Outlook
and Its Causes
adverse elements
The
introduced
into the situation
have
largely
been eliminated. Titles to land have been finalised and the refugees
into the economy;
absorbed
have been settled and
a
new
banking
has been built and some
credit institutions have
structure
agricultural
been established,trade
and
has been
normalised,and gaps
been filled up. Agricultural education
in administration have
and
been
research institutions have
strengthened and some
new
ones
introduced
land reforms
created. The
new
by the Martial
Law
have
Government
eliminated
commerce
some
of the worst
features of the land
system inherited from
pre-partition
days.The Government
has
after all realised the strategicimportance of the agricultural
sector in
and steps are being taken to find solution for its basic
the economy
problems.
tenure
The
sector
attention to the
urgency of givingimmediate
realised by the
was
Government, mainly on
agricultural
account
of
of food
developments: (a) the appearance
shortage,(b) the
of
and
menace
waterlogging
rapidlygrowing
salinity.
At the time of the partitionit was
widely believed that Pakistan
two
as
whole
was
self-sufiicientin food and
West
Pakistan
produced
surplusof foodgrains.There was thus a sense of complacency so far

as the food problem was
concerned, which was strengthened by good
for a few years after the partition. The
harvest
drought in 1952
caused shortage of wheat in West Pakistan and large quantities of it
had to be imported. In 1956, there was
serious shortageof rice in
a
East Pakistan. Foreign exchange, which
was
so
and
scarce
so
badly
needed
for financingof developmental imports, had
to be diverted
to
for
foodgrain imports. Since then Pakistan
pay
has
been
importing larger and larger quantities of foodgrains to feed its
in the meantime
people. The Government
has realised the seriousness
of the position in this respect. In 1956 an
AgriculturalConference
'ed to the drawin
i ôf a
for
programme
agricultural
development.
The
Sector
Agricultural
67
This initiatedthe change in policy,the need for which

underlined by the failure of the First Five-Year
Plan
further
was
achieve
to
its
agricultural
targets.
West
Pakistan's
becoming
food
deficit
has
area
surprised
not far to seek. In the firstplace it

many. But the causes
are
realised by the holders of the "self-sufliciency
theory" that even
before partition,West
was
not
though
Punjab
good the deficit in foodgrains by importing large
quantitiesof coarse
Thus
grainsfrom the East Punjab areas.
export
of wheat was
not a net surplus.Secondly, there has been an
ing
increaswhich has necessitated a largerflow of foodpace of urbanisation
grain surplusfrom the rural to the urban areas and, thirdly,
population
of the country has been increasingat a high rate as revealed by the
latest Census. In the face of this increasingdemand, the supply of
foodgrains has not increased correspondingly due to the factors
already noted by us in a previousparagraph.
As regardswaterloggingand salinity,
this menace
has not appeared
there even
before the partition,but its
suddenly. The problem was
realised so fullyas now.
not
The policy of planned
importance was
development led to a closer look at the obstacles in the economy,
observations of some
age
foreignexperts and the pressure of food shortbrought the problem to the forefront. The
recently taken
has given a more
Census
up-to-date and quantitative
Agricultural
of the various problems of our
assessment
agriculturewhich were
elaborated in detail by the Food and AgriculturalCommission
in its
yet
4 The
The
may
to other
parts of India,
it made
voluminous
'
exported wheat
but
extremely valuable report published in 1960.

Need for IncreasingAgricultural
Production
ultimate objectivesof agricultural
development in Pakistan
be thus stated:
(0 Increasingper capitaincome of the people engaged in agriculture

in order (a) to enable them
maintain
to
a
higher
standard
of living than
the present one;
to
create
(6)
a
income
of
to
materialise
surplus
into
over
consumption
and
formation.
savings
capital
To
of foodgrainsand other food
produce adequate quantities
(z7)
items
fast
to ensure
growing
going to increase
balanced
urban
but in consequence
not
diet
to
the rural
population, whose
only
of the
because
as
demand
well
as
the
for food
is
of their increased numbers
higher per capitaincome
resulting
Source: Economic
Survey, 1963-64,Tables No. 11, 14,17.
The
Sector
Agricultural
69
from
economic
growth.
(Hi)To produce larger quantitiesand better quality of industrial

materials: (a)to feed our
raw
growing industries and (b) to
have larger surpluses for export to earn
foreign exchange
which
is a
but
scarce,
very
in the
essential,element
growth
of the economy.
(iv)To
fuller
ensure
employment,
force in rural
labour
only
not
the
to
employed
alreadyunder-
but also
areas,
to
absorb
in
the economy
(even rural economy) at least a part of the
force resulting from
future
increased labour
population
growth.
These goals imply the optimum
sources
and
human
production of the right

right quantitiesand of the right
in order
of the country
of the natural
use
increase
to
agriculturalproducts in
mdards of quality.
Production
5 Past Trends in Agricultural
be quoted here to get a general idea of the
A few statistics may
in production of agricultural
commodities
in the past.
;rease
Agriculturalproduction is greatly influenced by the seasonal
be misleading.Table No.
12
;tor; therefore,annual statistics may
of two
periods and shows
pages 68-69 gives four-year averages
ids of
has
production of some
important agriculturalcommodities
haved during the post-Independenceperiod.
that over
the period, food-crops increased by
It will be seen
"2% mainly due to greater rice production in East Pakistan. West
kistan's major foodgrain increased only by 5'1%. There
was
a
of
inferior
in
the
like
foodgrains
production
crease
bajra and jowar
in
West
nost
exclusivelyproduced
Pakistan,presumably due to
w
jstitution of wheat
sas.
of
Production
23%, most
Among the cash
(67'1%) due
rease
about
in the diet of the poorer
maize, grown
probably for
crops
to
maintained
rtificially
tually,the land in the
jduction
ireased by
of which
35%
to
;reased in East
mainly in West
use
as
higher returns
two
Indus
is
the
account
on
three
to
Pakistan,increased
fodder.
showed
sugarcane
at
classes in the rural
times
highest percentage
of higher prices
the
world
prices."*
Valley
the
about
by
38%. Production of tea has
the growing domestic consumption. Tobacco
more
suited for cotton,
increased
meet
Pakistan
but
1. The Third Five- Year
increased
Plan: Guide
in West
Pakistan,
Lines,p. 60.
some
which
of
areas
tobacco
for
in
of the
Much
Second
Year
Five- Year
Plan
manufacture.
cigarette
measured
crops
particularly
are
increase
Plan
period
as
in
Index
of
'
place
of
during
First
the
testify:
given below
13
No.
Agricultural Production
1949-50
to
1952-53)
All
Food-
Non-food-
Crops
crops
crops
10$
Fibres
87
97
1955-56
99
94
119
116
1958-59
108
103
145
108
1963-64
136
134
172
116
Need
25%
proportion
averages
find
that
Production
Increasing Food
for
domestic
over
the
to
of
our
production
in
what
it
needs
of the
four
years
dependence
the
Five-
105
about
we
taken
1948-49
Although
the
quality
of cash-
one-third.
has
Numbers
(Base: Average
quantity
the
closing year
the
high
growing
whole,
the
production
Table
Index
for
by about
period and
the
suited
On
increased
tons
71
Pgricultural Sector
The
was
foodgrains
1948-49,
growing
ending
on
of
failed
population.
1961-62
imported
it has
has
with
food
to
ending
increased
by
increase
Comparing
those
has
increased
in
again
1951-52,
tially.
substan-
72
Table No. 14
Per
ozs.
per
of Foodgrains^
Capita Availability
day
production of foodgrains failed

in population. To maintain
to increase in proportion to the increase
consumption per head, imports had to be increased by about 130%
and exports decreased by over
46%.
of non-cereal
If account
is taken of the need for and availability
The
Table
reveals that domestic
like meat, eggs, milk and milk products,fruit and vegetablesso

essential for a balanced diet, the food deficiencyin the country is
foods
greater than
much
is revealed
by the statisticsof foodgrains quoted
above.
foodgrainsare concerned, an important objectiveof the

in this respect.
to achieve
Second Five- Year Plan was
self-sufficiency
The Plan provided for an increase of 21% in foodgrainproduction"
from 132 lakh tons at the end cf the First Plan to 159 lakh tons by the
So far
1.
as
Foodgrains
here cover
rice, wheat, barley,maize, bajra and jowar. Based
Economic Survey, 1963-64,Table 9.
on
AgncuUWal
The
end
of the Second
period. It is
Plan
'
Sector
73
by 1964-65
tons, thus going
that
estimated
now
the
production of foodgrains will exceed 160 lakh

based on an estimated
beyond the target. But the target was
revealed
It
1961
Censjs, however, has
1"8% in population. The
that during 1957-61
population increased at the rate of 2*3%
Some
studies forecast even
recent
more
a
higher rate.
of
increase
annum.
per
will
therefore,,that
appear,
are
we
in foodgrains. Hence
self-sufficiency
of
annual
effort will
tentative
be
needed
figuresof
achieve
to
the
Third
this
still far
from
a! much
greater
the
objective.According
to
the
Plan, the targets for food-
Five- Year
in minor
grains are 26% increase in rice, 23% in wheat, and 20%

foodgrainsduring the Plan period (1965-70).This will give
increase
target
national
overall
an
of
25% for all fobdgrains taken together.

4*7
Balancing Foods and Their Deficiency
Apart from foodgrains other important constituents of food
deficient
which
supply essential proteinsand vitamines are even more
of
these items of food
in supply in the country. The
cpnsumption
thus promoting growth and protection
''balanced,"
makes
a diet more
against disease and under-nflurishment. In fact,a higher proportion of
cereals
in the diet is
unit. In
more
advanced
of caloric intake is
greater. Table
countries
smaller and
relatively
15
No.
be
will
on
page
$200
in the
one-quarter
of
and
meat
foods
non-cereal
several
need
We
the
times
eggs, milk
more
and
source
gives per capita food consumption
two-thirds
derived
of
case
as
from different items of diet.
less have
or
capita caloric intake
per
74-75
consuming
of. "protective,"foods
that
underdeveloped countries
that
seen
of about
income
of the poverty of the

the proportion of cereals
of calories derived
in terms
It
indication
an
from
to
cereals
per capita
three-quartersof their
as
against only about
developed countries.
is among
the
with
Pakistan's
lowest
production of fruits
fats to get
in the
and
level
satisfactory
sumption
con-
world.
vegetables,
of balanceed
diet.
The
framers
deficiencies
of
some
page
todav.
the
Plan
Colombo
the basis of
on
estimated
the
following
consumption in 1949. Since then production
of these
has increased
on
of
76
be more,
but the population
items, like fruit,may
markedly. These deficiencies stated in the Table No. 16
may
thus
be
regarded
as
the most
modest
estimate for
7i
Economy
Table
Per
CapitaFood
(Calories
Pakistan
1956-57
1.617
India
1956-57
1,313
Ceylon
1956
Turkey
Philippines
148
84
63
28
144
246
29
1,160
79
190
344
33
1956-57
1,900
62
138
124
168
1954-55
1,281
135
187
42
93
Japan
1956
1,391
162
138
137
82
U.S.A.
1957
667
98
485
78
181
U.K.
1957-58
847
185
548
66
122
Sweden
1957-58
702
192
451
35
102
1. Source:
Compiled by C.S.O. Quoted by
F.A.O.
[ pi.559-60Table 5-3
"
F. "
Ag. Commisioa
Report,
76
Table No.
16
Deficiencies in Non-Cereal
Foods
.:';"
:'-iif\i
Food
Minimum
Per Head
Needed
Items
.
Capita
Per Day
Per
(ouijces)
Consumption
(ounces)
Increase
Needed
Vegetables
6-0
1-58
300%
Pulses
3-0
0-8
250%
1-5
0-3
400%
Fruits
3-0
20
50%
Fish,Meat, Eggs
2-5
09
200%
Milk
2-3
250%
Fats and
One
sector
was
Oils
of the aims
of the Secoiid Five- Year
"raisingdietary standards
Plan in the
agriculture*
through increased suppliesof
fish,
fruits,
vegetables,
sugar, and livestock products."^
The Plan targets of production of such articles of diet were
to
increase sugarcane
production from 154*3 lakh tons to 208 lakh tons,
or
34%; ojlseeds from 9*35 lakh tons to' 12-30 lakh tons or 32%;'
43'58
fruits and vegetables from
lakh tons
to 4898
lakh tons or
12%; grams and pulses from 920 lakh tons to 10'25 lakh tons or
11%; and fish from 2-90 lakh tons to 3-60 lakh tons or 24%. It is
expected that these targets will be achieved by 1964-65 except in
The production of fish is expected to
the case of fruits and vegetables.
increase by 35% instead of the target of 24%.
The Third Plan (tentatively)
envisagesa further increase,over
the base period, by 34% in the case of sugarcane, 35% in the case of
of
grams and pulses,31% in the case of oilseeds and 28% in the case
fruits and vegetables.
Even
be left to
4
"
8 The
if these targets are achieved, considerable deficiency

will still
be made
up during the subsequent Plan periods.
Need
to Increase
The so-called commercial

1. The
Commercial
crops
Crops Production
(mainlynon-food-crops)
are
needed
Second Five-Year Plan (June 1960),p. 127.
The
for two
purposes:
(/)to
Sector
Agricultural
serve
as
raw
77^
materials for domestic
industries,
(") for export. In the former capacity they may help in saving'
foreignexchange (in addition to contributingto the expansion of the'
industrial sector with all its impact on incomes, employment, etc.)and
in the latter capacitythey are foreignexchange earners.
The demands
for these two purposes
in one
sion
are
sense
competing because a diverfrom export to internal consumption (assuming production to
remain
constant) reduces the country's foreign exchange earning
these demands
are
capacity. In another sense,
complementary,
because if domestic industries produce import substitutes they reduce
the pressure
for
on
foreignexchange and set free a largeramount
developmental imports.
The
relative importance of our
various
products as foreign
is indicated by the Table given below:
exchange earners
and
Table
Recorded
No.
17
Receiptsfrom Exports'
(Rs. crores)
1961-62
1962-63
Cotton
Cotton
Manufactures
Jute
Jute Manufactures
Hides
and
Skins
Tea
Wool
Other
Exports
196-47
Total
The
Table
contributed
reveals that in 1961-62
raw
228-09
cotton
and
jute together
total export earnings and in 1962-63 as

and jute manufactures
also included,
are
61-6% to our
If cotton
much
as 623%.
the percentage rises to 81-3 in 1961-62
Source: C.S.O.
and
80-3
in
1962-63. Foy
^8
lome
time after
10%
to
earned between
independence these two commodities
of our total foreignexchange. Now
they earn about the
90%
goods.
partlyas manufactured
Their importance is further underlined
by the fact that exchange
the
;arned from
than adequate to meet
these exports was
more
jntire payments
The production of
for imports on private account.
these major exchange earners,
therefore,must be increased. This is
realised by the Government.
fully
The average
annual production of jute during the fifteen years
ending with 1961-62 was 55-58 lakh bales,the production for 1962-63
lame
percentage partlyin
was
63-00
lakh bales and
bales. This
is much
1964-65 which
of 80-00
terms
production of
lakh
raw
the
for
estimates
1963-64
lakh bales. The

bales. This
points towards
for
Plan
contemplating in
Plan is
Third
lakh
6000
are
the target fixed in the Second
below
is 73-00
and
state
raw
heavy increase in
jute.
As
regards cotton, its average annual production for the fifteen

15-33 lakh
ending with 1961-62
bales, although
years
was
the figurefor 1961-62 was
increased to
18-40 lakh bales. Production
20-76
lakh
bales in 1962-63
23-70 lakh
fixed
bales. As
exceeded
our
lakh
by 78,000 bales.
increase to
meet
the
years.
Our
it Rs. 40-29 crores
But
bales. The
the
estimate
for 1963-64
exports of
in 1955
cotton
demand
has
fell from
needs
cotton
and
suffered
9-27
lakh
:rores
:rores
in 1962.
tentative
3000
more
cotton
to
is needed
is evident
figurefixed for the last year
had
from
of the Third
the
Plan
further
rehabilitate
to
only 2-12 lakh bales valued

in 1961, later improving to 422 lakh bales valued
That
at
target, thus, has alreadybeen
which
commodity
put it
Plan
Five- Year
production of
growing domestic
export trade in this
recent
the
against this the Second
target of 2299
and
setback
in
bales valued
at Rs.
10-36
Rs.
18-72
at
fact that the
(1969-70)is
lakh bales.
basicallya product of the agriculturalsector, though it

before it is ready for conof manufacture
sumption
joes through a process
sizable amount
of foreignexchange
and export. It earns
a
ind can
if more
earn
more
production is available at competitive
in 1961-62 and Rs. 1-02 crores
Rs. 2-42 crores
Tea contributed
prices.
banned
because of internal
in 1962-63. Its export during 1963-64 was
But
the long-term Government
demand
and high prices at home.
the production as well as export of this
policyis to encourage
Tea
is
79
Sector
Agricultural
The
importantbeveragewhich
demand
unlimited
has almost
and
home
at
abroad.
As
result of Government
increased from
by
76,000
1958-59
in
acres
increased from
lbs. in 1958-59
lakh
535
to
to
its exports the Government
export duty
of tea from
another
brokers
allowed
has
to
encourage
paisa per lb.
the 15
withdraw
to
up
25%
low
and
prices were
Tea
Board.
Vice-Chairman,
the
Plan
Second
is 638
1964-65 by
with the approval of the
target fixed for the year
unlikelythat this will materialise in

The Third Plan has tentatively
put the target for 1970
Raw
it
lbs. in 1961-62.
lbs. It is
lakh
or
but
seasons
considered
if the
internal auctions
25%
The
and
tea
on
with
recentlyabolished
has
tea
in 1963-64
acres
lakh
588
under
area
at 550 lakh lbs. To
estimate for 1963-64 is a littlelower
The
84,000
has varied
10% in five years. Production
over
the
encouragement,
also
wool
contributes
sizable
needs
amount
year's time.
at 790
to
lakh lbs.
our
foreign
to be increased
through raising
exchang earnings.This amount
suitable
for such
in
areas
of better quality sheep
larger numbers
activities in Pakistan, i.e. tribal areas, Quetta and Kalat divisions,
etc. Similar
the
is the
cattle,sheep and
have
4
'
with
hides and
skins which
contribute
above
country's foreignexchange earnings.Our

attention than they
goat population needs more
to
amount
same
case
the
received hitherto.
Change in Cropping Patterns
idea of the nature

of
givessome
the cropping patterns in Pakistan. Since cropping patterns differ in
the two provinces,separate figureshave been given for each.
We
area
during four-yearperiods to eliminate
average
compare
Table
the
No.
seasonal
18
on
82-83
pages
fluctuations. The
to 1961-62. It will be
1957-58
periods
seen
1947-48
are
that in East
to
Pakistan
1951-52
and
85-2% of the
with rice in the firstperiod.

principalcrops was sown
in the second period.There was
This percentage increased to 869%
an
the firstperiod or
in the second period over
increase of 10 lakh acres
under cash-crops actuallyfell by about the same
about 5%. The area
This is natural when
population is increasing,yields are
amount.
total
area
under
under
cultivation has
hardlyany
scope to increase. This is in spiteof the largerimports of rice during
is most
the second as compared with the first period.What
striking
or
more
is that
area
less constant
and
the
area
food-crops (mainly rice)occupy
about
and the provinceis stilldeficitin food.
87% of the total cropped
80
Pahistan, A Developing Economy

"ash-crops
|)rincipal
crops
occupy
about
12%
of which
about
half is under
together claim
In
the total
1958-59
of which
out
acres
about
'cropsmentioned
of
95%
cropped
239*06
the
acres
in the Table.
total
or
This
under
area
Pakistan
92%
over
underlines
only by increasing the yield per

lowest in the world, as we shall see.
he
done
is
There
diversification of
more
the situation is not
even
satisfactory
by the people, occupies just over

principalcrops. This latter area was 80%
The
1958-59.
k tendency
area
to increase.
the total and

wheat
and
rice forms
under
about
food-grains
Other
acre
cropping in
there.
for diversification
the need
cropping. But this in East

of the area
be accomplished by releasing some
Pakistan
rice. This
which
is among
the
cereal
of the total
area
cropped
of the total and

for about
account
can
Pakistan, though
the main
of the total
10%
only
can
under
West
Wheat,
40%
principal
under
of
of the pattern
lakh
25927
was
was
under
area
jute and rice

major crops.
jute. Thus
in East
area
of the total
13%
to
sumed
con-
under
area
in
shows
15%
of
10% making 25% for food-crops other than

under
proportion of the area
foodgrains
about
gram
rice. The
inferior
tespecially,
the
period,
but
80%
of the
then
even
principalcrops. The
total under
20 to
of the
21%
12%, oilseeds
first due
under
total.
about
the
cash-crops account
Among
the
and
sugarcane
5%
relativelymore
become
under
decrease
a
over
types) have shown
under
the area
food-crops is still about
cash-crops
about
important in the
development of the
second
for the
remaining
cotton
claims
4%.
Sugarcane
period than
about
has
in the
industry. The total area

both
food and non-food
increased
during the interval
crops
consideration, the latter increasing at a higher rate than the
to
sugar
former.
That
diversified in West
cropping pattern is more
Pakistan
as
to
East
is
further
indicated by the fact that the
compared
Pakistan,
left over
and above the area
margin of cropped area
under principal
crops is 20%
of the total
of the aims
as
of the
against 8%, in
East
Pakistan.
agriculturalpolicy in both th; wings of the

country should be to reduce the area
currently occupied by food and
non-food
by improving .yields.The area
thus released may
crops
be
used for producing more
furits,vegetables and livestock to enrich ths
diet of the people and make
it more
"balanced."
More
areas
is also
One
The
needed
for
cultivation
and
methods.
forests.
growing
or
soil-erosion,
old
land
the
Where
can
same
be
purpose
81
Sector
Agricultural
land
new
reclaimed
from
can
be
be
can
under
brought
salinity
waterlogging,
served
partly
by
these
Economy
82
Table
Change in
under
Area
East
Crops
Pakistan
Average
Average
1947-48 to 1951-52
000 acres
19,653
Rice
% of total
85-2
000
acres
20,776
Bajra
Xowar
Maize
10
13
Barley
82
63
203
140
Oram
Total
Food-Crops
Sogarcane
Rape
and
Mustard
20,043
86-9
21,119
269
472
536
56
48
1797
Jute
1-7
226
Cotton
7-9
1609
74
77
Sesamum
136
136
Tobacco
129
108
Tea
2,890
Total
Cash-Crops
Total
Principal
Crops 22,933
ofData; C.8.0.)
(^Source
to 1961-62
% of total
86-9
126^
93
Wheat
1957-58
13*1
1000
1-4
88-3
6-9
2,783
12-7
23,906
100-0
The
83
Sector
Agricultural
No. 18
Cropping Patterns
PrincipalCrops
487
1-9
1,015
3-6
1,118
4-6
1,315
40
2,945
12-0
3,365
11-9
56,
y
77
0-6
43'
4,649
24,443
96
19-1
100-0
5.868
28,213
[
*
0-8
21*2
100*0
CHAPTER^
of Gultivation
Extension
1 Two
Broad
Approaches
argued for the necessity of increasing

the question is: How
can
agriculturalproduction in Pakistan. Now
of approach
methods
this be accomplished? There
are, broadly, two
the
In
which
also
last chapter
have
been
we
followed
with
varying degrees of
in the
success
country:
improving the area under cultivation,

of various
for increasing the yields per acre
agriculturalproducts.
this chapter we
discuss the first approach. It
to
propose
(/)Measures
(n) Measures
In
involves
for
bringing more
under
area
in land
records
be done
facilities to
by: (a)extendingirrigation
as
"culturable
from
cultivation
waste"
and
is classified
what
This
fallow."
"current
may
(6)reclaiming
or
out
to waterlogging,salinity,
fallow
soil erosion; (c) eliminating or reducing the area
(i.e.
kept as
without
of
alternative
methods
for
the
a crop
a season) through
use
of maintaining the fertility
of the soil.
land which
'
Land
The
which
acres
new
areas;
due
it is necessary
discussing these methods
land is (being utilised in Pakistan.
total
just over
under
are
of cultivation
Utilisation
Before
of the way
has gone
waste,
56
millioit
"-acres
area
of
Pakistan
62 million
acres
forest,about
million
have
acres
not
is
are
little
under
24 million
as
have
million
cultivation. About
acres
unculturable
been
233
over
to
classified.
classed
are
wasteland
In
Table
as
and
No.
idea
an
acres,
of
9 million
culturable
about
19
83
these
Extension
classesof
area
are
shown
in the
two
wings of the country.
Table No.
Land
85
of Cultivation
19
Utilisation in Pakistan'
(1958-59)
Classification of
Land
Million
Acres
1. Forest
West
Total
8-67
Area
2. Not Available
for Cultivation
5575
% of
Total
Pakistan
% of
Total
3-21
1-6
5-46
15-8
25*3
5-61
16-2
50-14
23-9
Million % of
Total
Acres
Acres
Million
3-7
Pakistan
East
Uncultivated
3. Other
Land
(excl.Current
Fallow)
(a) Current
21-53
93
19-61
9-8
1-92
5-5
Fallow
10-97
(4-7)
9*19
(4-6)
1-78
(7-2)
Sown
51'88
(22-2)
32 00
(16-1)
19-88
55-3
41-19
20-7
21*66
62-5
(6) Net Area
4. Total Cultivated
Area
62-85
(a)+ (")
(c) Area
Sown
Than
Once
269
More
9.25
(39)
389
..
^,
,..
(1-9)
5-36
(15-4)
(18-0)
25-24
(70-7)
57-4
34-65
lOO'O
(d) Total Cropped

Area
5. Total Area
+ 3+
(1+2
6. Area
7
Not
Total
61-13
(6)+ (c)
(26-1) 35-89
Reported
148-80
4)
63-8
84-28
36-2
Reported
114-15
84-28
42-6
"
"
A.r62.
233-09
(5+ 6)
It will be
seen
that
over
1000
198-44
two-fifth of the
1000
area
34-65
of West
lOO-O
Pakistan
surveyed and classified. Most of this area presumably

of
to complete the survey
lies in the Frontier regions.It is necessary
land utilisation of this
land area in order to get a clear pictureof the
our
feature of the Table is the high
wing of the country. Another notable
has not
been
1. C.S.O.; Statistical Pocket
Book, 1964, p. 57.
86
PakistanÂ DevelopingEconomy
in West Pakistan,
particularly
available for cultivation. This is almost one-quarter of
proportion of the
which
is not
the total
This
area
in the country,
West
25% of the area of

is under railways,
etc.
roads,canals,buildings,
of the country and
area
area
be barren deserts and hills not

trees. The
over
of it may
available for the cultivation of crops and
of culturable waste
amount
Pakistan.
as
shown
Some
ed
Uncultivat-
under "Other
of extensive cultivation
Table,indicates the possibilities
through the spread of irrigationand the implementation of various
or
drainage schemes, current
prospective.Such area is about 10%
Land"
in the
of Pakistan. It is not necessary, however, that culturable

waste
be economicallyprofitable
must
to reclaim. It all depends upon
the costs involved and the value of the products that could be grown in
of the total
such
an
area
The
area.
area
under
of Pakistan. It is,however, about
only about 1J% of the total

opinion, a healthy economy
4% of
forests is less than
in
the total in East
16% of
have
must
Pakistan
According
Pakistan.
West
total
the
about
and
expert
to
total
the
of
25%
area
of the country under forests. This indicates the headway which

needs to be made in increasingthe area under this use. The total area
under cultivation includes area
under crops at a particulartime, and
area
area
which
total area
is left as fallow
during the year concerned. About

Pakistan and 7% in East Pakistan isclassed
in West
fallow. The
land is leftfallow for
fertility
through the
and
water
even
necessity,
and the
sun
not
be necessary
keep the land
to
crops,
though
it reduces
current
regain its
air. If adequate manuring
and in this way about 1 1 million

additional
But as it is, current
crops.
for
available
of the
as
time in order to enable itto
available,it would
were
free of
periodically
be
action
5% of the
the net
area
sown
in
acres
would
fallow is a
particular
year.
one-fifth of the total area in

just over
Pakistan in a particular
year is actuallyunder crops. This percentage
is over
55 in East Pakistan, because of the smaller magnitude of the
classed as "Not
Available for Cultivation,"and the absence of
area
"Area Not Reported." In West Pakistan a high proportion(42*6%) of
the area remains unclassified and again a fairly
high proportion (25"3%)
The
Table
is not
indicates
available
that
for cultivation for
one
reason
or
another.
If the
area
classified is
will be
surveyed, the proportion of net area
sown
larger,though not very significantly
so, because the regionswhich are
not yet classified are mainly arid mountains, valleysor deserts.
not
3 The
The
Need
need
for
Irrigation
for artificialirrigation
arises when
the
rainfall in
Extension of Cultivation
is either
country
87
inadequate for raisingcrops,
is
unevenly
seasonally,or is uncertain and irregular.
These
conditions
found
in Pakistan, more
are
particularlyin
the Western
Wing. In East Pakistan, 98% of the total cultivated
land depends upon
rain. The average
rainfall in the province as
a
whole
is 76 inches per annum.
It is,however, unevenly distributed
both geographicallyand seasonally.The
highest rainfall has been
recorded at Lallakhet (Sylhetdistrict),
it being 226 inches,and the
lowest at Lajitpur (Rajshahi district),
53 inches. Most
of the rain
inches
falls
within four to five monsoon
(65
on
average)
months; the
rest of the year is more
is needed
or less dry and irrigation
for crops
with West
though not on a very extensive scale as is the case
distributed
or
geographicallyor
Pakistan.
The
In
some
average annual
it is more
areas
rainfall in West Pakistan

but
in most
it is less. The
tract, for instance, is from
submontane
is less than 20 inches.

average
30 to 40 inches. But
for the
of
60%
region has less than 10 inches and 16% less than 5 inches.
In the region of the Coastal Tributaries and Desert Streams the annual
is hardly 10 inches anywhere. In the plainsit is roundabout
average
2 in some
5, even
parts. Thus, taking West Pakistan as a whole,
rainfall is seriouslyinadequate. "Agriculturewith areas
under 15 to
20 inches of rainfall is practically
entirelydependent on irrigation....
from
with over
45-50 inches that are normally secure
It is only areas
the Indus
dearth due
to
failure of rains."' But
rainfall is not
uniform.
The
even
meagre
such
areas
are
rainfall in West
not
secure
Pakistan
if the
occurs
of
soons
July to September when the monmostly during the three months
of
what
is
Pakistan
the
West
now
are
on.
major portion
Actually
It
is
desert
not
long ago.
through artificialirrigation
was
practicallya
works
about
into
have
5
'
in
the
form
of
eightyyears, that much

smiling fields. Even now
canals, constructed
of what
was
desert
during the last

has
been
turned
major portion of this wing, as

is arid wasteland. The limitingfactor is water.
already seen,
Methods
Irrigation
the
we
in Pakistan
found in the Indo-Pak

nent
sub-contiirrigation
have been classified as: (i)Canals, (h) Wells, {in)Tanks
and
Pakistan well-irrigation
In West
is found in the
(/v)Other Methods.
and Rawalpindi divisions of
old northern districts mainly in Lahore
The
usual methods
1. O.H.K.
Q95V.P.5Z.
of
Spate, India and Pakistan
"
A General Regional
Geography, Metheun
88
Punjab. Tanks
old
method.'
main
hardly of
are
the
In
old
importance. Canals
any
Baluchistan
and
(Quetta
area
the
are
Kalat
known
karez
is in use.
as
In East
Pakistan,
divisions)a method
is not very important. Some
is
as alreadynoted, irrigation
irrigation
carried on through overflow
of rivers into channels and a few canals
are
under
way.
The
average
well
be
may
Kutcha
area
a
Pukka
it is a
when
one
commanded
well
According
expensive as canal. "^
as
if crops
only
or
to
like
are
grown
first-class
or
sugarcane,
when
well
enterpriseby
undertaken
for extensive
with financial
or
earth. Wells
are
12
Wells
masonry,
vegetablesgrown
or
quite expensive
economic
an
are
acres.
is six
Spate, "well-irrigation
or
seven
proposition
markets,
for urban
cereals,provided the soil is also good. The
is that wells
advantage of well-irrigation
individual
is about
it is bricklined
hole in the
mere
to construct.
times
by
be constructed
can
of small areas,
owners
regions by
the
through
while canals have
State
or
similar
some
to be
body,
available for
long-term investment. Moreover,

no
of waterhence
logging
danger of over-irrigation,
and salinity,
the twin menaces
born of canal irrigation,
we
as
resources
with
wells, there
shall
see.
To
get
the most
pumps
water
greater use
out
tube-wells
but
of the wells, several
in West
common
and
is
only on
Pakistan
is the
types of lifts
Persian
wheel.
are
used;
Oil-driven
also coming into

are
(using oil or electricity)
largerholdings.There are practicallyno wells
in East Pakistan.
channels,and
worth
direct liftfrom rivers,etc. But a method
cular
mentioning in partiis the karez which is of Persian originand is widely used in the
constructed
These
"tunnels
Baluchistan.
are
former
by connecting
lines of shafts sunk in the great fans skirting the hills,sometimes
often collectingthe sub-soil water."^ The
tapping a spring but more
great advantage of this system is that the loss of water in evaporation
of the disadvantages of canal irrigation)
is avoided.
(which is one
"Other
Methods"
1. In 1961-62
area
include
irrigatedin
West
temporary
Pakistan
by
dams
different
and
sources
was
as
under:
Extension
Under
favourable
89
of Cultivation
conditions,a karez remains
productive for
long
time.
Canals,being the
important method
of
in Pakistan,
irrigation
need to be considered in detail. Canals in Pakistan are, broadly,of two
kinds: (a) Inundation
Canals, and (b) Perennial Canals. Inundation
to rivers in the flood plains.
canals are mere
cuts running parallel
They
fillwith water when the river rises;otherwise theyremain dry.They may
most
needed. Perennial canals are

thus fail at the very time when most
commanding large areas.
They give an
by elaborate headworks
flow of water.
They, however, have
is that the headworks
obstruct
valuable
of silt into
even
of them
disadvantages.One
some
the flow
fed
the fields which
of
is lost,
fertility
which is particularly
important in a country of inadequate manuring.
Moreover, canals have created the twin problems of waterlogging and
salinityto which we shall return later in this chapter.
this way
gets trapped. In
source
Irrigation
DeTelopment Pre-Partition
shall confine
In tracing the history of canal construction
we
and leave out the rest of the subourselves only to Pakistan
areas
continent.
The firstefforts of British engineers under the East India
the improvement
of old existing
directed towards
were
Company
5
"
"
Canal
indigenous works. In the Punjab area the Upper Bari Doab
Hasli
Canal
which
had
old
carried
the
waters
to Lahore
replaced
the
In
olden
in
and
in
Sind
old
days.
Punjab again
some
(and Amritsar)
inundation
works
were
improved, e g. Begari Canal and Fuleli Canal.
The second stage was canal construction through privatecompanies.
Under
this system
no
third stage
The
canal
constructed
was
the
was
construction
in Pakistan
of
areas.
productive irrigation
through funds raised by loans. The Sirhind Canal

by Government
Lower
Swat
the
Canal in the North-West
Frontier
in the Punjab and
constructed
this
Province region were
during
period which comprised
works
the last two
fourth
The
in the
inches
of arid
per
tracts
This
and
and
at
In
the
1880,
with
desert
sheep
century.
the construction
was
waste
annum.
tribes of camel
waste
stage
Punjab.
former
consisted
of the nineteenth
decades
the
greater portion
rainfall which
area
was
time
varied
Canals
of the
from
Punjab
5
to
15
sparselypopulated by nomad
graziers.In order
same
of Colonisation
to
open
up
elsewhere, the Government

highly populated areas
wi^ste an4 epibarked
WnplaimQd }^n4s as Crowo
took
pn
of these
some
to relieve the pressure
on
over
land in
these
scheme
of
^^
Pakistan,A DevelopivgEconomy
colonisation.The country
liand,subsequentlystandardised
settled members
25
at
into squares of
On this land were
divided
surveyed and
was
each.
acres
tribes from the old districts.

agricultural
in
Eightyper cent of the land was given to small peasant-proprietors
lots of from 1 to 2
and improved villages
each. Soon
new
squares
and populous towns like Lyallpur
turned,
grew up and the desert was
within a few decades,into smilingfields of wheat, cotton
and sugarcane.'
The
of the various
first colony canals
Sohag taken out of the Sutlej

The
Ferozepur(India)and the Sidhnai Canal (Multan district).
former was later absorbed
into the SutlejValley Canals. These were
Followed by the Lower
created the Lyallpur
which
Canal
Chenab
colony.It is one of the largestand most successful and remunerative
canals of the country and irrigates
2"5 million acres
annually.
famine
protective works
During the next and fifth stage some
India. In Sind, however,
is now
were
constructed
mainly in what
were
the
below
important works
two
lamrao
and
undertaken
were
the Western
taken from
Canals
Nara
under
this scheme, i.e. the

of the
the left bank
Indus at Rohri.
(1901-03)
appointment of the Indian IrrigationCommission
the result of the
the next important step. This Commission
was
was
undertaken
of productive and protectiveworks
during second
juccess
Commission
lialfof the nineteenth century. The
reported in 1903
ind laid down
selection,financing
a definite policy regarding "the
of
As
works."
a
of
canal
and maintenance
result,a large number
The
new
works
First Great
Canal
were
War
in 1914. The
Project in the Punjab

Jhelum, Upper
of the Upper
most
and
1905
between
undertaken
important of these
(1905-17).This
Chenab
and
led to
Lower
of the
the outbreak
the
was
Triple
the construction
Bari Doab
Canals.
in the Chej Doab

Upper Jhelum Canal irrigates350,000 acres
and Jhelum) and dischargesinto the Chenab
[land between Chenab
at Khanke.
the Lower
Canal
above
Chenab
(1887-92) headworks
The
2'5 million
Chenab
The
acres.
Lower
irrigatessome
upper
taken
be
the
freed
thus
to
of
the
Chenab
waters
were
Upper
up by
to irrigate
Canal. This canal, after supplying water
Chenab
650,000
Doab
in the Rachna
(land between Ravi and Chenab) passes its
acres
the Ravi by a barrage 500 yards long. This
remaining water across
The
1. For
details,see
M.
L.
Darling, The
Punjab Peasant
in
Prosperityan(f
feeds the Lower
Bari Doab
91
of Cultivation
Extension
Canal
is called the
in what
Ganji
Bar
This system thus linked up the

districts).
and Ravi rivers. During this period,work on
Jhelum, Upper Chenab
of
Lower
also completed. Most
Jhelum
Canal (startedin 1897) was
of the
the other works constructed following the recommendations
in present-day
famine protectiveworks
were
IrrigationCommission
India. In Pakistan,however, the Upper Swat Canal was opened in 1914.
became
After the inaugurationof the Reforms
of 1919, irrigation
now
a (Reserved) Provincial
subject.The Provincial Governments
possessed much larger initiative in the construction of canals. They
(Montgomery
had
and
to obtain
Multan
the sanction
of
only if
the
Secretary of
State
lakhs. Loans
could be taken
for other
Famine
works.
Insurance
Due
Grant
not
cost
more
was
and
of the
than
Rs. 20
only for productive works
also
the Provincial
be utilised from
also
but
requiredfor famine relief.

new
(1914.18)period of prosperitymany
launched.
Several important works
were
when
the post-War
to
estimated
could
Money
of India
the Government
it
not
was
irrigationschemes
were
of them
deserve
completed during the decades that followed. Two
specialmention so far as Pakistan is concerned, (i)The SutlejValley
estimated to irrigate
Works
in the Punjab, completed in 1932-33, were
area
an
of 5 million
Rs. 33*31
in 1932
Rs.
was
acres,
24
crores.
utilise the spare water

commands
Jehlum, and
in the Chenab
The
1"5 million
acres.
The
reasons;
cost
was
opened
of these
the Haveli
Canal
its junctionwith
river below
postponed for financial
was
canals in Sind
Barrage and
to
to
proposed but
Their total cost
55 million acres.
irrigate
Another
projectcompleted was
estimated
were
all in Pakistan.
Sukkur
(h)The
crores.
not
Thai
it was
Project was
resumed
after
Partition.
5
'
Development after Partition (1947-55)

Irrigation
policy of extending irrigationfacilitiesin

Pakistan was
more
which
vigorouslypursued. Two types of projects,
started:
have bearing on irrigation,
were
(a) multi-purpose projects
land
reclamation
and generationof electriat
aimed
which
irrigation,
cal
through water-power; (b) purelyirrigation
projectsin the
energy
tubewells.
canals
and
of
form
barrages,
Pakistan
two
In West
multi-purpose projects were
started:
After
Partition
scheme
(i)The Warsak
cost
1960
of Rs. 26"7
at
the
the
crores.
end
of
was
commenced
This Scheme
the
period
of
in 1949 with
was
the
total estimated
expected to be
First
completed in
Five-Year Plan, but
92
Economy
1955
completed in 1961. By March
(beginning of the Plan
and
had
been
this scheme
period) only Rs. 3*1 crores
spent on
substantial progress
had been made
thus no
by that time owing to
change in plans and delaysin arrivingat important decisions.' (") The
was
Garhi
Kurram
Scheme
was
started
in 1950 with
an
estimated total cost
only Rs. 183 crores had been spent by

1955. This scheme
March
was
expected to be completed in 1958.
of
due to similar causes
under (i)above. None
as
The delay was
these schemes, therefore,yielded any results during the periodunder
of Rs.
4'34
of which
crores
consideration.
were
regards purely irrigationprojects,several of them
estimated
started during the period under consideration. Their total
As
cost
to
came
Rs. 1468
crores
of which
Rs.
6272
crores
had been spent
Thai IrrigationScheme
projectswere
started in 1939 but suspended and revived after Partition),
(originally
Sind
Mohammad
called Kotri or Lower
Ghulam
Barrage (originally
Balluki-Sulaimanki
Link (1948),
Barrage, started in 1947),Bambanwala
Link (1953),
Barrage Project(1953),Marala-Ravi
Link (1951),Taunsa
Scheme
1944
Tube-well
but
(startedas early as
continued),
the Rasul
and
1946
T
here
neous
miscellaCanal
were
some
(started
revived).
Abbasia
schemes as well. With the exception of a
and minor irrigation
presently,most of these schemes achieved no
few to be mentioned
extension and land reclamation during
results in the way of irrigation
to be available during
the period under review. Their results were
1955
the First Plan period and after.Actual results achieved by March
and reclaimed area
770,000 acres
area
185,000 acres.
irrigated
were:
of
due
Thai
to
was
irrigation
Irrigation
Project(410,000
The extension
acres),Abbasia Canal Project(73,000acres),miscellaneous irrigation
schemes (134,000acres),
schemes
(153,000acres)and minor irrigation
Thus the results were
with the exception of one.
produced either by
schemes
started
which
had been
or
short-term minor
by schemes
before Partition. This is quitenatural because major projects,
even
Added
to this were
some
normally, take a long time to mature.
in
diflBculties the way of procuring equipment and delaysin making
unavoidable.
decisions not necessarily
schemes
In addition, some
short-term
started between
were
by March
1947
and
bi West
1955.
1953
Among
these
in the Coastal
Pakistan
at
Tributaries and
total cost of Rs. 72

1. First Plan, op.
Desert
lakhs. With
364.
cit.,p.
Stream
Region
the exception
Extension
of the Bolan
9S
ofCultivation
Project (cost Rs. 47 lakhs) which was started in

1953 and was stillin progress
1955, the others had either
by March
been completed or abandoned
during the period under consideration.
Those completed resulted in increasingirrigated
area
by 8,200 acres.
These schemes were
60,000 acres.
designed ultimatelyto irrigate
In East Pakistan
started in
small irrigationschemes
were
some
1953 of a nominal
stillin progress
cost of Rs. 6 lakhs. They were
in March
ever,
1955. Important multi-purpose development projects,howhad
been
Project (1952), Teesta
started,i.e. the Karnafuli
Barrage Project (1953) and Ganges-Kobadak Scheme
(1953). Their
total estimated cost was
of which only Rs. 3-76 crores
Rs. 59-87 crores
had been spent by March
1955, when all these schemes were stillin
progress
and
Dam
no
results had yet been
achieved.
purpose
Thus, taking Pakistan as a whole, the total cost of the multischemes
completed or in hand during
projectsand irrigation
the period 1947-55 (beforethe start of the First Five- Year
Plan) was
had been spent by March
Rs. 238 crores, of which Rs. 720
crores
1955. Of this total the estimated
expenditure on projects of East
5993
Pakistan (almost entirelymulti-purpose)was
acres
(or 25% of
of
been
March
1955.
spent by
total) which Rs. 378 (or 5%) had
multi-purposeprojectwhich was Rs. 91

(or 66%) was the cost of projectssituated
crores, about Rs. 60 crores
extension
is very limited
in East Pakistan. Since scope for irrigation
such projects(i.e.
in East Pakistan, of the total to be spent on
for East Pakistan
meant
amount
Rs. 147"6 crores) a negligible
was
Rs. 6 lakhs).
(i.e.
During the period under discussion,as a result of the irrigation
of land were
and multi-purposedevelopment projects,778,200 acres
On
the total estimated
cost
in
broughtunder irrigation
in the Indus
Basin and
of
West
8,200
acres
of which
Pakistan
in the
770,000 acres
were
regionof Coastal Tributaries
addition,185,000 acres were reclaimed through

and miscellaneous
irrigationschemes. There
general reclamation
in East Pakistan during this
addition to the irrigatedarea
was
no
period; through small schemes connected with drainage (total cost
1955 Rs. 1'73 crores)423,000
Rs. 233 crores, expenditureup to March
the total additional
reclaimed in this wing. Thus
of land were
acres
drained and reclaimed in Pakistan during the period
area
irrigated,
and Desert
1947-55
was
Streams.
In
386,000 acres.'
1. All these statisticshave been
taken from
the First Five-Year
Plan.
94
view
of the
tacular
large expenditureincurred,this is not a specincurred
result. But, as already noted, most
the
of
expenditure
with
was
on
major projects
long gestationperiods. Their results were
expected partlyto be available during the period 1955-60 and partly
In
afterwards.
5
"
and Reclamation
Irrigation
beginning of the First Five-
during the First Plan Period
7 Progress of
(1955) the total

irrigatedarea in the country was 22'7 million acres, being 37% of the
total cultivated area of 61 million acres.
By 1960 the total irrigated
had reached 24 million acres, recordingan increase of 1"3 million
area
At
the
Year
Plan
improved
period. In addition to this, areas
increased
by
through drainage,flood regulationand regulatedsupplies
2*57 million acres
period.The actual achievements,
during the same
however, fell considerably short of the Plan targets as the following
acres
the
over
Table'
Plan
indicates.
Table No.
20
and Results
Programme
Irrigation
(Thousand acres)
Results
Programme
Region
East Pakistan
West
New
Improved
New
100
1,819
58
1,453
3,544
...
Improved
562
Pakistan:
Indus
Basin and
Regions
Coastal
Stream
tier
Fron...
1,000
1,998
and Desert
Regions
Total
1,671
...
It will be
seen
of East Pakistan
48
118
5,411
that the shortfalls
than West
Pakistan
were
and
10
24
1,082
were
2,570
greater in the
much
case
particularlyheavy in
the targets for
improvement.
achieved
Similarly,limited results were
saline soils and drainage of waterlogged areas.
the
to be reclaimed
350,000 acres
partialreclamation of 170,000 acres
of
1. Source:
The Second
in the
reclamation
of
against the target

actual achievement
was
only a
(lessthan 50% of the target).
Five-Year
As
Plan, op, cit.,p. 197.
Extension
Further, the Plan aimed

Actually only a small
of Cultivation
95
lowering the water-table in 150,000 acres.

had its water-table lowered.
area
Further,
while the target of the Plan was to construct
1,500 tube-wells,actually
sunk. Even these were
not
only 1,000were
put into operation due to
at
lack of electric power.

the whole, it may
of
substantial measure
be
during the
period
achieved in the implementation
success
was
a
of multi-purpose projects like Karnafuli
Hydel Scheme, GangesScheme
of East Pakistan, and
Warsak
Kobadak
Project,Kurram
Garhi
Several
Pakistan.
Scheme, Taunsa
Barrage, etc., in West
like Gudu
and Kotri
schemes, however, failed to be executed speedily,
in flood
Pakistan. Moreover, progress
Barrage Projects of West
abatement
and waterlogging and salinitycontrol was
disappointing.
In the words of the Second
Plan, "Experience during this period
underlines the prime importance of careful preparation of projects,
of
sound appraisal of real cost and benefits and of careful assignment of
of the pattern of investment.
Such
prioritiesand determination
comprehensive preparatory work was in many cases lackingin the past,
because of absence of detailed surveys, investigations
and statistical
On
data."'
The
result
of
wastage
was
said than
scarce
First Plan
resources
like
finance,
materials and
strategic
technical man-power.
instances costs
"In some
grosslyunder-estimated and returns over-estimated. In a number
were
of
co-ordination
cases,
projectwas
The
between
the
various
phases of the
same
effected."^
indiflferently
First Plan
had
recommended
that in each
Province
semi-
body should be established for water and power development

the general control
the
of
Government, but with the
initiative and flexibility
of privateenterprise.Accordingly, a Water
and Power
Development Authority was created for each wing, for
autonomous
under
West
Pakistan
in 1958
and
for East
of these institutions
with
Pakistan
in 1959. The
ment
establish-
of
simplification
along
sanctioningand
and
creation
of a
improvement
budgeting procedure
Project
Division was expected to lead to a more
efiFectiveimplementation of the
of
Second
5
'
Plan in this connection.
Programme of the Second Five- Year Plan (1960-65)

Irrigation
of the Second
irrigationand land reclamation programme
The
Five- Year
Plan
1. Second
2.
Ibi(^,
included
number
Plan, op. cit.,p. 20}.
of
major and
minor
schemes.
96
Major
of
and
schemes
largeareas.
pumping
estimated
to be
were
and protection
completed for the irrigation
of small drainage,flood regulation,tubewell
A number
schemes
that
as
also
were
benefit extensive
to
result of these schemes
24 million
It
tracts.
of
acres
was
land
new
will be
ing
and another 7'1 million acres
improved through lowerirrigated
assured
of water-table,salinity
water
ing
control and
supply. Accordallocations (revised allocations being not availto the unrevised
able)
Rs. 79 crores
be
to
on
spent
were
multi-purposedevelopment,
Rs.
22-88
Rs.43'73 crores
on
on
crores
irrigation,
drainage,reclamation
flood regulationand only Rs. ll'O
and tube-wells,
Rs. 31 02 crores
on
canals. This constituted 60% of the total public expendion
crores
ture
of Rs. 314 crores
provided for water and power development
This
less
in the original Plan.
Rs.
100 crores
than
the
was
sector
in the Revised Plan.
In
provisionfor the water and power
East Pakistan the bulk of the expenditureunder this head was
to be
while
incurred under multi-purposedevelopment and flood regulation,
and land reclamation
which had to
in West Pakistan it was
irrigation
receive
There
greater attention.
irrigation
compared
the programme
First
the
to
Plan
decrease
was
because
the
in
allocation
major
to
in
schemes
alreadynearing completion.'
provisionwas also made in the privatesector for tube-wells
and percolationwells and other small irrigation
projectsby landlords.
than half of the provisionfor the single-purposeirrigation
More
schemes alreadyin progress
the
projectwas earmarked for irrigation
Kotri, Gudu, Taunsa, Thai and Warsak
Projects. It was expected
that with the completion of these schemes
by 1965, 1*88 million
area
would be added to the irrigated
mainly in West Pakistan,
acres
of which
would
be covered
million acres
144
by schemes already
under way and 740,000 acres
schemes.
It is likelythat these
by new
were
Some
"
targets will be achieved.

5
"
9 Floods, Their
The
Causes
between
range
the rivers of Pakistan

Its
creates
in winter
the twin
Control
the
maximum
at
summer
is
problems
and
wide. Take
is very
peak discharge in
the minimum
and
low
as
as
17,000
of scarcity of
already given attention to

and possibleremedies
causes
the
the river
Kalabagh
former.
water
of floods will be
}. Second
discharge of
minimum
Indus, for instance.
is 900,000
cusecs.
and
few
Such
words
while
behaviour
floods. We
in order
cusecs,
about
have
the
here. Floods
Extension
have
become
97
of Cultivation
particularlyin West
frequent io recent
years,
not
where they were
so
common
previously.Effect of the
But its eflfects
long-term meteorologicalcycle may be the basic cause.
are
accentuated by the followingfactors:
of
(a) Progressive denudation
hilly catchments.
During
World
War
timber
when
could
forest
not
be
II,
areas
imported,
were
of
for
timber
trees
stripped
procuring
domestically.This process
is stillcontinuing because of the increasingpressure of population on
land
and
the need for fuel. There
have
also been
overgrazing
by goats and other animals and removing of vegetation in the hillsides.
The
is that the rain-water, instead of being at least
result
soaked into the soil,runs
down with great force,thus causing
partially
very
Pakistan
soil-erosion
streams
on
the
hand
one
and
flow
excess
the river and
into
the other.
on
(6) The
second
rivers increases
result of
this is that
the
silt content
the
of
they pass through the plains and their flow

slows down, it gets deposited in the river-beds,which are thus raised.
Rivers thus begin to flow on
ridges higher than the adjoining fields
which can be easilyflooded with rise in the water-level at the time of
heavy rains.
and
as
(c) This situation is further accentuated by artificialbarriers in

the form of canal headworks, railwayembankments, roads and bridges,
which
obstruct
neighbouring
by the
away
been
When
areas.
of
pressure
successive
years,
1954
wholly damaged, amounted

agriculturalproduction was
crores.
time due
For
December
Nations
resources
to
the latter
water,
further
causes
1956, the rice
to
million
8'3
to
million
1"717
has also suffered
Pakistan
West
flood
washed
are
damage.
the country in recent

years have
alone, it has been estimated that
to
Pakistan
East
In
enormous.
force and
raise its level in the
obstructions
such
accumulated
by floods
losses caused
in three
the
and
water
of
some
with tremendous
rushes down
The
of the flood
the flow
partiallyor
area,
The
acres.
valued
tons
loss
Rs.
at
losses from
enormous
in
46'8
time
to
floods.
East
Pakistan
1955 and
Water
Control
Flood
Flood
Control
Mission
basin-wide
Commission
Board
studied
development problems
Pakistan Flood
Commission
of
was
in June
the flood
this
wing
established
1956.
control
created in 1957 to prepare an

was
flood-control plan. So far no flood-control
United
and
in 1956-57.
in
water
West
ed
integratmeasures
^5
have
of
been
adopted in either of the wings of the country
adequate
The
for
(original)provided
already under
In
East
the
In West
built both
floods and
the
Indus
these
But
be
must
caused
by
method
had
to
floods
almost
been
reservoirs
Even
raise
to
have
to
in the head
measures
which
Further,
they
also
may
be
These
the
provided
the
backed
of
consist
soil to
be taken
to
obstruct
Further,
of
to
be
were
of this
past
by
common
reservoir
control.
aff"orestation,
improved
of
erosion
and
the lower
at
free flow
the
grazingand
reaches
These
of water.
in the embankments
to
of the rivers
include
of
removal
channel
various
the
openings
Suitable
release the pressure
of flood
system
timber
floods.
encourage
forecastingand warning
evolved
to reduce
the flood damage as far as possible.
5
10 Waterlogging and Salinity
water.
have
These
supplemented by large-scaleconservation
waters.
need
which
opening
river banks.
on
not
are
In
now.
year
accentuating the flood levels.

improvements, river training and gradual
barriers
in
help in the solution
also
may
avoid
to
on
allocation
structures
permanent
embankments
be
expose
measures
total
consists
practicesand prohibition or control

agricultural
extraction
spent
The implementation
provide irrigation.
every
because
proved eflFective,
not
be
to
were
crores
some
measures
long-term plans. In the meantime
limited
to
a
reduce, even
extent, the damage
are
taken
31 02
mainly consists of replacement works.
it
problem, though
crores
mainly
Pakistan
Treaty'
Basin
of Rs.
sum
four-fifths of the
work
congested channels.
of
5'64
Pakistan.
Pakistan
to control
Rs.
About
way.
be spent in East
to
were
Plan
regulation, of which
schemes
lack
to
basic data.
Second
flood
due
must
of
be
"
The
lack
Pakistan
These
has
have
of
eff"ective drainage in
resulted
in the
led to deterioration
surroundings. In the canal

land
about
or
salinityand
50%
1. A
India
and
of the
signed
of
the consequent
of West
areas
irrigatedarea
Pakistan.
India
treaty between
in 1960.
Chenab,
It
Jhelum
evils of
gives
and
replacement works
To
and
Indus
of the soil and
waterlogging and
cultivation in West
and
twin
region of West
waterlogging and salinity.
the
Indus
right of
to
have
about
of unhealthy
12 million
acres
of
already been affected by

acres
have
100,000
acres
gone
are
out
of
being
pute
settlingthe long-standing water disand Ravi _to
of Sutlej, Beas
waters
Pakistan, and provides for financing of
Pakistan
the
Pakistan
million
these
creation
in Pakistan.
added
annually.It
problem and is causing

people. Large areas in Gujranwala,
ihus beco
has
99
of Cultivation
Extension
tie
serious
and the
anxiety to the Government
Sbeikhupura, Lyallpur, Shahpur, Jhang, Multan
and
Muzaffargarh
Punjab province and part of what were Upper Sind

and Khairpur State (now Hyderabad division and Khairpur division
is increasing
are
already waterlogged, and this area
respectively)
districts of the old
annually.
Waterlogging and salinityin
in the water-table. This in
have
areas
to
of
been
lack of proper
effects of
(/) saturation
forms:
in two
the
the
due to the rise
drainage and
rise in water-table
soil, locally known
as
of the water
on
affected areas, the appearance
of salt in
of jheels;(ii)concentration
formation
and
sem,
is due
turn
The
over-irrigation.'
continuous
appear
these
in worst
surface,and
upper layersof
the
survive. This
is
soil,thus making it impossiblefor the plant
the
the
roots
thur.
as
locallyknown
The
remedies
usually suggested for this phenomenon are pumping
methods
of
other
tube-wells
and
out of water
drainage,proofing
by
closed
of canal-beds
of
and obstructed
out
by concrete, opening
and
drainage,replacingcanal-irrigationby well-irrigation
prevention
of over-irrigation
of
force the
the
to
by changing
supply,
system
As regards pumping out
cultivator to economise
of water
water.
by
The
this
for
tube-well
tube-wells,
projects were
designed
purpose.
First Plan made
of
construct
Rs.
69
to
crores
2,200 tubeprovision
and Chaj Uoabs
the excess
wells in the Rachna
to pump
out
water
to
from
the
almost
sub-soil and
complete
but due
so
throw
far
it back
into the canals. This scheme
the construction
as
to lack of electric power
of tube-wells
the
tub-wells
cerned;
con-
was
could
was
not
be
fullyutilised for their originallydesigned purpose. The Second Plan

for sinkingtube-wells
made a further provisionof Rs. 4 crores
(original)
in
other
even
not
suitable
if the
As
areas.
enormous
expense
affect the channels.
proofing of canal-beds by concrete,

this remedy could be met, it would
to
of
There
are
many
difficulties in the
way
of
involve
the
this may
introducing effective drainage. In some
cases
re-making of the whole canal. As regards replacingcanal-irrigation
the subsoil
where
this would be very expensive,even
by well-irrigation,
is good enough and easy of access.
of solving
The
water
cost
1. A
rather
more
recent
inadequacy of
than sink down.
view
is that the
for
cause
of
salinityis
not
over-irrigationbut
the salts to rise up rather

irrigationwhich causes
Food
and
(See Report,
AgricultureCommission, 1960, p. 45.)
water
iOO
Economy
this problem
a
method,
where
has
eflFectively
however, may
been
be
estimated
regarded
at
Rs.
worthwhile
2,500 crores.' Such

in certain localities,
the
danger is most imminent.

one
waterlogging is caused
remedy
by over-irrigation,
is the prevention of over-irrigationby changing the
system of
the
Under
water.
supply and to force the cultivator to economise
occurs
present system of supply, it is estimated that over-irrigation
to the extent
alone.
30
in
the
wheat
of
to 40%
of a crop like
case
The charge for water
is made
not
used, but
according to the water
according to crops watered. Moreover, the supply is uncertaia and
the cultivator naturally tries to irrigate
A system
as heavilyas he can.
of irrigation
should be evolved which should, firstly,
ensure
a regular
needed by him,
supply of water to the cultivator of a certain minimum
that
for which a flat charge should be made. For any additional water
he may
need, he should be made to pay a charge which increases as
his demand
This should be according to the volume
of
increases.
additional water
used by him. This will result in his making all efforts
Since
to
water, and
economise
put it to the best
results: firstly,
a more
wholesome
in West
water
to
Pakistan
efficient use
use.
of
This
will have
a scarce
resource
two
like
and, secondly, prevention of waterlogging
also
should
Other
over-irrigation.
measures
be taken to economise
water, because, as has been pointed out by
the First Plan, "at present only 50% of the water diverted at the canal
headworks
reaches the fields,the rest being lost in evaporation aod
"2
All methods
percolation.
aiming at economising water, therefore,
will, apart from
reducing the incidence of waterlogging,enable
intensification of agricultureon
the presently irrigated lands or
but not irrigatedby
expansion of cultivation in those commanded
extensive study of
existingcanals. The First Plan recommended
an
the problem in order to evolve methods
to reduce
the water
losses to
which
results
the minimum.
from
time
Some
back
U.S.
Scientific Mission
headed
by Dr.
to solve it.
problem and made recommendations
The Government
policy is being guided by these recommendations.
The
of the West
Pakistan Water
the responsibility
problem is now
of
More
this presently.
^nd Power Development Authority (WAPDA).
Weisner
studied the
1. Second
Plan.
op.
cit.,p. 209.
2. Plan, op, cit..p. 364.
Extension
5
1 1 Anti-Erosion
'
Soil-erosion
of Cultivation
101
Measures
implies washing
of
away
surface
the
soil either
through river floods or excessive rains in ths hills. The rivers might
bring cultivated land under its sweep or may throw a thick layer of
sand over
it,thus making it unfit for cultivation. Surface-erosion
also
may
be
caused
rains
heavy
by
in
that
areas
have
been
not
embankments.
properly protected through the construction of
Erosion may also take place through the action of the wind.
Soil-erosion in Pakistan
in the arid
the
parts of West
force of the torrents
on
the
plateau lands and
barren
of East
is thus found
in the deforested
flooded
parts of river valleys,[n
the
Pakistan, in spite of scanty rainfall,
is great. Same
is the
case
with
the
Pakistan,where rainfall is excessive. Wind-erosion
the wind
hill-sides
side of the hills in Baluchistan
hillytracts
is
common
areas.
According to one
investigationmade some
years ago, in certain
upland districts of West Pakistan (Rawalpindi,Campbellpur, Gujrat,
of 14'7 million acres
Mianwali, Shahpur and Jhelum) with a total area
1*75 million acres
revealed
were
as
(halfunder cultivation),
as much
as badlygullied
by soil-erosion. Most of this area was classed as "forest,"
"cultivable waste," "unculturable"'
There
other
are
Ghazi
Dera
in Dera
areas
and
various
in the records.
Ismail
in
Khan, Muzafl'argarhand
Quetta and Kalat divisions
Khan,
require attention.^
160 million acres
in West
According to the Second Plan, over
Pakistan suffer in varying degrees from wind and water-erosion. 3
due to several causes:
Soil-erosion may
occur
(/)Due to cutting
tracts
which
of trees
been
and
deforestation. In Attock
or
from
removed
the
Jhelum
of the Swan
banks
trees have
districts,
stream
and
the land has
vegetation which exposes land

by increase of population,
to wind and rain. This
may
grazing,especiallyof goats.
animal. {Hi) Uncontrolled
human
or
become
barren,
(h) Due
to
removal
be
of
caused
Grazing does not let the grass flourish and leads to denudation
effect.
Cultivation on hill slopes also has the same
soil, (iv)
1. R.
etc.
read
M.
Gorrie
before
(Conservator of Forests, Rawalpindi), Paper
U.N,
Scientific Conference
on
Conservation
on
and
Water
of the
Control,
Utilisation of
Resources.
2.
Enquiry Report,
Agricultural
p, 168.
3. Plan. op. cit.,
p.
"
12.
^,
102
Pakistan,
DevelopingEconomy
The
following remedies are

(a) Replanting trees.
{b) Buildingof embankments.
of land.
(c) Reclamation
{d) Control of grazing.
The
evil in
Government
the
usually suggested
pre-Partition Punjab
was
to
this evil:
meet
serious
so
the
that
Deparment for the purpose

arrestingthis process. The Forest Department also helped in the
reclamation of land. As far back as 1928, the Royal Commission
on
that
Agriculture' had suggested
protective measures
against soilhad
to
create
an
Anti-Erosion
of
erosion
should
in 1937
of the view
was
The
conditions
that such
latter view
be
to
seems
through planting of
Department
in his famous
under
which
areas
ban
the
Digging
of
on
obstructed;the
be
can
in
sown
can
be used
The
is forbidden.
to
anti-erosion
only eightnew
include
be
of
Royal
2. J.
in tbe
problem
on
in
making
flow
of grass
is
and
of
Work
conserved
Thus
water
quite early but

three-year pilot project
pindi,
Gujrat, Jhelum, Rawal-
the
scheme
was
further
upland districts for providing
of the
First
Plan
period, however,
had been opened. The main difficulty
work
of
small
were
Agriculture,Report,
the
themselves.
realised
1958
in the
areas
progress
on
nance
Ordi-
an
the water
Seeds
earth.
was
In
By the end
Russell, Report
(1937),p. 57.
Thus
by the cultivators
This
flowing down.
fifteen areas
Commission
exists
Pakistan.
consists
is useful. This
Mardan.
demonstration
the
Voelker
law
of West
areas
built
the
and
measures.
impeded
Research
the
channels.
these
prevented from
for irrigation.
Campbellpur
1.
by
Dr.
recently issued
has
serious steps were

taken only iri 1954 when
a
initiated covering the affected districts of
was
which
the
successfullyplanted
be
in certain
trenches
can
seriousness
expanded
sibility.
responwith
trees
by
1893
as
cannot
Government
be
can
back
goats
gets absorbed
water
wild
and
slopes at small distances.
the
Embankments
water
State
against grazing either partiallyor
closed
raisingof goats
of contour
channels
trees
be
can
seasonally. The
or
shrubs
Report. Trees, however,
grazing of cattle, sheep and
to
be
in accordance
more
suggested as far
was
unless
wholly
should
measures
RusselP
Sir John
in this country.
Proteciion
Forest
privateco-operativeeffort.
be left to
p.
holdings, weak
80.
the Imperial
Council
of
Agricultural
Extension
financial position of the
machinery
and
trained
103
of Cultivation
farmers
and
personnel. The
delays in gettingthe necessary

Plan provided for the
Second
completion of the projectsalready under
startingof tions
operaeach
on
area
eight demonstration
being 15,000 acres.
areas,
"The
work
in these areas," in the words
of the Plan, "will include
soil,agronomic, range, forestry,engineering and other surveys and
land
capabilityclassifications;
preparation of
plans and
sub-catchment
of broad
field applications;construction
diversions and
and
way
working
based level terraces;
water-spreadingdevices, and contour

tillage;development of water disposal systems, ponds, waterways,
of
and agronomic and
cultural conservation
practices."'A sum
Rs. 16 crores
was
provided for this purpose.
5
"
12 The
bench
terraces;
Pakistan
West
Role of WAPDA"
development of water
(a) provision of better and
resources
are
mainly directed towards
additional irrigationfacilities and (b) drainage and reclamation
of
The principalexecuting agencies for
salinised and waterlogged areas.
and Power
these programmes
the Water
Development Authority
are
the
and
the
of
West
(in
case
Irrigation Department.^
Pakistan)
The
The
execution
with
is also concerned
WAPDA
of the works
under
the
can
be
of WAPDA
responsibility
budget rose
by 70%
works
Settlement
Its activities in
development
power
Basin
Indus
judged
in three years, i.e.from
in 1963-64. This
to Rs. 78'0 crores
Basin
for the
activities of the Government
the
which
water
Rs.
sector,
not
crores
however,
as
the
growing
the fact that its total
Rs. 4569
84"1
well
Treaty. The
from
figuredoes
cost
as
crores
in 1960-61
include
the Indus
in 1963-64
fall under
two
alone.
major
sections:
connected
(/) Work
water
the
resources,
development
with
investigationand planning of
of projectsco..nected
construction
with
of
the
such
resources
and
anti-salinity
measures.
cit.,
p. 169.
main
2. The
irrigationprojects under implementation by the Provincial
Garhi
IrrigationDepartment include the following:(i) Taunsa Project, (h) Kurram
Dam
B
olan
Thai
Level
Project,(v)
Canals, (I'v)
Project,
High
Project,(Hi) Warsak
Irrigation Project, (vii) Ghulam
(Riverain
Area) Tube-well
(vO Mianwali
Drainage System, (ix) Sukhrawa
Mohammad
Barrage Project, (viii)Pandoke
Dhand
Drainage System, (xi) Thai Drainage Scheme
Drainage System, (x) Makhi
of West
Pakistan: White Paper
(Khushab Area). For details, see Government
1. Second
Plan,
(Budget) 1964-65, pp.
op.
129-38.
104
connected
(ii)Work
As
out
with the Indus
Basin
and planning
regards investigation
Master
Plan.
has
WAPDA
Pakistan's water
for West
Plan
the
Settlement
chalked
development.
investigation,
a large-scale
regional studies
programme
of the Indus
project planning in the irrigatedareas
plain is
Since 1959
and
under
resources
of
implementation.
object is
The
develop additional
to
water
the
of the area
growing demand
control waterlogging
salinitythrough drainage and
the
of
soil.
The
salts from
leaching
preliminary phase has been
has
been
made
of the development of
and
completed
a
blueprint
Water and Power
Sector up to the year 1975. Investigations
have also
to
resources, to generate power

and
to
been
made
and
basin
Kabu1/Swat/Chitral
of the
been initiated for the Kurrum

Wars3k
Sukhera
Tube-well
the Water
In
Scheme
Sector
Barrage, Rawal
Dam,
Irrigation
Project.
In
the
Tanda
Reclamation
Sector
prepared in consultation
Mission
from
rate
over
of 1961-62. The
one
million
period of twenty
acres
to
is
Master
President
recommended
West
IrrigationScheme
in hand
Khanpur
there
with
Lift
district.
schemes
Dam,
waterloggingin
salinityand
of about
Mission
an
Basin. A
of Peshawar
the main
and
has
investigation
feasibility
the
report on
published. Sinailar feasibility
River
re-regulatingfacilities has been

have
been prepared for B^ra Banda
reports
and
meet
include the Gudu

Dam
and
Plan
for reclamation
Kennedy's Scientific
that reclamation
Pakistan
per year, thus
Karachi
should
of land
proceed
at a
spreadingthe programme
twenty-fiveyears, against ten
years
suggests
ed
Plan. The final Report of the Mission

is
by the originalWAPDA
is engaged in pursuing its
WAPDA
under
study.In the meantime
of
crusade againstthe twin menaces
waterloggingand salinity.
5*13
The
Indus
Basin
Project
This
projectis to be constructed as
India
Treaty of 1960, signed between
two
comprehensive
Dams
"
Mangla
on
result of the
and
Pakistan.
the
river
Indus
It
Jhelum
Waters
comprises of
and
Tarbela
eight inter-river link canals, four barrages and

one
gated syphon. Further, there will be remodellingof three existing
inter-river canals, two existinghead-works
and some
existingirrigation
canal systems served by the new
construction,and a set of tubewells and drainage works.
The
project is under implementation and work is proceeding
As regards the Mangla Dam
satisfactorily.
(one of the world's biggest
on
the
river Indus
"
Extension
earth-fill dams)
work
it is
completed by July 1968.
likelyto
Government
be
has
105
of Cultivation
proceeding according to schedule and
been
As
to
the
Tarbela
Dam,
the
is
for
Bank
carrying on negotiations with the World
is
already in progress.
project.Preliminary field work
works
under
execution
overall position of the various
by
financingthe
The
March
1964
was
as
under:
Table No.
21
Works
Percentage of
Completion
Mangla
Dam
40
Trimmu-Sidhnai
Link
Sidhnai-Mailsi Link
Mailsi-Bahawal
Link
Sidhnai Barrage
Mailsi Syphon
It is
75
65
50
60
80
expected that Trimmu-Sidhani
be completed ahead
The
latest
Projectcomes
of the scheduled
revised
net
Rs.
to
(Rs. 147'6
other
projectsin West
water
Tarbela
5
"
of
and
crores
$310 million
crores) to
Mailsi
Syphon
will
date.
estimates
904"74
and
Link
the
cost
which
of
cost
Pakistan
meet
Pakistan
the
may
Indus
Basin
will get additionaV

of this
also
project and
include
the
Dam.
14 The
Role
of WAFDA"East
Pakistan
of water
development in East Pakistan are
major objectives
reclamation,navigationand genedrainage,flood regulation,
irrigation,
ration
ment
of hydro-power. Flood-control
measures
usuallycomprise catchThe
creation
conservancy,
of flood
water
and
of storage and detention reservoirs,diversion
channel
improvements
Pakistan
The
lie outside
catchments
of all rivers of East
There
suitable reservoir sites except in the
The
are
flood
diversion
no
regulationprogramme
of
construction
flood flows, river
of
East
upper
of its borders.
Chittagong Hill Tracts.

province provides for the
training,channel
The
of embankments.
the
is that
difficulty
Pakistan
improvement
WAPDA
aims
and
at
developing the land to the fullest possible extent.

This is to be done
by supplying irrigationwater
throughout
the year, making low lands fit for cultivation by adequate drainage
floods. A large number
of projects
and protectingcrop lands from
these
aims. The
under implementation to achieve
major ones
are
Project Kushtia Unit; Coastal Embankment
a.re: Ganges-Kobadak
Water Development
Project,Improvement of Dredger Fleet,Ground
and
Embankment
IrrigationProjects, Brahmaputra Flood
Pump
water
utilising
for
"
106
Pakistan,
DevelopingEconomy
River Project and Ganges

Project;Old Brahmaputra Project,Manu
Barrage Survey."
5
1 S Prospects of IncreasingCultivated Area
land under the plough?
What
the prospects of bringing more
are
tan
Obviously, whatever these projectsare, they are mainly in West PakisBut all this
where culturable waste is available in largequantities.
be brought under cultivation due to lack of water, if
waste
cannot
other reason.
for no
Cropped area, however, can be increased by
'
multiplecropping in East Pakistan.

In spite of great efforts during the last
development
cultivated
is
acres
of
million
have
acres
planned
of
years
added
been
to
the
mostly in West Pakistan as against the estimate of

estimates of the likely
recent
by the planners. More
under crops during the Second and Third Plan periods
area
5 million
addition
only
about
ten
area
given below:
Table No. 22
Estimated
Area
under Cultivation and

the Second
and Third
Likely Additions during

Plans^
(Million acres)
East Pakistan
Cropped
area
2. Addition
to
1.
area
in 1959-60
the
by the
Second
Plan
4. Total
25-7
of
during
34-2
Total
59-9
the
0-5
to
Pakistan
cropped
Plan
3. Addition
area
end
West
1-61
11
\l-l
the cropped
the
Third
1-7
\1-S
-50
3-lJ
1-4
pected
excropped area
the
end
of
Third
by
Plan.
27-9
36 7
64-6
5. Percent
increase in 196970 over

1959-60
6. Existingarea
estimated to
be improved during the
Second Plan
7.
8-3%
4-0
Existing area likelyto be

improved during the Third
2. Government
8-0%
3-0
}"8-0
Plan
4-0
1. For details,see
Ministry
Survey, 1963-64 pp. 58-60.
80%
of
Finance,
ioance, Government
7-3
"]
7-0
j"10-3
^180
11-0
of Pakistan. Economic
of Pakistan: Outline of the Third Five- Year
Plan
(1965-70),
p.
99.
Extension
if the
Even
targets of the Third
the total
materialise,
5% and cultivated area
than
more
Plan
as
in the
cropped
stillless since cropped
increase
from
crop
one
of Cultivation
the
same
107
visualised
tentatively
area
will be less than
area
takes account
land. This will be
supplemented
cultivation through embankment
against waterlogging,
under
by improvement in the existingareas
construction,drainage and measures
of this is still targets which
salinityand soil-erosion. Much
not
may
Even
may
or
be realised.
if we
bilities
targets will be realised,the possi-
that these
assume
of further extension
of cultivation will be reduced
utilised and
get fully
resources
of
which
areas
can
be reclaimed
as
our
are
water
ed.
reclaim-
populationwill not only increase at the currently

achieve a higher rate of
but may
high
2*5% per annum
with the
increase as death-rate
which is still quite high goes down
applicationof preventiveand curative measures
againstdisease.
If during a period of ten years cropped area
increases by 8% and
increases by
population at an average
rate of 2-5% per annum)
25%, the cropped area per head of population will go down.
On
the other hand,
rate
of about
Table No. 23
Cropped
Area
East
Per
Head
Pakistan
of
Popnlation
All Pakistan
Pakistan
West
1969-70
1959-60
1969-70
1959-60
1969-70
1959-60
25-7
27-8
342
369
599
64 7
50-8
63*5
429
535
938
117-2
050
0-43
0-79
0-68
063
055
Cropped area
(millionacres)
Population
(millions)
Cropped
head
area
per
of
population
(acres)
Thus
under
the above
will decrease
from
-79
acres
to -68
from
acres
assumptions cropped
'5
acreas
in West
to
'43
Pakistan
acres
of lation
popuin East Pakistan and
area
per head
by 1969-70.
108
What
about
lulturable
the
long-period point of view?
be
brought under
1
effective harnessing of
more
Planning Board (now replaced by
waste
jxpressed
the view
that, with
Indus river system,
then
!ow
on
will be diverted
The
of
danger
remain.
itorage of
high
waste."'
nto
)f the
the
neet
of
in West
and
of
eet
during
possible extent.
crucial
of reclamation
of
and
periods will still
on
irrigation
which
monsoons,
large
Plan, "will depend
the
the
on
now
run
estimates, complete regulation
ihe Indus
will
river system
of
the
to
river
reatlyreduce
is far in
of the
requent floods
as
further
they
Board
three
even
on
in recent
occurred
did
not
rivers will not

Waters
limited
life and
to
acre-
water
gross
presumably
eastern
the Indus
caused
damage
have
of the
investigationbecause
of this system
enormous
require 460 million
excess
The
system.
is worth
water
the
will
after 1970, under
Pakistan
of
control
Treaty,
regulation
scale
could
property
by
years.
Conclnding Remarks
16
conclusion
In
under
rea
we
waits
cultivation
colonisation.
stensive
resent
to
is
areas
lying
added
to
possibilityof extending the
awever,
does
wasted
flow
of
in
we
present
the
but
Pakistan
of
which
expect
not
After
very
the
the
land under
been
completed, there is practically

under irrigation
through tapping
area
the
rivers
of
also
cause
the
extension
Pakistan, while
West
should
the
exist for utilisation of the flood

at
for
scope
waste
here
even
irrigationprojectshave
existingnormal
the
that
extremely limited in East
land
But
be
say
may
is still culturable
lere
ily
plough
which
Indus
'he matter, however,

nd
the
fact that the waters
available
could
we
could
liabilityinvolved, we
only
To
these ventures.
bring all the culturable
under
annum
per
if
even
financial
Pakistan
for the
How
25,000,000 acre-feet. Thus
about
results from
water
upply
"e
the
the Board's
to
fldw
tremendous
ichieve limited
in
water
river flows
annual
mean
)ffer capacity
'
the maximum
to
of the First Five-Year
According
In
require more
sites
100,000,000 acre-feet of reservoir capacity.Presently known
han
le
resources?
waier
through
1955, the
Pakistan
the National
the lands
to
West
Planning Commission)
completion of the barrages on the
construction, its dependable surface
under
development
icale,"in the words
plough io
our
of
large areas
the
scarcity of
"Future
the
Could
1. First Plan, op^ cit.,p. 360.
Indus
waters
tremendous
plough
Basin.
which
damage
Scope,
are
not
to crops.
Extension
houses, livestock and even
big engineeringfeat which
Even
that
available culturable
wastes
be uneconomic
to
it. Water
human
to
the water
the
be
not
life. But
only be
can
then
planning
manner,
assuming
coming forth,would
term
of Cultivation
being the most
them
of in terms
cou:d
and
finance
of
harnessed
be
is
long-
in
this
technical skill is
bring under cultivation all the

Pakistan. In fact,perhaps it would
adequate
unless
that
control
to
conceived
that
necessary
in West
attempt
109
to
the
price-costrelationship
justifies
factor,it must be used to its optimum
scarce
advantage.It has to be seen whether an acre-foot of water would

add
to agricultural
more
production, when used for irrigating
more
under
the
when
area
or
cultivation,
used
already
to
adequately
lands.
all
At
be
must
new
made
rate,
attempts
to
virgin
open
any
up
reduce to its very minimum
the water
now
going waste. Much water is
wasted through over-irrigation,
evaporation aod percolationduring its
the
from
course
head
canal
to
units of
rotation,uneconomic
the
and due
fields,
the wrong
to
farming,fragmsntationof
crop
and
holding'!,
the
on
personal incentives for economy
part of the cultivator.
are
areas
opened up, it would be worthwhile to
Moreover, before new
lack of
stop further deterioration of the siil,through these processes

as
wind
Even
water-erosion.
and
that
assuming
production will
done, the problem of agricultural
of
acre
every
doing
under
land
present. On
at
plough is
the basis of expert
comfort
in reasonable
maintain
the
made
all this has
be solved
not
yieldmore
to
well
as
been
unless
than it is
opinion, it is held
that
to
depending on
agriculture
primitive type currentlypractisedin Pakistan and other South
to have cultivated
of one
Asian countries,it is necessary
area
at
acre
is
in
certain
divisions
it
of West
least. At present
only
Pakistan
of
one
person
the
and
(e.g. Hyderabad
ratio. For
West
Pakistan
is
of
thaf
Bahawalpur)
as
whole,
the
for
and
acre
population
at
is
of
Pakistan
increasing
population
head
per
which
annum
population
is taken
to
per
be
means
year
80%
If the
area
additional
must
an
this
Pakistan
rate
average
souls
allow
increase
at
brought
one
acre
area
-5
The
acre.
added
2"5%
to
the
on
agriculture
per
person
the rate of 1,600,000

under
per
of about
are
population dependent
we
land-man
cmppei
average
East
2 million
over
of the total and
subsistence, cultivated
The
that
have
we
cultivation
for
acres
through
irrigationfacilities during the five years of the First
and during the Second
108 million acres
Plan
1-66
Plan period was
subsistence to the additional
million acres. This is not enough to ensure
populationdepending on agriculturebrought into being at the
per
annum.
the
extension
of
area
110
Pakistan,
of
rate
This
that
means
for
needs
installed
for
the
the
further
very
the
per
under
problem
of
be
of
unit
area
conditions
now
sought
of
account
cultivated
of
the
mainly
through
turn.
adequate
that
the
use
the
of
incentive
of
be
change
our
In
other
increasing
of
the
in
not
agricultural
techniques
for
limits
reached
increasing
better
for
allow
we
cultivation.
direction
mum
maxi-
the
must
we
intensive
problem
in
will
facts,
to
if
reclamation,
land
area
these
projects
their
even
the
population
the
produce
and
if
increased
of
of
some
years.
even
rate
would
ten
with
pace
current
period
Plan
the
of
of
we
fact
cultivation
solution
our
periods
view
In
extensive
should
the
Plan
on
future.
real
by
subsequent
cultivation
distant
production
the
expansion
from
words,
this
to
about
two
cultivation,
keep
not
of
period
under
area
for
first
during
additions
emphasis
yield
the
over
could
up,
allow
we
during
results
the
brought
if
Even
in
kept
subsistence
growth.
the
be
"Economy
population
increase
an
could
rate
present
of
growth
present
Developiag
of
cultivator.
the
tion
cultivaTo
CHAPTER
Yields
IncreasingAgricultural
6
'
Scope
In
for Intensive Cultivation
previous chapter
the
cultivation in Pakistan
and
we
in Pakistan
examined
underlined
the
scope
the limitations
for
extensive
of this method
increasingagriculturalproduction. In the present chapter we shall

with
of intensive cultivation in this
the possibilities
be concerned
be measured
country. The possibilities
roughly by comparing
may
the average
yieldper acre currentlyobtained in Pakistan in respect of
of
its
major
world.
The
the world
crops
with
yieldsper
as
those
acre
is indicated
in
achieved
our
in
country
by the Table*
some
are
other countries
amongst
of the
the lowest
in
given below:
A.
then Director
K.
Dr.
of Agriculture,
Rahman,
1. Table quoted from
of Pakistan with Special Reference to AgriculReconstruction
Punjab, "Economic
ture,"
Pakistan
I, No. 1, p. 9.
Economic
Journal, Volume
Ill
112
Pakistan, A Developing 'Economy
It will be
Italyfour
times, U.S.A.
Pakistan.
As
Italyabout
the
crops,
in
50%
production
Pakistan.
in that
The
Pakistan.
in
is
It
In this respect
small
of
and
half
an
an
land.
acre
Italy is another
where
who
analogous
more
prevailingin
use
to
about
area
in
one
acre
little
very
conditions
East
on
Japan is only about

in West
much
not
are
Pakistan.
peasant
Pakistan
produces more
China
Even
to
by
be achieved
can
cultivated
Pakistan.
example
and
of
problem
are
compared
in East
acre
twice
to
however,
irrigation,
Pakistan.
Pakistan, especiallyWest
what
head
Per
as
compared
those
to
cultivators
small
it is in
as
land,
as
about
get
similar
are
The
demonstrates
of
area
one-third
of
Japan's conditions
Japan, however,
U.S.S.R.
respects
methods.
difficult there
so
twice
acre
of other
Similarly,in the case
is much
acre
higher in other countries than
instructive. Conditions
Japan is particularly
country
than
of
an
Pakistan.
many
mechanical
is not
of
case
country
modern
per
rice from
more
and
Japan
than
more
China
and
wheat,
to
times
gets three
that Japan
seen
per
acre.
different from
spite of high yields, however, there is rural poverty

is relativelyhigh, but the yield
in these countries. The yieldper acre
Pakistan.
In
population on the soil,

worker.
manifests
areas
per agricultural
The standard
mined
of livingof a people depending on
agricultureis deternot
much
In
so
by production per acre as output per man.
countries
like U.S.A., Canada
and
Australia, productivityper acre
not
be as high as in Japan, Egypt and China, but since land per
may
per
of the
is low, because
man
which
itself in small
cultivator is largs the standard
higher. The
per
would
the
soil; in other
This
in
So
what
as
as
to
out
the rural
be
of
get
the
stress
be
pressure
higher productivity
of population on
economic
the
development.
tries.
development of indus-
population depending on land remains

of cultivation should be employed as much
out
most
of the land
stressed,however, is that
poverty.
on
people is much
rural
the
is,intensive methods
to
the
well-balanced
greater
means
long,however,
possible
needs
way
it
imply lowering
words,
country
our
of living of the
goal, therefore,should
ultimate
This
man.
of
high pressure
cultivated
Intensive
intensive
mere
farming
under
can
co-exist
cultivation. What
farming is no
mith
sure
poverty of
Japan, Egypt and China. In fact, intensive

cultivation is mostly carried on
only where cultivated area per head
masses
as
is small
and
eradicate
poverty,
must
be
the
in
peasant
on
the
employed, and,
one
on
has
to
hand,
eke
more
out
his subsistence
efficientmethds
the other, alternative
from
it. To
of cultivation
employment
must
be
113
IncreasingAgriculturalYields
created to absorb
the
surpluslabour
set
fres
by the
use
of
these
eflScientmethods.
6
2 Methods
"
of
find out
To
IncreasingYield
Per Acre
of
the methods
have
improving yield per acre, we
low
in
for
are responsible
yields Pakistan.
these
be
mentioned
tion
Among
inadequate water, inefficientcultivamay
due to primitiveimplements, poor
quality seed, inadequate
caused
destruction
and pests, lack of skills
diseases
by plant
manuring,
or incentives in the worker
himself,etc.
We
have already referred to irrigation.
Inadequate or irregular
vated
water
supply can cause the yieldto go down. About 75% of the cultiin West
Pakistan and 98% in East Pakistan depends upon
area
rainfall which may not be seasonable. The fall in production of wheat
in 1951 and 1952 in West Pakistan was
partlydue to the failure of rains
is
at the time
of the sowing of the crop. Where canal irrigation
of the
available,the water may not come
regularlyeither on account
to look into the causes
which
defective system of distribution or because

of interference in the flow
of canals as happened during 1951, 1952, and 1953, in the case of
in India.
canals flowinginto West Pakistan
having their headworks
Thus
yieldper
acre
can
be increased
supply. High yield
water
in
Egypt,
countries is due to this factor alone
already noted
what
is
by ensuringregular and
being done
more
to
Japan
than
and
to
any
some
adequate
European
other. We
have
facilitiesin
improve irrigation
Pakistan.
6
'
Improved Implements
implements used currentlyby the peasants are not very

and hence the agricultural
and per bullock
efficient,
output per man
research has been done by Provincial Agriculture
is low. Considerable
Departments to evolve better implements, which should be more
time not very expensive.The chafl"-cutter
efficient and at the same
has been most
widely used. The furrow-turningplough, seed drills,
The
implements and cane-crushingmachines are also in use

efficient Persian wheels have been
though not very widely. More
is high.
evolved
(e.g.Brownli model at Lyallpur),but the cost
Centrifugalmachines for sugar manufacture have also been introduced
here and there. These are hand-driven machines and they can produce
factory,but
sugar at a lower cost than that produced by a large-scale
inter-culture
qualityof such sugar is inferior. Our Development Plans have

êcn making provisionsfor making further research into the possibility
the
114
Pakistan, A Developing'Economy
of
evolvingimproved equipment usable by the small farmer.

the question is raised
Sometimes
the
to
as
desirabilityof
mechanisation
of our
Mechanisation
does not necessarily
agriculture.
like the largetractor and other similar
the use
of huge machines
mean
have
can
equipment so commonly used in countries like U.S.A. You
be used
which
devices
can
cheap mechanical
by our individual
kinds of
cultivator on his small farm. Popularisationof the various
above, like water-lifters,
improved implements mentioned
sugarcanecrushers, threshers, Persian
or
human
power,
can
wheel, etc.,
when
even
be called mechanisation.
driven
by human
may
power
Some
hand-driven
holding.
be
driven
the
Even
use
by animal
of
practicalproposition on
tractors
in
are
for
use,
tractors
small
example,
in
objected to in a country like Pakistan,

the use
and
the idea is not to encourage
of large expensive tractors
The
reasons
equipment, except under very special circumstances.
which prevent an expansion of tractor cultivation on
a
large scale in
mechanisation
When
France.
Pakistan
be
may
is
summarised
as
Pakisti^n
under.
Firstly,most
of these devices
have
alreadyexcess labour power as

reflected in the considerable
under-employment and unemployment
existing in the country. We should avoid techniques of production
such a situation. Secondly,for the use
which will further accentuate
of tractors and heavy equipment the unit of cultivation has to be large
it an economic
to make
proposition. The vast majority of cultivators
in our
country till small and fragmented holdings. Thirdly, foreign
of
exchange is extremely scarce, and the use
heavy agricultural
machinery involves expenditureof this scarce resource, for which there
are
labour-saving.In
are
so
income.
many
other competing uses, which
Fourthly, unless
facilities in
the
parts, breakdown
Such
we
there
could
efBcient
are
facilities are
not
be justified
unless
provision cannot
is adopted on a largescale.
their
not
more
to
national
and
quick maintenance
of repairing services
form
and
replacement of
of machinery can
inordinate delaysin operacause
tions.
maintenance
This does
add
mean,
however, that the
equipment should be ruled

and could
specificpurposes
available in Pakistan
mechanisation
use
of
tractors
and
of this type
and
heavy
altogether.They could be used for

be economically justified,
for instance,
of culturable wasteland
for reclamation
and derelict areas, for rapid
development of land in new
irrigationproject areas, for anti-erosion
and nioisture conservation
^nd flpod-coptrol
work, and for dry farming
out
115
work,
etc. Machine
immediately after the main

crop from
rice land
cultivation
tractor
power
in West
pumps
such
are
available.
Pakistan
be
Plan
covers
the
to
thus
he
and
brought under
harvest
of
use
crop
some
bulldozjrs
and
in
areas
in the
of mechanisation
tractors
for
the country
and
by
and
of rice.' Tractors
areas
programme
other
an-
the present
another
wings of
Barrage Kabulie
have
can
major part of
the
till the land
supplementary
if no
areas,
some
immediately after the

alreadyin use in both
Quetta and Kalat divisions. The

Second
in
Moreover,
can
e.g. Sukkur
purposes,
cultivator
is harvested
crop
the residual moisture
facilitieswere
irrigation
the
enable
can
power
and
their
and distribution of more

accompanying equipment, the manufacture
efficient agricultural
implements and the development of power-pump
This will be carried into the Third Plan.
irrigation.
6
"
4 Better
Seed
increasingthe yield per acre and

improving the quality of the product is to popularise the use of
improved varieties of seed. The seed sown
by the farmer should be of
good quality;it should be sound, free from disease,pests, damaged seed
be evolved and popularised.
and extraneous
varieties must
matter.
New
In this respect the AgricultureDepartments have achieved good results.
Improved varieties of wheat and cotton are said to produce from 10
of sugarcane
to 25%
crosses
more
produce
per acre.^ The Coimbatore
than double
more
compared to the indigenous strains.^
per acre
Another
With
of
important method
all the efforts
the
on
part
of the
Provincial
departments
with improved seed

only a small proportion of the total area was sown
in pre-Partition
India. The percentage, however, varied
according to
where it was
The
76%, followed by
highest was
sugarcane
crops.
and
rice only 5%. The
all
overjute 62-5%, cotton 35 5%, wheat 24-9%
percentage of British India

percentage of
The
higher than
area
jute is
Pakistan, 40%
very
under
cotton
and
Information
1. Third
crops
and
now
are
regardingother
areas
Plan, op. cit.,

p. 64.
Plan, op. cit, p. 225.

A. Jlahman, op. cit.,
p.
2. First
3. K
11.
In
above.
noted
as
of the rice crop
wheat
in Pakistan
from
grown
is not
the
is much
Pakistan
better varieties of rice is small
under
high
seed
in India. In East
it is in the territories now

of
percentage
improved
under
area
for all India 8-1.
10 and
was
but
the
that
Punjab area of West

87 to 100% of sugarcane,
from
improved varieties.
available.
116
Pakistan,A DevelopingiSconomy
Here, however,
this improved seed
supply a very
under
farms
and
that
is necessary
much
because
of
former."'
of pure
is not
scientific management
is only 5
source
procured from
The
of caution
note
ments
quality."As the Provincial Governsmall fraction of improved seed every year, purity
ment
maintained
in the field. The seed produced at the Govern-
be
cannot
10% of
to
privatesources
Better
Plan
only be said
be pure
seed
comparable with the
for seed distribution
thus indicated.
are
breeding,
expected
for
ailed recommendations
madede
to
the total seed distributed. The
for sale is seldom
arrangements
First Five- Year
can
and distribution of improved seeds.^ It was

multiplication,
that 6% of the area under major crops in East Pakistan and 17% in West
of the
be replaced with improved seed by the end
would
Pakistan
and
Plan period. Actually only 1% in East Pakistan
7% in West
of
for these shortfalls were
inability
Pakistan was achieved. The reasons
Provincial
Governments
number
farms.
multiplication
of
to
procure
The
for
land
settingup
Plan
Second
fixed
sufficient
new
targets for
provided.The programme
tion
of the foundato be accomplished in three steps: (0 multiplication
was
of seed on the farms
seed on Government
farms; (ii)multiplication
distribution of seed to farmers generally.
and (iii)
of registered
growers
in the
to increase by 50%
under improved seed was
As a result,area
for which
achievement
of most
case
ton.3 The
of the
Plan
Rs.
11 '4
major
crops
recommended
were
crores
going up
to
100%
in the
system of seed certification
only good qualityseed is produced and used.

5 Adequate Manuring
After good seed and adequate irrigation,
proper
of cot-
case
to
ensure
that
6
'
is very necessary
for increasingyield.With
the
be increased up to 50%.'*In
fertilisers yield can
use
supply of
of
some
manures
cases
manure
and
yield has
100% in East Pakistan with the use of

5 The
chemical
fertilisers.
that the
general complaint is well known
burns as fuel cow-dung which is the best source
cultivator in Pakistan
of farm-yard manure.
This cannont
be helped so long as fuel supply
of the farm-yard manure
in the country is inadequate.
Even then much
be made
available for the
that goes waste
through ignorance can
been
increased
5. Food
Plan,
80%
op.
details,see
3. Second
4. First
to
Rahman,
1. K.A.
2. For
up
op.
to
cit.,p. 10.
First Five-Year
cit.,p.
Plan,
op.
cit.,pp. 222-27.
140.

and AgricultureCommission
Report,
p. 75.
soil. The
urine of
any attempt at
from being burnt
for instance, is allowed to go

cattle,
of the cow-dung
its collection. Much
if proper
fuel
made
'
117
Yields
waste
can
without
be
saved
dry stubble
and other sweepings.Moreover,
planting of trees on canal banks,
of fields can considerably
and on boundaries
roads, villagecommon,
increase the supply of fuel. Mr. Brayne, of the Rural Uplift fame, did
with the popularisaconsiderable work
in the Punjab in connection
tion
of the methods
of manure
preservationthrough digging of pits.
His work, however, was
soon
forgottenby the people.Persistent propaganda
The
for this purpose
is necessary.
co-operativeagency can
use
as
were
of
villageschool.
on
Agriculture in India
Long ago in 1928 the Royal Commission
of increasing the supply of
recommended
several other methods
growing of legumemanure.
Among these are composts, night-soil,
again help here and
nous
use
crops,
peasants
the
can
fish,rice-husk ash, etc.,as fertilisers.
of oilcakes and
Moreover, chemical
to the
so
be
can
manures
at reasonable
produced and
made
available
rates.
by causing decomposition of all sorts of

In
waste
materials, sweepings, leaves and other vegetable matter.
from
were
being manufactured
China, vast quantitiesof compost
with herbage,
of cattle,horses, pigs and poultry combined
the waste
straw
and other similar waste.' Experiments in preparing compost
India includingBengal,
made in certain provincesof pre-Partition
were
by Agriculture Departments. Such experiments should be pursued
methods devised
by the Pakistan Provincial Departments and practical
Compost
is obtained
to make
results available
to
the cultivator.
great prejudice against the
of
night-soilas
is converted
in Pakistan. This can be broken
manure
night-soil
into "poudrette."The method
into poudrette
of convertingnight-soil
in which form it is much less obnoxious
to use
proved quitesuccessful
in
Pakistan.
at Nasik
in India. This should be tried
Co-operation
between the Agriculture Departments and municipal authorities can
produce profitableresults. The sewerage process of making the nightThere
is still a
use
if the
"
"
soil into
less obnoxious
is recommended
manure
for towns
there is a
regularsewerage system.
the value
of legumenous
in Pakistan
knows
agriculturist
which improve the soil,e.g. gram. The AgricultureDepartmeats
The
crops
where
1.
Royal Commission
on
AgricultureReport,
p. 38.
lis
Pakistan,
should
discover
regards
green
new
gives the best
it exhausts
grows,
Developing'Economy
varieties of such crops and popularisethem. As

experiments have discovered that sunn
manure,
hemp
the whole
on
much
so
results.
the
But
of the moisture
trouble
is that when
in the soil that
it
enough is
left to
decompose it when it is ploughed in.

As regards the chemical
their use
in Pakistan so far
manures,
has been negligible.
In areas, until recently the Punjab, for instance,
and superconsumption of artificial fertilisers (sulphate of ammonia
this with
sulphate)was found to be only 032 lb. per acre.
Compare
not
350 lbs. in
Japan, 1354
price is beyond
Their
Government
of
lbs. in U.K.
the
Pakistan
and
pocket of
have
in
Belgium.
232'8 lbs. per
acre
the
cultivator.
average
established
ammonium
an
The
sulphate
(Daudkhel). It has a capacity of about 50,0C0

tons of ammonium
sulphatea year for supplyingfertilisersfor agriculture.
and Belgium to advise
Experts were invited from U.K., U.S.A.
in this matter
and their suggestionswere
implemented. Other factories
produce urea at Fenchugabj (East Pakistan)and Multan.
The quantity of fertilisers used up to 1951-52
about 10 to
was
12 thousand
of ammonium
tons
sulphate mostly on the tea estates of
East Pakistan. West
More
Pakistan used only 2 to 3 thousand
tons.
have
been
recently,the Government
supplying large quantitesof
tons
rates.
In 1954-55, 80 thousand
imported fertilisersat concession
plant in
were
West
used
Pakistan
against only 5 thousand
as
tons
two
years
earlier. The
for giving subsidy for

provided Rs. 20 03 crores
and fertilisersduring the Plan period.
First Plan
The
First
Plan
had
target of
360,000
tons
of
manures
ammonium
was
160,000
sulphate to be used annually. The actual achievement
tons during the last year of the Plan as compared to 43,000 tons during
the first year. The
target of consumption of artificial fertiliser
(including urea, ammonium
nitrate,ammonium
phosphate
sulphate, supermuriate of potash) for the year 1964-65 was
fixed at 257,000
tons
for East
Pakistan
and 287,000 tons
for West
Pakistan.
ed
"Translat-
plantfood terms, these figuresimply an increase of consumption

of nitrogen from 32 thousand
in 1959-60
tons
tons
to 112 thousand
in 1964-65;of phosphoric acid from one
thousand
to 76 thousand
tons
nil to 8 thousand
tons and potash from
tons."' Actually,now
over
150,000 tons of chemical fertiliser is being produced in Pakistan.
into
1. Second
Plan, op. cit.,

p.
137.
Yields
quantityshould be doubled to meet the requirementsof the first

and
phase of the programme
consumption will have to increase
The tentative estimate for the Third Plan is 472,000
correspondingly.
tons
by 1969-70. This will include chemical fertilisersin the form of
that the
nitrogen,phosphorus and potash. Experiments have shown
of phosphorus
best results are achieved by usingappropriatequantities
in conjunctionwith nitrogen.
This
To
shall have
have
the sale of the fertilisers

of the programme,
shall
be substantially
subsidised,fertilisersand manures
the
ensure
to
success
be made
to
accessible
shall have
to
be
will have
to
be carried
to
encouraged
out
farmers, commercial
the
organisations
their distribution
to
take
to
determine
up
the
and
tests
of
general suitability
various fertilisersto local soils.

To
the Second
manures
subsidisingthe distribution of fertilisersand

of Rs. 31'8 crores.
Plan has provided a sum
the cost of
meet
is, however,
There
Pakistan, it is
West
both
the
East
Pakistan, it is the
wings. In
definite limit
of
excess
to
set
the
by
which
water
of fertilisers in
use
the
lack of water; in
is the
limitingfactor.
There is need for improving storage facilitiesas well.

is needed is a supply organisation which
all what
Above
available fertilisersto the large number
be able to make
farmers.
6
"
The
6 Plant
Yield
to
same
is true
estimated
More
if this later.
Protection
be increased
can
plantsthrough the
The
regardsseed.
as
should
of scattered
damage
at over
done
Rs.
also
ravages
to
by avoiding the
of pests and
crops
8'5 crores,
in the
on
enormous
diseases in this country.
Punjab (Pakistan)alone
the basis of the crops
1945-46' Thus:
Table No.
1.
Table quoted frotqK.A.
loss caused
25
Rahman, op. cit.,p. 12,;
was
of the year
120
If to
loss per
this is added
annum
that from
comes
to
15%
diseases in Pakistan.'
the
damage done
Rs.
to
of the
The
11*56
crores.
produce
was
foodgrainsin storage, the

The
First plan estimated
then lost through pests and
to
percentage in the
case
of fruits is much
larger.
expansion took place in
During the First Plan period much
gained in
operations and valuable experience was
plant-protection
methods
and organisation.During 1959-60, about
1'3 million acres
benefited through ground and aerial operations compared to 200,000
in 1954-55. At the same
time enough seed of major crops was
acres
3 0 million acres, compared
treated with preventivechemicals to sow
Plan
in 1954-55. The Second
to cover
to 300,000 acres
target was
6 million acres
by ground and aerial operations" about 15% of the
under major crops. Now
it appears,
however, that actuallyonly
area
4"4
million
acres
will be
covered
(25 million in East
Pakistan
and
Pakistan),i.e. 9% instead of the target of

15%. The target for 1969-70 is being visualised at 12 million acres.
Apart from this enough seed will be chemically treated against seed1'9 million
borne
and
in
West
soil-borne diseases
to
sow
about
14
million
acres.^ The
estimated that during the Second

Plan, plant
Planning Commission
protectionwill contribute 20% of increased production in foodgrains,
39% in cotton, 18% in jute,48% in tea, 12% in sugarcane, and
13% in fruit and vegetables.
At present all chemicals used for plantprotectionare imported.
formulation plants were, however, expected to go into operation,
Two
in each Province, during the Second
Second
Plan
Plan. The
one
underlines the necessityto provide facilities to privateenterpriseto
establish formulation
of pesticidesand
plants for the manufacture
also recommended
insecticides.Measures
for givingimport licences
are
to
experienced companies to encourage
private distribution and
to prescribequality,to promote
utilisation,
standardisation,
etc., of
pesticidesand to take effective preventive measures
against the
importation of new pests and diseases. To reduce cost to Government
it is recommended
realised from
1. First
that
part of the expenses
should be
pesticides
the farmers.
Plan, op. cit.,p. 229. Also
p. 78"
2, Second
on
Plap,op. cit.,p. 137-
Food
and
AgricultureCommission
Report,
121
Yields
6
'
7 Other
Improved Practices
by adopting other scientific

methods
of cultivation. Among
these are sowing in line,good preparation
of seed-bed, weeding,judiciousapplication of water, better
rotations of crops. These
practices should be popularised by the
and
extension
services of the Government
through demonstration
propaganda.
Production
'
can
8 Economic
To
also be increased
Incentives
make
cultivator
the
adopt these improved
and
measures
to
practicesadequate incentives would be necessary. One is to ensure
him a minimum
is to subsidise
pricefor his major products. Another
his inputs such as fertilisers.As regards the former, the Government
policyin recent years has been to relax controls and to encourage freeand minimum
Stillmaximum
ed
market mechanism.
pricescan be maintain-
done, for instance,in the
has been
of wheat
in West
Pakistan,
and producers respectively.
to protect the interests of the consumers
The policy of subsidisingfertilisers has also been followed
by the
as
Government
their
to encourage
case
use.
Plough
himself
the man
to the agriculturist
behind
Finally,we come
is his personalequipment "physical, mental and
the plough. What
to productivity?Seemingly contradictoryviews
moral
to contribute
have been expressedby authorities in this connection. Dr. Voelker, in
his valuable Report on the AgriculturalPractice in India, admired "the
6
"
9 The
behind the
Man
"
"
combined
careful husbandry
of the
fertility
ordinary cultivator
to
matter
"in
in
the
labour, perseverance
rather than
material
an
the
conditions
views
seem
in
to
which
wealth
at its command,
the
it no
easy
suggest that
the cultivator that is at fault.On
Irish writer: "The
resources
and
The Agriculture
agriculturist."
works, agricultural
experts have found
hand, Calvert quotes
lies not
that
suggest improvement."*These
it is the environment
other
hard
of the Indian
resources
in 1928 admitted
Commission
with
of
the
nation
but in the energy
people; without these attributes

with
become
permanently prosperous;
them, no
no
country can
can
circumstance
long prove an insuperableobstacle."^
unfavourable
is that the people of Pakistan are
because
The implication
poor
they
and
initiative and
moral
fitness of its
1. Report, p. 14.
2. Calvert. Wealth and
Welfarein the Punjab,p. 47.
122
Pakistan,
lack
these
qualities(and
Developing Economy
because
not
physicalobstructions).
of any
Keatinge recognisesthat the cultivator "may be strong, industrious

be
and intelligent,"
but adds that "if he is to do good work
he must
Mr.
prompted by
The
adequate incentive
an
of the matter
truth
the Pakistani
system of land
a
partly
climatic.
Each
others.
emphasis
mostly by the
In
The
fact that there

views.
in British
give due weight
blame
partlysocial and
political,
is inextricablymingled with the
and
of
days
either
climatic
the
tended
mined
is deter-
causes
or
concerned.
writer
to
each
try
of the
truth in
be
to
factors
the
on
tion
pre-Britishadministra-
Confusion
of
element
For
over-emphasise the
to
the
on
factors.
inquirer must
of
causes
as
from
each
of
the
these
objectiveas possible
is
situation. This
the
of
arose
that the country is free.
now
the
Whatever
of
affairs, no
no
denying the
health
The
country.
particular cause
substantial
scientific
The
development which would
advanced
causes
below
far
are
masses
apologist of the British administration,
was
rural
our
politicalcreed
and
social
on
on
rainfall is
ar.d moral
more
of
laid
hand, put the whole

or
that
true
set
The
politicalfactor.
easy
oppressive,these qualities
get undermined.
partlyhistorical
instance, the nationalist
and
the
in
are
intelligence,
native
considerable
able,
favour-
are
precarious or
minimum
this backwardness
circumstances
where
physical,mental,
regarded as
other
show
But
however, it is
of
the standard
is
tenure
generalway,
be
does
peasant
by adequate food."
sustained
is that where
resourcefulness.
industry and
and
and
brought about the present state

however, can deny the facts as they are. There is
one,
fact that the Pakistani cultivator is inferior in physical
to his
energy
U.S.A.,
even
diseases
not
that have
causes
counterpart, for instance,in Great
Britain and
in the
European countries. He is subject to a host

of endemic
and epidemic diseases. Our villages
ravaged by major
are
diseases like malaria, cholera, dysentry, tuberculosis, etc. These
only
consequences,
survive
cause
but
high
rate
also undermine
all its wasteful
the physical eflBciency

of those who
People chronically subject to disease, moreover,

listless and apatheic. The solution of this problem
lethargic,
implies both preventive and

Medical
and
of
their
most
curative
view of their numbers
conditions
benefits
and
are
have
Public
The
measures
Departments of the Government
this connection
now
mortality,with
the attack.
become
and
of
have
done
some
considerablyimproved.
showered
upon
the contributions
they
the
make
urban
Health
work
But
areas.
in
even
In
to the revenues
123
of the State,the rural
masses
publicitycampaign is necessary
of public health
will
In
help in
the
awaken
to
Let
measures.
large-scale
inadequate help. A
receive
the
people
hope the
us
the
to
Basic
new
tance
imporracies
Democ-
this matter.
place, the chronic illiteracyof the rural masses

hardly be denied. When
literacyin the country is less than
can
second
15% and literate persons are mostly concentrated in towns, the share
of literatesfalling
to this
be easily imagined. Add
to the villagescan
the fact that our educated classes are the product of a universallycondemned
of
education,which does not produce men

capable of
tacklingpracticalproblems. As regards agriculturaleducation, after
than half a century of effort,how
more
practicalfarmers have
many
been produced by our
cal
A radinone.
agricultural
colleges?Practically
change in our system of education is immediately called for, so
that it should produce men
in close contact
with the realities of the
system
situation and
needs
of the country.
has, we
present Government
The
the
From
glad to note, already taken initiative in this matter.
point of view of agriculturalprogress we requirepeople with a good
minimum
ing
of generaleducation and also technical education and trainwith
to make
be content
good farmers. But such farmers cannot
the tinyholdings that are available to them in the villages.
Moreover,
and
attractive
be made
our
must
more
villages
progressiveto induce
are
educated
our
men
economic
radical
as
and
settle there. This
better
new
he
the whole
how
simultaneous
land reform
is
physical health and education
structure
reform
step in the
of the
if
not
work,
of
a
tion.
rightdirec-
rightkind, the
of the
villagerwill change. At present he is condemned

fatalistic,
improvident and extravagant.
ignorant,superstitious,
outlook
is said that he lacks initiative and

and
shows
social life requiresa
overhauling.The
With
whole
to
that he has
no
desire to
tends
to stick to the old ways
improve
his standard
of
It
of life
living.If
due to some
chance, he reacts by being
larger income
These
extravagant in expenditureon social ceremonies or on litigation.
accusations
But
are
always without
qualification.
true, though not
all defects are curable by persuasion,propaganda and education on
rightlines. Some work has been done by various Government
ments.
departand
nation-wide
But a well-planned,comprehensive
effort is
results.
accessary to bring about any substantial and permanent
of increasingproduction
After studying the various possibilities
gets
124
through
that
the extensive and
there
intensive methods
is considerable
for both
scope
we
to
come
the
conclusion
in Pakistan.
these methods
in
brought under the plough, particularly
West
of irrigationfacilities
Pakistan, mainly through the extension
and taking measures
and soil erosion.
to arrest
waterlogging,salinity
be increased by using better seed, more
Yield per acre
adequate
can
better
plant-protectioameasures.
implements, and more
manure,
also
and
education
Better
training of the cultivator himself can
Substantial
areas
can
be
his eflBciency
as
increase
considered.
One
Other
worker.
factors,however, need
is the unit of cultivation. Unless
the
farm
to
is
be
large
give proper scope to these various agents to operate to the

will not be used in the most
best advantage, productive resources
The second is the relationshipof the cultivator
effective manner.
because on
to the land he cultivates. This is also of great significance,
the incentives that will bring out the cultivator's
it depends, largely,
and forethought.
of industry,economy
best qualities
enough
6*10
to
Importance of Organisation
various
The
for
known
been
as
well
as
methods
increase
to
yieldshave
niques
quite a long time. In evolving the cultivation techthe Provincial Agrietc
culture
improved seeds,fertilisers,
,
Departments
institutions
above
discussed
connected
and
the
with
various
them
have
educational
played
and
research
role. A
significant
attempted by the
extension work
has also been
agricultural
staff of these departments. But the impact of these activities on the
the
cases
yield is hardly noticeable. In fact, in some
agricultural
yield has gone down as is shown
by the Table on the next
average
which
in
we
give five-yearly
separated by a decade to
averages
page
eliminate the seasonal factor. Partlythe reason
be that with the
may
of population on
the soil less fertile lands have
been
pressure
under
the
which
the
have
over-all
brought
plough
depressed
average
the spread of waterlogging and salinity
have something to
or
may
sort
do
of
with
it. Even
then
if the
conscientiouslyapplied
appears
better
that these methods
the notice of the farmer.
have
backed
not
discussed
results could
not
been
Perhaps the
of Agriculture were
literate "Maqaddams"
methods
have
above
been
had
been
shown.
systematicallybrought
routine
Government
fitted for this task with
by "officers" of
the
It
to
ments
Departtheir half
department ranging
from the agricultural
assistant to the Provincial Director. They have
been entrusted with too many
functions to be able to perform any of
125
Yields
them
and
satisfactorily.
They have been called
demonstration
services,to open
"to
upon
and
manage
expand extension
new
seed farms,
to
organisea vastlyincreased supply of fertiliserand better seeds and

develop the completely new
subject of plant-protection."They had
and bulldozers for
to "open an engineeringwing to operate tractors
cultivation
and
land
clearance and
to
sink
have
power pumps."' Hence their achievements

needs of a developingeconomy.
Table No.
Yield Per Acre
of
Rice
and
operate
fallen far short of the
25
PrincipalCrops in Pakistan (inMaunds)

East
Crop
tubewells
West
Pakistan
Pakistan
Average
Average
Average
Average
1947-48
1957-58
1947-48
1957-58
to
to
to
to
1951-52
1961-62
1951-52
1961-62
6-3
8-0
(cleaned)
Wheat
Maize
Barley
Gram
Sugarcane
Rape and Mustard
Tobacco
Cotton
Jute
Sesamum
Tea
It
was
because
of this that the Food
1. F. ".
Ag. Comm.
Report,
and
p. 153.
126
kind of organisation"the Agricultural

proposal for a new
Development Corporation" the pivot of their recommendations.
sation
of such an organithe establishment
recommended
The Commission
made
the
tion,
constituwing of the country. We consider below their
functions and activities,
separatelyfor each province.
6*11
East Pakistan Agricultural
Development Corporation (EP ADC)"
established on 16th October, 1961, by an
This Corporation was
for each
Ordinance
of the Government
of East
Pakistan.
It is
an
autonomous
body free from the impediments faced by a purely Government

of
organisationand has taken up the supplies and services functions
also initiates and implements
the Department of Agriculture and
development in selected projectareas.
Its functions
include:
(0 Making
throughout
arrangements
basis, for
procurement,
East
Pakistan,
on
transport, storage
mercial
com-
and
of essential supplies,such as
agriculturists
and
seed, fertiliser,
plant-protectionequipment, pesticides
machinery and implements,
agricultural
(li)Promoting the setting up of co-operativesocieties with a
distribution
view
to
handing over to them

with a phased programme,
to
of
ance
supply functions in accordment
and encouragingthe develop-
its
co-operative societies in other spheres.
ment)
managing (ifdirected by Provincial Governseed multiplicationfarms, livestock breeding farms
cial
or
and fruit nurseries as are owned
managed by the Provin-
(in) Taking
over
and
Goveriipient.
of
(/v)Assisting,encouraging and promoting the manufacttoe
machinery and implements,
improved agricultural
(v) In addition to the above the Corporation may give loans in
industries processing agriculturalproducts,
kind, encourage
and
of lift pumps
maintenance
organise supply and
tubewells, encourage
expansion and improvement of diesel
engines used in agriculture,set up cold storage plants,
contribute
the cost
towards
of any studies, survey experiments
and
(vj)Some
which
1. For
technical research, etc.
additional
include
functions
refer
to project areas
specifically
(a) organising the dissemination
details.Government
Adviser), Financial Institution.
of
Pakistan, Ministry of
of technical
Finance
(Economic
127
with a view to ensuring

agriculturists
of improved seed, fertiliser,
intensive use
plant protection
material,better cultivation techniquesand credit,including
pertaining
supervisedcredit: {b) dealing with all matters
dairy industry,
to land
reclamation, range
management,
in
new
harnessing hill
areas,
organisation of agriculture
of catchments, planning agriculture
streams, conservation
through suitable crop rotation, mixed farming, marketing,
knowledge
among
produce, organisationof co-operative

processingof agricultural
credit
and
including
block
farming; (c) organising
all
functions
previously
supervised credit,{d) undertaking
with
agriculture,
performed by the departments dealing
animal husbandry, livestock,co-operativesocieties,
fisheries,
consolidation of holdings.
forests,
measures,
(v") Undertaking distribution of water, anti-salinity
and
of
agriculturalmachinery
promoting use
organising
in
land
water
and
research
utilisation.
research including
has very wide and comprehensive
that the ADC
It will be seen
functions. It is debarred from undertakingpractically
nothing which
development.
can
promote agricultural
The resources
to finance these activities of the Corporation are
the Government
and aid and
received from
in the shape of money
have also been
assets
loans received from
foreign agencies.Some
transferred from
the Government
to
the Corporation. The
financial
Corporation are constituted into a fund known

as
the "Corporation Fund."
The
general direction and administration of the Corporation
have been vested in a Board of Directors consistingof five members
headed by a Chairman, who is the chief executive of the Corporation.
is carried out
through four wings: (a) Administration
Its work
(b)Supply, (c)Field,and {d) Finance.
12 Working of the EPADC
6
of the
resources
"
The
EPADC
has almost
overcome
its initial problems
of sation.
organihighly active.
Supply Wing and Field Wing have been

a
major break-through
The
in its
Supply Wing has achieved
fertiliserdistribution programme.
During 1963-64 (nine months) its
about
fertiliser sales were
86,000 tons as against 49,000 tons in
1962-63 (fullyear). It has deployed 2,600 power
and 150
pumps,
Its
'
"For
Economic
details,
1963-64,
Survey,
pp. 2$-27,
128
tractors
during
1960-61
respectively
and cultivate 170,000 and 30,000acres

irrigate
to
used in
and 93 tractors
against 1,367 power pumps
irrigateand cultivate 62,000 and 11,000 acres respectively.
1963-64
to
as
it
multiplicationand distribution programme
of which
22 seed multiplicationfarms covering 6,567 acres
has now
were
5,263 acres
put under cultivation during 1963-64. During the
first half of 1963-64, 1,371 tons of paddy and 17 tons of jute seed were
Under
the
seed
produced. Such
seed is further
Corporation supplies seeds for

who
are
willing to use
of improved potato seed from
its seed
support
The
multipliedby registeredgrowers.
them.
other
and
sugarcane
It
Holland
also
and
vators
culti-
to
crops
procured 1,280 tons

order
In
Burma.
schemes, the Corporation is setting up
to
Seed
TestingLaboratory at Mymensingh.
and
The Field Wing of the Corporation has drawn
up a survey
for the development of Chittagong Hills Tracts
scheme
investigation
for
and negotiationshave begun with the Canadian
Government
the survey and make
to carry out
engaging a firm of consultants
of agriculturaldeveloprecommendations
ment
regarding the possibilities
of that
6
Pakistan
13 West
The
of the
functions
Its
the
are
the latter
are
ADC
of West
Government
those
as
same
established in October
was
Pakistan.
of the East
has
carried out
been
entrusted
Its
Pakistan
with
three
by its Field Wing, Supply Wing
by an
objectivesand
1961
and, like
ADC
of Directors
body, is managed by a Board

organisation is also similar.
WPADC
The
ADC
Pakistan
West
Ordinance
which
area.
with
main
and
man.
Chair-
functions,
the Small
ment
Organisation. The Field Wing is entrusted with the developPakistan
Government
as declared by the West
of Project areas
tural
Ordinance, 1961. The Supply Wing arranges for agriculunder the ADC
function
of
The
the Small
suppliesin the whole of Wesc Pakistan.
Organisationis to construct small dams in hillyareas.
Dams
discussed below.
The working of each of these wings is briefly
mainly in
The efforts of the Field Wing have been concentrated
Dams
the two
Projectareas,
Barrage. In the G. M.
area
lakh
acres
viz. Ghulam
Barrage, up
of 28 lakh acres,
of
Government
has
Corporation
set up
142
to December
6 lakh
land
Barrage and
Mohammad
were
Guddu
1963, out of the
manded
com-
private and about 1 1

released for irrigation.
The
acres
of
chaks, constructed 131 tanks for drinking
129
established
and
water
assistance
guidance
and
forward
settlers and
to
form
in the
work
extension
affording technical
for
camps
has
set
provide marketing facilities. Great
to
towns
four
emphasis
of
of dissemination
mandi
small
up
is laid
on
technical
knowledge
the settlers through demonstration-cum-experimental
farms,
among
extension publicityand research stations. Up to the end of 1963 the
Corporation had helped in organising 146 co-operative societies.
Through its AgriculturalMachinery Organisation which has a fleet
levelled and
cleared 1 5 lakh
the Corporation had
of 98 tractors
land by the ead of 1963.
of Government
out of 25 lakh acres
acres
i.e. Guddu
27
Barrage" commands
of 6 lakh
of land in all. Out of the total disposablearea
lakh acres
had been disposed of to different
of State land, 1*7 lakh acres
acres
categoriesof settlers by the end of 1963. In the Barrage area 3*76
lakh acres
require development with the help of heavy earthjunglemoving machinery, involving such operations as levelling,
Project Area
Second
The
"
clearingand shrub eradiction. To develop this land over a period of

loan to purchase
five years the Corporation has applied for a_foreigQ
of development
150 tractors. One of the major handicaps in the way
of roads connecting the various habitations in the
is the absence
newly colonised areas. Efforts,however, are being made to help the
aid, technical
possible in the way of medical
supply of seed and plant-protectionmeasures.
"knowhow,"
During
was
given to 31,895 acres
and over
1963, plant-protectioncoverage
436 tons of seeds were
subjectedto treatment.
farmers
Apart
and
It has also
an
the
is
Corporation
managing certain
has
undertaken
surface drainage schemes
to
of waterlogging and
salinityin the Project
menace
of 120,000
area
the above
from
the
combat
as
farms,
livestock
areas.
far
as
ambitious
of afforestation
programme
over
acres.
Through its Supply Wing the Corporation has, between

1962
and
and
and
fertiliser. It
distribution
of
has
of
27,800
acres
and
plans
scheme
implements
Since January 1963 it has taken
for foundation
3-6
1963, distributed
December
imported
an
to
17 seed
over
run
at
lakh
in hand
cost
farms
these farms
of
tons
on
for
of
August
indigenous
the procurement
Rs. 15
covering
commercial
an
lakhs.
area
lines
seeds.
It has already
procured during 1963 substantive
of maize, rice,wheat
and cotton.
The
amounts
of seeds
target for 1964 is 11,000tons of
130
seed and
cotton
1,834
of
tons
varietyof potato seed were

In
1962, the Small
administrative
small dams
the
for
WPADC
hillyareas.
distributed
Organisation
Dams
of
control
in the
imported and
Misriot
Dam
tonsof Ultimus
367
Holland
paddy. From
to
growers.
placed under
was
of
purpose
completed
was
inaugurated by the President on 1st October, 1963.

Tanaza
and Sipiala,are nearing completion.'
14
6
Concluding Remarks
Two
the
constructing
and
formally
more
dams,
"
From
the
above
of
account
activities of the
the
Agricultural
Corporations in East Pakistan and West Pakistan it

effective
would appear that the new
organisationsare playing a more
role in the development of agriculturethan the older Government
Development
functions
Their
Departments.
if such
agriculturaldevelopment,and
in, it promises
dominant
sector
of
the
economy.
all
almost
The
the
in
aspects
of
effort is persisted
concentrated
break-through
real
embrace
development
degree of
success
of
this
of these
of factors:
however, will be conditioned by a number
institutions,
the staff of these
with which
the earnestness
(a) the ability and
organisationswill perform their duties;{b) the existence of adequate
of
the farmers; and
incentives among
(c) the physicalpossibilities
to
these organisationshave
what
utilisingto the optimum extent
"knowhow."
of supplies and technical
offer in the way
Assuming
personnel responsiblefor carrying out the functions of the

two
Corporations comes
up to the standard, the final achievements
will be conditioned by the following:
(1) The size and character of the unit of cultivation.
(2) The incentives for effort and investment available to the farmer.
These will depend upon:
the farmer
cultivates the land,
under
which
{a) The terms
of a landlord.
when he works as a tenant
particularly
(b) The price that the farmer expects to get for his produce
that the
from
(c) The
the market.
taxes
that the Government
levies
on
the produce
the land of the
or
on
agriculturist.
for financingagriculturaloperations
and marketing of the product.
(3) Availabilityof
credit
We
study each
now
propose
to
1. Economic
of these
problems in
Survey, op. cit.,

p. 28.
turn.
CHAPTER
Land
7
"
Tenure
Importance of Land
The
system
Tenure
of land tenure
customary relationshipbetween
in
the
legal and
land, the cultivator and
the other
country
the
determines
to
partieshaving interest in such land. Thus land tenure givesanswer
is the
the land and what
such questions as the following:Who
owns
the land
and conditions
of this ownership? On
what
terms
nature
of the varieties of
is cultivated and by whom
the owner,
or
one
is the position of the State as regards ownership
tenants? What
rights,and the rights in the share of the produce as a contribution
is
to its finances? The
importance of the system of land tenure
the size of the unit of ownership
thus quite obvious. It determines
and cultivation,and thus indirectlythe techniques of farming used.
It settles the share of the cultivator in the produce of the soil and
consequently the incentives imparted to the actual worker engaged
in agricultural
operations.Thus it not only influences the total production
that could be obtained from a given area, but also determines
such
whether
production is equitably or inequitablyshared among
"
the
partiesconcerned.
and
status
political
those
who
Moreover,
and
cultivate it. A
it determines
position
of
those
defective system
the
who
own
of land
relative social
the land
tenure
be a great obstacle in the social and economic

progress of
that the land tenure
in the following
It is contended
pages
Pakistan
7
has until recentlybeen acting as
2 EvoIatioD
of Land
Tenure
such
an
can
and
thus
country.
system
in
obstacle.
in Pakistan
Historicallyspeaking,the oldest system of land tenure
in Pakistan
^^^
Economy
the system of Permanently Settled Landed

Estates, called
the Zamindari
the oldest system
System of East Bengal. This was
because the areas
the first
of Bengal were
included ia the Province
has
been
Company when in 1765 the

Emperor Shah Alam granted the Dewani
(rightof collectingrevenue)
of Bengal and some
The
the Company.
other
to
Company
areas
this
firsttried to collect the revenue
b
ut
as
officials,
through its own
the rights of
method
unsuccessful, they began to auction
prove
to
be possessed
by
collection from
become
not
in 1793
1772 onwards.
These
Lord
Under
collectors,however,
revenue
of
Settlement
the Permanent
proprietorsuntil after
by
India
the British East
Bengal
Cornwallis.
this arrangement,
hereditaryproprietary rightswere
the revenue
Zamindars
thus became
collectors who
on
of
did
ferred
con-
(or
only condition to which they were subject

fixed
was
The
of revenue.
revenue
they paid a fixed amount
in cash in perpetuityat 10/lIth of the rents realised by the Zamindars
at the time, )/Ilth being left to the latter as tbeir share. This charge
had
to be paid within
the estate
the fixed time limit, failingwhich
owners
land). The
was
that
could
be sold
It should
by auction.
be noted
conferred
were
of
were
that the persons
never
of those
owners
proprietaryrights
Actually the rights
the
whom
on
lands.
always belonged to the cultivators from times

such
rightshad very littlevalue in those times and
collectors,
pressed. Now they were conferred on the revenue
understand
due to mismistaken
for landlords in the English sense,
ownership had
immemorial, but
were
never
who
were
of the local conditions.
The
charge
revenue
later the
value
the
higher prices, and
and
the Zamindars
been
put
on
to
the
the Settlement.
1797
to
of
and
income
the
enhancement
the other
1882) and
increased
land
fixed
later
rents
both
an
charge became
at
due
very
to
at
time, but
the
security
increased
enabled
light. This
legal limitations had

of rents
by the Regulations enforcing
hand, subsequent Regulations (in 1794,
the proprietors
Act of 1885 authorised
rents, since
certain
on
fairlyheavy
was
gradually rose,
increase their
On
increase their
thus
no
grounds. Thus,
of
the expense
the
tenant
the
Zamindar's
and
that
of the
State.
As
rent
in
the
of the
the
margin between
land
claim
increased, another
permanently
"sub-infeudation."
the
settled
areas.
of the State and
vicious
This
By sub-infeudation
the economic
development
is known
is meant
took
by the
place
of
name
the emergence
of
Land
large number
the
133
Tenure
of
interests between
the cultivator and
rent-receiving
State,through the process of sub-letting
of land. Sub-infeudation
to some
exists
extent
in the
temporarily settled areas of Pakistan,

serious manifestation appeared in Bengal under Permanent
Settlement. The basic reason
for this development was
the existence
of a big margin between
the economic
rent of an estate and the land
even
but its most
demand
revenue
number
of
of
interests
rent-receiving
State and
the
he
Indian
paid
many
Zamindar
fiftyor
as
at the
Bengal Land
above
for
this system,
as
By the middle
were
in 1940. Such
shall
the
vations
obser-
Similar
the
system, apart from
law
recent
of all
devoid
has
abolished
see.
of the nineteenth
share of the
cases
some
between
interests,was
various
(on
in 1930 and
by the Banking Enquiry Committee
The
century
peasantry
of interests in land
its due
existed
the cultivator at the bottom.
the
and
him
Commission
that in
Reforms) observed
intermediaryinterests
already apparent.
number
below
one
Simon
The
agriculturaldevelopment.
we
the
from
him.
Commission
the
having his share representedby
more
Revenue
large
between
themselves
in 1926
creatingconflicts between
incentives
margin enabled
squeeze
he received
one
top and
made
were
what
the
to
Constitutional
as
to
This
tiller of the soil,each
the difference between

what
Government.
the
being exploited;a
was
the State
created; and
were
As
revenue.
evils of the system
the
was
large
losing
of the British extended
the dominion
of
ment
Temporary Settleadopted
was
adopted. As regards ownership rights,they were
each
in
or
area
to
conditions
the
according to the
according
prevailing
officer. For instance,in the
view taken by the particularsettlement
to other
parts of the sub-continent,the system
N.-W.F.P., some
large estate-holders had established
their proprietaryrights during the period of politicalunsettlement.
awarded
to
These
rights were
recognised.Other large estates were
communities
village
those who had lent a helping hand in the conquest. Where
Punjab
and
of small
peasants
existed,
as
in the
eastern
In
and
central
Sind, which
introduced.
was
a
Punjab, the Mahalwari
system was
the
Ryotwari
system
part of the Bombay Presidency for a long time,
in
South
evolved
and
the
in conformity with
introduced
pattern
was
West
India.
Here
the main
reason
was
of land and
superfluity
kept the proprietaryrights
the
scarcity of cultivators. The State

because these were
not
regarded as of much
the
It was,
If full
in fact,a concession
ownership had
been
value
to the cultivators rather
conferred
on
by the occupants.
than
the cultivators,
to
the State.
they would
1S4
have
been
liable
plot or
land values
Punjab and
7
'
3 Land
and
had
cannot
present
of
even
whole.
The
classified as
canals,
the
became,
occupants
the
of
large landlords
all
to
landlords.
explained above,
reasons,
fixed
any
or
Therefore,
systems inherited
could
pattern which
uniform
particularprovince, not
various
variety of land
parts of Pakistan.
developed in various
one
to
cular
parti-
System of Pakistan
historical
tenures
analogous
The
they cultivated
coming in of
the
created.
was
absentee
purposes,
to
whether
revenue
situation
N.-W.F.P.
Tenure
Due
land
pay
Later, in Sind, with
not.
rose
intents and
to
to
speak of
the
be
we
true
country
by Pakistan, however,
may
as
a,
be
under:
(i)State landlordism.
the State. The
Here
the
is
system, however,
ownership
of land
is claimed
only of minor importance.

called
are
only in what
The
by
prietary
pro-
"Crown
rights of the State exist
of
been
these lands have not
lands." The proprietaryrights
ferred
conyet
wastelands
These
individuals.
are
gradually
on
private
usually
in
of
the
canals.
extension
under
cultivation
Rights
by
being brought
them
be purchased by or conferred upon
privateindividuals under
can
certain
conditions.
The
system is found
in the canal
colonies
of West
Pakistan.
(h) Private landlordism. Here the proprietaryrights are vested in

private individuals. This system again is of two kinds: (a) Permanent
Settlement
fixed in
system, where
Estate
perpetuityas
was
also in
some
the land
the
revenue
claim
of the State is
until
recentlyin East Pakistan.

been abolished. (Jb)
This system has now
Temporary Settlement Estate
charge is revised periodically,
usually
system, where the land revenue
after thirtyyears.
is found
in all parts of West
system
Temporary Settlement
Pakistan
and
landed
only big
proprietorsin
estates
but
case
of East
areas
also
parts of
Pakistan.
villagecommunities
West
Pakistan.
When
It embraces
of small
not
peasant-
applied to such
communities
the system is called the Mahalwari
(Mahal meaning a
village)system in some
parts (e.g. Lahore and Rawalpindi Divisions)
and Bhaichara
(brotherhood)system in others (e.g.Peshawar Division).
The
distinguishingfeature of this system of proprietorshipis that
land
the
is fixed on the basis of the villageof small peasants
revenue
who
are
individuallyand collectivelyresponsible for its payment.
the economic
From
point of view, the small ownerships stand on a
different footing than the large estates, because
they are normally
some
Land
cultivated
by
by
the
More
tivation
cul-
involve
themselves, while larger estates
owners
tenants.
135
Tenure
of this later.
lordism
State land(Hi) Ryotwari system. This system stands in between
features
and
private landlordism, having certain common
of both. Some
because:
writers regard it akin to State landlordism
(a) the ryot or the occupant is free to give up a piece of land if he
In that case
he is not liable to the
thinks it is not worth
cultivating.
the
land revenue
to
State; {b) the
charge, and the land reverts
in the village
"commons"
""Shamilai"
not
the
vests
or
of
ownership
considered
system
community, as is tne case under the Mahalwari
above, but in the State. On the other hand, for practicalpurposes,
the ryot or the occupant
is the proprietor of the laud as long as he
continues
to
large
are
and
estate-holders
its
effect is the
pra",tical
parts of West
or
same
occupants
of
as
the
Pakistan.
AgriculturalClasses
So
land
able
rights are heritHyderabad Division
prevailsin tlie
Province) where the ryots
of otber
largeproprietary esiates
His
system
(cue old Smd
Pakistan
State.
the
to
revenue
transferable. The
and
of West
the land
pay
far
tenure
is
ownership and cultivation of land
the
as
led
in Pakistan
system
to
concerned, the
of the
the emergence
following
classes of people.
He
(1) Non-cultivatingowner.
of acres
of land or,
owning hundreds
the
owner
himself.
of
this
of
fraction of
He
live
may
class is the
on
an
acre
on
which
his land
be
may
the other
he does
not
large
estate-owner
he may
extreme,
or
cannot
be
cultivate
from
it. The
typicalperson
away
landlord
who
is interested only in
or
large absentee
through his agents
takes little interest in the

and
gathering his rent
He may
of agriculture.
of his land or progress
fertility
possess
prietary
proof
from
full
gage,
mortrightsranging
rights
ownership (transfer,
what
the
until
in
were
sale, etc.) as
recently
Punjab and
under the State (as in
N.-W.F.P., he may have rights of occupancy
Sind) or he may merely have a rent- receivinginterest as one of the
intermediaries
between
happened through
the
real
the process
and
owner
the
of sub-infeudation
cultivator
as
has
in East
Bengal. His
main characteristic is that he shares the produce (in cash or kind) on
the basis of legalright (which was
frequentlysupplemented by illegal
without
exactions) usually
contributing anything to the process of
production.
(2) Non-owner
privatelandlord
cultivator. He
on
the
one
be
may
extreme,
or
occupancy
merely a casual
an
tenant
of
agricultural
i36
labourer
the
other. The
typicalperson of this class is a tenant-at"Will who cultivates the land belonging to a large owner
ted
(though allotto him and his kind in small parcels).
ing
He may, however, be cultivatsmall parcels of land belonging to one
who
small owners
or more
do not
cultivate the land themselves. They are found in all parts of
Pakistan.
Tenancy legislationattempted to protect him, as we
shall
on
see.
(3) Owner-cultivator
property right in his land
have
peasant-proprietor. He
may
and may
differ from the large landlord
or
full
only
in the smaller size of his holding. Or, he could be, until recently,
a
holder with occupancy
rightsin land or a ryot having well-protected
land
he cultivates though there is a Zamindar
at the top
rights in the
East
in
real
Pakistan
until
who is the
as
owner
recently.Occupancy
in West
found
tenants
Pakistan
also could
be classed under
this head
typical peasant-proprietor,
practicalpurposes.
however,
small
holder
to
a
belonging
a comparatively
village community or
Bhaichara
(as in the old provincesof Punjab and N.-W.F.P.). His
size and is as a rule fragmentholding is generallyof an uneconomic
ed.
of them
Some
supplement their ownership with lands taken
may
The
for all
is
tenancy.
on
of the above
None
classes before the
The
to progressiveagriculture.
his
rent
enough
or
to
of his
share
give him
littleincentive
to
produce,
comfortable
recent
landlord
reforms
interested
was
especiallywhen
or
luxurious
put in his best because
he had
could
his estate
living.The
give
be
ducive
con-
only in
was
big
had
tenant
heavy share
and
servility
the owner
of the land. The
peasant-proprietorhad
little financial backing and his holding being small and fragmented
to the applicationof modern
not amenable
was
scientific methods
of
He
in
debt
because
was
he had need to borrow
invariably
production.
of the
produce
dependence on
and had
7
"
land
5 Problems
to
which
the landlord
could
Created
serve
as
by Land
Broadly speaking, there

resulted from
the
establishment
of the Martial
land
and
tenure
to
his position
of
was
security.
Tenure
were
three
basic
problems which
situation in Pakistan
Law
regime. These
on
the
eve
had
of the
were:
(a) Absentee landlordism.

(b) Exploitationof tenants.
unit of farming.
(c) Uneconomic
Absentee
landlordism
was
mainly
land in the bands pf large landlords
or
the
result of concentration
Zamindars
of
possessingvarying
Land
degreesof property rightsin

than
from
lands. It is
such
not
existence
is of
of
nature
of
distributed
follows:
as
Table No.
26^
Area
Owned
Lakh
10
10 to
100
of 100 to
500
of
of
"
Lakh
Thus
"
"
"
"
"
"
500
above
less than
18-09
100 28
46-3
4-76
25-02
11-5
"12^
22-95
10-5
"OIJ
100-0
one^third.
In
of the
area
owners^ and about
Sinditwas
estimated
that
of land
or
million
more
of cultivated
acres
of large
hands
owners.
"^
In
land
each,
80%
3% of
East
Pakistan
of the
there
100-0
of them
by less
owned
the total
owners,
owned
1-9 million
(i.e.47%
20-7
owned
was
Again, over 70% of the total

total cultivated area.
who
owned
on
owned by only 7% of the total owners
each.^ In the N.-W.F.P.,
790
22-98
one-fifth of the total cultivated
over
awntnfoinKFaverage1,000acres
48-6% of the
farm
land
the average
out
acres
total)was
were
was
300
of 2-5
"in the
largeestates
though 70% of the land was held by

by absentee
rightsand might be regarded
who
enjoyed full occupaocy
Zamindars,
owned
tenants
1. Based
para
Total
acres
31-7
221-17
one-half per cent
acres
% of
70-92
each
acres
Total
than
of
Owners
of less than
Owners
"
of
No.
Total
acres
"
centration
con-
significance
legalrights which
such conthe
of
centration
statisticsof
degree
Adequate
available. But enough data is available to establish
large landed estates. For instance, in the Punjab
the
land-ownershipwas
the fact of
more
point of view.
our
are
the
137
Tenure
given in
the Tenancy
Enquiry Committee's
on
data
on
data given in Sind Administration
Report
6.
2. Based
3. Muslim
League AgrarianReform
Committee
Report. 1936-37.
Report, 1949.
App. VI,
IBS
Pakistan,
for all
owners
DevelopingEconomy
practicalpurposes.
ownership, a high
tivated
area,
Pakistan, was being culIn the Punjab, according to the Tenancy
by tenants.
Enquiry
Committee
(1949),56% of the total area was cultivated by tenants-atwill and another
tenants.
In Sind 80% of the total
6-7% by occupancy
cultivated
was
area
by Haris, the tenants-at-will of that province.
As
of
result
proportion of the
In
N.-W.F.P.,
kind
this
of distribution
of
in West
particularly
the
cultivated
tenants
about
half
total arable
of the
land.
large ownerships nor

tenancy cultivation is undesirable
all circumstances.
In fact,as Calvert has pointed out, "the best
Neither
under
agriculturein
(England)."But
best
that
its needs."
"While
practicallynothing
other
advanced
leased
out
in
rent
does
of
term
who
land
tenants'
the land
on
Calvert, "spend
and
has
of
for cash
return
lease
the
in
land is
prevails,
in
means)
day-to-day operations
independent farmer
an
system
is the
back
cultivation
tenancy
During the
interfere in the
is
tenant
tenants
tenancy
Further, in England
(usually of substantial
fairlylarge blocks.
not
of his rental
land."i
the
on
countries, where
to
the
landlord
Punjab landlords," adds
most
back
under
on
English
"the
is because
spends fully one-third
friend and
and
is carried
world
the
the
landlord
The
agriculture.
capital enough
to
make
and
normally uses
up-to-date
West
Pakistan, the
particularly
landlord had settled on his land families of tenants
usually having
them
to
areas
hardly
giving
mic
econoenough
serve
as
resources,
meagre
units. He
himself in most
cases
supplied neither capital nor
to promote
nor
management
productivityof his
any other assistance
investments
adequate
techniquesof
land.
The
production.In Pakistan,
rents
interested
only
agents. He
lived
valuable
"
as
responsibilities
assets.
His
main
intriguesagainst his peers

Exploitationof the Tenant
hunger
conditions
made
his share
town
hobbies
in the
landlord
50. The
if he
to
be
the
most
scarce
and
politicaladventure
and exploitationof the tenant.
it easy
free economic
1. Calvert, Wealth
was
his country-seat
at
for
the
were
landlord
to
to the
were
gross
usually through his
or
of
owner
share
pressure of population on the soil,there

in the country, and the tenant's bargaining power
Due
tenant.
of
life in the
luxurious
national
These
even
proportion being 50
collection
the
local
or
his
common
in
rule, in terms
of
as
were,
produce, the most
forgetfulof
the
on
agent, which
exploit his
was
was
he seldom
and Welfare in the Punjab, p. 126,
land
weak
was.
Land
Even
was
where
pressure
at the mercy
of
population
of the landlord
lack of alternative
139
Tenure
wa"
lightas
io
Sind, the tenant
of his poveriy, ignoranceand

of employment.
landlord was
The
a
man
avenues
because
of substance
economically,of high status sociallyand of influence in

the field of politics
and administration.
Exploitationof the tenant took
place to place according to
maily forms and its degree varied from
circumstances.
and
other
High rents, illegal exations, like abwabs
taxes
and contributions,personal services without payment, and other
forms of exploitation were
quite common.
Normally, as already
half of the gross produce in kind, the
mentioned, the rents were
tenant
meeting all the costs of cultivation. In periods of low prices,as
War
during the decades preceding World
11, this hardly left the
tenant
remuneration
for his labour
at the prevailingwage
in
rates
the neighbourhood. When
and
prices were
high, as during the war
both ends meet
after,he managed to make
As
by strict economy.
reduced
the share of the tenant
regards the illegalexactions, which
still further,the Muslim
Committee
drew
League Agrarian Reform
attention to several of them which they noticed during their investigations.
still
Mr.
to
According
prevalent (particularDarling,they were
ly
in Sind) in 1956, in spite of their being prohibited by legislation.
These oppressivecharges included "Begar," "Khurcha," "Munshiana,"
and "Karaya." In certain parts of the country there were
"Kamiana"
other
taxes
hearth, window
Landlords
the landlord
which
and
in backward
even
areas
exacted
for
every
were
even
from
the
domestic
known
tenant, e.g.
animal
to
or
tax
per
chicken.
charge a homage
on
is struck
his children. i One
or
with the
marriage of the tenant
similarityof these conditions to those which prevailed in Europe
during the worst days of feudalism.
considerable
evidence
of rack-renting,though the
There
was
worst
cases
might be only exceptional.According to an investigation
Enquiry, the landlords' share was
by the Punjab Board of Economic
sometimes
as
90%. The rack-renting
high as 75% or even
of the
admitted
from
time to time. "The
tenant
was
officially
tenants
are
the Punjab Governsometimes
rack-rented, poor and insecure," wrote
ment
to the Bengal Famine
in a communication
Enquiry Commission
have
"and
not
the means
consequently
as
along ago as 1943,
of the
"^
and
effect
these
incentive
to
improvement,
conditions had
necessary
the
continued.
1.
Muslim League
2. Report
of the
Agrarian Reform Committee

Report, p. 15.
Bengal Famine Commission, Vol. II, p. 2C6.
140
7
7
"
Effects
on
Productivity
Apart from
the effects of
system
resulted from
had
that
absentea
it
the
on
the
and
landlordism
tenancy
the
the effects upon
tenant,
productivityof land were

quite serious, since the system took away
the part of
and
incentives for capitalinvestmeat
sustained work
on
The
the tenant.
principleunderlying the absence of incentives was
stated by Marshall
the cultivator has to give his
as follows: "When
landlord half of the return
dose of capitaland labour that he
to each
applied to the land, it will not be in his interest to apply any dose
is less than twice enough to reward him."^
the total return from which
Punjab,
"The
close quarters in the

principle in actual practice.
observed
Calvert, who
Mr.
tenancy cultivation
working of this
generally,"he wrote, "take
noticed
tenants
the
at
less
in
care
preparingthe
fewer
it less and use
implements
land, plough it less often, manure
valuable
less
especially
it
than
owners.
They grow
crops,
upon
avoiding those requiring the sinking of capital in the land. They
make littleor no effort for improving their fields;they often keep a
lower
no
care
on
type of cattle, they avoid perennialsand bestow
trees."^
7
"
8 The
Farmiog
of agriculturewas
productivity
Low
of
of
Unit
incentives
on
the
part
of
the
not
tenant.
to
the lack
other
factors
merely due
There
were
and
the tenantoperated both on the owner-cultivators
One
these was
important factor among
farmers.
(and still is) the
also frequentlyfragmented. The
small unit of cultivation which was
be
due to: (a) allotment of land to tenants
small unit of farming may
small
in
parcels and (6)small unit of ownership in the
by large owners
Both
of peasant-proprietors.
are
case
ultimatelydue to population
too
which
land. No
pressure on
defect. The
or
of land reform
this
as such can
remove
lie either in the direction of population control
industrialisation. To this extent
the subject falls
remedies
in that of
rapid
of the land reform

scope
in the present context.
concerned
the
beyond
be
amount
however,
of
availability
A
few
problem
be
couM
to
facts
may
be
Calvert,op
cit..p. 20,
to
above.
indicate the
of cultivation.
Principles
of Economics,
shall
organisationalchanges,
relieve the situation pending the
quoted here
of the size of the unit
we
Certain
long-term solutions indicated
1. Marshall,
2.
suggested
with which
programme
7th
The
Ed., p. 644.
magnitude of
the
overall land-man
Land
ratio at the emergence
of Pakistan
is indicated
Table No.
If it is assumed
this gives an
viôrkers,
is not
50%
than
are
only
cropped
the cultivated
the average
on
of from
averages
to be as
and
do
area.
by the following table:
27
family has
average
an
average
holding,but
more
assumed
that
141
Tenure
8 to
If
10
acres
cropping
two
per
agricultural
family. This
is assumed
to
land, the unit of cultivation may
given in
not
take
the last column.

into
account
be
be
ever,
These, howthe fact that
large holdings too and the soil is not of uniform

Some
other figuresindicate that quite a large proportion of
quality.
size
cultivators have been cultivatingholdicgs below the economic
for primitive methods
of production usually employed. Thus
even
in the Punjab, according to the Royal Commission
on
Agriculture
there
are
some
(1928),"76%
1. N.-W.
of the cultivators cultivated less than
Frontier regions and
the Karachi
Capital Area
10
have
acres
been
each and
excluded.
142
Pakistan,
DevelopingEconomy
55'2% less than 5 acres each."i The Tenancy Laws Enquiry Committee
of the Punjab has given figures^to show
that on an average a peasantand
that of a tenantproprietor'sholding works out to be 3-9 acres
farmer 3 8 acres.
In Bahawalpur at Partition 102,862 peasant-proprietors
and
owned
held 1,751,346
tenants-at-will
1,414,836 acres
337,637
acres
of
acres
for
This
land.
be
must
worse
Pakistan. We
may,
the
figuresare
however,
pressure
and
acres
4'9
The
respectively.
of population on
parts of
N.-W.F.P.
available for other
take it that in the former
unit of cultivation is about
size of the
13 7
tenant-farmers,
since
now,
growing. No
the soil has been
the
holdings of
average
peasant-proprietorsand
situation
West
gives
the
same
as
in the
Punjab,
Sind,
Punjab.
due
to irrigationlimitations
however,
only small portions of the
with crops each season
sown
total holdings are
following what is
called "shifting cultivation." As
regards East Bengal, about thirty
on
Agriculturefound that in Bengal
years ago, the Royal Commission
and
in Sind it is larger than
in the former
In the former
"
half of the
of the
barely sufficient for the maintenance
holdings were
cultivatingthem.^ Specialinquiriesshow that in this province

of the farmers'
families had
holdings below 2
before division 42%
farmers
each."* No
2 and 4 acreas
between
21% had areas
Revenue
Commission
the Bengal Land
wonder
regarded it "the most
have
to face, because
it is virtuallyimpossible
difficultproblem we
under present conditions to suggest any remedy."^
The problem of holdings, however, dees not finish at their small
cultivated by a peasant-proprietoror a
size. If the whole of the areas
in
farm at one
a consolidated
tenant-farmer is found
place, he might
while
each
acres
be able
make
to
better
use
of the land and
other
But
resources.
this
of
areas
holdings are not only small but in many
Pakistan
they are also fragmented. The total holding is made up of
other
the villagearea
with
intermixed
tiny plots scattered all over
plots belonging to different cultivators. In the canal districts of West
Pakistan, the evil of fragmentation is not a problem. In certain areas,
it is quite serious. For instance,in the Attock
District (now
however,
"in
Division)
villageswith an area less than a square
Peshawar
many
the
is not
case.
The
mile the Zamindar
2. The
4.
of the Royal
to go
on
Commission
an
average
of two
miles
to
Agriculture.
Report, App.
Punjab Tenancy
Enquiry Committee
Report, p. 176.
Royal Commission
Commission
Report, Vol. I, pp. 85-86.
Bengal Land Revenue
"1. Report
3.
has
5. Ibid.
Laws
on
his field
Indian
TV
and
VI.
as
Land
Tenure
143
be the distance if the

against three furlongs or less, which would
had
been
Similar conditions
village
laid out
more
scientifically."!
fields have
been
prevail in other parts of Pakistan, cccept where
for canal
planned out before colonisation or opening up of the areis
irrigation.
Fragmentation is mainly caused
by the growth of population
and operation of the law of inheritance which requiresdivision of
all the sons
(now also daughters) of the deceased,
property among
each claiming a bit of every kind of land; decay of handicrafts pushing
of the people to landed
property so
people on to land; attachment
that they stick to their share even
when
theymigrate to towns; agricul-'
of
tural indebtedness leading to sale
pieces,etc.
to cultivate but
Small
uneconomic
fragmented
holdings are
of
the
cultivator
The
is
so.
are
more
already
equipment
holdings
poor
impossible, like
wastefully utilised; scientific cultivation becomes
diggingof wells, employment of labour-savingdevices,introduction of
valuable crops; cost of protectingthe crops, if protectionis at
more
is wasted ia hedges and paths and
all possible,is higher; much
area
in moving from plot to plot.
time is consumed
much
The problems created by our land tenure
suggest that reform was
next
chapter discusses the problems of land
urgently needed. The
reform
in Pakistan.
1, Quoted by Nanavati
and
Aujaria,Indian Rural Problem,p. 30,
CHAPTER
Land
8
"
Reform
1 The
In
Concept of Land
Reform
the present context
we
shall
the term
use
"land
reform"
to
readjustmentof the various rightsand

obligationsconnected with the ownership and use of land with a view
its productivity
and (//)
to (0 increasing
ensuringhigherlivingstandards
and improved social status to those engaged in its cultivation. Thus,
but also social and
not
the aims of land reform
are
only economic
of rightsin land is not only
It is realised that the structure
political.
a
major barrier in the way of economic
progress, but caa also have
life
of
the people and the political
serious repercussionson the social
this
of the country. In
chapter we shall trace the history
stability
in Pakistan
of land reform
culminating in the recent land reforms
introduced by the Martial Law
regime.
aiming
include all measures
"
2 Land
Reform
Land
reform
world
in Other
has
been
at
Countries
carried out
in
various
countries
of the
vative
years. It has mainly taken two forms, (a) The conserwhich
has
mainly aimed at consolidation of holdings,
approach
in recent
land reclamation, provisionof greater credit facilities and, above all,

of landlord-tenant
with a view to
relationship,
particularly
regulation
safeguardingthe rightsof
the latter, (b)The radical
approach, in which
the main principlefollowed is that the land belongs to the tillerof
the second type of reform, largeestate-holders have
the soil. Under
been, partlyor wholly,expropriated with or without compensation.
land thus released has been distributed among
tenants
or
peasant-owners of small
agricultural
The
countries the elements
of both
thefe types of land
landless labourers,
holdings. In
reform
have
some
been
Land
introduced
1^'"
Reform
la India, for instance,

varying degrees of combinaliou.
the land reform policy has aimed
at the abolition
of intermediaries,
fixingof ceilingon holdings, regulation of landlord-tenant relations
and reorganisationof agriculture,
including consolidation of holdings,
prevention of fragmentation and development of co-operaiive village
been
and co-operativefarming. DiiTerent policieshive
management
introduced in different areas
according to the local conditions and
have been achieved. In Japan the reforms
of
varying degrees of success
1946 led to the transfer of land from the non-working or absentee owners
iu
the
of
large landed
actual
cultivators.
Egypt
In
has
expropriated landlords
the
is
Eastern
only nominal.
Europe
more
Such
have been
reforms
Rumania,
Yugoslavia
Lithuania.
The
approach
to
carried
Sweden
Nertherlands, Denmark,
8
"
in East
Reform
3 Land
been
given
the
peasant-
210
acres
is distributed
all these
the
though
Central
of
taken
any
of
and
in
cases
pensation
com-
and
some
compensation.
in
Finland, Poiand,Czechoslovakia,
Baltic
States
of Estonia, Latvia,
include
reform
been
not
the
In
compensated
have
measures
out
land
excess
of the countries
countries v/hich have
land
the
farm-labourers.
In many
have
and
and
been
have
among
ownership, about
and
radical
the old land-owners
cases
fixed
been
in the abolition
resulted
distribution
ceiling on
cultivator-farmers
the
in Burma
their
and
estates
agriculturalland,
among
reform
tillers. Land
to
and
followed
the
U.S.A., U.K.,
more
conservative
Germany,
France,
Norway.
Pakistan
Coming to Pakistan, let us start with the oldest province. of

of East Bengal (now East Pakistan)
India, i.e. Bengal. The Province
of Bengal
created
through the partition of the old Provinces
was
and
had
been
century
the
or
laws
tenancy
in the Bengal
the
and
Assam,
evolved
so.
Permanent
As
we
have
Settlement
inherited
by
the
new
Province
during
the
already mentioned
of
1793
fixed
in the previous
the
land
Province
preceding
chapter,
revenue
at
sufficiently
high level and gave proprietaryrights to the Zamindar,
he could
collected it as strictly
who
increase his own
to
as
share.
originally intended that the rights of the tenants
Though it was
would be secured, no positive step was
taken in this direction until
1859, when the first Indian tenancy law was
as
the
passed, known
1859.
Act
of
Rent
Bengal
This
measure
of 1885. This Act
was
later amended
providedthat
by the Tenancy Act (Act VIII)
every cultivator who
had
held land
146
in
a
The
villagefor
idea
twelve
to
was
acquired thereby
years
ejectment of
prevent
of the
flimsy grounds. Most
"occupancy tenants," i.e. tenants
land except under
This
at
conditions
Further, under
court.
competent
enhanced
stated
intervals shorter
Act
could
not
be
in execution
and
the
the
by
(called ryots) thus
tenants
who
right.
occupancy
on
landlords
an
tenants
law
new
became
ejectedfrom
of
their rents
of
decree
could
the
not
be
than five years.
subsequently amended
by the Bengal Act I of
to
was
give greater facilitiesto landlords
for the collection of rents and also to guard against enhancement
of
guities,
ambirent
also removed
by collusive compromises. This amendment
defects found
in the Act of 1883, through
and
anomalies
About
twenty years later,in 1928,another
twenty years of enforcement.
Act was
passed under which
holdings could be transferred by the
lords
tenants
subjectto the payment of a fee. This Act also gave the landthe right of pre-emption and further strengthenedthe rightsof
1907. The
was
object of this Act
sub-tenants.
of
the Bengal Tenancy Act
was
important measure
lords
exactions and cesses
charged by the land1938, which abolished illegal
vial
his allufrom their tenants, gave the tenant
the right to recover
land within twenty years om payment of four years'rent, conferred
the rightsof occupancy
sub-tenants as well,aad reduced the interest
on
effect of those laws was
that
of rent. The combined
payable on arrears
the tenants
made
ejectments,limits
were
secure
against unreasonable
The
had
next
been
put
the
on
of
enhancement
rents, and
the
landlord
was
legally
beyond
Pakistan
the
which
was
legislation
Province of East Bengal inherited from pre-Partition
days.
The East Bengal State Acquisition and Tenancy Act of 1951 also
forbidden
to
impose
chargeable rents.
burden
any
Such
'
4 The
The
Zammdari
did
not
Autonomy
Revenue
as
we
shall
on
the
tenants
the tenancy
contains provisionsfor the

of tenants,
his
protectionof
the interests of certain classes
presentlysee.
Bengal State Acquisitionand Tenancy Act, 19S1

demerits of the system introduced in 1793, later called the
for a long time, but the question
well known
System, were
receive official attention until the incoming of Provincial
East
in 1937.
Commission
of Sir Francis
the Province
was
Floud,
with
Under
to
the
pressure
of
public opinion, a
appointed in 1938, under

examine the existingland
specialreference
to
the Permanent
the
Land
chairmanship
system of
Settlement, The
revenue
Land
Commission
and
recotnmead;d
its
the
replaeeiaeatby
interestsbetween
of the view
was
that
of the State, but
agricultureand
this effect
to
new
was
the
E.B. Act
XXVIII
The
for
up
more
in the
mediary
eliminatingall inter-
the State. The
Commission
only increase the revenues

for a more
possibilities
gressive
pro-
not
peasantry. A bill
prosperous
Provincial Legislaturein 1947,
passed Partition took place.After the Partition,

Bengal State Acquisition and Tenancy Bill,1948,
was
passed by the Provincial Assembly in 1950 and
of the
assent
Governor-General
in 1951
and
became
of 1951.
Bengal
East
create
ment
Settle-
be
bill,the East
framed, which
received
also open
introduced
was
but before it could
ryotwari system
change would
would
of the Permaaent
termiaation
the cultivator and
this
147
Reform
radical reform
State
Acquisitionand Tenancy Act, 1951, provides
in the land
tenure
system of East
Pakistan.
Under
its
interests between the cultivating

tenant
provisionsall rent-receiving
The
Zamindari
and
the State are
to be acquired by the State.
big
be acquired immediately under
estates can
procedure^ and
summary
the remaining rent-receiving
interests were
to be acquiredâfter the
preparation or revision of record of rights through comprehensive
the
carried out
for the purpose. ^ As soon
as
intermediary
surveys
interests have
been
acquired, the tenants
holding the land become
of the State, to whom
henceforth the rents
The
tenants
are
payable.-*
entitled to
outgoing rent-receivers are
comp2nsation calculated
the
Act.
the
The
of
rules
framed under the Act
to
according
provisions
lay down the procedure for the fixation of rent and the preparationof
rolls. As regards rents, normally,existing
the compensation assessment
rates are accepted unless modification is considered
necessary due to
circumstances.^
the
As
to
changed
compensation, it is arrived at by
from
estimated
the
deducting
gross receiptsof the rent-receiver the
various sums
payable as costs incurred by him, such as land revenue,
income-tax
rent, cesses, and agricultural
payable to the Government,
of irrigatioaworks
of maintenance
and collection charges.The
cost
compensation is a multiple of the net iacome thus arrived at and varies
according to a slidingscale from ten times for net incomes not exceeding
Rs. 500 to twice for those exceeding Rs. 100,000.^ The compensation
1. Under
3.
Ch.
II of the Act.
Chapter IV,
5. Sec. 24.
Sees.
17 to 19.
2. Under
Ch. V of the Act.
4. Section
6. Sec.
37.
3(4)(").
148
paid partly in cash (up to Rs. 1,000 of the claim) and the
balance in non-negotiable bonds carrying3% interest payable in not
than
more
fortyannual instalments.' Pending the final calculation of
the compensation, the intermediary is to receive an ad interim pay meat
is to
at
be
of one-third
the rate
Provision
is also
rent-receivers.
The
Act
made
income
of the net
for
the
scaling down
he is entitled.^
which
to
debts
incurred
by the
the
provides a ceiling for
further
khas
(self-cultivation)
bighas (about 33
is greater, plus an
whichever
per family member,
by the
not
area
exceeding 10 standard bighas covered
Land
in excess
of these limits is to be acquired by the
possession of land,
acres) or 10 bighas
additional
homestead.'*
for
State (in return
is either
which
compensation)
100
and
standard
is to
cultivating families owning uneconomic

limit may
be
The maximum
agriculturists.5
holdings
the
for instance, when
distributed
be
relaxed
is carried
and
among
landless
certain
in
cases;
by power-driven
large-scalefarming
appliances,or in the case of large dairy farms or tea and
6
sugar plantations.
also contains
Act
The
some
provisions for the protection of
Some
of these provisions are consequential
certain classes of tenants.
to the main provision of the Act, viz. the acquisition of rent-receiving
of service tenancies (holding
all holders
rightsby the State. Thus
on
mechanical
service to be
of some
lands free of rent in consideration
agricultural
rendered) will acquire occupancy
rights in such land subject to the
of
payment
Such
fair and
will be
tenants
court, they have

of the landlord.^
to
move
equitable
entitled
to
rent
a
to
landlord.^
immediate
compensation if,on
their homesteads
If they have
their
from
within
an
order of
the homestead
Aprilj.1948, their
lands can
be restored unless the ejectment took place under the order
of a civil court or other competent
authority.*^
After
Government
tenants
or
been
ejectedafter 7th
State
under
the
acquisition,all lands hald by tenants
fair
and
to
are
equitable rents. All agricultural
pay
have
heritable
and transferable rights in
ryots
permanent,
1. Sec. 33.
2. Sec. 6(1).
3. Sec. 70.
5. Sec.
76.
7. Sec.
11(1).
4. Sec.
20(2).
6. Sees. 20(3) and

8. Sec.
9. Sec.
13(1).
12(2).
5.
Land
their lands and
14=9
Reform
they like.i An agricultural

be ejected from the holding except in execution of a
cannot
decree of a civil court
passed on the ground that he has done an act
in contravention
of the provisionsof the Act.^ In cases
of transfer of
tenants
ryoti lands, co-sharer-tenants
and
holding contiguous land
have the right of pre-emption.3
The
rent
of a ryot cannot
be enhanced
beyond the maximum
rate of rent fixed in the table prepared for different classes of land.*
Rent once
within thirtyyears.^
enhanced
is not liable to enhancement
No tenant, however, is allowed to sub-let his land after State acquisition.
are
able
to
use
them
as
tenant
The
Act
The
Act
the sub-division of holdings

also puts restrictions on
and provides for their consolidation
under certain conditions.^
be
It removes
judged as a progressivemeasure.
into direct
parasiticalintermediary interests and puts the tenants
w
ith
the
and heritable
relationship
State, giving them
permanent
and
unreasonable
and
rights
occupancy
frequent
guarantees against
enhancement
of rents. It puts a ceilingon the total area that a person
hold and guards againstthe re-emergence
of intermediaryinterests
can
through forbidding sub-letting.Further, it makes
provision against
sub-division of holdings and provides for their consolidation.
One
of the Act should, however, be pointed out. It
weakness
affords no
protection to a class of tenants called bargadars. They
are
share-croppersand are not recognised as tenants in East Pakistan.
Data
must
their number
to
as
another,' 19%. As
to
available
not
are
estimate,^they cultivate about
10%
to
but, according to one

15% of the land and, according
recommended
by the Planning Board

(now
Planning Commission), the question of granting legal protection to
them
8
'
should
be considered.
Implementation of
Now
as
the Act
seen,
method
on
was
an
area
regards
allows
the Act
the
progress
two
methods
we
have
acquisition:
(a) the summary
Chapter II of the Act; {b) comprehensive acquisition
basis under Chapter V of the Act. The
of the
purpose
2. Sec. 85.
96(1).
4. Sees. 98 and
5. Sec. 114.
6. Sec.
7. Chapter XV.
9. M.L.
implementation.As
of State
under
1. Sec. 86.
3. Sec.
of
Darling, Report on
(Governnisnt of Pakistan, Ministry
102.
93(1).
8. First Five-Year
Labour
of
Conditions
Labour),
p. 34.
in
Plan. p. 315.
Agriculture in Pakistan
^50
provision
summary
to
was
enable
tlie Government
large estates immediately. First, because

delay and
the Government
would
Second, the intention
manner.
Zamindars
who
acquire certain
to
without
be done
this could
immediately in this
forestall some
to
unscrupulous
a
variety of malpracticesto evade
estates
acquire all court-of-ward
acquire funds
was
resorting to
to
general policy was
and also all private estates of 50,000 acres
more.
or
By the beginning
of 1955, 423 estates
had been acquired under this procedure, out of
which 105 estates
were
acquired during the year 1954-55. This method
of acquisition,
tions
however, did not prove as easy as expected. Complicaother
mediaries
interof
fact
that
out
the
things,
arose, among
many
had interests spread in more
than one estate, in each of which
they occupied a different status. For instance,an intermediarymight
were
the law.i The
be
in
Zamindar
rightscould
became
defined
be
sometimes
the chain
detailed
involved
estate.
Before his
settled,it
compensation due to him
but
investigationsembracing not one
and
became
which
survey,
endless.
Chapter
regards State acquisitionunder
As
in another
tenure-holder
make
to
necessary
several estates, and
this
and
one
Finance
basis),
area
timeexpensive and
personnel to carry out
were
trained
consuming. Moreover, the necessary

available.
not
the procedures were
(i.e.on
bottleneck.
another
was
acquisitionwas slow until March

decided to acquire all such rightsin eflfect
1956 when the Government
14th April, 1956, and let the details regarding compensation,
from
to these
Due
etc., be
however,
was
to the
Due
Supreme Court
unable
stay orders
issued
from
the
amount
collected
from
been
this
millions in 1954-55
millions in 1958-59
(15 months)
for the year 1960-61.2 The
expenditure
1. First Five-Year
2. Government
and
court
tenants.
on
source
High Court
Dacca
of East
There
from
Rs.
of
Pakistan
also
were
was
certain
increased
in recent
from
millions
to
was
Rs.
Rs.
years.
29'83
126'53
budgeted
is also reflected

Pakistan, Civil Budget Estimates, 1960-61,p. 17.
of East
the
properties acquired
the increase
115 00
and
implementation
(includingprovision for compensation)
progress
incurred
Government,
ultimatelythe
44 34 millions in 1956-57, and
to Rs.
in the
by the
collections
have, however,
the
in January 1957.
Pakistan, the Government
of
collect rents
the Act
under
of
decision
of law. But
of the Government
initial difficulties. The
other
The
to
This
course.
challenged in the court
in favour
decided
due
settled in
of
the process
reasons,
Land
for
Act.
acquisition and management

This expenditure increased
Rs.
45-79
millions
budgeted for
In
of
properties acquired under
from
Rs.
10-9 millions
(15th months) and
Rs.
the
in 1954-55
6r3
millions
to
was
1960-61.1
the
meantime
which
arose
in 1958-59
151
Reform
stood
various
in the
way
legal
of
the
and
administrative
diflBculties
speedy completion of
the process
of
it a formidable
task to arrange
acquisition.These made
the
of compensation and
to ensure
of the records
correctness
payment
which were
being prepared in great haste. The collection of revenue
also raised difBcult problems. To
investigatethese questions and
Government
the Provincial
submit
recommendations
appointed a
in December
Commission
Revenue
recommendations
1959. Its main
July
1958. The
relate
Commission
to
limit for
reported in
increasingthe ceiling
300 bighas (about 100
possession of khas lands from 100 to

acres
per family) generally and 400 bighas in special cases; imparof ownership below 3 acres
to prevent
tibility
fragmentation; adjustment
in the mode
of payment
and
administration,
of compensation; reorganisation of the
training of officers and staff for

appointments at various
implement the recommendations.
of this Commission
Recommendations
under implementation.
now
are
State acquisitionof intermediary interests will no doubt increase
revenue
the
levels
the income
is
of the State
end
in
to
after payment
even
itself,
though it will be
of the entire
cost.
But this
valuable
gain.
will be determined
scheme
The success
essentiallyby its
of
the
and
the prosperityof its rural
effect on the economy
Province,
whom
the
consists
of cultivators. In the
majority
citizens,among
short run, the cultivators will hardly gain anything. They will be
ing
paythe same
rents; only the recipientwill be the Government
rather
than the private landlord or other intermediaries. Before the movement
demoralisation
for acquisition created
Zamindars, the
among
latter played quite a positiverole in the social,economic, and political
life of the Province. They helped the peasants in the construction
of irrigation
works, embankments,
etc., and also supplied them
with
credit in some
schools
and
charitable institucases.
They promoted
tions
and activelyparticipatedin religious
and social ceremonies
and
not
an
of the
events.
Their
however, that
method
during
of
the
prestige of the Zamindar

1. Govemnjent
rent
of East
collection
decade
had
been
was
previous
on
also
to
flexible. It is true
the
the decline and
acquisition,the
along with this
Pakistan, Civil Budget Estimates,

1960-61,p. 70.
132
Pakistan, A
his benevolence
since
Even
the
of
most
then, the
be filled by
the
to
the
other
community
The
peasantry.
vacuum
some
Developing Economy
elements
active
moved
by the elimination
agency.
This
development
of the
out
created
country.
of the landlord
must
co-opsrativesocietyor
be the
may
this process,
accelerated
Partition
organisation under
the
Basic
new
cratic
Demo-
institutions.
It has
suggested (and the suggestion was

supported by the
Plan) that, instead of making the ryot the tenant of
the new
be given full proprietary
Act
does, he should
been
First Five-Year
the State,
as
rights in the
land
be to build
he
In
cultivates.
of the Plan, "the aim
words
the
rural
societylargelyconsisting of independent and

"^
self-reliant peasant-proprietors.
The cultivatingtenants
are
expected
the Gevernment,
into owners,
but if they are turned
rent
to
to pay
only. Since the rent is higher
they would be liable to pay land revenue
could
be regarded as price of land,
the excess
than the land revenue,
the payment
a
of which could be completed over
specifiedperiod; or
in a smaller
if the cultivator so wished, he could complete the payment
could fix the price of the
of instalments.
The
Government
number
land on some
reasonable basis. This is a valuable suggestion and needs
must
serious
be
consideration
in line with
land
Pakistan,as we
The position
shall
the
on
of
part
reform
the
scheme
presently.
to-day in
see
All the
rent-receivinginterests in
Provincial Government
(the incomes
of which
Government
non-retainable
have
khas
rent-receivcrs like the
acquired or
classes
taken
spent
are
also
land
may
West
be
marised
sum-
the
acquired
and
in the
vest
now
taken
possession of all
Wakf
and
charitable
on
of the
Pakistan
East
the latter have
and
rent-receivinginterests except those of
not
Pakistan
would
in
under.
as
The
This
implementation
East
it stands
as
Government.
under
or
Dcbottcr
tno
estates
religiousinstitutiyns).
taken
possession
rent-receivers,though
not
of the
of
non-
or under-raiyat.
cultivating-raiyat
They have also
khas
of
the excess
lands of the retainable
possession
of rent-receivers
as
well
as
the non-rent-receivcrs
in the
covered
by the wholesale acquisitionin April 1956. The Government

acquire these when the compensation assessment
rolls have
been finallyprepared.
areas
will
8 '6
Land
The
Reform
in West
Pakistan
discussion of land reform

1, First Five-Year
in West
Plan,
op.
Pakistan
may
cit.,pp. 3I4-J5,
be undertaken
Land
in two
During
and abolition
1955. The
The
a
land
"
Tenancy
It
regime.
mainly consisted
of
tion
regula-
of the land system
excrescences
introduced
reforms
All
by
involving, as
of proprietaryrights among
structure
Law
reforms
of certain
tenants.
occupancy
radical
more
Martial
developments took place

in
Pakistan
of the integratedprovince of West
emergence
former
provinces,therefore, will be studied separately.
like Jagirs and

before the
the
first period land
the
of tenancy
under
in October
Law
of Martial
the establishment
parts: (/) before
1958; (h) introduced
1^T'?
Reform
in
was
nature
the
Martial
they do,
other
Law
regime
are
of
modifications
of
the
things.
in Sind
Reform
former
the
these
province of Sind, the
area
constituting
now
for tenancy
Hyderabad Division of West Pakistan, that the move
reform first originated.As far back as March
1942 a Tenancy Laws
Committee
of the Province to
was
appointed by the then Government
tenancy rightsto the Haris
go into the question of granting permanent
the name
in this area.
The
Committee
given to the tenants-at-will
reported in 1945 and favoured the grant of tenancy rightsto the Ham
of land annually for
who had personallycultivated at least four acres
the same
Zamindar
continuously for a period of eightyears.'The Haris
thus protected were
not
to be ejectedexcept for failure to cultivate the
failure to live in a
land personally,failure to cultivate efficiently,
the
"
recognised villagewithin
rent, and
was
taken
on
Another
this
mile of the farm, failure to

for certain
conviction
offences. No
pay
the
scribed
pre-
action, however,
Report.
Committee
was
appointed in
March
1947
under
the
reported
chairmanship of Sir Roger Thomas
(a Zamindar), which
1948.
is
This
in January
"Hari
the well-known
Committee,"
more
celebrated for its unpublished minute of dissent than for the published
had "most
serious objection to the
majorityreport. This Committee
land rights in holdings defined
and
by metes
grant of permanent
bounds."
They were, however, of the opinion that the "Government
should
legislatethrough a Tenancy Rights Act to take powers
to
of
cultivation
and
to
grant
regulate batai (crop-sharing) practices
No.
XX
of
Act,
Sind
1950
In
Tenancy
the
1950,
rightsto Haris?
was
passed, which,
as
amended
from
time
to
time, abolished
Report, Tenancy Laws Committee, 1945, p. 3.

(1947-48),p. 55,
2. Report, Hari Enquiry Committee
1.
begar
154
(free services)and
rights to
rents
and
debt.
It
towards
illegalcharges of various kinds and gave permanent

cultivators. It imposed limits on
produce
a certain class of
the produce which
the landlord
might impound for the
further specifiedthe responsibility
and tenants
of landlords
each
other.
Permanent
rights were
into force, he had

landlord
same
less than
not
assigned
to
with
pair of bullocks.
one
least four
at
the Act
if,when
tenant
of land
acres
came
for the
continuously.^But the area

cultivated
could be eflBciently
three years
exceed
not
must
to
cultivated
himself
for
him
given
what
Where
the
cultivated
area
fixed,as
not
was
in Sind, then
"shiftingcultivation,"â common
system
he
had cultivated, for
rightsprovided
acquired permanent
less than three years continuously,difTereat "pieces or parcels of
not
In that
for the same
land in a single or adjoining hamlet
landlord."
happens
the
under
tenant
"shall be deemed
he
case,
right in
hamlet,"
that
piece of
cultivated
had
to
such
to
between
might be mutually agreed upon

these, there
Apart from
cultivating
cultivate any specific
a
in different hamlets
land
extended
landlord, the right was
same
right
the
with
tenant
permanent
without
but
If he
land.
be
to
the
hamlet
hamlets
or
and
tenant
for the
as
landlord.'
the
other
prescribed three
ways
had
he
if
tenant
a
acquire permanent
rights:(a)
personally cultivated "any land" continuously for at least three years
immediately before 1st April, 1948, and was
subsequently evicted;"*
which
in
(fc)if he completed
least four
at
(c) when
at
landlord
The
continuous
acres
accord."^ All other

Act
and
tenant
period of three
time
any
remained
tenants
three
Act
after the
granted permanent
provided
established, were
the
were
could
years' cultivation of
rights
in
large compact
cotton
land
It
economise
was
wheat
and
two
thus
against lands
water,
by which
ways
blocks
on
that
the
separate
cultivated
6(1).
commonly
saxe
blocks, but owing
3. Sees. 5(2) and

4. Sec.
landlords
This
Such
is known
provision had
as
to
icbeme,
the
be
the tenant
system
made
from
to
year
and
tenant
he
is
not
were
facilitate
cotton
crops
given land in
tills the
never
of
of
death
irrigation,To
their wheat
rotate
the rotation
continuously by
own
rights, once
permanent
water-course.
to
his
tenants-at-will.^
protected. They did not lapse with the

developed impartiallyas prescribed.'*They
in succession.
years
of
him
to
1. Report, Hari Enquiry Committee

(1947-48),p. 55.
cultivation
2. Iq Sind
caual
largely depends
upon
this and
force;ând
into
came
same
shiftingcultivation.
apply
to
such
lands
as
to year.
(3).
5.
Sec.
8.
6. Sec. 7.
7. See.
i.
8. Sec. 10.
Land
liable
seizure, attachment,
to
155
Reform
sale, nor
or
could
they
mortgagel
be
in any way alienated.' They could be terminated

or
only if the tenant
failed in his obligations either to the landlord or the land, or the land
acquired by the Government
for
tarily
public purposes; or was volunsurrendered
abandoned
or
by the tenant; or subject to a year's
notice if the landlord
required the land for bona-fide personal or
mechanised
cultivation; or for a garden or any non-agricultural
But unless it was
cultivation
or
required for mechanised
purpose.
was
garden, the
area
the landlord
was
in the
holding
produce where
equipment and to
the
the
fixed
that
half
at
could
landlord
the
the
support
the
requisitelabour
crops
hand,
landlord's
to
the
condition
for
the
cesses
1. Sec.
11.
3. Sec.
17.
imposed
It could
he
paid for
the
rent
produce
be in
been
Act
of
of the
maximum
on
not
had
amount
tenant
carry
and
was
out
excess
set
required
of
aside to
to
the local storage, and
The
landlord,
leading from
water-courses
irrigation,lend seed to
to
the
tenant
prescribed area
the
for the cattle and

tenant.
on
for
the
on
and
provide
to
weeding
supply
proper
water-courses,
after division
fodder
disputes between
5.
The
bunds
maintain
to
growing
personal use of
unauthorised
the
proper
allot
for
Finally,
All
share
field,ensure
and
maintenance
cases,
was
necessary
equipment,
and
required
demands,
one-third
to
irrigatedland, provided
specifiedby the landlord, etc*
was
and
cost
In all other
other.
irrigation
maintain
as
them
his
each
towards
tenant
transport
limited
family, and to cultivate the land. 3

fixed the responsibilityof the landlord
specifically
the
crops,
impound
and
tenant
Act
The
the
for debt.
after the
remained
whatever
Act
the
Limitation
crops.
land, if available,
prescribed.
as
on
equipment.
similar
however,
case,
bore
tenant
three-fifths
the
maintained
was
him
compensate
or
In every
acres.
with
the tenant
provide
to
50
exceed
to
regards produce rents,
As
and
not
was
of the
seed,
grow
the
other
the
canal
tenant
if he
prescribed
vegetable cultivation
declared
illegalall free services (begar)ând

(abtvabsy imposed by the landlord on his tenant.
the landlord
and
his tenant
2. Sees.
13. 14 and
A. Sec. 23.
6.
Sec. 24.
7. Sec.
21.
Sec.
22.
to
were
be settled by
156
Pakistan,
the
local
Revenue
Developing Economy
Officer, subject
appeal
to
Assistant
the
to
or
Deputy Collector.
is doubtful
It
the
to
even
so-called
reported
was
cultivate
to
years
to
said that
have
would
landlord's
who
tenant
got such
of the
the
of
testified
main
too
still too
told
was
him
turns
"to
that
he
told
him
That
lead
may
such
to
things
the
"
illiteracyand
Hari
fact, the
ment
voluntary abandon-
actually
were
done
was
by Sir Malcolm
Darling in his Report: "The Hari is in the
cases
helplessto take advantage of it [the Act], and in many
of it."^ During his inquiry he
heard
have
to
ignorant even
Hari, he
a
in a villagethat
is annoyed with
"if a landlord
out." "Formal
eviction is not necessary,"adds Sir Malcolm;
leaves
that
things
always make
can
of
his
owing
to
Further,
accord."
own
incomplete and
who
had
Collector
faulty revenue
cultivated
the
years.
Tenancy Legislationin the Punjab

taken
following legislativemeasures
The
fall under
for
uncomfortable
so
"Lastly," adds Darling, "according

authority,illegalcesses
are
charged."''
8
In
selves
them-
assert
to
often difficult to decide

three
to
and
ignorance
influence.
rights."'
tenancy
unable
land
to
in the
of
tenant
a
a
district
records, it
during
more
former
the
than
the
of land
scope
reform
as
2. Hari
by
Pakistan
Report,
op.
Darling Report,
4. Ibid.
cit
op.
First
,
Five-Year
p. 7.
cit.,p.
48.
last
one
defined
1952).
1. Quoted
was
Punjab
previouslyby us:
(1) The Punjab Tenancy Act 1887 (Act XVI of 1887).
Act, 1950 (Punjab
(2) The
Punjab Tenancy (Amendment)
XVII
of 1950).
Act, 1952 (Act VII
(3) The
Punjab Tenancy (Amendment)
3.
two
than
more
which
extent
an
"2
rights.
his
landlord
"a
for
tenant
that
contingency and had observed
rights,the Hari could be harassed by
had
landlord
tenant's
allow
not
permanent
rights were
Minister
Revenue
would
to
social
political and
recognised such
after acquiring permanent
even
Sind
security
substantial
any
Zamindar
"a
entitle the
few
even
Committee
gave
tenants."
"protected
in practice because
the
Act
the
particular piece of land continuously
for that
Further,
whether
Plan,
p. 315.
Act
of
Land
(4) The
Act,
Punjab Protection
1950
(Punjab
(5) The Punjab
Act
(Amendment)
(6) The
of
XIII
and
Punjab
Restoration
of
and
Restoration
of
Act
VIII
(Punjab
Abolition
of
Rights
Tenancy
1952).
of Jagirs Acf,
1952
(Punjab
IX
Act
1952).
The
Punjab Tenancy
relations
in
the
of
time
the
former
(1887) regulated the landlord-tenant

at
Provinces
of the Punjab and N.-W.F.P.
Act
Independence. The
without
could
continuous
An
settlement
of land
could
from
twenty
thirty
to
specifiedcircumstances.'
under
the land
ejected from
be
not
which
mainly included
These
period of
land
the
on
occupancy-tenant
for
left
were
under
the circumstances
occupancy-tenant.
an
occupation
and
years
become
tenants-at-will
The
against ejectment.
legalprotection.It defined
any
tenant
only protected the
Act, however,
occupancy-tenants
Tenancy Rights
1950).
Protection
1952
Act,
of
157
Reform,
except under
specifiedcircumstances, and by a decree order of a competent authority.

main
in the
enumerated
circumstances
justifyingejectment were
The
Act
as:^
(a) That
(6)
he
had
unfit for the purposes

Where
the rent
was
sufiicient
the
to
extent
(c) When
had
Tenants
fixed term
which
manner
held
he
for which
in the
it
he
had
without
that land in the
manner
or
localityin which
the
land
cultivate
to
rendered
it.
payable in kind, that
customary
decree
of
respect of this tenancy

unsatisfied.
remained
in
of rent
arrears
passed against him and

having any right of occupancy,
been
under
authority,could
above.3
in
situated,
was
failed
cause
land
the
used
contract,
also be
All other
tenants
decree,
the
ejected on
could
be
or
but
order
an
three
same
of
for
competent
grounds mentioned
of any agricultural
end
the
ejectedat
holding land
year."*
The
only protection that this Act gave

alreadynoted, was to recognise their claims
them
to
and
due
sow
1.
2.
to
to
preparing land
ejectment.
the cost
Rights of
occupancy
Sec. 39(1).
of
are
defined
3. Sec.
under
40.
which
Sees.
tenants-at-will, as
to
to
uncut
crops
sown
they might have
5 and
4. Sec.
10,
41.
by
failed
158

Since
most
by
the
Act
of
the
Punjab
The
Tenancy
Punjab
the Provincial
had
Section
Pakistan.
1887
with
since
and
view
contributions
or
dues,
landlord
his
tenants
on
1935,
by
Assembly
force
under
adapted for
the Act
amend
to
was
as
sently.
pre-
enacted
was
in
see
of
and other
village cesses,
frde personal service imposed by the
any
rent
in addition
the
to
payable by the
abolishing all
to
shall
we
was
Act,
this Act
as
Provincial
the
rule
of India
provision of
main
time
abolished
were
(1950)
Act
Governor's
the
tenants
Act, 1952,
that
at
of the Government
The
such
(Amendment)
Governor,
92-A
when
void
(Amendment)
Tenancy
abrogated
been
mainly the occupancy-tenants
1887 concerned
of its provisions became
or
cesses,
latter.'
The
the
(1952) amended
main provisions were
Act
(Amendment)
Act, 1887, in greater details. Its
Punjab Tenancy
as
Tenancy
Punjab
follows:
(a)
It fixed the
for
acres
maximum
or
could
more
came
lord
land-
owning
50
than
more
reserve
acres
100
of
of
for
for
waste
acres
not
Landlords
by
limit was
personal cultivation. This
of any land (1) under
garden cultivation when the
cultivation after
into force, and (2) brought under
exclusive
lying
holding of land
for
self-cultivation.
of
purposes
irrigated land
Act
limit
least
at
four
unirrigated land,
1^
or
this purpose,
of semi-irrigatedland
harvests.
acres
For
irrigatedland.^
fixed the
share
the produce at the
landlord's
maximum
of 40%
of the total produce, 60%
going to the
be paid by the landlord
All Government
tenant.
dues were
to
to
were
(fc)The
be counted
to
acre
the
Act
the
held
continue
in
tenant
produce. If
the
of
of
and
to
equal
as
Act
tenant
land
any
to do
the
so.
at
on
proportion
the
more
time
in
which
of the
favourable
they shared
enforcement
terms,
he
Act
1. Sec.
113
2. Sec.
115.
3. Sec. 2.
added
after Sec.
was
forbade
extinguished all rights of occupancy,
further creation of occupancy
rights, and specifiedthe
(c) The
of
112
of the Act
of 1887.
any
ways
Land
in which
land
the
It made
under
155
Reform
occupation
occupancy-tenants
was
of
owners
be
to
disposed of.
without
land
the
landlords
where
rent
paid,
was
compensation to
no
and
with
where
times
the
compensation
(twenty
rent)
the tenant
When
rents
partly or wholly cash
were
paid.
without
of the produce, he became
owner
paid a share
compensation of such portion of the land as corresponded
to the share of the produce enjoyed by him.i
the
The
Act
ment)
repeated the provision of the Punjab Tenancy (AmendAct, 1950, regarding the charging of cesses
or services,etc., by the
landlord
from
the
and
tenant
offences
them
declared
under
the
Act.^
The
of Tenancy
Rights Act,
Punjab Protection and Restoration
necessitated
of evictions which
took
1950, was
by the largernumber
in
the
1950
the
in
to
reaction
of
enactment
as
a
place
Punjab early
the Sind Tenancy Act of 1950. The Punjab landlords feared a similar
measure
conferring occupancy
rightson their old tenants.
This
Act
of
placed restrictions on the rights of private owners
It
with
set
lands
their
tenants
to
aside,
agricultural
summarily.
eject
be ejected
could
retrospectiveeffect,all such ejectments. The tenant
not
only if he was
cultivatingthe land according to the specificor
terms
customary
of his tenancy,
or
did
not
pay
the
land
rent
promptly,
of rent.
campaign of advocating non-payment
from the grounds^ for ejectment
excluded
The
last one,
however, was
The
of 1952.
landlord
Act
could also eject a
by the (Amendment)
himself.*
the
if
wished
cultivate
land
to
he
The protection
tenant
granted to tenants, however, did not apply to those working on the
land retained by the landlord for personal cultivation under Section 5
of 1952.5 jhis provision
Act
of the Punjab Tenancy
(Amendment)
of tenants
of evacuee
of the Act also did not apply to the case
perty,
prounder
the
land
Provincial
Central
or
a tenant
or
holding any
District Board, Municipal Committee, or
under any
Government
or
or
engaged himself
Notified
Area
For
5.
Committee.'*
ejectment
1. Sec.
3. Act
in
of
tenant,
landlord
had
to
apply
2. Ibid
5.
XIII
of 1950
Ibid.,Sec. 2.
Sec,
111.
4. Act
VIII
of 1952, Sec. 2-A.
6. Ibid.,Sec.
3(2).
to
the
160
Pakistan,
Revenue
Developing Economy
required to give notice to

to justifywhy he should
tenant
his tenancy.
a
be ejected from
not
The
Revenue
Officer, after hearing both
parties and making the
cancel
the notice. ^
inquiry, could eject the tenant
or
necessary
The Punjab Abolition
all existing
of Jagirs Act, 1952, abolished
Jagirs excepting Military Jagirs or Jaigrs in favour of any religiousor
Officer concerned, who
charitable
of
institution
coming
to
or
of
the
of the
of
basis
above
enacted.
were
most
forbade
not
Jagir is
operative
and
entitled
title to
of any
creation
the
to
any
the land
the
at
time
new
compensation.
of
revenue
an
estate
piece of land.^
All
they
that
was
time
any
Jfl;?i"-holderswere
be noted
It may
at
force of this Act, and
into
Jagirs.^The
created
in turn
far
So
landlords
division.
Acts
as
and
This
did
achieve
not
the
for which
purposes
concerned,
is
fixingof the share rent

tenants
preferred to stick to
for two
reasons.
happened
the
the half-share
First, many
enjoyed certain concessions from the landlord, like a plot of

land free of rent for growing fodder or vegetables,provision of funds
landlord threatened
of need, supply of seed or manure.
The
in case
if the tenant
these concessions
to withdraw
pressed his claim for 60%
been
the Act, while the tenant
had
of the produce. Secondly, under
also required to meet
given 60% of the share of the produce, he was
tenants
the
dues
Government
etc., in the
burden
on
land
proportion.
same
the
like
tenant
which
under
arrangement. Moreover,
the
had
landlord
already noted,
as
was
to
This
he
the
land
involved
did
the
to
retained for self-cultivation. The

extended
water
revenue,
not
Tenancy Act
declare
last
bear
to
date for
portion
such
the old
under
of 1952,
certain
cesses,
financial
additional
an
have
and
rates,
as
we
have
of his land
declaration
again and again. Since the rent limitation did not

thus declared, the
provisions relatingto it were
apply
never
seriouslyenforced.
As
regards the ejectments, they did not take place to the extent
done in 1950, but
as
was
in later years
been stopped
they had not
There
were
loopholes in the Act which
could
altogether.
be taken
of
landlords.
For
by unscrupulous
advantage
instance, cases
were
1. Ibid., Sec, 2"
2.ActIXof
B.
1952. Sec. 3(1-3).
3. Ibid.,Sec. 3(4).
Land
reported where
refused to
issue
But
such
refused
for
receipt
of the
ejectment
the
landlord
instances
tenant
lift his
to
the
basis
being
were
been
had
How
other
and
far these
productivity in the
It has been
the
is difficult
former
In
that
noted
1950, however,
i.e. the
Assembly,
later amended
by
the
Act
VI
1952.
of
Similarly,
covered
areas
by the
legislation
and
tenant.
the
affected
The
of
agricultural
reform
land
new
Prorince
1887
also
enacted
was
of
XXV
applied to
ence.
Independ-
of
time
the
at
law
In
ed
concern-
landlord
Act
No.
Act
Act
1958.
Frontier
Province
Tenancy
tion
extinc-
of this
say.
West
tenancy
new
the
the
rent.
see.
Tenancy
Frontier
North-West
of
or
for
effects
have
to
shall
we
as
the North-
Tenancy Legislationin
"
long
would
measures
run
in the
the
between
the entire situation,
changed
8
tension
create
to
whole,
the
On
Act concerned.
field
applied
regards
in October
short-run
the
and
place under
abolished
effectively
the
non-payment
As
of occupancy
rights,this was taking
established
the Martial Law
was
when
the Jagirs
of
common.
very
from
share
received
share
the
on
not
were
161
Reform
by
the
cial
Provin-
1950, which
addition, another
was
Act, the
tection
Pro-
also
Rights Act of 1951, was
two
important changes in the tenancy
passed. The former Act made
all
in much
the same
rightsof occupancy
system, (a) It extinguished
in
return
and
done
in
the
the
Punjab
occupancy-tenants
gave
way as
of
their
in
least
land,
at
a
It
of
{b)
part
ownership
right
gave every
for three years, unless the tenancy
for a
was
tenant
securityof tenure
created by order of competent
fixed term or was
authority.
As regards the first provision, the Act conferred full proprietary
rightson all occupancy-tenants, though on varying terms.
Occupancytenants
land
and
Restoration
who
at
paid
In
the
times
payment
in cash
kind
case
in the
them.
of
Punjab)
the
they
according
could
apply
to
the
had
annual
to
thus
become
pay
rights of
of the
full
on
the
share of
Officer for
crops
owners
full
Those
owner
were
to
the
transferred
to
the
partitionof their
them
to
or
then
their crops
paid by
who
compensation.
(as against twenty
the
of the land in
owners
of
times
ownership
rent, except
landlord.
payment
ten
rent, either to
the Revenue
share
to
owners
Occupancy-tenants paying
to
paid no
landlord, became
compensation
became
Act
the
the
to
cesses
rents,
treasury, and
could
They
or
of cash
Government
to
and
of any
rent
Tenancy
commencement
rates
revenue,
without
the
of
the
lord
land-
holding
landlord.
proportion to their
^^^
Palcistan,A Developing Economy

share
own
landlord
and
without
became
was
dispose of
second
major
security of
under
only
(a)
the
If the tenant
(,b)Removed
(c) Used
land
Where
the
in
land
allowed
for
until
reasonable
he
he
time
the
to
rent
the
1st
between
of his
restoration
to
evicted
due.
it unfit for the
to
pose
pur-
the
cultivate
sufficient
without
customs
the
and
the
of the
In that
payment
standing crop
of the
date
cas3
of
or
ejected
ments
improvealso
must
the
latter
enforcement
any
of
date, apply for the
possession of the tenancy

suitable compensation to
for
crop
Rights
Tenancy
the
be
provision
previous
dispossessed at
or
of
be
Another
paid during
ejected
ejectedon
ungathered
or
land.
Restoration
months
to
of
tenant
uncut
not
he
Moreover,
any
be
for all
compensated
amount
and
also
should
tenant
Act.*
part
or
1949,
tenancy.
for any
tenant
been
that
could
term
harvest
to
two
restored, subject
be
when
recdered
the
the
rate
March,
within
might
Act
that
with
agriculturalyear.''
As regards the Protection
Act
(1951), it provided that
time
was
threshing floor before division.
fixed
had
ejected from
was
the
limited
this period the eviction
local
provided
in accordance
before
law
raised
rent
made
granting of
concerned
it.
with
holding land
grouads.^
his
Act
payable in kind, failed
was
accordance
Further, the
nor
the
which
he held
tenant
similar
the
his rent
pay
manner
rent
liked. ^
During
produce from
a
produce
of the
cause.
to
The
landlord.
the
to
his share
to
circumstances:
following
in
he
as
years.
failed
the
proportion
his land
provision of
for which
{d)
in
for three
tenure
compensation
any
owrier
free to
The
allowed
paying
the
having
sown
any
was
the
part of
the land.
The
working
did
not
the tenant.
This
did
not
the
substance
try
1. Act
3. Sec.
cause
to
IX
of
the
any
laws
tenancy
serious
Frontier
in North-Wcst
disruption
between
the landlord
vince
Pro-
and
presumably due to the fact that the Government

give too many
rights to ths tenants, thus taking away
was
of
ownership
from
of 1952. Sec. IV.
23.
5. Sec.
the
landlords.
2. Sec.
24.
4. Sec.
40.
VI(2).
The
tenants
were
Land
protected
rather
was
with
"
State
in
bordering
The
land
complicated
apply
Sind
the
to
situation.
these
areas.
Other
like
the
tribal
tenure
Even
Areas
of
were
of
rights
portions
the
tenants
of
with
system,
new
those
the
prevailing
those
land
the
Act
the
Pakistan
Pakistan,
to
and
West
of
West
State
of
provisions
the
this
rights,
occupancy
localities-
similar
Khairpur
were
with
specific
regions
Bahawalpur
protecting
areas.
in
of
period
the
though
period,
extinction
accordance
to
other
defined
the
in
former
on
measures
into
regards
confined
the
of
the
during
Legislation
regards
former
these
only
Tenancy
As
and
As
accomplished
frictions
10
ejectment
short.
almost
was
against
163
Reform
of
were,
former
kinship
reform
the
districts
in
in
conditions
Sind.
former
Punjab,
Baluchistan
of
No
however,
legislative
passed
Baluchistan
for
have
entering
considerations
scheme
the
does
not
yet
CHAPTER
Land
"
Reform
1 The
Need
The
for More
land
in the
1952
under
reforms
three
Radical
carried
Provinces
Reforms
out
of Pakistan
the
Punjab
law
cultivation, yet there

for
stillleft much
was
The
was
no
actually made
never
tenants-at-will
limited; they
as
No
concentration.
land
50
self-
for
acres
ownership which
the ceiling on
effective
desired.
be
to
rather
was
ceiling of
ceiling on
equalitarian society. Even
more
for
provided
legislationof 1950 and
the
under
In the first place, the scope

of these measures
did not
tackle the most
basic problem of
doubt,
Law
Martial
needed
was
tion
self-cultiva-
already noted.
against ejectment,
have
we
given some
protection
of rent and imposition of illegalexactions. This protection
in
the
was
greatest
Punjab and smallest in Sind. But in the actual
working of the law, due to the peculiar political,economic
and social
were
enhancement
circumstances,
pressed
and
continued
in
The
the
the
occupancy-tenants
in
Frontier
large areas.
types
abolished
were
Province.
Jagirs
In
on
could
tenants
the
part
measures
had
been
to
regarding the position of the landlord

growing tension and discontent among
situation
was
not
both
not
be
landlords
of
Punjab and
in the
practice,however, they
abolished, but the
were
of Jagirs, leaving others
results of these
This
the
varying degrees.
the North-West
certain
legal rights granted to

exploitation of tenants
untouched.
create
conducive
On
had
the
selected
whole, the
uncertainty in rural
vis-a-vis the
the
law
still continued
various
to
tenant.
There
classes of
increased
areas
was
turists.
agricul-
agricultural
Land
Reform
Martial
under
165
Law
politicalcorruption and social injusticeflourished as

The grip of the landlord on ihe political
ever.
machinery of the country
so
was
strong that no radical measures
affectinghis interests adversely
the only
the
could
Provincial
were
Legislatureswhich
through
pass
productivity,and
bodies
competent
change in
the
Only a
legislationaffectingland tenure.
of politicalpower
through a revolution could
frame
to
centre
revolution
land reforms, and such
a
pave the way for any worthwhile
of the Martial
occurred
in October
1958, resultingin the establishment
regime.
Law
9
"
Land
The
Soon
Khan,
the
chairman,
its
Martial
Chief
General
with
Commission,
as
1958
October
(now Field-Marshal) Muhammad

realisingthe importance of land reforms, appointed
Administrator
Law
in
Revolution
the
after
1958
Commission,
Reform
Akhtar
Mr.
consider
"to
Hussain,
Ayub
a
of West
Governor
nine-man
Pakistan,
problems relatingto the ownership and
for
recommend
measures
agricultural land and to
ensuring better production and social justiceas well as the securityof
In the words
for those engaged in cultivation."
tenure
of President
"an
these
reforms
absolute
for
the
survival
of the
are
Ayub,
necessity
of
tenancy
and
system
the
into existence
The
20th
land
as
which
values
a
January, 1959. The

situation
"(i) The
cherish
and
which
brought
Pakistan
free State."
report of the
tenure
we
Land
Commission
in Pakistan
of the
extent
Reform
its
described
as
arable
limited.
expansion
inequitably distributed.
land, but despite the
Commission
was
the
submitted
on
of the
peculiarities
under:i
agriculturalland
Its
and
prospects
of
in
is
ownership
areas
many
is growing
congestion on
of
population, which
has
pressure
in uneconomic
resulted
and
highly fragmented units of
of large estates
is very slow and
cultivation, development
considerable
land
is not
portion of cultivable
a
being
fullest
its
utilised to
capacity.
to
opportunities is limited; resources
of land and
"(") Access
not
initiative
utilised;
are
fully
and
man-power
enterprise
absent; there is no securityfor those engaged in producare
tion;
are
There
reward
incentive
1.
Report,
Land
proportionate to effort is absent and

for greater production
is lacking. There
Reform
Commission
for West
Pakistan, 1959, p. 21.
hence
is
no
-^^^
Pakistan,A Developing Economy

for
capital formation
in agriculture.
encouragement
"(Hi) In
areas
many
is
power
privileged few, which
in
concentrated
hampers
stifles the
rights and
the
of
growth
ment
productive invest-
and
free
hands
the
of
exercise
and
democracy
of
political
democratic
institution."
The
Commission
of
programme
suggested the following measures
agrarian reforms
"(i) Ceiling
of landed
ownership,
wealth,
to
of
of
of
of
with
view
economic
status
and
of the
land
of
and
uneconomic
price, along
with
this
new
on
improving
to
use
bution
ceiliagfor redistri-
holders
class
tration
concen-
inequalitiesof
intensive
and
fair
break
to
down
more
excess
resettlement
land
Government
in
tenants
payment
on
programme
and
land
landless
to
holdings
the
in order
narrow
opportunity and to encourage

productive investment.
"("')Acquisition
minimum
the situation:
to meet
individual
on
as
an
active
reclaimed
their
social
enlistingtheir energies for greater
production.
of occupancy-tenancy
"0") Conversion
of
"(fv) Abolition
and
"(v)
Jagirs and
into full ownership.
elimination
interests, in order
intermediary
of
to
other
adventitious
simplify
the
tenure
system and to relieve the present crowding of interests in land.

of the tenants,
fixation
of a fair rent,
Security of tenure
elimination
in
the
case
incentive
of
for improveillegalexactions, compensation

ment
of premature
disturbance, in order to provide
for
fair return
proportionate
to
effort.
of the creation
of a strong middle
class and
"(vi) Encouragement
farms
for owner-operated
on
holdings
laying the foundation
size
of
economic
consolidation
of
existing holdings,
through
of
fragmentation by making holdings below a
prevention
of small indiff'erimpartible to the elimination
ently-managed farms.
"(v") Expansion of co-operative and strengthening of credit and
marketing facilities with a view to increasing production,
certain
size
"(vm) Improvement
of
the
conditions
of
employment
labourers."'
1.
Report,
op.
cit.,pp. 22-23.
of
tural
agricul-
Reform
Land
9
"
the
of Government
Decision
The
President's
1959.
and
Cabinet
of
January,
holdings
Commission's
Reform
Land
programme
167
Law
Martial
under
reforms
to
were
Pakistan
the
on
scrutinised
by
nine-point
night of 24th
his
announced
President
the
Radio
on
According
proposals
ceilings were
this programme,
laid
on
the
irrigatedland or 1,000 acres of unirrigated

later. The
tenants
land with certain exemptions to be noted
were
to
land over
a period of
be given the firstchoice to purchase the resumed
500
at
of
acres
twenty-fiveyears.
land-owners
The
be
to
without
completely abolished
to be granted
was
tenure
uneconomic
units
in
redeemable
bonds
interest-bearing
be
to
was
the
to
be
to
were
compensated
with
twenty-five years. Jagirdari was

compensation. Security of
any
tenant
and
splinteringof land into
prohibited.
Implementation of the Scheme

the Chief
Martial
Law
To implement this programme
trator
AdminisPakistan
of Pakistan
Land
Reforms
promulgated the West
Regulation No. 64 on 7th February, 1959. This Regulation was later
certain difficulties which
amended
found
to meet
were
during the
the
To
of
implementation.
implement
provisions of this
process
Land
Commission
Pakistan
constituted.
the
West
was
Regulation
make
Martial
Law
Regulation No. 64 did not
provision
any
9
"
for the
of holdings, utilisation
consolidation
provisionof
credit facilities,
upgrading of
of
also
were
an
integralpart of the land
Provincial Government
Now
reform
under
we
shall
schemes
the
and
landlord
relationship between
holdings and regulation
tenant.
reform
proprietary wasteland,
These
scheme
matters
were
which
left to
the
tackle.
to
specificprovisions of the land

shall discuss these
of their implementation. We
deal
and
of
following main
with
the
heads:
(/)Adjustment of property rights in land.

relations.
(ii)Regulation of landlord-tenant
{iii)Creation
9
"
and
maintenance
of economic
farm
(zv)Other provisions.
5 Adjustment of Property Rights in Land
The process of adjustment of property rightsma"
following steps:
(a) Fixing of ceilingon
{b) Disposal of
the land
ownership.
thus
released.
units.
be
splitinto the
168

(c) Fixing of the
of
amount
compensation
of its
method
the
and
payment.
reform
Land
which
beyond
ownership is
only 7|
is very low,
is so because
in various
measures
(25
acres
of pressure
countries
in the
acres
of population
maximum
the
only
is 210
maximum
much
as
under
is 100-150
allowed
(1949),proposed 150
unirrigated
as
certain
owners
be
can
Land
allowed
are
self-cultivated
Plan, following
Five- Year
League
tions,
excep-
Reforms
Committee
of average
irrigated land and 450 acres of
land
with appropriate adjustment in the case
acres
barani
or
the
Burma,
nationalisation
of the Muslim
and
Egypt, with
In Pakistan, the First
local conditions.
recommendations
the
In
acres.
from
exemption
In
acres.
ceiling
of
made
have
the
Japan,
Hokkado). This
the high productivity
different provisions.
island
land
on
of the soil. In India, different States

The
In
allowed.
not
mum
maxi-
fixed the
have
under
partiallyirrigated.The land reform scheme
of irrigated
hold either 500 acres
discussion provides that a person
can
of irrigated land
of unirrigated land
land or 1,000 acres
(one acre
of unirrigated laad), or (for present owners
only)
counting for 2 acres
of
areas
an
area
which
addition
orchard
10
than
exceeding 150
not
each
acres
Moreover,
by gift,he
in addition
he
also
can
allowed
consider
Some
by
will
the
retain
heirs.
such
to
of
Owners
addition
In
to
female
his
additional
areas
as
these
and
not
least
at
of
less
smce
land
any
18,000
concessions
dependants
existingstud
people
in the country
have
of
livestock
the
farms
the Government
and
felt that the
may
I. Produce
area,
Index
and
Units
for
most
Wfst Pakistan, Volume
are
expressed
of displaced persons.
For
classes
ed
ceilingrecommend-
the Government
adopted by
problem of land concentration
land hunger among
the people on
the other.
out
such
as
not
solve the
an
of
it is in blocks
necessary.
the Commission
not
of
worked
his
to
apply for giving land

to
provided
also retain
can
already transferred
alienate, by gift,land to the value
of 6,000 P.I, Units.
value
are
Units
Index
Produce
owner
an
in the records
has
if he
rabi 1956-57.
can
acres,
is entered
and
allowed,
thus
land
the
to
Units.'
Index
Produce
equivalent to 36,000
In
an
are
of
measured
in terras
on
In
of the
high and
is too
the
one
hand
and
fact, one
of the
comparative
tivity
produc-
for the purpose

of schemes
ment
relating to the resettlethe method
which
such units have been
according to
land,
see
I, Appendix XHI.
Malik
Khuda
Bakhsh,
Land
Reforms
in
Reform
Land
members
Commission
of the
irrigatedland
Martial
under
favoured
adoption of 150
the
highest Jimit to an individual

being taken
perennially irrigated acre
family,a
the
as
of
of barani
three
169
Law
idea
to
acres
equal
as
The
land.
300
and
of
acres
to
1^
acres
of
acres
putting a
non-perennial or
the family holding (a family being defined as consisting of
received
husband, wife and dependent children) should have
mors
the part of the majority of the Commission
consideration on
than it
ceilingon
actually did.
avoided
have
would
This
of
concentration
land
in
the various members.

sub-division
among
through a nominal
The
however, influenced
were,
by two
majority of the Commission
make
the
to
considerations
in suggesting the higher limit: firstly,
transition easier through avoiding too
abrupt a break with the past
families
secondly, that farming should
for the landlords, and,

remunerative
basis. But
attract
to
convenience
the fundamental
and
of
consideration
suitable
engage
of transition
should
talent
creating
wholetime
priorityover
equalitariansociety.
more
on
receive
not
ly
sufficient-
remain
suitable unit to tax

irrigated
Further, a
fullythe talent of the best farmer. In fact, that would have encouraged
the part of
self-cultivation and progressive cultivation on
more
At any
their existing livingstandards.
landlords anxious to maintain
farm
of
150
ceilingis an
land
right to own
rate, the putting up of

with
the
unlimited
Now
reforms.
10th
an
were
from
Land
in
excess
regarding
of 500 acres,
filed in response
Hyderabad
details
to
Division
to
of
compared
it previously existed.
as
of
who
person,
a
land.
all
Ttie
the
of
aspect
land
notice, dated
owned
declaration
In
this notification.
(1,478) and
this
comprehensive
submit
his
in itselfas
achievement
issued
Commission
the
quite
implementation
the
February, 1959, desiring every
area
forms
The
regards
as
is
acres
or
on
possessed
prescribed
5,904 declaratioas
largestnumber
smallest
number
came
from
the districts,the
largest number
came
(107).Among
from
Jhelum
smallest
(only2).
from Tharparkar (448) and the
declared
of
of
the
acres
by the declaraQts
Out
area
7,749,085
retained by them.
The
of 4,794,872 acres
was
largest area
area
an
in Hyderabad Division (1,170,403acres) and the smallest
retained was
in Lahore
Division
(75,966 acres). Out of the total arsa
deciarcd
the
Government, the largest belagig
by
2,347,648 acres were resumed
Lahore
Division
Division
Babawalpur Division (675,282acres) and smallest in Lahore
retained
the
by
existingowners
und"r
(11,432 acres).Additional area
170
PaJeistan, A Developing Economy
"orchards"
Pakistan
8,335
to
came
transferred
by gift.iThe
(7'75 million
acres)
(being 2'35 million

Of
2- 3 5
the
700,000
acres
uncultivated
culturable
Of
27,000
9
were
Disposal of
of the
number
of
landless
forests.^
Resumed
Lands
of
purposes
land
has
labourers
used
or
of
to
Index
Unit.
the
This, in the
the
million
acres
are
fixed
of
the
by
the
possession
is to
increase
on
allotted
to
holdings
price.
suitable
cultivating
in
uneconomic
for
the
tion
Regula-
Law
be offered
of
while
owners,
it will bo
the
course
culturable.
not
are
in
Under
the
comprehensive scale scheme

was
implementing staff. The
price to
was
words
1'2
already
tenants
of
a
tenants
to
after that
return,
guidance of
are
Martial
the
only
acres
reform
supplement
peasant-proprietors
guidance of the Land Commission
resumed
area
million
were
land
remains
to
ia
prepared for the

be charged from
acres
Under
sale
land
declared
area
Government,
acres
in the first instance
for
of it. If any
of West
r6
cultivated
were
acres
under
conditions
and
possession
545,000
self-cultivating
owners.
the resumed
terms
128,000
the
the
land
remaining 400,000
about
basic
and
by
remaining
uncultivated
the
the
area
about
acres
One
Of
and
waste
and
tenants
land.
20%
resumed
cultivated, the
are
this total, the
was
acres
nearly 6%.
to
acres
465,348
to
of the Province
area
Of
about
comes
million
cultivated
the
acres)
equal
area
acres.
to
comes
an
cultivated
total
39' 3 million
to
comes
and
acres
Rs.
at
8*00
per
Produce
the
Secretary,Land
Commission,
that for an
of best land in Lyallpur with Produce
mean
acre
Index Unit of 80, a tenant
shall have
to pay
a
price of Rs. 640 per
which, in the present context
of prices of agriculturalland, is ia
acre
high or beyond the capacity of tenants."^ The price fixed,
no
way
is much
however,
higher than in other countries
have
which
carried
"would
out
land
reforms
similar
on
agriculturalcommodities
land, the
tenant
particularlyso
since
and
would
the
period of twenty-five years

1. Land
2.
Second
3.
"Land
Thf Pakistan
Reforms
in
Five-Year
Reforms
West
lines, but
the
not
recovery
in easy
Pakislan,
in view
of the
high prices of
price of agricultural
prevailing market
find it too
of
the
hard
price
to
is to
pay
be
it. This
made
over
is
a
instalments.
op.
cit.,Table,
pp.
326-31.
Plan, p. 185.
in West
Times, Independence
Pakistan," article by Malik

Khuda
Supplement, 14 August, 1960, p. y.
Bakhsh
in
Land
Of
the resumed
under
Reform
land
334,912 acres
total price of Rs. 85,428,447. A
41,057
to
23,283
were
further
area
for Rs. 28,658,826 under
tenants
3,237 small
to
acres
Martial
holders
sold to 55,900 tenants
for
of
sold
the
for Rs.
171
Law
210,112
was
acres
and
scheme
upgrading
3,093,408 under
the
same
scheme.
sold
for
were
Again, 9,133,130 acres
by public auction
24,384,529.An area of 124,168 acres
sold at a total price of
was
Rs. 6,248,067^ to Government
departments.
9
7 Compensation to Old Owners
The
Reform
Commission
Land
accepted the principle that
for the acquisition of
be paid to the landlords
compensation must
land above
be respected as
must
the ceiling.Private rights in land
of
the
the
faith
nation
in this
private rights in other assets and
of
institution must
be preserved. Moreover,
payment
compensation
consideration
of
the
the
was
on
justified
practical
making
tion
implementaof land reforms
and
smooth
orderly. The Commission
mended
recomRs.
"
that
the
diminishing scale
compensation
as
should
be
paid
on
progressively
under:
For
the first 18,000 Produce
Index
Units
at
For
the next
24,000 Produce
Index
Units
at
Rs. 4 per
the
next
36,000 Produce
Index
Units
at
Rs.
3 per
unit.
For
the next
72,000 Produce
Index
Units
at
Rs.
2 per
unit.
For
the balance
For
at
1 per
Re.
Rs.
5 per
unit.
unit.
unit.
calculated
the
above
on
basis it
compensation was
to be paid in fifty
half-yearlyequated instalments in the form of
was
bearing interest at 4%
transferable, but non-negotiable, bonds
per
of compensation
The
rate
the unpaid balance.
mined
deterwas
annum
on
in the lightof the inflationary danger, the financing capacity of
the
After^
the
the Government,
cash
and
will be
Rs.
rate
two
seen
of Rs.
prices
The
that
Produce
5 per
scheme.
capacity
the
The
8 per
Unit, the price charged for
number
Government
The Second
new
Index
Index
Produce
1. Statistics made
2.
the
expropriated landlords for ready

proprietors to pay for land. 2 It
maximum
scheme
total
of
the
while
to
was
of both
need
used
be
thus
was
compensation
Unit.
meet
expected
to
to
of land-owner
available
of Pakistan
Five-Year
The
the
through
cost
Plan.
op.
cit.,p. 185.
of
paid
land
the
at
was
between
Land
only
was
the
these
Reform
self-liquidating.
whom
the courtesy
in 1965.
be
difference
be
from
to
land
of the
was
Revenue
resumed
ment,
Depart-
172

616. To
them
came
to
for
total of 28,757,2C9
annually
9
'
Rs.
to landlords
92,545,794
Produce
at
Regnlation of Landlord-Tcaant
Tenancy Acts of 1950-52
and
North-West
payable
interest
3,757,073.'
Rs.
Relation
The
Punjab
compeasation
as
Units. The
Index
estimated
was
paid
be
to
were
in the
Frontier,
as
already
have
we
of Sind,
Provinces
former
were
seen,
to the
ensuring adequate security of tenure
them
by the landlords
tenants, abolishing illegalcharges levied on
and prescribing the proportion of produce to be paid as rent and the
sharing of taxation by the parties.We have already discussed how
these provisions failed to achieve
these objectivesadequately. After
the integrationof these provinces into one
unit in 1955 the need arose
Plan
for having a uniform
The
First Five-Year
legislation.
tenancy
passed with
view
to
proposed that various
should
Pakistan
tenancy laws in fores in West
be consolidated.
Like
scheme
legislation,the Martial
the
provisions regarding both
the
made
occupancy-tenants. In
by the
Reform
Land
the lands held

52
in the
become
without
owners
where
payment
Apart from
to
area
the Land
remain
in
such
is
rent
no
tillers of the
Reform
"dominant
spiteof
payment
where
the creation
of
protection the Commission
(/) No
tenant
Court
be
that
he
(a) failed to pay rent;

{b) used the land in a
purpose
for which
(c)
id) sublet his tenancy.
of Statistics:
Revenue
paying
to
rent, and
the
lord.
land-
give considerable
regards the non-occupancystructure
of
recommended
ejected unless
tenancy
would
the
country,"
order
to afford
as
follows:
it is established
in
has
or
manner
which
readers
it unfit for the
he held it;or
failed to cultivate the land
1. Source
are
this would
tenure
tenants
Revenue
they
In
peasant-proprietors.
new
should
all occupancy-tenants
stated that such
Commission
of the
Punjab, most
being paid by them
soil. As
feature of the
the
Now,
owners.
simplifyingland tenure,
the actual
tenants
become
on
and
Province
of
owners
of 1950legislation
the basis of the
fact, on
non-
recommended
be made
they should
that
Frontier
had
tenants
In
and
occupancy
occupancy-tenants it was
Commission
them.
North-West
occnpancy-
would
by
of
case
reforms
land
Law
earlier
without
Department,
sufficient reasons;
Government
of West
or
Pakistan.
Land
(it)The
right of ejectment
exists should
A
{///)
landlord
be
not
long
so
part of the land under
(iv)In
ejected from
he
as
The
Commission
on
between
the
further
in the
and
increasingthe
any,
unless
he
of
rent
change
of the tenant's
the
in
that
in rent
if warranted
Moreover,
the
of the
excess
should
tenant
on
landlord
rent
or
of
account
should
take
free
the
have
be
due
tenancy
right
obtain
burden
to
to
on
the
of taxation, etc.
to
the
any
dues, if
higher rent,
burden
allowed
in
labour
to
the
change in
not
get
be debarred
should
of Government
in the
change
also
of
to
the
landlord
is entitled
he
entitled
existing basis
dues are
apportioned
law or custom
ing
prevail-
the
share
complexion
introduction of irrigation,or
the
Similarly,
The
be
that
under
continue.
establish
can
of any
tenant
"disturbance."
and
recommended
the tenant
localityshould
from
account
should
produce of land and Government
the landlord
be
to
that landlord,
ejectment the tenant

compensation for "improvement"
which
provided by
the house
continues
of
case
it
where
be withdrawn.
should
tenant
the
basis of khud-kasht
the
on
173
Law
Martial
under
Reform
of taxation.
levy
shape
reduction
any
or
cess
form
in
from
the tenant.
The
President's
Commission
with
of the
accepted the recommendation
the modification
should not be
that securityof tenure
Cabinet
given to the tenants of any land or part of a land situated within

jurisdictionof a municipality or corporation or cantonment
improvement
trust if it is established
is included in
such
in
house-buildingscheme
Revenue
prepared
Court
and
that
the
or
such land
approved by any
body.
The
Provincial
prepared
comprehensive
Ordinance on the above lines which is under scrutinyof the Legislative
Sub-Committee
of the Advisory Council. Paragraph No. 26 of Martial
Law
Regulation No. 64, however, contains requisiteprovisions for
till the new
law is enacted.
ensuring security of tenure
tenants
to
As interpretedby the Land
this paragraph does
Commission,
not
apply only to tenants of land-owners
lands are being resumed
whose
Governments
have
bat also affords protection to all tenants.

Under
the new
land reforms, as already noted, the
if
land-owners,
be entitled
they
to cultivate the land themselves, will not
to ejectthe tenants.
of
the
words
Second
"This situation,"
Fivein the
even
wish
174
Pakistan,
Plan, "may
Year
Developing Economy
difficultyto
create
settle
inteading to
owners
on
tural
militaryservice or other non-agriculfrom
settling
occupations
discourage educated persons
may
these
of
in the rural areas, and
enlightened
so
a
more
deprive
areas
Land
Commission
leadership."! The
has, however, given attention
that any
has recommended
to it and
military personnel should, on
after proper
notice, in
release from
service, be free to eject tenants
land
after retirement
from
civil or
and
order
be
to
needs
able
extended
be
to
genuinely wish
9
'
to
Concept
9 The
Now,
cultivate the land
to
we
of Economic
the
to
come
Holding
of the size of the farm.
problem
to have
economic
an
or
clear idea of what
is
there
according
as
we
thus
equipment
would
on
An
employ
be
would
is
there
equipment
of
terms
concept.
area
an
an
area,
approaches to this concept

factor of a given fixed magnitude,
the
terms,
easy
If land is
indivisible
and
plentiful,
factor
may
be
the
ed
(family,for instance)which is to be combinof land
economic
then be an area
holding would
unit
the
be
cannot
financial
minimum
terms
too
and
resources.
The
small.
If
which
even
result
will
an
the
be
family is
adjusted
of
uneconomic
an
rural
average
equipment must
Again, paucity
be
land
primitive
most
to
its labour
create
may
the
an
unit.
uneconomic
We
below
reduced.
is
area
indivisible factor, land
to an
another
or
certain minimum
holding if the
in
an
start
size of
best
the
force
and
economic
given equipment or the given family labour

to
advantage. If land is the fixed factor, which canbe of a kind
increased, equipment used must
and amount
which
with the given piece of land.
give best results when combined
which
But
one
terminology, "indivisible."
labour
or
land.
with
not
had
be
can
one
assume
in the economic
or,
than
more
are
To
holding.
itself in
Although ultimately it expresses
"economic
holding," basically speaking, is not
Moreover,
provided they
non-military land-owners
to
concession
adopt self-cultivation.
with, it is necessary
the farm
This
by themselves.
roughly
may
land
of
average
an
say
units, the
area
rural
which
that
economic
would
family. This
1.
Second
when
we
are
holding must
give a reasonable
might also
Five-Year
Plan,
p.
be
187.
terms
of
conceived
of
thinking in
be
standard
called
of
living
"subsistence
Land
holding." This
of
that
facilities,
crop
would
Martial
Law
taking
specifiedlimit.
measures
with
vary
the
It is
175
over
soil, irrigation
facilities,
prices of
goods purchased by farm
the
well
as
space
of
time.
over
as
the
farm
families.
mathematical
No
possible and
division
sub-
obvious, however,
of the
type
forbid
to
rotations, marketing
against prices
as
It will vary
under
is useful when
concept
holdings below
this minimum
products
Beform
decisions
made
at a particular
can
only rough estimations
location.
geographical
When
of maxima
we
are
(for instance,
thinking in terms
while fixing ceilingsto ownerships), it is convenient
to visualise the
economic
holding as an area which could be best exploited with the use
of the most up-to date techniques of production available in the country.
are
point of time
Thus
we
according
be
In
used,
are
planted.
fix 5
may
may
holding in this latter
methods
be
to
and
economic
an
mechanical
are
be
of
acres
to local conditions
as
enough, and for
barani
the
of
definition
approach of the Land

They have offered
the
Reform
acres
desirable
Commission
an
For
rice
land
acres
by hardly adequate.
size of the
holding the
been
rather
has
pragmatic.
may
this connection, i.e. subsistence
in
concepts
two
as
above.
75
areas
gardens
methods,
economic
holding
conventional
irrigatedland
defined
where
acres
fruit
where
acres
is by
150
be
may
1,000
even
cultivation
When
25
to
or
sense
the
assumption that money
holding. On
be about
income of a family of four adult consumption units should
that "16
the conclusion
to
Rs.
come
1,200 per annum,
they have
Divisions
and half a
of land in the Khairpur and Hyderabad
acres
holding
and
economic
is more,
of land, whichever
12| acres
will, if properly managed and intensivelycultivated, yield
rectangleor half
elsewhere
such
an
income.
or
square
"^
Commission
The
be regarded as the subsistence

may
unit will also ideallysuit the scale of
as
one
In
plough
cannot
addition
to
efficiently
manage
this
kind. The
they propose
the
holding
Commission,
holding.
The
1.
Report,
Land
Reform
of
concept
of
unit
an
strong middle
farms
is visualised
economic
this
of
area
holding. They think that this

operation as a singleplough unit,
a larger area.
the creation
holding in order to encourage
to lay the foundation
for owner-operated
the subsistence
that
propose
as
of
four
more
economic
class and
sive
progres-
times the size of
therefore, proposed that
Commission,
p.
66.
1^^
"an

of 64
in the
Khairpur and Hyderabad Divisions and

of 2 squares
area
two
or
is more"
rectanglesor 50 acres, whichever
other divisions should
be regarded as an economic
holding."
9
"
area
acres
10 Maintenance
Positive
of Economic
steps
suggested by the
are
existingsubsistence
Subsistence
and
and
an
in
Holdings
Commission
maintain
to
the
economic
holdings and to bring into existence

of the
out
holdings as defined above
prevailing scattered holdings.
be noted
It would
that in the light of the above definitions,
holdings in a villagecould be of one of the following fiv: categories:
than an economic
(1) Holdings having an area more
holding.
(2) Holdings having an area of an economic
holding.
of less than
economic
holding
an
(3) Holdings having an area
subsistence
and
but
economic
than
more
the
("4)Holdings having
(5) Holdings having
subsistence
holding,
subsistence
an
area
of
an
area
of less than
holding.
holding.
regarding each of
subsistence
provides as follows
above categoriesof holdings:
than
economic
(0 A joint holding comprising an area
an
more
be
cannot
if
the
the
effect
of
holding
partitioned
partitionis
land
The
the
of
area
reform
scheme
the size of any
to reduce
part of it to less than
holding.
(//)A joint holding having an area
be partitionedunder
holding cannot
than
holding smaller
{in) A
and
greater
the
size
of
the size
than
by
still be
would
holding
than
to
subsistence
the
area
in the
possessed
area
of
be
cannot
co-sharers
other
less
holding
economic
an
of the
the
economic
an
circumstance.
any
of
to
subsistence
partitionedif the share of any one

joint holding taken together with
him
equal
economic
an
subsistence
holding.
(iv)A
holding equal in
partitionedunder
(v) A
co-sharer
area
any
whose
share
in
holding, but when

equal
villagebecomes
holding, can
partitioned.
1.
gert his
Report Land
be
cannot
circumstance,
a
to
share
Reform
joint holding is less than

added
economic
same
holding
or
by
to
his other
greater
than
getting
Commission,
p. 66
the
lands
an
an
in the
economic
joint holding
Land
Reform
co-sharer
iyi)A
whose
Martial
under
share
in
1^'
Law
joint holding
to the
up
comes
through
holding can
get his share
partitioningthe jointholding,
a
in a joint holding is less than
whose
share
(v/i)A co-sharer
size
of
subsistence
joint holding partitionedif

his share added
to the land
already possessed by him in the
his holding either
same
equal to or
village will make
greater than the subsistence holding,
subsistence
holding
get the
can
that of an
than
joint holding having an area more
of the
economic
of each
share
holding, the individual
subsistence
at least equals the
joint owners
holding, it can
If
(viii)
in
partitioned.
be
holding is larger than a subsistence holding, but when

partitioned the share of any of the co-sharers taken together
with
other
area
possessed by him in the village
any
of his subsistence
less than
to
the area
comes
holding, the
partitionof such a holding is not allowed,
or
non-evacuee
areas
(x) Partition of joint holdings of evacuee
{ix) If
is allowed
which
under
the
rehabilitation
and
resettlement
subject to above restrictions.

the partition of joint holdings do not apply
on
to
the partition of the small
which
strips of land
are
bonafidely required for building purposes.
er
{xii)A joint holding larger than a subsistence holding but smalleconomic
than an
be partitioned if the
holding cannot
the effect of dividing the
partitioning has
holding into
scheme
is not
ixi) Restrictions
such
parts that the
already owned
part
which
9
'
will
go
by
as
is less than
individual
an
the
the
part, when
of any
area
of
result
area
of
co-sharer
added
to
partition,makes
subsistence
to
the
whom
up
area
that
a
total
holding.
Impartible Holdings
Management
the question arises: if a holding is declared
impartible,
could it be managed
for
the benefit of all the co-sharers?
The
11
of
Now
how
Land
Reform
holdings should
Commission
continue
has
to
be
dispute regarding management,

suggested by the Commission:
(0 They
should select
recommended
that
impartiblejoint
managed as single units. In case

the following alternatives have
person
who
will manage
the
land
of
been
on
178
Pakistan,
their
behalf
income.
and
If
selection
DevelopingEconomy
from
they fail
of
such
they will receive their share of
whom
to
agree
themselves
among
the
person,
by
made
will be
selection
the
on
of lots.
drawing
(//)The co-sharers
should
who
person
will
co-sharers
of
Government
fix the
its
of
deserving
select
and
land
after
proportionate
in
may
land
the
own
value
other
to
payment
The
value.
monetary
provide taccavi loans
cases
for this purpose.
(iii)If
is arrived
arrangement
no
Commission
the
of reasonable
Cabinet
to
and
this
of any
holdings
(fl)the
co-sharers
lots
up
as
may
behalf, and
income,
{b) if
from
such
opinion of
of
words
through putting
of
Commission
and
manage
co-sharers
the
on
drawing
holding
receive
their
on
their
share
of
request
the
is
payment
no
which
provision.
of the
to
aforesaid.
as
manage
is situated
of
arrangement
joint
permissible, the Commission

of such compensation as may
would
Land
scheme
Commission,
necessitated
have
has,
however,
the
been
Commission."!
Alienations
on
of
preventing sub-division
restrictions
land-owners
1. Land
to
Commission,
yet occurred
method
of alienation
the
prescribed manner.
the
Secretary, Provincial
have
12 Restrictions
Another
themselves, by
select, they may

which
such holding
co-sharers
the
the
holding
in the
cases
of
they will
cannot
of the
applicationof the above

prepared for consideration
"
will
whom
co-sharers
between
In the
"no
who
one
be determined
ing
Regulation. Accorddispute regarding the management
one
nominate
the
President's
the
by
in the
24
select
of the district in
acquire
may
of
Collector
management
ment
pay-
or
the
If, in the
on
aforesaid:
otherwise,
or
accepted
Paragraph
as
in the event
paragraph,
holdings
compensations.
were
incorporated
natives,
alter-
first two
the
will acquire the
recommendations
These
under
at
were
holdings
Restrictions
in
on
has
been
the
right
Reform
suggested by tbe Land
in
of the
25
incorporated
Paragraph
were
later
Reform
alienations.
on
of
West
Pakistan,
op,
cit., p.
169,
Land
Reform
Martial
Law
Regulatioa. Some
ing
and
were
reviewed
has
emerged
(0
by the
of
owner
economic
Land
holding
holding
with
the
than
economic
holding.
an
of
owner
holding but
{iii)An
smaller
holding
does
An
of
owner
but
it
not
not
position
The
of
fall short
of
though he
it
as
but if he wishes
other
less
is not
his eatire
subsistence
holding
entire
the
alienate only
holding
part of
subsistence
to
any
part of it, he
village,deh
same
alienate
cannot
less than
entire
his
by him
retained
area
entire
holding,
area
an
his
alienate
can
holding.
subsistence
alienate
of the
the
holding
to
owners
part
alienate
can
than
provided
it
alienate
may
him
an
or
area
with
retains
than
more
entire
holding
holding with
his
subsistence
can
of
owner
economic
an
part
of
area
holding
holding larger
of
owner
holding
to
misuaderstand-
some
part of it only.
than
or
he
area
economic
an
an
alienate
caa
provided
An
created
Commission.
thereof
(i7) An
(v)
of these
179
Law
finallyis given below:
An
(iv)
Martial
under
or
cultivable
whether
of land
(vj) Alienation
required bona fide for building purposes,
person;
do
must
so
mauza.
which
not,
or
is not
is
subject to
restrictions.
(vii) A
retaining 36,000
land-owner
after
as
to
P.L
sellinga portion of it, purchase

make
Units
P.L
36,000
up
of
Units
an
of land.
land
equivalent
He
area
(i.e. 500
(viii)A
P.L
of land
Units
still retain
9
"
In
allowed
exchange land
can
with
to
tion
Regulaof
acres
retain
another
the
un-
36,000
and
owner
of land.
36,000 P.LUnits
regarding Inheritance
with
provisions arc made
end
in view.
There
is
of inheritance, which
the
been
so
13 Provisions
Similar
same
has
who
land-owner
area
retain
can
8 of the
in
Paragraph
prescribed
of
1,000
acres
irrigated and
land,
etc.).
irrigated
the
of
limits
cannot,
law
of
succession
respect of
cases
and
of
respect
restriction
no
are
the
fresh
to
be
manner
on
to
the
sanctioned
inheritance
with
sanctioningof
in accordance
prescribed in
inheritance, however,
the
the
tions
muta-
with
this behalf.
following
180
provisions have been made:

owned
"(0 The entire area
which
area
falls
be considered
should
be
allowed
but
he cannot
limit, then
the
is
he
the
as
500
less
than
the
area
select
held and
owned
of
should
He
holding,
total
the
the
as
inheritance
of
heir.
that
out
well
as
result
of
area
than
more
holding
can
area
share
heir
any
acres.
permissible
the maximum
of
permissiblelimit
the
by him
and
the
area
the
obtained
area
result of inheritance.
as
hold
by
the property
select
to
heir
"("7) If the
from
his
to
held
or
heir
"(iii)No
decline
can
in order
share
to
enable
to
accept
the other
falls to his
which
co-sharers
larger
have
to
areas,
heir
can
co-sharers
or
"(jv) No
relinquish
provisionsof
get 500
Paragraph
Units
of
out
1,000
or
acres
the
fallingto his share

9
"
view
share
to
other
to
escaping the
of
the
land, and
gifted
of
9(/)
acres
area
as
of land
him
to
Regulation
result of the death
can
36,000 P.I.
not
well
as
result
as
the
as
area
of his ancestor.
"^
of the Scheme
Provisions
14 Other
18,000 P.I. Units
receives
gift under
of
with
persons
his
Regulation,
the
who
heir
"(v) An
other
to
transfer
or
tion
relate to: (a) aboliprovisions of the land reform scheme
of holdings, (c) land utilisations and
of Jagirs,(b) consolidation
Other
(d) credit facilities for tenant-owners.

(a) An earlier Punjab Act, as we
with
exceptions. The Martial
some
Jagirs without
this has
been
which
an
have
acres
Exchequer.
area
The
of 332,607
been
sold to
As
Pakistan
Jagir
was
acres
tenants
has
under
been
in
Secretary,
August, I960.
.
Land
Commission's
Province.
considered
a
necessary
of
sum
924,153
Of
this area,
"Land
like
Reform,"
the
to
Jagirsw"s
resumed.
all
Where
of income
source
cultivatingpossession for
Article:
Jagirs
abolishes
result of this step
regular additional
total land
abolished
Regulation
Law
had
9,754,158. Further, all intermediary interests

1
14th
provided otherwise.
seen,
West
provided by
has become
32 lakhs
Provincial
Rs.
exception ia the
financial assistance
the
Rs.
any
have
acres
a'la
Pa^/i/an
of
53,398
sum
of
maliks
r/mî
have
been
abolished
been
made
The
annual
Martial
Reform under
Land
and
compensation
without
181
Law
maliks
adna
have
proprietors of the land held by them,

started in the Punjab about
of holdings was
(b) Consolidation
have
would
taken
forty years ago, but the pace was
very slow which
recommendations
the
generationsto accomplish the job. Following
in the shape of
Commission
of the Land
Reform
a comprehensive law
Consolidation
of Holdings Ordinance,
1960, was promulgated by the
is under
ambitious
scheme
and
Governor
a
implementation.
very
Originallyit was intended that 29,848,214 acres would be consolidated
within five to seven
years involvinga total expenditure of Rs. 8"9 crores.
extended
to
full
target
to
where
and
years
without
take action
could
had
been
consolidated
plots held
in West
be
was
reduced
was
introduced
only
Previously the Deputy
restriction.
end
of
May 1964, 6,758,502

Pakistan, covering 5,082 estates.
before
by land-owners
it.
any
the
target
to
now
desired
the scheme
Later
acres.
the annual
was
land-owners
by
spiteof initial difficulties,
In
The
of
majority
the
ten
4,264,000
at
Consolidation
acres.
Commissioner
acres
period of
2,132,015
fixed
was
consolidation
which
were
as
reduced
to 714,598 in number.
as
The
of
1,791,801 were
cost
many
consolidation
is recoverable
from
land-owners
of
up to a maximum
Rs. 5 per cultivated acre.
total
of
Rs.
14,961,133 had
By May 1964, a
already been recovered.

(c) Large
uncultivated
interest
on
1954, had
of
areas
Province
in the
taken
leased
to
tenants
under
Government
however,
in West
adopted
which
remains
Commission,
Pakistan
in
uncultivated
requisitionedby
and
properly enforced.
Reform
the
the
In
Rules"
"Fallow
not
were
of the Land
lack
of
or
for four
Act,
harvests
out.
by the
regulations,
over
These
Following the recommendations

1959.
Utilisation
August
a period of
for
Government
means
Utilisation
be taken
could
remained
period of ten years

province of Sind
former
leased
Land
Under
two
given
Ordinance
was
this Ordinance
years
for management
approved lines, after due notice has been

it under
for
for five years
remaining uncultivated
land
had
Punjab Land
Government
cultivation.
for
the
land
remaining uncultivated
the
by
over
The
owners.
that land
provided
be
of
account
on
the part of their
could
arable
proprietary waste
or
and
more
land
can
utilisation
to the owner
to
be
on
bring
cultivation.
About
128,000
acres
of
land
which
was
under
cultivation
by
^S2
Pakistan,
the
landlords
basis
has
has
of tenders
yet
be
to
for
Developing Economy
leased
harvest
one
determined.
of land
for various
use
holdings
of
and
new
order
which
the
surrendered
(d)
land,
Soon
such
purposes,
owners,
landlord
after
the
as
make
the
to
of
use
land
comprehensive programme
of the adjacent
the extension
a
former
to
in
cultivation
for
of
tenants
place of
landless.
of
announcement
the Central
reforms
land
charging it with
affording credit
scheme.
Following the
appointed a Credit Inquiry Commission

responsibilityof going into the question of
the
facilities to the
new
placed
landlords.
"A
he
though
the
might
owners
tenant."!
small
jhe
been
providing
the last few

15
to
reforms
the country.
upon
them.
more
and
Before
far
of
promotion
should
availed
should
by
be
them
by
this
even
resources,
did
as
the
prove
to
land
the
not
has
Government
during
this purpose
for
Martial
the
order.
make
1.
the
effects
economic
it is necessary
are
were
to
touch
concerned,
the rural areas,
politicalstabilityand
Positivelyspeaking, the middle income
strengthened who
should
chapter
and
regime
Law
politicaleffects
equalitariansociety in
as
more
conducive
be
effective democratic
group
year
mission:
Com-
Country
(a')Political effects.So
reforms
own
previous
Reform
on
Provincial
The
their
credit
insecure
their
on
Land
loans, however,
introduced
end
the
stand
or
as
15 lakhs
we
through
to
far-reaching political,social
have
upon
land
of Rs.
sum
Economy
on
land
expected
is almost
anticipated.
get the full benefit of
Pakistan
money
otherwise
years.
Impact
The
without
advanced
be
because
help from
any
was
to
now
West
for taccavi
was
as
the
owner,
demand
large
as
of
an
were
expecting
farmer
be
may
be able
3 crores
Rs.
to
necessary
not
They
of
sum
Government
considered
was
words
the
a
Provincial
the
rights in land.
In
under
Commission
financially without
feet
"
This
newly emerging
their property
be
this
disposal of
loans.
taccavi
the
of
the
at
created
owners
recommendations
best
the
Government
as
the
on
policy for the future
definite
retain
may
Commission
Land
transferred
or
alienation
or
to
devise
to
the
only.
In
old
by
out
it will be necessary
resources,
land
been
to
greater
through
better
educational
possible a real democratic

Report,
op.
cit.,p.
70.
system
facilities
to emerge
Land
Reform
Martial
under
in the political sphere. Such
people
their
should
rights
interested
government
votes
duties
and
and
183
Law
of
conscious
likelyto be more
be more
appreciative of a good
are
in their welfare.
be
They should
able
to
use
their
intelligentlyand
effectively.
Negatively speaking, the old
dominant
feudal class should
the basis of
have
on
disappeared, who
economic
and
the votes
social prestige were
able to command
power
of the small fry in the rural
their
society to acquire and consolidate
which
own
used
in
of
the
their
political power,
was
preservation
of 500 acres
not
of land was
privilegesand positions. An owner
expected
more
much
to be
of
factor
village society,particularly
when
the common
in the rural area
fortified by the
man
was
democratic
institutions set up by the Martial Law
new
regime.
Social
of politicaland
the reduction
economic
(fc)
effects.With
the
of
landlord
class
their
social
from
sources
prestigestemming
power
individual
other than
to
overpowering
an
merit
exploit large sections
income
should
group
should
of the
decline and
along with it their
the other
On
people.
increase
in the
and
in number
such
power
hand, the
middle
elements
should
mobile, independent and progressive.They should be

sociallymore
and health
facilities
in a better position to take advantage of education
economic
conditions
of the average
The
provided by the Government.
cultivator should
improve and result in the improvement of his social
and
their depenOn
the other hand, the very large landlords
status.
dants
should
should lose their traditional social snobbery and
divert
towards productive activities in order to
and more
their energies more
be
for themselves
ensure
got used
without
Such
work.
be
to
consequences
to
which
and
healthier
the
their
high material
smaller
standards
estates
were
to
not
which
they have
likelyto provide
productive activities,apart from their economic

considered
expected to conduce
presently, were
and
social environment
reduce
the
scope
for anti-social
activities.
effects.The
(c) Economic
to
be
economic,
stimulation
in
the
of investment
form
far-reaching effects were

expected
of greater agriculturalproduction and
most
io the field of
industry through diversion of
surplus savings in the agriculturalsector to the industrial sector. The

in agriculturalproduction was
increase
expected to result from the
following factors:
cultivation.
under
(i) Increase in the area
organisation resulting in the possibilities
(ij)Better agricultural
ISi
Pakistan,
of the
Developing Economy
of better
use
techniques.
ment
imparting greater incentives for work and investto the agriculturalworkers
and investors.
The
under
increase
cultivation
to
firstlybecause
(0
area
was
had
of the land which
been
much
neglected by the large landlords
due to their having very large estates, ensuring them
a
good living,
(W) Through
would
be
brought under
landlords
themselves
whom
among
the
cultivation.
land
resumed
acquired by the Government

be
leased
out
place
took
which
newly-created peasant- proprietors
the
by
or
the
an
appreciable
before
consolidation
Moreover,
would
area
Ordinance,
holdings
the plough,
brought under
be
under
to
of
consolidation
as
wasted
was
Utilisation
Land
be
it would
distributed, or
be
to
was
under
for cultivation.
either by the
be done
could
This
small
of
boundaries
plots.
tion
(/j)Better agriculturalorganisation was to result from consolidathe
of holdings, encouragement
of co-operativefarming among
holders
of uneconomic
the
land
agriculturalunits, simplificationof
abolition
tenure
of Jagirs, d'la mallks and occupancysystem through
essential
which was
an
tenants, and provision of better credit facilities,
The
scheme.
part of the land reform
prospects of better marketing
also expected
to
were
felt secure
as the
improve as the agriculturist
of his holding as a tenant
occupant
or
peasant-proprietor.There
be
to
was
better chance
of the Government
and
the
when
middle-class
under
of successful
extension
type of agriculturistswhose
(Hi)The third factor which

greater incentive
to
the
have
The
afforded
freedom
have
the
under
the influence of the
pre-reform
his best both
niic and
with
deal
secure
increase
would
to increase
the
farm
investment
investors. The
were
in
expected
agriculture.
securityof tenure, fixation of

he
was
oppressions to which
system.
The
magic
in labour
optimum
on
and
production was
greater
the
moderate
number
to
various
under
to
expected
was
incentives for work
would
from
income
to
agriculturalworkers and
peasant-proprietor, and the londlord"all
greater
tenant
forth
staff had
land reforms.
the
tenant,
services
operation of extension
private property
materials
level. The
landlord
business lines if he
social standards
to
which
he
wished
had
in order
was
to
got
to
increase
expected
maintain
used
for
work
would
and
to
the
and
subject
peasant-proprietor would
of
and
rents
run
put
his
his
econo-
generations,
basis.
Apart
from
reforms
With
could
as
been
in
more
investment,
another
might
spill
increased,
the
further
for
scope
further
stimulate
These
How
the
far
impartial
has
of
is
been
conducted
reforms.
income
fop
thus
sector,
be
in
in
promoted
in
would
which
expansion,
industrial
perty
pro-
available
group
products
industrial
landlord
course,
funds
could
middle
the
the
rural
thus
expand,
its
would
turn
progress.
have
realised?
been
needed
in
to
assess
the
areas.
social,
the
this
know
To
aflFectcd
the
favoured
who
those
of
expectations
they
survey
these
for
agricultural
were
reforms.
of
in
of
industrial
the
into
over
size
market
the
were
Industrialisation
As
too.
way
giving
survey
if
and
still
non-
landed
coald,
They
hitherto.
there
the
thfr
their
increase
to
tendency
industrialisation.
promoting
effects
the
agriculture
they
funds
extra
land,
of
ownership
the
of
investment
stimulate
could
land
sector,
development
the
to
it
on
their
on
also
ceiling
use
had
lead
agricultural
the
effects
particularly
not
invest
an
to
sectors;
industry.
areas
economic
expected
were
agricultural
class
the
So
political
land
conclusively,
far
no
and
scientific
economic
CHAPTER
10
AgriculturalMarketing
10
'
Importance
In
Marketing
of
self-suflScient
village economy,
constituting Pakistan
now
not
was
Now
places,
world.
important
so
consumed
was
the
With
of the
proceeds
surplus
grains, cotton, jute, sugarcane,
oil-seeds, etc."
produced in distant parts of the country and
of the food
most
commercial
if
money,
large.
total
on
market.
He
fixed. Even
costs
then
of
amount
the
money
has
in the
of
his
peasant
of
value
little control
country
production
sale
the
of production
determined
are
operating
His
the
village
world.
now
within.
of non-food
case
converted
are
make
to
goods
Even
from
met
are
least
at
outside
of food-
"
purchased
are
jute. These
duced
pro-
bourhood.
neigh-
also in the
the
in the
greater
purposes,
position
also
they
is
and
cotton
other
village
the
was
land
into
revenue
Government.
the
but
sell in the
demand
the
upon
land,
because
for
economic
The
depend
like
crops
not
to
payment
his
of
surplus available, however,
The
or
requirements
of
keting
mar-
in distant
consumers
itself, but
country
sale
the
villagefinds
the
areas
of
problem
the
ago,
to-day. Then, all that

village or in the immediate
the
produce of
the
years
it is
as
within
only within
not
hundred
prevailed in the
it
as
by
and
proceeds
can
broad
in many
may
that
be
does
he
merely
not
can
he
prices which
factors
cases
of
in
regarded
be increased
as
has
to
prevail,
supply and
the
by
from
secure
that
surplus
the
over
the
also
the
thus
world
more
better
or
at
less
h"ndl-
187-
ing of
to
the
produce
the various
of
his
and
intermediaries
products. This
either because
from
the
be
done
character
peculiar circumstances
seasonal
and
scattered
him
which
of
under
character
of their
in Pakistan.
certain
in
sequences
con-
suffers
profession
works
he
the
farmer
agricultureas
which
consumer
from
the
handicapped
are
ultimate
the
by saving
from
handicaps
of the inherent
Agriculturistsin all countries

The
liim and
portion going
the
minimum
the
to
between
can
of the various
or
reducing
respects.
operations,the great
the
inelasticity of
plays in making it a success,
for agriculturalproducts, raise many
difficulties of organisation
make
In
uncertain.
adjustments between
supply and demand
role that Nature

demand
and
addition
to
these,
our
ignorance, conservatism,
financial aid, defective
host
of other
individual
is
peasant
small
handicapped
of
his
by
cultivation,
of communication
means
and
unit
and
lack
illiteracy,
of
proper
transport
social disabilities. In this
chapter
we
and
shall
handicaps from which our

seller of his produce and then
take note
of
a
as
either suggested from time to time or actually
the various
remedies
his
position.To quote the Royal Agricultural
adopted to improve
"until
he (the peasant) realises that, as
seller of
Commission,
a
individual
or
produce, he must study the art of sale, either as an
other
with
producers, it is inevitable that he
through combination
with the highly specialised
should
off second best in his contest
come
of
study the nature
agriculturistsuffers
some
of the important
knowledge and the vastlysuperior

-
2 Essentials
In
the
the
those
who
purchase
produce."^
his
10
of
resources
order
producer,
of Good
that
cannot
Marketing
produce
several conditions
may
must
should
be
produce
produced in a standardised
quality of the
be
the
be sold
be
to
the
present.
In
best
advantage of
the
first
place,
good. Agricultural commodities
form
as
manufactures
can
be.
extent
by using the best available
quality can be ensured to some
of cultivatingand
vesting;
harseed; by adopting efficient and clean methods
by grading and standardising the product, and by storing it in
But
good storage places to prevent deterioration. This is the first essential

of good marketing. If products of good and bad qualitiesare mixed,
the case
in Pakistan, the reputation of the whole
as has been
produce
1.
Report, Royal Commission
on
Agriculture
in
India, p. 338.
188
Pakistan, A
suffers aad
price obtained
of the better
The
Developing Economy
is of the standard
of the
than
rather
worse
quality.
good marketing is the staying power

pressed to sell all his produce immediately
after the harvest, the selling
pressure will depress prices for all the
agriculturistsand
will reduce
their sale proceeds. It is necessary,
of his
that cither the peasant
should have
tijcrcfore,
enough reserve
second
of
essential
of the seller. If he is hard
to
own
his
meet
due
payments
requirements
from
him
than
worse
in touch
to
get
getting of
rapacious money-lender, the
If the
existence
good marketing is the

and
him
exist for
should
disease.
the
third essential of
of communication
means
be
be
may
The
immediate
other
of interest.
credit at reasonable
on
rates
money
credit throws
him into the clutches of
remedy
and
revenue
arrangements
or
"
of land
"
cultivator-seller
The
transport.
of
good
should
enable
to
prices in the markets
hira to take advantage of favourable
prices.The villager should have
convenient
should
be well planned
roads
The
to the market.
access
and well kept or
facilities. If the
there
be waterway
transport
may
facilities
wiih
to
the
or
the market
markets
peasant
would
for better returns.
Finally,there
distances
of
prefer selling to itinerant

villageshopkeepers, instead of carting his produce
absent, the
arc
purchasers
the movements
from
should
the
should
that
is necessary
producing villages. It
be
at convenient
markets
well-conducted
be
these
under
impartial
practicesare arbitrary, the
cultivator will lose confidence
would
in them
and
prefer to sell his
produce in his own
terms. i
village on
comparatively unfavourable
to markets
of transit
Proper access
also implies the absence
charges
like octroi, terminal
serve
as discouragements to
taxes, etc., which
the cultivator-seller. Marketing in Pakistan
lacks almost
all these
essentials in varying degrees.
supervision
10
"
3
It
Produce
control.
Sold
has,
to
wc
dispose
transport
is taken
he
into account
(Agricultural Commission
established
in
than
market,
obtains
Report,
be
the market
been
of his produce
organised its character,
and
Village
what proportion
say
think,
regulated
If
io the
is difficult to
1. "it
position
and
properly
much
when
op.
he
that
of the
when
however
better
disposes
cit., p. 388).
total
the
produce,
its scope
price for it,when

it of
is in
cultivator
limited
in
his
own
on
aad
badly
the cost
of
village"
189
the average,
is sold
by the cultivator and what
for
is kept
his
hold
house-
requiremeats. Obviously, the
proportion will differ in different

different agriculturists
according to their economic
localitiesand with
strength and
sold
will
the nature
be greater
of the
in the
concerned.
commodity
of commercial
case
prosperous
total
produce in the end, though they sell a small
total
surplus
to
wait.
In
cultivators
harvest
at
sell
may
time
pre-PartitionBengal,
it
food
larger proportion
estimated
was
that
greater
and sells only what
to the
Government
Even
expenses.
and
in
cultivators make
There
is necessary
is, however,
of the produce
sold
the
One
cultivator.
family
for
"^
defiaite information
no
in
sold.i
sundry household
district like Lyallpur, "23'9% of the
prosperous
sales.
no
money-lender and
the
power
obligations
his monetary
meet
to
their
normally 54%
of the total rice

retained by the producer and 46% was
crop was
The average cultivator,
one
may
say, produces mostly for his
needs
crops.
of
proportion of their
their
of
account
on
than
crops
More
"surplus"
The
villageand
the
that
as
taken
to
to
the
proportion
the market
by
pre-Partition
in
that
investigator^ estimated
sold
Punjab 60% of wheat, 35% of cotton and 70% of oil-seeds were
in the villagesor village markets. In Bengal, before Partition,58%
of oil-seeds and
sold in the villages."The
90% of jute were
portion
proof produce
debt-ridden
Attock
or
carry
District of the
surplus wheat
to
also
diminishes
cultivators
are
farming in tiny holdings. In

of the cultivators dispose of their
Punjab 93-6%
local
as
subsistence
on
also."*
(money-lenders)
market
diminishes,
sold in the markets
happen to be their sahukars

proportionof produce sold in the outside
banias
The
who
the
where
of
means
communication
and
adequately developed.
the portion that
sold in the village(apart from
is directlysold to non-agriculturist consumers
living in the same
it
through whom
village)is sold to various kinds of middlemen
transport
The
are
not
produce
ultimatelyreaches
In
banias
the
larger markets
middlemen
pre-Partition days, these

or
money-lenders, who
1.
Marketing of Rice
2.
Mukerjee, Economic
3.
Hussain, Marketing
4.
Mukerjee,
op.
in India
in
and
distant
and
most
Burma,
cases
p.
consuming centres.
were
mostly village
were
village shop-
492.
India, Vol. I, p. 299.

of Modern
India, p. 96.
in Northern
Produce
of Agricultural
Problems
cit.,Vol. I, p.
299.
190
Pakistan,
Developing Economy
keepers. lo addition, there were

bania
has
beoparis. The
gone
and
the old
Enquiry
such
produce
money-lender
the
v/hich
complaints
"justified.
(this
was
thirtyyears
out
than
latter
if he
does
he
ago,
it to
it is necessary
the
any
usually
cannot
has
the
when
case
to
pointed
terms
badly organised the
however
market,
sell
produce
less favourable
much
obtains
facilitate the process
of the Present
Defects
main
The
in
defects
in
marketing
System
the system
during pre-Partition days

essentials in Pakistan
of
in
in
conditions
create
to
should
10
In
he
because
debtor
the
Partition),
before
case
regards
also
might be.
Thus
"
is
disadvantage
terms.
cultivator
carts
middleman
Royal Agricultural Commission
the
the
and
the
value
market
middleman,"
the
likes. The
latter's
village,as
Where
at
he
as
the
on
in the
is sold
still active
are
of the
share
frequently
more
peasant-selleris still more

his creditor
beoparis
to
goes
"^
as
large
too
they grow
dispose of his produce

to
the
not
agriculturiststhat
the
but
purchasers, the
itineranti
Agricultural
changed substantially.The
still
refers to the "general complaints
(1951-52)
system
Committee
among
of the
has
various
of
India
the
country
well-organised market.
marketing that
developed
was
still remains
and
which
intact
in its
are:
{a) Indifferent quality of the produce

(6) Inadequate facilities of transport
sold.
and
communication.
(c) Multiplicityof intermediaries.

of storage
(c) Lack
of
in
(/) Absence
We
to
of the various
remedy
(a)
each
Our
markets,
1.
Tfiey are
steps that
each
have
of these
been
defects
taken
by
and
also
to
the Government
of them.
some
produce
though
quality of
selected
or
discuss
to
now
propose
take note
and
warehousing facilities.
uniformity
weights and measures.
of properly regulated markets.
(d) Lack
does
things
not
have
enjoy good reputation in the foreign

improved in recent
The
low
years.
the
of causes:
produce is due to a number
(/)indifferently
calamities
seed; (//) natural
affecting the
while
crops
Itinerant
called
2. Report,
middlemen
beoparis in
op.
cit.,p.
go
under
the former
45.
different
Punjab
areas.
names
in
the
various
regions.
191
growing, like too much
{Hi)primitive methods
and
with
stones
the
of
lead to
harvesting, which
grains; {iv) lack of proper
storage
the
village,which
dirt and
diseases, etc.;
mixing of dirt
little rains, pests and
too
or
in
results
deterioration
through
facilities in
rain,
to
exposure
the
at
(v) deliberate deterioration
stages of
marketing by damping, mixing, etc.; and (v/)lack of standardisation
and grading of produce which
does not distinguish between
good, bad
various
rats;
indifferent
and
The
qualities.
Provincial
done
have
Agriculture Departments
in introducingimproved varieties of seed, though a
to
yet
be
under
area
from
90%
the
covered
the various
to
crop
of the total
Taking
and
defective
as
all the
as
the
remain
by
individual
The
trouble
hand
for
or
the
cultivator
due
worthwhile
to
him.
can
varies
still about
tackle
to
ever,
harvesting,howis introduced
conditions),they
little has
done
been
keep the
means
total
seed
introduced
be
financial
constructing elaborate
the
mechanisation
cannot
his
to
of
present
facilities
long time,
troubling about
seem
the
Storage
co-operative effort,but
is that
of
done
been
methods
under
same.
also
has
unless
and
ever
percentage
improved
together, it is
crops
work
large field has
very
with
sown
diseases. The
(which is impracticable
will
is
Some
sown.
area
problem of pests
remain
which
crops
crop.
The
connection.
this
ia
useful work
so
far.
on
his
produce
weakness
of
either
hence
and
storage
does
not
quality is partly
of qualityfor
standard
of
deterioration
Conscious
dishonesty but partly because the

better
is fixed low and
quality produce does not command
exports
seller, therefore, reduces better
proportionately better prices.The
due
to pure
quality products
Government
has
to
the
taken
In
given standard.
definite
steps
to
the
case
prevent
of cotton,
the
deterioration
of
Cotton
1923,
cotton-growing areas.
quality in certain
local Governenabled
ment
which
any
Transport Act was passed in India
for protection and to prevent
of cotton
to notify definite areas
In
the
importation of cotton from outside the area except under licence.

with
to get mixed
inferior outside cotton
to prevent
The
object was
the superior variety of the area
protected. The Act produced good
results. To
discourage adulteration, another Act was passed in 1925.
This was
the Cotton
Ginning and Pressing Factories Act. According
the
to
this Act, the
in
numbers
sejrial
gins and
so
that
presses
have
to
mark
their
any fault,if discovered,can
bales
distinctively
be traced
bapk*
^92
After
Partition, the
(Control) Act, 1948,

of
cotton.
be
grown
is
Under
in
be
to
or
this
mix
two
or
enacted
was
in
againstadulteration
proved
not
have
the home
prevent
varieties of cotton
more
cotton
to
are
from
one
to
zone
another.
of food
in each
of other
similar lines
should
"
suited
"
go
long
agriculturalproducts. Measures
but
local areas,
they only aim
effective;moreover,
very
case
exist in various
do
ginning stage
Similar legislation
the
at
Bahawalpur. Legislationon
at
they
protecting
consumer.
regards grading
As
Punjab Cotton
through mixing
the
deterioration
only specified varieties of
prevent deterioration
to
Legislature passed
to
of the commodities
to circumstances
step
Act
transport cotton-seed
to
way
in order
particularareas; seed of only certified quality and purity

ginning factories have to be licensed, and it is prohibited
sown
to
Punjab
taken
was
in
standardisation, the
and
pre-division India
when
the
first
important
Agricultural Products
Act
this
passed. Under
issued to reliable merchants
authorising them to grade
licences were
the close supervision of the marketing
agriculturalproduce under
Such
then
staff appointed by the Government.
placed
produce was
and
Grading
under
market
the
in
Marketing
of
number
Act,
1937,
lable and
the
products (including
hides
flour, rice, ghee, eggs,
was
seal of
grapes,
and
tobacco,
oranges,
skins
and
"AGMARKl."
lac) were
graded
large
apples,
in this
way.
present position in Pakistan
The
of jute, and
is
that, apart
from
the
broad
comparatively very small scale of eggs

and ghee, there is noorganisedgradingof any agricultural
commodity.
in 1952:
"At
the Agricultural Enquiry Committee
Wrote
present
in
official standards
of quality or grade specifications
there are
no
and jute,
of cotton
respect of any agriculturalproduce. In the case
these
do prevail, but
and trade standards
trade names
apply only at
classification
or
after the
wool,
hides
for trade
names
thrives under
In
which
the
we
on
baling stage. Other

skins,
and
in
the
commodities
etc., have
case
of
some
no
such
standards
of
the
as
wheat,
whatsoever
grains.
rice,
except
Adulteration
these conditions."^
opinion of the Agricultural Enquiry

fully agree, the grading should be done
}. Report, op. cit.,p. 16,
Committee,
at
the
with
firststage of
193
marketing through a co-operative
supervision of the Co-operation and
Government.
and
Grades
Marketing
should
standards
the
under
agency
of
the
prescribed by
the
Department
be
and
control
into and
research
after proper
Co-operation and Marketing Adviser
the
of
commodity
qualities
analysisof the physical and chemical
the
Central
such
available
at
for
are
Facilities
concerned.
analysis
a
on
Control Laboratory at Lyallpur. So far grading has been done
compulsory, particularly in the

voluntary basis; it should be made
like vifool,hides and
skins, bones,
of exportable commodities
case
be
cotton-seed
and
betel-nuts
Later, rice and
sun
hemp.
may
added.
the
sanctity of the "PAKMARK,"
The
of the Government
name
purity of the product bearing it,

wilful misgrading or counterfeiting
should be zealously guarded and
be severely punished by amending the
labels should
"PAKMARK"
Grading and Marketing
existinglegislation(AgriculturalProducts
Act, 1937, which was adopted in Pakistan after Partition).
seal, which
of
(b) One
produce is takea
of roads.
This
stillapplies
field
to
the
poor
and
with
the
aggravate
the
by
also
to
cultivator
the
for
accounts
have
that
most
the
villageand from
Bad
markets
not
the strain
on
bullocks
to
and
the
cultivator
difficulties
is often
at
the
of the
mercy
itinerant
tracks
of
cost
from
the
often extremely
connecting villages
transportation and
pack animals, but also lead

and intermediaries.
They also
of agricultural
rapid movement
greater
are
condition
other
the
produce."! jhe
the mandiaTc
and
of the
grain
following description
The
"Communications
villageto
multiplicationof small dealers

restrict markets
by hindering cheap and
to
variety of the
appeared.
add
proportion
is the bad
the market
to
the
roads, lanes
only
small
of Pakistan:
parts
defective.
only
why
reasons
carriers
and
dealers
the
guarantees
in
hill
districts
grain dealer
who
where
alone
the
can
enough animal power to undertake transport of the produce.

the produce is carried to the
of conveyance,
As
regards means
in bullock or camel
pack animals, such as camels,
market
carts, on
command
ponies, buffaloes and donkeys or in

used according to the circumstances
are
transport has declined in West
importance in East Pakistan.
1. Mukerjee,
op.
head
Pakistan
In
West
loads.
Different
methods
of different localities. River

but
is still of considerable
Pakistan
Vol. I, p. 295,
cit.,
the
cart
and
pack
19i
Pakistan,
animals
are
the
of
Developing Economy
Motor
predominantly used.
transport has, however,
in importance in recent
grown
years.
Due
to
inadequate facilities for transport and communication,
of the
marketing has become
high. In the words
very
of any plan for agriAgricultural Enquiry Committee, "the success
cultural
development is largelydependent on the facilities afforded for
at minimum
cost."^
primary produce to reach the consumer
The
first essential, particularly in West
Pakistan, is to have
cost
properly
be obtained
from
We
progress
N.-W.F.P.
of the
the extension
glad
are
the
since
by
to
note
in
Partition
of
used
been
be
to
done
cannot
and
the
will have
camels
development
what
advantage
vehicles
motor
and
cart
has
full
them
use
bullock
that road
little,however,
Very
without
because
of transport
costly methods
continue.
roads
metalled
has made
the
in Sind
to
notable
Punjab and
(now Hyderabad
Division) in this connection. la East Pakistan, waterways rather

of communication
and
than roads
transport.
predominate as means
largelyowing to
There, road development has made
meagre
progress
the topographical conditions
peculiar to that Province.
with respect to
the plans of the Government
We
shall discuss
the
of this work.
volume
the
railway
brought
which
need
to
Here,
the
notice
removing
need
however,
investigationare:
delay
(1) Inordinate
in
transit
(4) Inadequate rail express

of
Absence
and
by
high
with
1. Report,
2. Ibid.
at
were
and
which
transhipment stations and
at
in
pivotal stations.
service.
refrigeration facilities,special bulk

air
value
could
fruit like grapes

Pakistan
refer to the defects of
containers
lightvans.
Transport
of
may
the
deliveryat terminals.
(2) Pilferagein transit.
(3) Inadequate covered storage
(5)
we
second
the
marketing point of view which

of the Agricultural Enquiry Committee^
as
early as possible. The complaints
from
transport
railways in
and
roads, waterways
of
development
return
op.
can
and
be
modities
only in the case of comsmall bulk, mainly perishable.Thus choice
be
sent
worthwhile
from
parts of West
freight for high-value
cit.,p. 46.
consumer
Pakistan
to
East
goods such
as
195
bctcl-leaf.
(e) The
before
following typical
Partition
in most
of
parts
middlemen
had
including
Pakistan
of
chain
India
emerged
where
organised marketing had developed: (1) Beopari; (2) Katcha Arhtiya;

(3)Dalai; (4) Pucca Arhtiya; (5) Wholesaler
and (6) Retailer.
In
the
well-developed
where
areas
place
villageand
the wholesale
"
transactions.
arhtiya had
often
He
the
in
typicallyappeared
had
which
"
the self-suiBirrigationhad broken down

in
degree of specialisation crops had taken
transport and
cicncy of the
mandis
and
his appearance
made
facilitated
supplied capital to the villagebania or beopari

reach
the products of the neighbourhood would
stipulationthat
him regularly.He also acted as a commission
agent of shroffs and
big exporting iirms in the cities,thus forming an indispensablelink in
the chain between
this
the cultivator and the shipper-buyer. It was
wholesale arhtiya who
known
the pucca
in the market
was
as
arhtiya.
He was
distinct from
the katcha arhtiya who
acted
as
a commission
on
for all sellers in the
agent
banias
beoparis
and
and
countryside including cultivators, village
other
itinerant
spoken
produce through
small
direct
cultivator-seller.
of. The
with
other
were
found
intermediaries
for the
called
the
bother.
and
pucca
addition
the
dalals
but
for
His
buyers generally
real
business
to
was
This
been
have
There
are
emerging
has been
on
the
these
Bharat.
opinion
Some
economically justifiable.
at
superfluous. It
has
the
not
buyer
time
of
necessary
themselves
save
and
seller in
the
Partition,
middlemen
mostly
were
New
ever,
middlemen, how-
how
far these
lines.
same
difference of
at
put
sellers and
the
was
to
so
been
as
to
people regard
suggested,
of
them,
instance,that
some
for
men
middle-
rate,
any
If the cultivator took the produce
the dalal is unnecessary.
market
himself, the beopari could also be eliminated. The
as
arhtiya could
and
the
be
displaced by
wholesaler
are
the
co-operative shop. The
frequently
were
markets, however,
the
did
their
dealt
arhtiya, there
the
(brokers). Dalals
of
majority
already
disposed of
arhtiya never
to
acted
set
one
organisation was disturbed

particularlyin West Pakistan, because
Hindus
and Sikhs who
migrated to
touch.
often
In
Sometimes
buyers. In
operated
employ a broker
time
also
arthtiya.The
have
we
in the interest of buyers only. It
brokers
to
dealers
mandi
katcha
in all the markets.
other
the
the
the
carriers
the
same
person.
pucca
to
the
katcha
arhtiya
By marketing
196
'
PaJcistan,A Developing
Economy
could be
through the villageco-operative sale societies,the consumer
approached directly. The Royal Commission
on
Agriculture,reporting
in 1928, however,
advised
in
caution
"Public
such
reforms.
opinion,"
men.
middle"is
and
is
the
watchful
of
often
invariably
they wrote,
suspicious
It is clear,
...
the
on
risks
and
costs
modern
conditions.
illfrom
which
of
while
marketing
real fact of the
to
fullyinformed
is not
of distribution
business
the
suffers is traceable
middlemen.
unnecessary
distracting attention
which
public
the
depreciateeasy generalities
suggestingthat
We
and
that
incidental
the cultivator
rapacious
confidence
however,
are
capable
of
is that
these
matter
to the existence
Such
from
being remedied
middlemen
in
or
arose
the
disturb
system
"i
removed.
as
every
of heirds
statements
faults
in
of
The
necessary
evil
the
communication
prevailingconditions in the country. "Bad
conditions
of marketing encourage
of middlemen
a superfluity
and the most
effective means
of removing unnecessary
men
middleis the provision of good roads
and the establishment
of a suiEcient
number
of well-regulatedmarkets
to the cultivator."^
easy of access
due
to
and
chaotic
.
similar
opinion
expressed by
was
necessity and
he
should
various
"the
causes,
financial
and
not
until
prominent
most
of
resources
the
and
co-operative effort among
better
The
the
marketing methods
Pakistan Agricultural
of too
them
among
producers and
unsatisfactory communications,
markets
"In
thus:
marketing, itinerant beopari

be condemned
offhand, just like the
and
villagemahajan,
new
"^
of
the
to
door
are
brought
every peasant.
attributes the existence
Enquiry Committee
unless
writer
of credit and
present unorganised system

is
Indian
an
their low
absence
the
of
many
middlemen
to
being inadequate
standard
of education,
properly regulated
producers."*
Thus, instead of complaining of the symptoms,

should
tackle
we
basic factors which
the
have
given rise to these symptoms.
It is
certain, however, that greater attention
the development
to
of cooperative
costs
now
{d)
lack
of
marketing can considerably lighten the burden

fallingmainly on the producer.
Another
defect
storage
proper
1. Report,
Royal
2.
Ibid., pp.
3.
Mukerjee,
4. Report,
in
the
and
Commission
system
absence
on
op.
cit.,Vol. II,
cit.,p. 45.
of
p. 306.
marketing
marketing in Pakistan
licensed
Agriculture,p.
383-84.
op.
of
of
383.
warehouses.
is the
The
197
AgricultureMarketing
availabilityof storage facilities has several
are
reduced, supply is spread more
production
consumption
and
both
are
equally
in the
trader
for
agriculturalproducts
connection
one
far
So
agriculturistkeeps
later sale; (li)by
or
financial
the State
agriculturist is concerned,
the
he sells his
reserves
in which
may
have
due
to
ment
Govern-
the
dealings in
another.
or
as
and
time
over
produce waiting for sale; (iii)by
of
case
tions
fluctua-
increased.
the
Storage is required: (0 for the produce
in his house for his family consumption, for seed
the
price
advantages:
produce within
month
lack
the
ing
of harvest-
so
or
of
only produce that he stores for any length of time is what

for seed. The large landlord,
or
he keeps for his family consumption
withhold
he may
however, needs storage for his surplus produce which
it. The
for later sale. The
cultivator
expenditure
or
ants, rats
banks,
financing agents
in quality
losses in storage, deterioration
"warehouses"
The
the
lack of
the
such
as
as
the
annual
varried
have
shipments
of wheat
large
deficiency. Under
years,
Government
had
of
30,000
between
stocks
at
the
seek
to
take
or
the
exposes
fire risk.
ground
under-
produce
There
in advanced
is understood
term
facilities at the
warehousing
congestion of produce
The
or
given by joint-stock
produce is held at the
no
responsibilityfor
are
agents. The
commission
or
depositor's risk and
storage
grains
stores
jute bags,
and
Against it advances
out.
merchants
He
agriculturalproduce is stored in kothas and

Such
produce may be sold several times before
large markets
khatthis or godowns.
In
finallytaken
his while to undertake
it worth
structures.
containers, in pots
pits.Underground
and dampness.
in khatthis
it is
thinks
expensive storage
on
largelyin huge earthen

to white
seldom
no
countries.
assembly markets
consuming centres.
foodgrains from Karachi
are
results in
since Partition
and
200,000
have
the food
imported to meet
policy during 1951-52, the
facilities for raw
jute and cotton
During
tons.
the
current
been
price support
storage
pending their disposal.

defective
inadequate and
storage
produce in quality and quantity is considerable.
Due
to
this loss has

total
been
production
estimated
of
at
600,000
tons
foodgrains in this country.
facilities the
In
loss of
foodgrains
year,
i.e.
5%
alone
of the
Saving of this loss
lô
alone
would
The
make
question
attention.
and
Pakistan
seed
The
of
cold
potatoes. Abseoce
in
and
restricts
considerably
fish. Cold
perishable foods also needs

fish
fruits, vegetables, meat,
for
cold
gluts
market
the
peak
the
at
market
in
result in considerable
fruits
facilities for
storage
the
facilities in transit, and
storage
would
of
foodgrains.i
for
storage
is greatest
need
vegetables results
centres
self-sufficient in
of
harvest
the
of
case
of
trade
season
eggs
and
marketing
and
assembly
expansion
meat,
and
and
tion
produc-
of these commodities.
To
improve
following steps should

be taken by individuals, corporations, co-operative societies or Government,
as
(0
the
In
conditions
the
case
villages,godowns
the
the
be:
may
societies
give
to
constructed
be
may
facilities for
storage
by
tive
co-opera-
and
members
to
able
produce safe, until the favourcombine
time for selling.The
co-operative society can
functions
of providing marketing finance with the provision
enable
the
of storage,
them
keep
to
facilities.
of storage
(ii)There
properly
be
should
their
constructed
licensed
and
important mandis and railway stations.

will not only safeguard the
These
quantity and quality of
the
produce pending final sale, but will also enable advances
warehouses
at
more
to be obtained
other
financial
stored.
For
initiative
to
more
reasonable
agencies
against
at
may
be
necessary.
plans approved by the
the
These
from
banks
securityof the
Government
constructions
such
rates
produce
assistance
warehouses
and
should
and
form
con-
Government.
for
initiate
be taken
to
a
(///)Steps should
planned scheme
of the
the
the needs
provision of cold storage to meet
trade in fruits, vegetables, seed potatoes,
and
meat
eggs.
This will necessitate
ties
in these commodia preliminary survey
which
will include
the
ment,
production, movepresent
from
and
the
to
the
major
producer
transport
storage
consuming
centres,
(e) Standardisation
1. Report,
and
uniformity
of
weights and
Agricultural Enquiry Committee,
p. 58.
measures
are
199
Agricultural Marketing
essential
very
confidence
At
the
used
minds
of
In
West
the
seer
well
for radical
need
tolas.
standard
has been
These
and
and
weights
and
there
may
90
or
standard
is
East
be
of
Pakistan
also
30, 40, 40|, 41
dependent
Legislative attempts
This
by trade,
applies particularlyto
and
of
use
use
common
markets
the
in these
and
industrial
standard
the
places. In the rural
measures
the
or
60
on
the
is
maund
The
seers.
are
not
unit
been
have
seer
of the
customs
weights and
standardised
was
in
are
(82^ lbs.)
seers
cerns.
con-
maund
areas,
ever,
how-
always adhered
to
for abuse.
room
always been
is of 40
isation.
standard-
cipal
cotton-ginning factories and in muniA system of inspection of weights
areas.
weights
96 tolas
standards
in
compulsory
is also in force
In
to enforce
Pakistan
district local board
measures
the
of
parts
some
made
inspire
to
the
towards
reform
maund
Government
institutions.
industry and
road
to
and
railway
freight,
regulated
In
and
transactions
consumer.
as
producer as
disparityin weight and measures
slow
to
exploit
unscrupulous traders are not
Pakistan, the
is of 80
trade
the
is considerable
there
moment
reliable
ensure
the
and
in the country
situation.
the
Hence
the
and
to
in
made
weight but it
be of 60, 75, 80,
may
localityconcerned.^
since
the
before
But
measures.
of
Partition
law
the
has
not
pre-PartitionIndia fixation of
successfully enforced.
while
the
Central
vincial
a
subject
implementation was
a ProIn
In 1939,
responsibility.
the
Central
Legislature passed "The
standards
of weights of
Weights Act," which laid down
etc.
Accordingly, "The
Punjab Weights and
tolas, seers, maunds,
in
the
and
enforced
in
Measures
Punjab
was
Act, 1941," was passed
introduction
of
for
the
standard
This
1943.
weights, stampprovided
ing,
of 1932
Act
In Sind, the Bombay
Weights and Measures
etc.
Standards
was
in
of
operation since 1935.
consideration
The
measures.
since
N.-W.F.P.
measures
and
Khairpur when
measures.
for
the reform
and
Bahawalpur
There
legislation.
and
It
1947
is necessary
Uniform
1.
these
to
Pakistan,
In East
was
areas
have
standards
yet
of the
no
Bill has
been
under
of
weights and
adopted weights
legislationin Baluchistan
system
State also
became
part of West
uniform
policy regarding weights and

be fixed by the Centre
and
should
Pakistan.
Report, AgriculturalEnquiry Comraitte:, p.
58.
200
Pakistan,
enforced
effectively
the
introduced
extend
it
done
regarding
the
and
weights
to
DevelopingEconomy
by the Provinces
by the Centre. Now
lines laid down
been
of their
by leglislation
that the
it
currency
measures
decimal
will
be
well.
as
India
own
on
has
system
appropriate to
has
already
so.
(/J
the
There
is
of
large number
Their
markets
primary
scattered
all
size,character, organisation and
importance
localityto localityaccording to circumstances.
vary from
They may
The
individual.
belong to a local body or an
majority of them
deal
in bulk
consist
of
which
where
produce
buyers
open
spaces
over
and
in
country.
sellers carry
number.
They
Wholesale
transactions.
on
operate without
rules
of
Most
etc.
fewer
are
special functions
usually perform
finance, trading, transport,
storage,
markets
regards
as
these
markets
regulations.Generally speaking, they are

fraudulent
of
in
unorganised and all sorts
practices are rampant
Some
of
these
have
and
them.
sellers both
agents acting for buyers
from
both
commission
and
the
advantage
disto
getting
parties mainly
of the cultivator-seller.
Settlement
of price under cover
by
the
of incorrect
the arhtiyas representing the buyer and
seller, use
of
of
extortion
from
the ignorant and
a
variety
charges
weights,
of
the
abuses. ^ The net
illiterate agriculturist-seller
some
are
common
result of all these malpractices is that the cultivator-seller is deprived
of his due
arc
the
set
or
from
returns
initially
paid by some
producer. The Report
pre-Partitiondays
is in
general way
true
consumer
is
on
similar
party,
the
they
following to
products
fixed
and
sold
in
duties.
to
amenities
He
also
prepared
by
the
and
this
unregulated markets:
tolls, market
the
for
the
of
the
town
by way
charges and
cultivator
(ihe upper
pay
pays
charges
ultimately borne
are
already by competition) on
other
the
in this connection
say
taxes,
when
of Wheat
Marketing
of all
willynillycompelled
roads
produce. Even
wheat
between
paid on
are
inevitablyforced back
charities
being
other
duties, terminal
octroi
"All
the
has
sale of his
the
to
and
limit of
the cultivator
the
price
who
upkeep of municipal
through octroi and
of
charities
in
many
charges includs comraissioo, palledari (porterage), tola (weighmeot),

chiingi (paid to buyer's servant) dalali or brokerage (to buyer's dalal), shagirdi
(to arhtiyas apprentice), dharwal
(cnarity), gaoshala (cliarityfor cow-protect)on),
1. These
(hangar (sundry
payment,
iq Sind). Most
of these have
disappeared after Purtitioq.
'^01
for
cases
other
charitable
derives
himself
he
which
from
institutions
maintaining
for
and
children
urban
direct benefit."i
no
10
educating the
Regulated Markets
Mainly two great reforms
"
days
to
save
system.
One
markets
on
usuallysuggested in pre- Partition

the oppressions of the
prevailing
cultivator from
the country, of regulated
the establishment, all over
the
was
the
of
marketing
produce
societies formed
We
and
Berar
were
and
model,
Bombay
cultivators'
the
through
oiher
the
the
was
co-operative
own
for this purpose.
shall
in
co-operative marketing
discuss
the
chapter
on
Co-operation.
As regards regulated markets, the first provision for their estab*
lishment was
made
by the Berar Cotton and Grain Market Law of 1897.
It vested the management
of such
presentingthe people livingin

and
of
local
the
wcighmen
dalals
and
of similar
establishment
Bombay
in
enactment
of
1930
for other
markets
This
of 1927
Act
Markets
hibited
prowere
recommended
other
and
areas
were
Penalties
used.
to
weights were
Commission
Agricultural
on
ties.
commodithe
Berar
replaced followingthe
the
comprehensive law
Bombay
improvements.
some
deductions
be
its Cotton
modeled
to
were
rc^
by the various markets

be registeredand
tne
served
area
elected committee
an
licensed; unlawful
of law. The
fixed for breach
with
be
to
the
Arhtiyas
only standard
and
Law
authorities.
in
markets
more
latter
was
"
Similar
laws
passed in some
Agricultural Produce
States of India including N.-W.F.P.
(1939) and
other provinces and
laws
all
resembled
these
each
In
other. A
essentials,
Punjab (1939).
the
be said about
Punjab Agricultural Product
words
few
may
Act.
Markets
Markets
Act.
main
The
are
as
were
features
of this Act
which
is stillon
Statute Book
our
follows:
(a)
Market
dealings between
Members
the
are
on
The
of
set
up
in the market
seller and
and
committee
commission
growers,
selected
prescribed panel
J. Report
buyer
market.
the
interests"
is
Committee
by
names
the
area
to ensure
generally
represents
to
minister
ad-
the various
agents, traders, etc.

from among
thi
Government
submitted
tlie Marketing of Wheat
by the
ip India,
pp.
non-oflicial
288-89,
202
of the
members
market
is situated
area
seller,and
play
in
dealings.In
licensiogof brokers
the
for
prescribesfor penaltiesfor
and
eighty-fiveregulated
far
So
provides
dispute, the Committee
facilities,
provides
Act
of
cases
fair-
ensuring
functions
other
market
various
weights, sees to it that

both
the buyer and the
represent
not
similar
performs
arbitration
(c) The
does
market,
the
the
standardises
charges, keeps standard
broker
same
by the traders in
and
the
district in which
of the
Board
Committee
Market
(ft)The
practicesand
the
District
breach
weighraen
of law.
under
established
been
have
markets
and
Each market
comprises a defined
Punjab areas.
notified
area
embracing several villages with a centrally located
is a well-plaaned market-place having wide, paved
mandi.
The
mandi
this Act
in the former
and facilities for

shops, store-rooms
plinthssurrounded
by merchants'
mandis
are
bagging grain. The
unloading, cleaning, weighing and
stations
in
and
have
located near
a
cases
some
railway
separate
Grain
railway siding.
the
also
cotton
These
which
done
business
made
good
committee
The
developed.
makes
but
It is necessary
in
of Pakistan
in
system
the
order
country.
products like cotton,

products depending
great for wholesale
ing
"
So
far
marketing
some
we
of
on
the
cotton and
and
the
be
in
both
the units
prevailing marketing
established
than
more
and
one
needs.
for
single
specified
The
need
is
agriculturalproducts; retail markets
similar
lines. Legislation for this purpose
units of Pakistan.
of Fibres
have
been
talking in general
agriculturalproduce
products and
specific
our
into
circumstances
in
for
N.-W.F.P.
regulated markets
markets
local
transactions
in both
Marketing
former
the
may
jute,grain,etc., or for
regulated on
be enacted
may
10
also be
can
never
These
fee
charges
enforced.
bring order
to
them
well
are
self-supporting.
in
passed
establish
to
Communications
controls
markets
the
legislationwas
unfortunately it was
of.
use
which
Similar
Sind
of
produce handled, though much
them
to the local ginning factory.
chief
through
passes
being
are
is the
describe
their
Among
general observations.
wool, our export staples.
of the
terms
in Pakistan.
We
shall
marketing system
the
fibres
we
system
now
to
shall take
of
take
trate
illus-
jute,
203
The
the
on
part of
mats,
2%
to
of
growers
jute
about
average
their
cultivators, each
normally small
are
twenty
ing
grow-
jute. They retain a

for making ropes,
consumption
maunds
for
domestic
produce
crude
strings,
sacking material,
5% of the total production. The
of
so
or
"
etc.
This
varies
amount
average
being
grower,
of small means,
has little power
his crop
to withhold
He
tries to sell his jute at the earliest,either to
from
man
for better
prices.
peripateticdealers
at his doorstep or
local villagehat (primary market) and
at the
seldom
sells at the secondary market
he
(the baling centres), where
could get better prices,since he lacks transport facilities and
financial
due to diversityof weights and
he is
resources.
Moreover,
measures,
the larger markets
at
likely to be defrauded
by the unscrupulous
buyers.
The
buyers
of balers
markets
the
at
and
liats
other
are
more
dealers
beoparis, representatives
prosperous
{aretdars).From
these
primary
katcha
jute
baling
njay
(manually operated) or pucca (hydraulic pressure
bales). Here, the
chief buyers are
balers while the sellers are
either large beoparis or
At this stage jute is baled
the aretdars and
rarely the growers.
by
balers.
be
katcha
The
katcha
done
or
baling may
pucca
by
o
f
firms
small
or
representatives jute mills, large foreign
concerns
turnover
of each
of essentiallylocal importance. The
individual
may
the
5,000 and
between
vary
weighs usually 3 to 4
mostly exported
were
has been
The
presses.
over
be
annually. A
katcha
Katcha
Calcutta.
bales
Since
to
up
that
remainder
A
from
bale
32
bales
pucca
jute is pressed into
of the
pucca
date
this
is of
at
400
charges
Partition
to
lbs. These
presses
fixed. The
are
bales
pucca
bale
1954
practice
78 in 1955.
main
operated
by
of /7wcca balers
They have
capacity of
annually.
baling jute moves
into
the
shipping terminal
(now Mangla). It used to

Chittagong,
time after Partition, but links with Calcutta
some
the devaluation
hydraulic
on
are
number
Chalna
of
The
December
banned.
70 lakh
After
30,000 maunds
to
Bales
centres.
maunds.
shippers and balers whose

increased
the
to
moves
go
were
stations
Calcutta
to
for
disruptedafter
crisis of 1949.
which
problems
that
the
jute are: to see

reduce price fluctuations
gets
grower
as
far
need
as
attention
a
fair
in the
price
marketing
for his
possible,to promote
of
product, to
standardisation
204
Pakistan,
of the
product,
market
make
to
Developing Economy
available
information
people
the
to
safeguard against competition from substitutes through

lowering cost and improving quality of the product and to control
Government
The
unauthorised
the neighbouring country.
to
export
the
these
are
has been taking steps to tackle these problems. Among
passing of the Jute Act, creation of the Jute Marketing Corporation,
concerned,
to
promotion
of the
Like
jute mill industry,etc.

of
jute, most
growing
the
on
The
uses.
is also
cotton
few
average
portion of
cotton). A
domestic
the
retains
(//) at
doorstep, or
the ginning factory. If the sale
itinerant
to
(iii)
grower
dealer
his
at
receive
may
sales
Such
of
advance
an
be
may
is made
few
with
made
holders,
(unginned
and
produce either (0
sell his
may
grower
by small
pounds of kapas
for hand-spinning
hundred
it he
grown
the
nearest
on
forward
rupees
per
the
to
mandi,
or
basis, the
maund
without
or
other
as
tracted.
con-
fixing prices.
ready sales may be made on "unfixed-price" basis.

the
He
Responsibility of transportation is on
grower.
may
suffer
cost
or
a
transport it to the ginning factory at his own
then made
balers
discount in price,and arrangements
are
by ginners or
The
with
contractors.
contractors
or
transport it by camels
may
Sometimes
bullock
where
carts
possible, it
of
condition
the
as
brought
be
may
transport
factories
to
by lorries
or
and,
rail.
ginning factories.
Ginning is done mostly on roller gins, though the use of saw800 ginning and
over
are
pressing factories
gins is spreading. There
in West
with
roller
double
roller gins and
8,555
Pakistan,
gins, 1,470
375 saw-gins. These
cost
are
regarded quite adequate. The average
In this way
of
ginning
charges
the
in the
vary
After
reaches
cotton
former
from
mandis
facilities demands;
is Rs.
Punjab
Rs.
10 to
or
12 per
16 to 24
per
bale
and
pressing
bale.
be
sold (f) ex-factory,
ginned, it may
(n) to textile mills, ("7) to representatives of export houses at
commission
be
Karachi, (iv)it may
houses,
consigned to Karachi
Karachi
be consigned to
selection contract
basis, or (i')it may
on
a
Karachi
basis. Generally, ex-factory
a
on
factory selection contract
sales
are
cotton
has
restricted
to
been
purchases
of the mills in the country

Most
they
of
also
the
expert
have
houses
purchase from
by export
their
also
have
the outside
own
houses
at
Karachi.
Most
ginning and pressing factories.

own
ginning factories,but
their
ginners. Purchases
are
made
by
205
ginning factories
sample pressed bales from
well-established
representatives, or factory selection contract
used.
Under
this
latter the purchasing firm deputes a representative
13
to the ginning factory to select "kapas"
stock
from
the available
and get it processed under
his supervision. Most
of the crop of the
Punjab and Bahawalpur areas
the basis of Karachi
is sold on
signment.
conagents
basis
the
on
of
with
Under
house
is made
Cotton
is
this system
Karachi, in
at
that
for
return
only when
the
ginner sends
advance
an
commission
ment
final settle-
The
payment.
sale is effected.
toward
moves
kept in huge yards called
by largeexport houses
to
cotton
after it
Karachi
"plinths."
which
their
have
It
has
be
may
been
handled
ginneries and
own
ginned
there
purchase
houses, or commission
by large commission-cum-export
while
houses
houses
are
sellinggroups
export
are
take
between
them
buying group. Transactions
place through
brokers appointed by the two
Associations
Cotton
operating at
agents
or
houses.
Karachi
Commission
the Karachi
"
Cotton
Association
and
the
Association.
Finally,the export houses sell cotton

the basis of standard
grades which exhibit
on
in
to
Pakistan
Cotton
foreign importers
variations
enormous
quality.
The
Central
Cotton
Market
Karachi
in
consists
of
two
main
divisions:
and (b) the Future

Market.
In the
(a) the Spot Market
able
Spot Market cotton can be bought for immediate
deliveryand is availfor inspection. The
which
is an
Future
Market,
incorporated
of
and
organisation
dealers, makes
sellingfor future
possiblebuying
delivery.No
on
the
Future
Karachi
Cotton
of those
existingin
the
of the
1.
Book
generally
started
called
in
transact
an
December
business
Exchange.
1955.
In
The
framed
rules and
produce in Pakistan
spot and
future
goes
contracts
to
the
are
buyers through
bought and sold
Exchange.
problems needing attention in the marketing of cotton
of quality
production of adequate quantitiesand maintenance
The
arc:
dealers may
regulationson the lines

countries. According to one
estimate,about
other
Exchange.! Both
in the Karachi
is
futures
cotton
Association
cotton
associated
which
Market
Pakistan, trading in
70%
the
except
one
Cotton
main
Farooqui,
Keaton
and
Co., Karachi, 1958), p.
161.
Miller, AgriculturalMarketing
ia Pakistan
(Amin
206
Pakistan,
of the
product
the
on
Developing Economy
during
farm; safeguards against deterioration
good
ginning; reducing transport costs; provision
other
In
storage
warehousing facilityat the port.
wish
to
this important foreign-exchange earner
words, we
preserve
through creating adequate export surplus of good quality which can
market.
face competition in the international
the
of
process
of
facilities and
regards wool. Pakistan produces about

annually and imports about 4 to 5 million
Now
wool
of
Pakistani
countries.
the
here
and
with
them
items
of
carry
back
home
grounds in spring.
woollen
few years ago. Foreign

from the United
States, United
into
the
for
the
wool
trade
Indian
Wool.
Some
who
their
move
the
in
exporters. The
across
they buy and
they
as
use
is
areas.
to
return
their
exported, though
wool
more
than
now
mainly for carpet

used
As
to
number
bad
wool, particularly
Germany.
be consigned to United
and
Kingdom
back
got
of this
pasturing in Pakistan
personal
London.
country
world
the
flocks
is sold. In return
wool
is
time
some
for auction
Kingdom
East
wool
demand
Pakistani
as
produced in Pakistan
Pakistan
are
consuming much
the
mills in
in
winter
for
shorn
sheep
of
Wool
lbs.
foreign
lbs. from
Carpet
Pawindas,
are
Their
Most
trade
borders
Afghanistan
and
Iran
the
million
as
is classified
to
from
is obtained
wool
wool
is known
and
market
30
as
of malpractices crept
for it, resultingin losses
name
therefore, had
Government,
to
take
action.
obligatory to grade all wool for export. Each

parcel has to be accompanied by a certificate issued by the ofiice of
of Pakistan,
Marketing, Adviser, Government
the Co-operation and
It has
made
been
now
certifyingits quality. This has restored

product on the part of buyers abroad.
10
"
of
Marketing
production of foodgrains
maize, barley and jowar) in Pakistan
and
this 9'46 million
3-88
million
tons
The
methods
in
hundred
years
and
retail
tons
(including wheat,
marketing
except that
markets
rice
was
was
have
in both
grain merchants.
the
in 1959-
tons
Pakistan
Pakistan.
little
has
during
the last
increased
and
in the past.
wings
Under
very
rice, gram,
in East
grown
intervention
than
now
million
in West
changed
Government
better
15'15
mainly
mainly grown
wheat
transport facilities are

Grain
Pakistani
Foodgrains
The
60. Of
in the
confidence
are
the
conducted
Government
by wholesale
procurement
207
AgriculturalMarheting
scheme
these
dealers
Government
of
under
grains and
the
rice
and
wheat
system of
the
licence. When
behalf
on
there
is
of
the
rationing
(abolished since early 1959) it is accomplished by
flour
Government
purchase
supplying
the
grain to
dealers
in turn
who
serve
the
rationingcards.
About
three
part
months
of
of
90%
after the
the
his sales
and
lower
evenly
more
marketed
rice
due
harvest
producer
therefore, obtains
and
wheat
lack
the
would
he
This
year.
during
staying power
facilities. The
storage
prices than
over
of
lack
to
of
is sold
if he
calls for
could
better
the
on
first
the
farmer,
spread
credit
and
storage facilities.
Foodgrains
by
the
may
be
stored
at
the
farm,
at the
and
grain-dealers'
Government.
The
farm
storage
rice storage. This
for about
accounts
75%
80% of the wheat

consumption and
to
and
seed.
mostly for domestic
The
grains are stored in clay jars, barrels, bags, small mud-brick
buildings, grass or reed-woven
grain-dealers
containers, etc. The
in
mainly store the grains
warehouses, etc. These
bags kept in rooms,
are
subject to attacks by rodents and insects and can be spoilt by
climatic effects. Government
storage consists of godowns of various
at Partition
was
by Government
types. Grain storage capacity owned
388,600
163,600
tons
and
of which
in
tons
increased
to
661,700
is done
tons.
in West
Of
this
Pakistan.
was
situated in East
1959-60
By
472,000 tons
the
was
Pakistan
total
in East
and
capacity
Pakistan
further
expansion.
quite inadequate and needs
industrial
urbanisation
of the
With
development and consequent
surplus of foodgrains will increase
country the need for marketable
it has been doing during recent
ing
as
years and the problems of marketattention
of foodgrains will need growing
along with the problem
Even
of greater
this
tons
Pakistan.
West
1,033,700
tons
255,000
is
production.
problems of marketing of foodgrains are: ensuring

better quality through production of batter varieties and grading of
of storage facilities,
the products, improvement
reducing thj number
of unnecessary
intermediaries,ensuring good prices to the grower,
ensuring adequate suppliesof foodgrains to the urban
population
surplus, attaining domestic
selfthrough increasingthe marketable
The
main
1,
Statistics of Pakistan (May

Agricultural
1961), p. 86.
20S
in foodgrains.
sufficiency
10
"
First
The
1959-60.
1947-48
to
production
Its
Pakistan.
East
lbs, in
million
57'00
52-47 millioa
was
period average
produced in East Pakistan is shipped
Plan
Five-Year
major portion of
Ibs.i The
in
lbs. in
million
28-] 0
from
increased
Sagar
and
exclusively produced
is
Tea
tea
of the Province.
out
marketing of
The
Tea
1950.
Act,
Srimangal
in
Export of
Ninety
sale
for
of the exports
cent
per
London
at
in
decline
auctions.
under
is made
In
London
to
go
recent
on
years
of
export
our
tea
unless
Board,
Tea
Station
Research
Tea
Pakistan
the
the
at
quota system.
consignment basis
a
consumption,
domestic
Pakistan, has sharply increased.
West
in
especially
and
Pakistan
from
tea
regulated by
constituted
been
it have
Under
is
in Pakistan
tea
Licensing Committee
Sylhet District.
Tea
Pakistan
of Tea, Tobacco
Marketing
This
productioo
may
lead
be
increased
can
to
considerably.
Of
72"
total
the
is owned
1%
by
80,000
over
10%
Europeans,
Pakistani
Pakistanis.
of
area
is
tea
under
by Indians
the
on
acres
whole
and
inferior
in Pakistan
tea
only 17% by
in
quality as
competing countries and is mainly

used for blending purposes.
huge capital
Though they have absorbed
the plantations have
old and
fresh plantings
investments
no
grown
Due
is
taken place.
also not
in plucking. The
exercised
care
have
of
has
also
deteriorated
of the lack of
tea
account
on
manufacturing
chests
equipment and non-availabilityof spare parts. Tea
proper
to be imported are
have
which
expensive and are usually in short
compared
with
tea
from
other
supply. Transport facilities from the producing areas in Sylhet to the

port of Chittagong are inadequate, apart from being highlyexpensive.
Government
is
fixed. The
ofBcial grades of the
product are
No
and
much
blamed
too
regulation
by the industry for high taxes
through legislation.
These
and
compete
2%
to
4%
problems will have

in the world
of the total
Pakistan
area
of about
be solved
markets
in
if the
which
industryis to
it contributes
survive
between
supply.
produces
200,000
to
about
acres.
225
Six per
rcillioo lbs. of tobacco

cent
of the
1. Ibid.,p. 5.
total is
from
an
produced in
209
AgriculturalMarlceting
East
Pakistaa
devoted
is
and
desi varieties has
to
there has been
West
which
Pakistan
The
by the
tendency
is used
Government
tobacco
and
to
million lbs. of tobacco

The
main
gets
its
production of flue-cured
TS
exported about
export. Pakistan
the
for
of
marketing
of
has put the
problem
for
is
tobacco
establish
to
leaf, particularlyfor flue-cured
tobacco
second
reward
reasonable
is
of which
competition. The
but
less, constant,
or
leaf in
Virginia type of tobacco
of cigarettes.
the manufacture
rather small. Attempts are being made
encourage
problem
tobacco, the absence

in
more
acreage
leaf in 1956-57.
standards
grades and
This
Province.
grow
in
stimulate
to
the
remained,
to
of tobacco
export
within
consumed
produce
is to
disadvantage
that
ensure
the
efforts. At
his
at
the
grower
various
moment
of incorrect
deductions, use
malpractices prevail,like heavy market
weights, etc. These practicesneed regulation.
has been increasingsince Independence,
under sugarcane
The
area
West
in
particularly
during
limited by
tons
increase
is
of the crop
the nature
from
twelve
great
care
The
number
grower
it into
to
and
cane,
and
hard
which
Gur
on
1948
480,000
230,000
to
1964-65.
10'23
from
to
months
to
357,000
Total
million
the
period. But
factors as high water
is very exhausting for
scope
to
acres
production
tons
to
for
22
future
requirements and
the
soil and
Moreover,
mature.
acres
takes
it involves
labour.
like other
three
from
from
same
such
fourteen
increased
increased
the
of cultivators
has
period
the
Pakistan
in
million
Pakistan
during
in East Pakistan
sugarcane
It
in West
1,149,000acres
of
Pakistan.
agriculturalproducts, is produced by
most
alternatives
the farm
and
whom
ot
to
small
are
dispose of his
sell it in the
open
holders.
The
large
cane-
(a) To convert
market.
Ninety per
cane:
is treated
in this way.
total crop
(b) To take it to the
and
there,
sell it
it into Shakkar
and
nearest sugar mill
(c)To convert
of centrifugal
machines.
refine it into white granulated sugar by means
cent
of the
small
quantity is also sold
Pakistan
is
in towns
for
self-sufficient in
chewing and fresh juice.
(refined)and has to
though domestic production
import large quantitiesfrom abroad even
has been increasingin recent years. In 1948 we imported 52,193 tons
and produced only 20,000 tons at home.
Ten years
of refined sugar
tons
(about 5%), domestiij
l^t?r while import?increased to 75,000
not
sugar
^10
Pakistan,
production increased
to
achieve
Second
104,000
to
Production
in
1964.
Plan
of sugar
We
have
than
400%). The
First Plan period which
the
278,000
was
almost
in 1963
tons
achieved
aim
was
was
not
and
934,000
self-sufficiency
during the
is
produced in Pakistan exclusively from

sugarcane.
to
experiments are
it from
beet. This new
extract
being made
be very helpful in increasing production.
may
The
main
problems of the sugar
industry include breeding of
But
source
better varieties of sugarcane

of sucrose
the percentage
the basis of
mills and
10
(more
tons
period.
So far sugar
on
Developing Economy
self-sufficiency
during
achieved.
tons
Marketing
"
Fruits
farmers
reforms.
land
Some
trees
Vegetables are
where
city markets
farmers.
But
Near
there.
are
of
source
cities
the
also
price of
the
sugarcane
efficiencyof
sugar
consumer.
income
under
years
borders
the
to
large orchards
on
recent
increase
to
acre,
sizeable
mostly
grown
considerably during
increased
have
and
Fruits
increase
price for the

Vegetables
vegetables are
in Pakistan.
to
per
determine
hence
and
costs
of Fruits
and
and
yield
to
recovery,
content,
sucrose
lower
to
increase
to
the
which
fear
of fields
of
by
consumption.
accessible they are grown
for marketing
arc
of crop specialisation
certain amount
has also
are
usually
grown
on
for
grown
small
domestic
appeared.
Recent
statistics
in Pakistan
Pakistan
1953-54
regarding the
available.
not
are
produced
2"73
of
production
According
million
to
tons
in
case
18 Ibs.^ This
were
of fruits
came
is far from
methods
As
to
65
or
used.
and
where
Trucks
the
The
bullock
the crop
railways also have
Farooqui,
annum
Keaton
and
are
and
come
bought
Miller,op,
1952-53
tons
total
of which
1"60
rather
are
it
to
the
cit.,p. 124
primitive.
the
camels
and
be used
from
the
capita production
of
and
vegetables
donkeys
to
2' 17
per
transport
Sometimes
carts.
quantity is large.
fruits and
vegetables
1.
per
adequate.
of marketing, they
regards
Usually the producers harvest
by head-loads
lbs.
tables
vege-
estimate, in
one
of fruits of which
tons
produced in East Pakistan. In

vegetable production was estimated at TTS million
million tons were
produced in East Pakistan. The
million
fruits and
in
recent
town
are
years
producers by
211
AgriculturalIlarketing
wholesalers
market
who
send
or
method
in
of sale
and
sale
their
them
off
them
supply
tura
distant
to
retailors in the local
to
The
mandis.
by producers is auction
by delivery are also
sale, though
board
on
the
truck
wagon,
boat
or
(Free
truck.
or
in another
Board) when
on
at
Transportation
all risks of loss
assumes
Fruit
or
is loaded
produce
destination
to
is
the
town
is delivered
All expenses
to the point of delivery are
bears also the risks of loss or damage. Sometimes
F.O.B.
former
by the
an
agreed point or a
paid by the seller
market.
who
common
ment
by consign-
the
practised.In
consignment is forwarded
merchant
to a commission
by rail or road. In the latter case, amount
sold
seller
most
sale
on
sales
board
paid by
the
are
made
railroad
buyer who
damage.
usually centrally located in

rule the
and
cities. As
is owned
towns
a
area
by the municipality
and is rented out to individuals
for the sale of the produce. The
is usually occupied by various types of wholesalers
who
area
supply
the produce to the retailers for sale to the consumers.
retailers'
The
stalls are
vegetable markets
and
also found
are
in the market
area
as
well
as
in other
parts of the
Since fruits and
vegetables are perishable commodities, usually

brought in quantitiesthat can be sold during a day or two.
they are
are
usually higher in the earlier than
Prices, for obvious reasons,
town.
in the later part of day.
systematic grading is done. Usually it is the retailer who

the
basis of quality indicated
classifies the produce into lots on
by
size,blemishes, stage of ripeness,etc.
To improve the system of marketing of fruits and vegetablesit is
Little
necessary
storage
have
standardisation
10
"
of transport, reasonable
quick means
facilities,improved
to
of the
sanitation
of
As
the State
years
agriculturalcrops,
regards
food
market
adequate
areas
and
has
both
crops,
in
Marketing
had
to
food
interfere
crops
Government
directlyin the
cash crops.
intervention
has
keting
mar-
and
been
recurring food
necessitated
by
Under
conditions
the
the
product.
10 Direct State Intervention

In recent
in
and
shortage. Government
action
has usually taken the following forms: fixing consumer
prices below
free market
prices, rationing, procuring grains from domestic
fixed
producers at
prices, arranging for imports from
abroad.
such
the
Government
purchases
supplies from
212
Pakistan, A
and
surplus areas
to
be
within
moved
collected
makes
them
available
Province
the
in this Province
for export
State
arranged through
are
Private
agents.
Developing Economy
traders
prices paid need
price for
to
East
deficit
Kas
Wheat
areas.
rice is
Pakistan, while
Such
Pakistan.
trading
this
ments
move-
their official
or
organs
for
used
is calculated
areas
The
purpose.
price level.
The
selling
basis
of
official
the
on
primary consideration
price. The
procurement
West
reflect the international
not
deficit
the
of
be
also
can
in
is
the
of
welfare
the
of
commercial
the movement
profit. Sometimes
people rather than
bidden.
is foron
private account
foodgrains from surplus to deficit areas
Provincial
Government
are
large buyers in surplus areas,
the only
where
is
and
declared, they are
monopoly
procurement
assume
operation may
plentiful,
buyers. When
procurement
crops are
the
of
character
the Government
intended, and
e.g. in
years,
the
save
output.
stocks,
which
urban
of
rice
used
can
Another
areas.
and
large surplus stocks. In some

to
be deliberately followed
from collapse, due to the large
may
wheat
operations enable
be
is not
this
Often, however,
is left with
1953-54, price support
market
Such
scheme.
price support
the
in years
Government
of
scarcityto
provide
activities is to
result of such
build
to
reserve
up
the rationed
prices of
stabilise
period of time.
the
Government
When
are
supplies in the open market
scarce,
market
and
releases stocks
even
prices
imposes rationing. When
open
fall below
the
the Government
prices,
public naturally prefers to
fixed
purchase in the market, but when they rise above the officially
foodgrains
over
prices get stabilised.

Government
transactions are
basis.
usually on no-profit-no-loss
The
however, does
fixing of procurement
price by Government,
not necessarily
benefit the grower.
Government
purchases are usually
price, they
made
at
turn
the
the
to
mandi
already sold their
Government.
level,and
produce
to
this way
In
the
growers
have, under
may
pressure,
peripatetic dealers, landlords
or
th?
money-lenders.
The
Government
has
also
particularlyjute and
in its market
in
instability
crops,
hedging
facilities. The
As
cotton.
recent
firms
experience in judging trends

officialexport
intervened
to
years.
engaged
since
licensingpolicy. The
in
the
cotton,
Until
in
marketing of cash
there has
1955
there
marketing
been
were
had
wide
no
little
they entered business

through
market, therefore,responds with
213
I
considerable
(October-November)
to
volatility
result of the Korean
duty
export
1950.
on
fulfilment of
and
from
cotton
idea
As
contracts.
the
enable
possible reaction,
safeguard against the
rose
ber
bale in Novem-
per
depress the internal market, and
to
was
300
Rs.
by increasingthe
the situation
60 to
Rs.
As
price
in U.S.A., cotton
crop
met
crisis of 1950
intervention.
Government
short
Government
raw
The
changing influences. The
necessitated
War
considerably.The
the
in December
1950,
promulgated a Cotton
this
Under
in
1951.
Act
which
Cotton
later
April
a
was
replaced by
fix minimum
law the Central
prices
Government
got powers to
for cotton, to regulate ginning and
pressing charges, to compel
the
Ordinance
Government
and pay
ginners to buy cotton
and
deal
in
cotton
to
fixed,
of cotton.
and
also to scrutinise
in
Board
became
announced
at Karachi
at
and
the
prices at
Subsidies
at
incurred
the
Bank
to
bales.
The
Large
which
floor
authorised
the end
export
that
no
with
some
to
intervene
price
the
Cotton
Government
prices^for
cotton
cotton
of 1952, the Board
had
by the
less than its support
price.
the sale of cotton
by export
sold
were
the
accounts
check
discontinued
market
fixed
minimum
was
price fixed
appropriate prices
was
for other
more
Board
kinds and
the
Karachi
cotton
weakened
not
the
took
measures
private firms
for
qualities.
State
place.
approved. This
export
radical
maund
season
fixation of minimum
proposals from
Rs. 90 per
for
operated by
price were
Later,
success.
at
through
under-invoicing of
February 1953, barter

minimum
world
crores.
had
the
law
forward
purchase
to
quantities
to
An
below
met
cotton, with
By
the
ensure
In
was
Early in 1953, however,

Government
measure
under
was
Contracts
taken.
Board
1952, the
March,
scheme
prices.
export
1st
scheme
price support
1952-53.
and
loss of Rs.
The
its stocks
this
to the
through
foreign buyers at
also given in some
on
cases
were
these
levels.
On
below
prices
support
from
houses
interference
Karachi.
4J lakh
pricecollapsed due
cotton
On
fixed. The
support
administer
ment
move-
etc.
Government
price support
purchased about
Board
1952,
necessary.
were
to
trading practicesconcerning marketing,
February
textile recession
created
was
transactions,insurance, storage,
Late
price
minimum
the
regulate the trading and
to
Board
Cotton
than
less
not
289-F
were
were
roller-ginned
214
Pakistan,
invited for the export
of
import items. Later,

cotton
In this way
1951-52
this
offer
was
against old
specified
exchange
for
certain
modified
and
only import
cotton
crops
by
held
the
of
Board,
dispose of its entire crop of

i.e. 100,000 bales, against the import of 48,814 bales
Cotton
the
season,
of cotton
in
cotton
raw
allowed
was
yarn
Developing Economy
Board
able
was
to
yarn.
The
in
intervention
Government
of
marketing
the
jute took
place after India's refusal to recognise Pakistan's exchange rate after

crisis of September 1949. India refused to liftPakistani
the devaluation
prices and old links with Calcutta, through which
jute at the new
much
of
Pakistani
meant
the
disappearance
provided
in
of
prices of jute. To
the
issued
Pakistan
appoint
brokers
and
agents
of the Central
Government
October, 1949.
This
22ad
to
fix minimum
purchase,
and
store
of
Ordinance
prices and
support
administer
To
Government.
This
precipitous fall
was
situation, the
on
to
broken.
were
exchange facilities previously
and
this
meet
Government
the
empowered
exported,
jute trade.' There
Ordinance
an
be
to
banking
the
for
Calcutta
at
used
jute
sell
behalf
jute on
these powers
to
Board
Jute
concerning storage,
supervise all matters
to regulate
also empowered
of jute. It was
transport and insurance
Government
issued an
Provincial
for baling. The
the
charges made
It required
Jute Dealers
Registration Ordinance."
Ordinance, "The
and katcha and pucca
balers to
all dealers, occupiers of jute godowns
licence.
If
the conditions
ed
stipulatregisterthemselves and to obtain a
was
by
Government
licence
could
break
The
be
renewed.
jute
of the Indian
the
by
idea
The
tbe
step that
next
fulfilled
not
support
to
hold
the
to
was
were
not
organisation
to
It
established.
the
was
to
of
economy
the
concerned,
person
create
monopolistic
the country
and
thus
purchasing agencies.
Government
took
was
to
fix minimum
and correspondpricesfor loose jute (jatbottoms) at Rs. 23 per maund

for
other qualitiesby making premiums
ing prices
discounts on this
or
At
hats
reduced
prices were
primary
quality.
uniformly by Rs. 2'50
the
of
to cover
margin
carriage and other charges includingprofits of
from
middlemen
appointed
minimum
the
end
the
agents
primary
throughout
prices.Through
of
the
1949-50
to
the
the
these
season)
secondary markets.
country
agents
to
purchase jute
(whose number
the Board
The
reached
Board
at
159
the
by
purchased 850,000 maunds
215
Agricultual Marketing
of
jute valued
provided
were
(formerly
a
bank
new
to
Rs.
at
increase
to
the
ties
Simultaneously, banking faciliCalcutta) were
prdvided by setting up of
new-comers.
from
National
Bank
of Pakistan.
baling facilities and
pucca
In
1950-51,
million
maunds
the
valued
price of
Rs.
entered
Board
Rs.
at
20'50
4'5
support
prices were
1952, the
June
The
crores.
to
crop
and
decline
to
being
minimum
bumper
of
price
suffered
Board
The
Government
circumstances.
pucca
at
An
port.
when
2*35
the
mum
mini-
additional
prices of
assorted
un-
1951-52
season
during the second half of the year,

worsening of the situation, the Jute Board
1952-53
the
maund.
17 per
Rs.
of
ship
Mangla
agents.
announcing
During the
grower.
were
again
Rs.
at
prices(jat white bottoms
lakh
Board
had purchased 69
maunds
fixed minimum
the
taken
fixed until
not
1952, due
in March
when
383
of
to
purchased
were
that
and
market
through
was
facility
provided in this season,
jute at the doorstep of the
steps
facilities
port
the
crores
maund,
per
Other
port
by further developing theChittagong
bales
ties
baling facili-
By requisitioningpresses
crores.
extended
the
"
jat
loss
23
at a cost
one
bottoms
of
maund).
per
Rs.
By
of Rs. 16-5
prices continued
reduced
was
7'5
crores
to
under
intervention, however,
helped in
stabilisingtrading conditions during the period in question.
Until recent
jute crop was
strictlyregulated. This is no
years
these
longer the
time
to
Minimum
case.
time
and
of traders
Licences
export
an
are
have
prices, however,
been
fixed
from
price check
renewed
operated by the State Bank.

after close scrutiny to safeguard against
malpractices.
10
"
11
Marketing Organisation
Before
we
end
of the
this chapter,
Government
few
words
may
be said about
the
to improve the marmarketing organisation created by the Government

keting
of the Royal Commission
system. Following the recommendations
on
Agriculture in India, an Agricultural Marketing Department
created in 1934, in the Central Ministry of Agriculture. This was
was
followed
of
the
by
the
creation
Provinces
Provincial
as
the
Economic
Sections
After
departments in most
Independence, in Pakistan, the
continued
or
in the Provincial
Departments
Agricultural Marketing Department
was
and
Marketing
Co-operation
Department. An Agricultural
of Agriculture.The
renamed
marketing sections
States.
and
Marketing
of
Central
Unit
(recentlymade
full-fledged
department
of
216
Palcistan, A Developing Economy
Agricultural Economics)
and
combined
was
with
created
was
the
mainly concentrated
in the
Ministry of Agriculture
existingstatistical section. This
to
hither-
has
the
issuing of crop estimates, quarterly

weather
and crop reports and commodity situation reports.
The
issues
Co-operation and
Marketing
Department
Survey
the
of
commodities
in
addition
marketing
Reports on
agricultural
far it has
work.
So
issued
to conducting development
only two
reports,
and
dates
on
one
reports, however,
other
honey
initiation and
like wheat
Such
cotton.
rice, and
those
of
great
be
can
mustard.
Some
exported, like jute, tea
and
producers, traders,
to
use
of the commodities
consumers
concerned.
set of activities of the
Another
the grading of
Department concern
tary
on
a volunWool-grading which commenced
agriculturalcommodities.
basis in
February 1954
This
used
traders
for any
oilseed, oilseed-cakes
was
has
scheme
Private
grades are
rape-seed and
on
under
are
and
reparts
exporters and
1954.
the other
preparation, viz. fresh fruit, cattle,

Plan
Five-Year
tobacco.
The
recommended
an
early
completion survey reports on important crops internally
and
consumed,
on
compulsory for export in September

well and
using grades
are
other
and
made
worked
jute
commodity,
export
tobacco.
of
has
cotton-seed
been
and
now
made
manent.
per-
tea, but nooflScial
lint,fish,
like cotton
grading
scheme
was
stopped in April 1951, because the

April 1950, but was
not
acceptable to the trade. Ghee, eggs and
grade specificationwas
seeds are also graded but on a small scale on
mustard
voluntary basis.
Grading of butter is still in the experimental stage and the Ministry of
started
in
for the compulsory grading of hides

Agricultureis considering a scheme
and skins. "Apart from grading of wool, rape-seed,butter and mustard
done
about
oil, little has been
grading of other commodities."*
be
over-emphasised. It facilitates
importance of grading cannot
for good quality of the
buying and sellingand gives good returns
This
is
of
commodities
produce.
particularly useful in the case
The
exported to foreign countries. It is necessary to expand these activities

of the
Co-operation and
Marketing Department,
particularly in
respect
and
of
the
skins,etc.
exportable
It is
commodities
proposed
J. Second
that
like
during
Plcfn,op. cit
p.
the
148.
cotton
Second
aod
jute,hides
Plan
period
217
AgricultvralMarketing
stations would
grading cotton, jute, hides, skins,

seed and sunn-hsmp.^
eggs, coriander
activities of the Co-operation and Market-!
Apart from the above
Provincial
Central
and
ing Department of the Central
Government,
Governments
provide the interested parties with price quotations
information.
and
other
The
market
daily prices of agricultural
from
commodities
and
livestock products are
broadcast
Karachi,
and published
Dacca, Lahore, Hyderabad, Rawalpindi and Peshawar
in leading newspapers.
Weekly and monthly prices are collected
from
and
published in the monthly bulletin.
important markets
Markets
A
be
established
for
and Prices.
requires facilities such

as credit,storage, and
marketing skill. Ultimately, the system must
be based on a sound rural co-operativeorganisationlinking marketing
well-integrated marketing
with credit. Private
co-operative activities rather

stage, however, the Government
than
enterprise should
supplement
them.
In
the initial
supplant
must
undertake
will be necessary
been established.
sound
than
and
system
Government
once
1. Ibid.
greater responsibility
co-operative organisation
has
CHAPTER
11
AgriculturalFinance
11
1 The
Role
of Finance
in
Agricnlture
productive
enterprise, including agriculture,requires
finance because
the operations have
and
to
be started
expenditure
*
Every
advanced
anticipation of actual production. The more
of agriculturerequires greater investment
in farm
equipment,
in
undertaken
kind
if the land
production, even
belongs to the cultivator himself. When
agricultureis of a primitive
to enable
kind, as it is in Pakistan, it does not yield enough returns
the agriculturist
to meet
his normal
day-to-day needs, not to speak of
for
such
Under
ditions
conleaving a surplus
heavy productive investment.
seed,
and
manures,
the
indeed,
as
similar
the
need
of
danger
the
and
other
of
essentials
the
history of agriculturein the
other
backward
into
running
peasant
has
debt
-Pakistan
Indo
is very close
sub-continent
this
chapter, we
intend to study the problem of the financingof agriculturaloperations
with special reference
the past experience of the Indian
to
continent
suband
the present needs of the agriculturistin Pakistan.
Since
the
for rural
peasantry,
shall
we
begin
finance
which
with
an
areas
has
became
in
the
past led
at
one
time
of
account
the
In
shown.
to
very
emergence
indebtedness
serious
of
this
of
problem,
problem
in the past.
11
"
Emergence
For
of Rural
indebtedness
to
Debt
as
Problem
arise, the
following conditions
must
be
present:
(fl) Existence
of borrowers
with necessity to boTfowand
security,
219
AgriculturalFinance
material
(b)
personal, to offer.
or
Existence
of
lenders
lend.
The
courts
to which
with
capitalto lend and willingaessto

the
lender
lend will depend
to
willingness of
is
which
(0 the security offered by the borrower
upon:
acceptable to the lender; (ii) the existence of law and lawrecourse
the
light of
indebtedness
The
sub-continent.
"We
Famine
India
has
at
always
it will be
any
British days. This
the
case
borrower
understand
to
easy
why
serious
of
1880, "that
known
period of
indebtedness
But
in
problem in the Indo-Pak

borrower's
necessity has always existed in this
found
have
the
to believe," wrote
no
reason
Commission
debt."
above
the
not
was
sub-continent.
had
the debt.
refuses to repay
In
be
may
could
the
agriculturalpopulation of
history been generallyfree from

been
in prelittle accumulation
of
have
not
because:
serious
very
(a) there was

little surplus with the peasant from
was
capital to lend; (b)
which a loan could be repaid; (c) there was
practicallyno security to
oflfer to the lender; and
there
of enforcing
were
no
sure
(d)
means
There was
little surplus for
recovery against a recalcitrant borrower.
was
there
repayment
of loans
of heavy
because
demand
of
land
There
revenue.
securityto offer because the rightsof ownership in land were

neither
valuable
of pro(because it produced no surplus over
costs
duction),
nor
definitelyrecognised and enforced. Finally, there were
to enforce
the contracts
made
between
no
the debtor
regular courts
was
no
and
the creditor.
The
"This
advent
of the British rule, in due
being a burden, eatailingthe satisfaction

demand, became a valuable property, improved
property
fixed
economy
Famine
for
markets
of
munications
com-
of
sale
surplus produce
rose
rapidly in value. Further, the introduction
the general security,following on the enforcement
up
of all kinds
law
and
of order, rendered
loans.
all this.
land far from
crushing State
opened
of
changed
course,
Another
and
the
factor
the
Commission
rightsdefined
and
1. H.
land
of
as
the
great importance
increase
of
available
of
1880
wealth
wrote,
as
"Now
and
the
was
trade
security for
growth of money
developed."i
with
recorded, money-lendershave
Calver, Wealth
ultimate
value of land
lent
Welfare of the Punjab,
more
p.
248.
The
risen,
freelyon
^^^
the
securityof
ascertained
interest in land
of
amount
the
habit
always slide
into debt
replaced." The
of
agriculturaldebt, and, at
of running accounts
with
when
is lost
crop
circumstances
new
everywhere
rate, there
the
money-lenders, which
or
has
bullock
peasant
entirely at the
the
the
thirty
next
and
number
Thus
for
CO
and
advent
the
Tipelled the
of
to
rule increased
about
the
cultivator.
it
way
He
had
split
was
to
reserve
no
For
plied
multithe
dependants
the
opportunities
necessities,which
the
always existed and^ on

the growth of population,
had
They
of the greater pressure

land due
on
had been accentuated
with the passage
and
the
effect that
including their
what
But
borrow?
to
good
the
123,890 in 1911."i
British
the
lending.
peasant
such
to
the zenith and
at
was
money-lenders
53,263 in 1868
borrowing and
account
exceedingly,
bankers
from
money-lender
the
years
prospered
of
increased
be
to
money-lender. "By 1880," wrote

Darling about
Punjab, "the unequal fight between
the peasant-proprietor and
money-lender had ended in a crushing victory for the latter.
mercy
is everywhere
any
the
put
there is
serious
to
of time.
ing
sniall hold-
The
pittance to the
for the recurring losses of cattle
yielded
up
pay
mere
the cultivator's ingrainto this was

ed
drought and disease. Added
led him
to
improvidence which
extravagant expenditure upon
And
when
he bad
security
marriage and other domestic ceremonies.
offer due to inflated values of land and the money-lender with his
to
there to take advantage of the
unscrupulous system of lending was
serious
that indebtedness
became
a
situation, it is little wonder
problem of enormous
magnitude.
from
11-3
Extent
What
estimates
was
were
owed
by
made
in 1875
made
of
magnitude
the
from
in
peasantry
time
one-
Roits
occupants
eighteen times
about
occupant
the
being Rs. 371. The
1. M,L.
Darling,
debt
time
as
thus
to
pre-Partition India.
the Decean
third of the
the
to
by
villages in the Ahmadnagar
twelve
that
the
Debt
of Rural
District of
involved
revenue
Famine
The Punjab Peasant
assessment,
Commission
in
created?
Several
amount
of debt
of the earliest
One
Commission
were
the
and
related
was
only
to
Bombay. They found

in debt, which
was
debt
average
of
1880
Prosperity and Debt,
per
expressed
p. 208.
AgriculturalFinahce
the
view
that
deeplyin
debt
the power
of
one-third
and
debt
Rs.
was
300
Punjab
90
head
of
45
Rs.
at
that in 1911
demand
of
debt
equal
to three
was
being
He
that
was
estimated
less than
ed
estimat-
debt
seemed
estimates
According to
cultivated
go
total value
of
This
land
the
proprietors,the
debt
per
prietor
pro-
only per indebted tenant.

together. Mr. Darling further
of
British
India
not
was
mittee
Banking Enquiry ComProvinces.
respective
total
At
crores.
their
rural
debt
time
the
in
in debt
meant
British
India
of this estimate
in India
production of principalcrops
that the peasantry owed

total annual
production of the chief
crores.
times
of
case
at
acre
According
76.
150
in
debt
of rural
803
Rs.
the average
Provincial
various
Rs.
was
in
(laterSir)M.L.
agricultural debt of
per
In the
to
their estimale, the
excludingBurma
debt
millions.i
"400
or
later the
years
made
crores
basis
this
on
Mr,
at
years'net income,
463
as
against Rs.
Rs.
Rs. 600
Five
the
Rs. 955"3
was
almost
much
as
agriculturalcommodities.
As regards different Provinces, the Punjab had
the highest debt
total agricultural debt of the
agriculturist(i.e. Rs. 92). The
the
per
Punjab
years
estimated
was
the
debt
rural
in the
principalcrops
debt
of
livingof
the
of
the
almost
was
Province
N.-W.F.P.
crores
The
debt
probably
and
peasantry
little securityto oifer. The
been
more
twice
the
annual
11
Rs.
was
about
than
value
prices. The
crores.
one-half
the
four
of
total
rural
of the
in
doubled.
the,
cultural
agri-
debt
of
value
of
Rs. 31. The lower

per cultivator was
due to the lowering of the standard;
these
being mostly
high value of
1.
that
meant
had
1928-29
at
was
which
This
crores.
Punjab
the
Punjab
of
135
at Rs.
debt
Bengal was Rs. 100

the principal crops.
figurefor Bengal was
of
of
debt
average
crores,
calculated that the total agriculturaldebt
The
in 1895
the total rural
the total
the Government.
Thus, prosperity and
as
beyond
per
agriculturalpopulation
him, rural debt in the Punjab was at least nineteen
revenue
were
not
but
and
crores,
in India
crores.
1925.
Rs.
at
Rs. 31 and
in debt
were
Sir F. Nicholson
estimated
important inquiry
next
Darling,I.C.S.,in
to
of Madras
Maclagan
British India
the
land-holding classes
recoveringthemselves.
Edward
The
the
equal proportion
an
the total rural

Sir
of
221
crops
Ibid., pp. 20-21.
was
tenants
due
to
who
had'
jute being
222
Pakistan, A Development Economy
the main
the
to
actual
Provinces
C.P.
which
crop
cultivator.
of
Rs.
India
estimates
prices from
onwards.
1930
the
before
made
were
21, Assam
Rs.
much
so
per
Rs,
Orissa
and
though not
acre
per
agriculturistin the other

Rs. 49, U.P. Rs. 36,
50, Bombay
debt
The
Madras
was:
30, Bihar
These
gives high income
Due
31.
Rs.
fall in
disastrous
fall in
the
to
tural
agricul-
prices during
of the debt increased

enormously. The
Depression, the burden
total value
of agricultural production (principal crops) fell from
in 1932-33. Correspondingly
Rs. 955 crores
to Rs. 545 crores
in 1928-29
the
incurred
the
of the existing debt
burden
the
According
debt.
rural
debt
to
of
World
During the Second
and
correspondingly the
It is difficult
especial'y by
to
probable
war
on
It was,
writer
the
debt
real
burden
the
of
of
much
debt
holders
from
have
class
show
inquiry could
inflation
a
of
Commission
as
repaid,
was
from
more
replies received
Famine
decreased.
debt
the
the
suffered
who
Bengal
detailed
prices of agriculturalproducts
from
small
that
materially."2Only
the
Mukerjee,
Another
crores.
newly
War
holder
small
the
gained. "Judging
the
of provinces," wrote
appears
was
how
however,
say,
he
than
1,200
Rs.
K.
R.
Dr.
the
2,300 crores."
puts it at Rs.
rose
by
estimate
an
India in 1935
apart from
increased
not
number
1945, "it
benefited
real effects of
the
situation.
however,
not
the
much
so
of
amount
the
debt
but
its
ing
which
made
the problem so serious. Accordunproductive character
to the respective Provincial
Banking Enquiry Committees, the
of unproductive debt to total debt in Bengal, U.P. and
percentage
Bombay was 70% and in Madras
60%. According to Darling, in the
Punjab only 5% of the debt was
incurred
for land
improvement.
of the balance
Most
11
"
must
have
been
Consequences of Indebtedness
an
agriculturistborrows
When
the
result is increased
his land
when
is enhanced
the money
1. P.J.
Vol.
I. p.
2.
income
and
the
is spent for
Thomas,
Economic
unproductive debt.
for him.
debt
for
money
The
becomes
unproductive
Problems
productive purposes,
productive capacity of
blessing for him. But
purposes,
of Modern
ths debt
India, Ed.
R.
176,
Bengal Famine
Enquiry Commission,
Final
Report,
p.
300.
K.
becomes
Mukerjee,
223
AgriculturalFinance
a
standing
moral
It leads
him.
to
curse
social
economic,
serious
to
and
consequences.
leads
indebtedness
to
consequences,
regards economic
that
finds
all
cultivator
his
the
agriculturalinefficiency.When
he
loses
his
enrich
creditor,
all
efforts go
additional
merely to
and
effort
improved
interest in improving his posiiion by greater
As
of
Both
labourers.
also, the
usually has
This
as
possiblefor
As
and
of
avenues
indebted
an
social
the
to
creditor
as
291
in
the
to
of
way
407
number
of landless
conduce
not
the
his
to
produce
middleman.
He
on
the latter's terms.
the
debtor, but it also

of
improvement
marketing
agricultural progress
no
peasantry.
class-friction arises between
consequences,
employment
of
the
landless class with no

further social discontent and political
increase
creates
increasing in number, presumably

indicated by the fact
result of sales against debt, was
in India
to
return
monetary
the
to
his creditor
to
classes. The
debtor
landless
That
instability.
that
debtor
through co-operative sales. Thus,
methods
is
lower
barrier
serious
produce
only
not
means
acts
sell his
to
is
If the
property,
prosperity.In the marketing of
suffers if he
peasant
do
developments
these
and
agriculturalprogress
landed
increased
and
cultivation
in tenant
result is increase
finallysale of
and
mortgaging
involves
debt
decreases.
of production. Productivity of land thus
methods
labourers
their number
in ten
years
per
between
were
1,000 of cultivators increased from

1930.
and
1921
of indebtedness
the worst.
are
The
consequences
cultivator loses his ancestral property and in many
with it his
cases
In certain provinces of pre-Partition India, cases
freedom.
economic
The
Of such
moral
servitude
In the M
uzaffargarhDistrict
were
Punjab, for instance,the tanants
practicallyslaves of the
exploited them thoroughly.In Bihar
money-lending landlords who
were
not
uncommon.
of the
and
Orissa
the
Pennaiyal system
what
were
labourers. There
work
to
the land
on
have
borrowed
to get out
!. For
called
the Kamiauti
created
conditions
workers, in
of those
from
money.
Once
return
agreements
of
for
and
in Madras
practicalservitude for the

a
mere
whom
they were
in debt, it was
pittance,had
to
unfortunate enough
impossible for them
of it.i
details of the system,
see
Economic
Problems
of Modern
India,op
cit.
224
11

'
5 Remedies
Applied
sides:
three
from
approached
for
elimination
of the existing debt; (iV)measures
(/) reduction
or
regulation and control of private money-lending; (u7) creation of
alternative agencies for rural finance.
The
debt
could
problem
be
existingdebt (mostly ancestral)

no
hope of agriculturalprogress in the
was
got rid off, there was
passed
was
provinces of British India legislation
country. In some
tain
which included provisions for the declaration of insolvancy under cerconditions.
They also provided for the reduction and settlement
of old debts on
equitable bases for both parties.The problem was
in three
tackled
(b) Liquidation and (c)
(a) Moratorium,
ways:
Conciliation.
Moratorium
implied staying of proceeding in courts
It
regard
with
unless the old
that
obvious
was
of
the recovery
to
method
This
debt.
used in U.P.
was
tion
Liquida(1934) and Bombay (1938),through legislation.
enforced
of debts
by several
was
or
compulsory scaling down
provincesand States through the passing of Relief Acts. Among these
Madras
(1938),Bombay(1939), U.P. (1938) and Sind (1940).Debt
were
the
between
at
conciliation legislationaimed
voluntary settlement
tion
constituted Conciliadebtor and the creditor with the help of specially
Debt
Acts
Boards.
Conciliation
were
passed in C.P. (1933),
Sind
(1939). As a result of
Punjab (1934), Begal (1935), and
(1932), C.P.
these
the
measures
several provinces. For
amounting to
by agreement.
claims
crores
Rs.
scalingdown
in
many
indebtedness.
crores
debts
of
was
would
by
were
of
1943;
to
Rs.
1'38
scaled
down
by
failed, compulsory
because
justified
was
scalingdown
not
bona fide. They
Such
were
reduced in
the end
scaled down
were
scaling down
voluntary
set
This
which
measures
3 61
fraudulent
second
considerably
was
Bengal by 1939 debts
In
these
cases
through various
The
Rs.
introduced.
was
debt
instance, in the Punjab
Where
crores.
of
amount
inflated
were
practices.
aimed
measure
done
in
reduce
the
two
power
at
of
avoidance
future
Firstly, by taking
ways.
of the peasant to borrow,
by limiting his credit. Secondly, by putting restrictions on the

money-lender, thus reducing his ability to lend. The borrowers'
credit
was
reduced
Punjab Land
on
by putting restrictions
Alienation
the attachment
Act
with
of other forms
on
the transfer of land, e.g.
amendments;
of
by putting restrictions
property in payment
of
debts,fof
AgriculturalFinance
implements and cattle necessary
house.
Restrictions
agriculturist's
225
for
tillage,and the material of the

the money-lenders were
of three
on
kinds. Provisions were
for
law
made
: (f)registration and
by
licensing
of money-lenders; {")compelling them
inform
to
and
keep accounts
their debtors
periodically of the debt position; (/;/)miscellaneous
provisions restrictingmoney-lenders, like fixing of maximum
rate of
interest,
protection of debtors from intimidation. The Registrationand
Licensingof Money-lenders Ac's were passed in C.P., Bombay, U.P.,
Punjab and Bengal. These Acts made it compulsory for the money-lender
to register himself
licence. Regulation of Accounts
and obtain
a
Acts were
passed in several provinces like the Punjab and C.P. under
which
the money-lender
required to maintain regular account
was
with periodic statements
books
and to furnish each of his debtors
giving
details
of
fixed
were
of simple as
well
as
by the
received
receipts of the payments

intersst
transactions
latter's loan
the
for
also
to
money-lender.
unsecured
and
secured
and
furnish
Rates
loans, in
the
of
case
interest.
compound
widely praised or criticised according to

the interests of the party, being called "golden bills" or "black-bills"
led to the contraction
doubt
of credit
the case
be. They no
as
may
careful in their dealings.
and made
the money-lenders more
These
11
measures
were
6 Post-Partition
"
in Pakistan
Position
Already before Partition the burden of bebt

had
India had considerablybeen reduced.
There
the
The
need for borrowing
gone
up.
capacity to repay his obligations
burden
of
the
debt
was
smaller
was
greater.
remained
that
the
peasantry in
sharp rise in
been
of the peasants
the incomes
and
price of
on
and
the
to
statistics are available but

the country. No
portion of the debt incurred in the past had beed
prevailingin
a
good
before
of the
the
money-lenders
obligationsof
mean
most
that
cases
after
the debtors
the creditors
had
were
Partition.
was
Debt,
who
net
longer
however,
no
to
real
high prices
presumably
repaid
even
this does
But
loss to the
securityof jewelleryand
them
the
Most
consequences.
migrated to India and
cancelled.
thus
were
lendings
Sikhs
or
they carried with
rural indebtedness
the
brought its own
Hindus
were
their entire
valuables,which
case
Partition
Partition. The
cultivator's
Moreover,
lighterdue
was
had
their
new
creditors.
other
homes.
not
In
movable
In any
pressingproblem immediately
not
was
entirelywiped out.
226
Pakistan,
Moreover,
Developing Economy
particularly of
borrow, though the sources
them
the same,
as
we
shall
comprehensive survey has

to give us a full picture of the rural
Pakistan after Independence. Some
in both wings of the country
the
of
incoming refugees, made

these
not
borrowings were
see.
No
about
the
needs,
extent,
been
since
out
position
debt
as
it
Partition
developed in
taken
underinquiries,however, were
useful tion
informawhich
give some
and
sources
carried
of
purposes
indebtedness.
rural
inquiriesare:
(1) Punjab Board of Economic
these
Among
Enquiry Report on the Need and

Supply of Credit in Rural Areas of the Punjab (1951).
Survey Board, University of Dacca: Rural
(2) Socio-Economic
in East Pakistan (1956).
Credit and Unemployment
Research
Project,University of the Panjab:
(3) Socio-Economic
Socio-Economic
(4) Impact
ment,
Survey of Six Villagesof Lahore.

of
Community
project carried
out
Development
for the ECAFE
on
by
Economic
the
DevelopT
Universityof
th?
Panjab (report unpublished).

In addition
to
these
number
by the Panjab University students

credit and
indebtedness
in various
villagestudies have been made

relating to the problems of rural
of
parts of the country. The
fragmentary which differ in many

and it is dangerous to generalise.
The data of the Report produced by
respects from
rather
Enquiry relate
the year 1949

the effects of the Partition.
to
the
when
Panjab Board
conditions
were
data
each
are
other
of Economic
unsettled
Regarding the extent of the debt

for the Punjab province.Out
this inquiry estimated it at Rs. 28 crores
incurred
was
during the two and a half years
of this debt two-third
incurred by
following the Partition. Eighty per cent of this debt was
agriculture.The average debt worked
classes directlydependent on
family. Most of the debt was incurred by
out to Rs. 414 per indebted
due
to
purposes.
unproductive
Universityof the
only six villagesin Lahore District (as against a sample
Panjab covers
the whole
Punjab by the Project of the
of 100 villages covered from
Enquiry). This inquiry has revealed that the
Board of Economic
debt per indebted family was
Rs. 450, varying from Rs. 229
average
to Rs. 840 per family of peasantper family of peasant-proprietors
The
Socio-Economic
Research
Projsct of
the
AgriculturalFinance
proprietor-cum-landlords. Seventy-five
proprietor-cum-tenant families,54% of
peasant-proprietor families
portion
mainly
of the debt
(63 8%)
for domestic
The
the
peasant-
of families and
of
33%
in debt.
Again, the major

for unproductive purposes,
incurred
was
of
cent
per
tenant
involved
were
227
needs.
the Effect of
inquiry about
Community
Development (V- AID)

Development
village in all, six from
the V-AID
of Kharian
Tehsil of Gujrat District
Project of the area
and six non-project area
found
villagesin the same
region. It was
that average
debt per family worked
out to Rs. 226 in the project area
and Rs. 460 in the non-project area.
About
of the total debt
61%
incurred in the project villageswas
for productive purposes
as
against
about
This
in
that
the
means
non-project area.
30%
normally the
only
cultivator has a tendency to get into debt for unproductive purposes,
Economic
on
but
with
covered
guidance he
proper
and
productive purposes,
in
Inquiries
the
11
individual
be
can
thus
twelve
persuaded
real burden
the
villagecarried
out
borrow
to
of his debt
by students
reduced.
also
indicate
tends.
same
Legitimate Needs of the Agriculturist

To discourage unproductive borrowing it is necessary
to
of the cultivator, since borrow
the legitimate needs
he must.
than half a century ago (in 1895) Sir Frederick
Nicholson,
and Agricultural Bank," wrote:
famous
Report entitled "Land
'
historyfrom
of universal
lesson
of
Rome
of the land
nature
modern
every
Agriculturein
More
in
his
"The
essential
an
of the country
or
the
of
the
nor
the
business
condition
is that
know
position
agriculture affects the
borrow."
The
fact is that
must
agriculturist
tenure
great fact that
Scotland
to
the
agricultureis credit. Neither
one
for
more
worth
the
Pakistan
name
is
run
on
credit
or
borrowed
is not
business
strictlyrua on
lines;
stillit cannot
dispense with borrowing. Agriculture, especiallyin a
country like ours, gives rise to certain peculiar problems of finance
of production,
becauseof its uncertainties,its comparatively smallunit
money.
of its
scattered nature
lack of
that
the
forethought
among
problem
the problem
have
with
given
the
war
the
conservatism
illiteracy,
the peasantry.
of rural
time became
connected
operations and
finance,
as
This
of rural indebtedness.
and
breathing space
Partition
to
the
and
for the fact
accounts
already noted
Certain
the
by
us,
at
one
circumstances
present
cultivator,and
and
the
high prices
problem of
228
Pakistan,
indebtedness is not
of the
What
emerge.
needs
are
Developing Economy
pressing as in earlier
so
agriculturist
are
supply these
stillthere and
some
undertake
must
agency
otherwise
effectively,
the basic needs
But
years.
problem
the
to
again
may
these needs?
The
agriculturistrequires three
operations successfully:
(a) Long-term credit {say, for
expenditure
on
types of credit
period of
over
improvements.
permanent
to
carry
his
on
fiveyears)for
These
involve
capital in the water of rivers where necessary,

and embankments,
of bunds
sides,
construction
terracing of hillclearing of jungles, drainage and fencing of plots,
investment
The
etc.
of
larger irrigation works
constructed
are
by
the
little
need
for
private yivestment
long periods. The finance required on other items of this
category of expenditure is provided either by the cultivator
himEclf from his own
savings or through private borrowing,
of
the Royal
words
"the
State
Commission,
but, in the
State
in
Pakistan
and
long recognised as
such
improvements
has
of
interest
as
low
as
one
of its duties the encouragement
by the grant of loans at

conditions
permit."* These
taccavi loans
which
rate
are
of
the
shall
speak of later.
to
credit
five years). This the
{b) Intermediate
(from one
cultivator
requires for the purchase of more
expensive
for the erection
ings.
of buildimplements, cattle and sometimes
these in the past he had mainly to resort to the
For
privatemoney-lender,
credit {up to
Short-term
one
(c)
year). In addition to the
for financing his
requires money
above, the agriculturist
current
requirements like the purchase of seed, fertilisers,
feeding stuff for cattle,etc.
These
and have to be
requirements are for productive purposes
looked after,if agricultureis to be carried on as a successful business
well-known
we
loans pay for themselves by increasingthe

of the land and tbe cultivator himself.
proposition.These
powers
Pakistan, however,
In
been
needs
borrowed
of
1.
for purposes
in
the
which
past
cannot
agriculturalproduction. These
Refort, Royal
Comnriission
on
as
be
we
have
seen,
called
strictly
tive
produc-
money
legitimate
borrowings,sometimes,
Agriculture in Indi;
has
1929, p. 461.
may
AgriculturalFinance
be necessary, for
instance,
when
[229
spend on mediaid, or has to tide over a bad season, by borrowing for consumption,
involved
is
in
or
other
misfortune.
unforeseen
some
Borrowings
have not always been what may
be called legitimate.Some
peasants
have got into debt through sheer improvidence
and
extravagance.
Tbey have spent money on expensive social ceremonies, on occasions
of birth, circumcision, betrothal, marriage or
In
funeral.
certain
expenditures have
parts of the country, e.g. the former Punjab, such
the cultivator
has to
cal
been
serious
of indebtedness.
cause
private money-lending as it developed

the
British
rule
that
made
the
was
money-lender
no
during
the "legitimate" and the "illegitimate"demands
distinction between
for credit
must
11*8
the part of the peasant. The
on
far
as
of the system of
defect
One
as
between
possibledistinguish
Independence,
India, the agencies that
indirectly
were
Pakistan
in
place
these two.
areas,
suppliedcredit to the
in other
as
parts
of
agriculturists
or
directly
under:
as
village money-lender
directlywith the peasants.
or
(ii)The indigenous banker
intermediaries,
through
(I)The
(m)
his
of Credit
Sources
Before
that takes
agency
Commercial
banks
the
or
the
Bania, usually dealing
Mahajan,
like the Imperial Bank
usually acting
of India
jointvator
provided finance not directlyto the cultiof various kinds,
but indirectlythrough intermediaries
(iv)Government
provement
supplied credit under the Agricultural Imand
Act, 1883,
Agricultural Loans
Act, 1884.
stock banks.
These
These
known
are
and
as
taccavi
loans,
co-operative credit societies.

(vO The land-mortgage banks organised either on co-operative
principlesor joint-stockprinciples.
Since Partition there has been a change in the relative importance
of
them
in
and
of these agencies,
are
Pakistan.
some
inoperative
(v) The
Available
relative
statistics
importance
last column
It
will
period the
are
tabulated
of the various
relates to India and

be
seen
from
greatest reliance
on
the
sources
next
page
of credit
which
show
in Pakistan.
the
The
for
comparison.
the table that during the post-Partition
may
has
serve
been
put
on
relatives and
friends
Pakistan,
230
:~
*-"
""
Developing Economy
fs
"
"N
insj; ^
T3
o.t;
TicqfE^j
c-i
Sa
""-4
a'-'
VO
0\
in
.2 0
VO
a\
o
M
0\
CO
in
o
O
g-
CIS
(N
"n
VO
(N
"7\
""
"
"3
t^
a sag
s a ? "3
(N
VO
O
o
6
as
a
.a
'^
"5
6
V3
go.
Oh
"a
""
^
"r"
0.
,-0
etf
"
a.t!
O
"[SW
r"1
Ov
S^*
On
vb
"^
VO
-o
cQ
1/1
u
"
"
a
o
fe
"
9
o
00
o
I
OS'S 5
c-5
u
"
as
of credit
source
been
in all parts
231
of Pakistan.
"distress
Presumably, this has

period
cularly
parti-
borrowing" during
by those who migrated into the country. Others also have had
relatives and friends since their traditional source,
to
the
rely upon
professionalmoney-lender, has disappeared from the scene, particularly
from
Pakistan.
West
of unsettlement,
the
The
table
reveals
how
contribution
the
of
money-lenders has become
insignificant
except in certain parts of "ast
Pakistan. In contrast
still supplies about
to this,in India this source
70% of the total credit to the agriculturists.
As
other
regards the
given in
sources
table, "landlords
the
for a substantial
people" accounted
portion
proafter
the
Partition
in
of the total credit
the
immediately
and
other
well-to-do
rural
has become
that this source
Punjab. But later inquiriesshow
very
Pakistan
this
is
in
this
In
East
source
quite
unimportant
region.
and so are villageshopkeepers. Probably this is subsistence
significant
agriculturistsin East Pakistan. A

striking feature of the table is the comparatively small share of the
This
is regrettable in view
of
co-operative in the loans advanced.
about
last
efforts
the great
made
sixty years to popularise
during the
this
shall
to
credit.
We
come
problem in greater detail
co-operatives
advanced
in the next
by the Government
also
chapter. Credit
credit obtained
has
been
in kind
by
insignificant.
the whole
on
It appears,
agriculture
the poor
are
unstable
both
reliance
in the
relatives
on
long
relieve distress
to
more
should
number
the
social
of
condition
not
be
encouraged
landless
is
but
of
fill the
vacuum,
or
the
village shopkeepers and
his need
for
the havest.
consumer
goods
as
between
past either
perhaps
or
mortgage,
with
ly,
or, ultimate-
it will
increase
class
vicious
cultivator
market
much
of these
enviable.
perhaps professionalmoney-lenders,
will
rural
possible
nor
lent in the
of
of the creditor. Either

because
labourers,
anything
footing. Too
desirable
have
inducing
in favour
land
sound
of
system
circumstances
in view like
practicalpurposes
sale of the debtor's
tendencies
friends
and
abnormal
under
on
the needs
meet
The
meagre.
is neither
friends
and
Relatives
run.
and
putting
finance, therefore, needs
facilities to
credit
therefore, that
merely
whose
If
economic
nothing
and
is
done
their old prototypes,

will be left to the mercy
as
intermediaries
harvests
and
who
cash
will
exploit
at the time of
S32
11
'
Pakistan,
9 State
Credit
for
Developing Economy
Agricalture
possible institutions
of
which
may
be
prospective suppliersof rural credit, and
which
have
been
The
be listed
far, may
some
considered
created
so
under:
as
Government.
(0
(//)Credit Co-operatives.
Banks,
(Hi) Commercial
(jv)Agricultural Finance Corporation,
(v) Agricultural Bank,
(v/)Agricultural Development Bank.
Credit
The
shall consider
co-operatives we
other agencies are discussed below.
State credit is
Governments
Provincial
Land
(a) The
supplied through
under
Improvement
Act, 1958, for West

the
Under
Land
the
chapter.
next
Department
Revenue
of the
measures:
following legislative
Agricul(b) the turists'
Act, 1883, and
the
Loans
Act, 1884 (replaced by the West
Loan
Loan
the
in
Agriculturists'
Pakistan
Pakistan
only).
Act,
Improvement
1883, loans
granted
are
following purposes:
of storage,
works
or
(0 Construction
repairs of wells, and
supply or distribution of water.
(it)Preparation of land for irrigation.
from
the rivers or other waters or
O'h) Drainage, reclamation
protection from floods,erosion, etc.
Qv) Reclamation, clearance, enclosure, etc,, of land for agricultural
for the
purposes,
(v) Such
other
declare
wcrks
Government
as
time
from
may
to time
to be
of this Act.
improvements for the purposes
Loan
Agriculturists'
Act, funds are granted for purposes
above
and
(0. (").("')given
also for the relief of distress as well as
Under
for the
the
purchase of seed, cattle,manure
These
given in
loans
cash.
which
The
the
collaterals is demand
purposes.
In
most
signature is needed.
after
are
period of
for which
purpose
called
credit
In
simple inquiry. An
emergencies,
interest of
according
Security of land
is obtained.
advanced
personal
Pakistan
in West
varies
repayment
implements.
agricultural
loans
taccavi
:'d for the loans

cases
and
oond
for the land

and
however,
5|%
per
in
some
loan
annum
to
or
are
the
other
improvement
surety's
is sanctioned
is
charged
on
233
taccavlloias
in West
59, Rs. 2 73
Improvement
Act. The
and
year
per
needs
advanced
were
Act
and
Rs.
in West
5-87
Pakistan
Land
the
Loan
Agriculturists'
under
crores
under
Rs. 91 lukhs
period were
during the same
advanced
respectively.In East Pakistan the money
total recoveries
Rs. 36
has been
crores
During the twelve years ending 1958-
Pakistan.
crores
less. This
even
an
Rs. 20 lakhs
of less than
average
as
compared to the credit
insignificantamount
have recently been estimated
by the
peasants which
which
of
to
comes
is
the
an
Credit Enquiry Commission
Rs. 300
at
crores.
helped particularlyin distress,

be relied upon
they cannot
developmental purposes. Neither
the staff of Revenue
the Provincial
Budget can
Department nor
bear this additional
While
the present
burden.
help, particularly
in time of distress,
is welcome, the procedure of granting loans needs
improvement. Alternative institutional agencies, however, should be
developed for the supply of development credit to the agricultural
No
doubt,
loans
taccavi
but
have
for
sector.
Credit
The
Enquiry
Commission
improvements in the State credit:

advanced
should
(i)Amount
it is intended
which
and
be
an
has
suggested the.following
sufficient for the
attempt
made
to
supervise
(i")Delay in the grant of taccavi may be minimised; and

(Hi)The recovery procedure should be streamlined.^
Five-Year
The suggestionshave been accepted in the Second
11
'
10 Commercial
credit agency
in
avoided
Pakistan, but
land
and
l\%
the
for
most
contribution
of the total advances
agricultural finance
the various
Plan.
important organised
their importance in the financing of
constitute
agricultureis rather small. Their

represents about
its use;
Banks
banks
Commercial
for
purpose
various
to
finance
agricultural
in the country.
reasons.
Among
They have
these
are
practicalcomplications involved in mortgaging

hypothecating standing crops for securityfor the loans, the
legaland
farming units, the difficulties

the stage
in reaching deep into the interior,etc. They usually enter
when
the agriculturalproduce is ready for marketing through the
various
need
intermediaries.
consider
We
not
them, therefore, as
largenumber
and
scattered
!. Roport, Credit Enquiry
2. Ibid,,p. 18.
nature
of
Commission,
1959, p. 7.
234
Pakistan, A
DevelopingEconomy
at the prodaction
prospective leaders to the agriculturists
stage of their operations.
11 Statutory AgriculturalCredit Agencies" A DFC
11
Under
this
be
included
(i) the Agricultural
category
may
Finance
Corporation establishel in 1952, and (//)the
Development
important
"
of Pakistan
AgriculturalBank
have
been
now
in 1956. These
established
two
tions
institu-
i.e. the
Agricultural
integrated into one,
Bank
the
under
Bank,
Development
Ordinance
(No. IV of 1961).
Finance
Corporation (ADFC)
The
Finance
Corporation
under the Agricultural Development
set up
was
Act,
1952, in order to expand credit facilities and to promote
It started
of agriculturein Pakistan.
development and modernisation
in March
business
Corporation
The
medium
and
1953.
until
other corporate
bodies
to
horticulture, forestry, fisheries, animal

and
providing long,
individuals, co-operative societies

for agriculture and allied activities,like
credit
short-term
and
been
recently has
husbandry, poultry-keeping
dairy-farming.
for the
purchase of farming machinery, waterments,

provision of embankliftingequipment, improved seeds, fertilisers,
and for safeguarding against pests
drainage and reclamation
It
and
provided loans
diseases.
Loans
and
Rs.
not
were
5 lakhs
to exceed
in the
Rs.
of
case
1 lakh
in the
corporate
case
of
an
.body. These
individual
conditions
by the Government
up to Rs. 5 lakhs
loans
20
lakhs
Rs.
and
respectively. The
Corporation made
secured
generally in kind and they were
by mortgage of property
Rs. 500 and by surety up to Rs. 500. The loans were
if above
able
recoverup to a period of twenty years.
The
of
the
a
Corporation operated under
general direction
Board
of seven
Directors
the
Director
who
a
including
Managing
was
wholetime
oflBcer. It was
in
the
autonomous
matter
an
body except
of policy in which
it had to take guidance from the Government.
could, however,
The
branch
be
relaxed
and
Corporation had its head oflSce at Karachi
offices,
eight in East and niê in West Pakistan. The
its authorised
Government
capitalof
of
which
Rs.
Rs.
375
crores
crores
was
bad
to
be
subscribed
seventeen
whole
of
by the
alreadybeen swbscribed.
235
Finance
-Agricultural
The
by
Government
the
Corporation
Up
30th
to
Rs. 241
22%
fixed 5%
Rs.
and
1959, the
Corporation had
201
in West
crores
crores
of the total amount

above
advances.
sanctioned
were
Pakistan.
charged
of interest to be
the rate
as
its loans
on
April,
of which
crores
the
had
The
loans
Rs. 4*42
sanctioned
in East
Pakistan
and
ware
only
sanctioned
for which
period. The
received
applications were
actually paid, however, came
loans
during
to
only
12'1% of the total applied for and 54-5% of the

loans
sanctioned.
loans
The
disparity between
applied for and
sanctioned
has been attributed
by the annual report of the Corporation,
Rs.
12-41
or
crores
things, to the existing Provincial
other
among
the
placed restrictions on
securityto the Corporation. The
which
the Provinces
of
case
under
Debtors'
various
in the way. Then

there were
properties allotted to refugees who
also stood
evacuee
rights in them.
permanent
properties offered as
Acts operative in
of
mortgage
direction
Corporation
Provincial
the Central
from
free
The
difficulties in the
did
not
Governments,
Government,
took
yet have
however,
action
get the
to
various
the
from
State laws
and
Central
hampering laws. The
of
Government
the Custodian
by which
of
Evacuee
could
the
right
permit
Property
mortgage to those lands.
Some
persisted.
however,
difficultie?,
Among these were failure
more
Pakistan
to
in East
produce mutated
of borrowers
ren.t receiptsin
passed legislationin 1957
respect of property offered as security, lack of settlement records in

to get the types
that Province, import restrictions leading to inability
of tractors
grant
loans.
of
in 1956-57
to
Rs.
Regarding
were
144-76
requirements of the agriculturist.

to
simplify procedure for
in a heavy increase in the loans
the
to
measures
some
resulted
This
increased
sanctioned
in 1957-58
lakhs
the character
the
of
1957-58, of the total sanctioned
long-term
loans
medium-term
was
took
the amount
granted. Thus
to
suited
pumps
Corporation
The
the
and
due
classified
of the
to
as
loans
(1|
reclassification
medium-term
advanced
years
to
of
due
loans
to
of
Rs.
loans
of
period 1953-54
Rs. 442-32 lakhs 53%
the
more). After
ever,
1956-57, how-
years) predominated,
"
some
lakhs
52-93
190 in 1958-59.
during
and
five
Rs.
loans
short-term
delay in recoveries.
during this year

bullocks, equipment
purchase
other wells and for dairy-farming.
total loans
purposes"
wells and
(for five
and
from
were
and
but
loans
Sixty per
constituted
this
were
cent
by four
machinery,"tube-
'^36
The
revenue.
dues
of the
The
ratio
The
total net
Its overhead
has been
cost
had
condition
the
basis
as
arrears
of
land
recovery
the
with
of
was
the middle
to
been
of 1959
to
came
Rs.
27-49
lakhs.
high. The basis difficulty,

however,
of agriculturein the country and the weak so;iorather
of the
Moreover,
the
securitybut also
special problems
has
only
is not
There
of
10-92 lakhs.
Rs.
to
Agricultural credit
already noted.
peasantry.
initial
be reduced
loss would
on
Corporation
disadvantage of having to pay interest to the
without
later
earning profits which, however, was
retrospectiveeffect. If this payment is excluded, the net
with
Government
waived
loss up
the nature
economic
started
recoverable
were
monthly average
72-5%. In East Pakistan the propor^
below average, i.e. 67%.
Corporation was undergoing a net loss throughout its life.
was
The
of
during 1958-59
percentage
tion
Corporation
and
problem
the
that the credit is not
ensurir^
hampered
risks, as
of
we
have
getting adequate
misused.
Further,
operations of the tion

Corporathis
in
the
position
respect improved in
as already noted, though
tried to assist the Corporatioi
Central Government
later years. The
instance, it decided not to charge any
its objectives.For
to achieve
interest on the capital.In spite of all efforts,however, the Corporation
hardly touched the fringeof the problem of agriculturalcredit. Credit
certain restrictive laws have
in Pakistan
is needed
under
the
varying conditions
at different times
for
of offices of the Corporation were

different types of people.The number
of the Agricultural
ties
Bank the activiquite small. After the establishment
of the two
11-12
The
institutions
co-ordinated
were
AgriculturalBank
on
territorial basis.
of Pakistan
into existence on
9th
AgriculturalBank of Pakistan came
September, 1957, under the Agricultural Bank Act, 1957, to provide
Its necessity arose
increased credit to the agriculturists.
because the
The
existingcredit facilities were

the agriculturalsector.
The
inadequate
object of the Bank
to
meet
the
credit needs
of
and
give short, medium
longsocieties
loans in cash or kind to agriculturists,
tcim
co-operative
and other corporate bodies of which the majority of the members
werQ
Besides
agriculturists.
the
was
to
supply of
credit the Bank
provided storage
marketing facilities to the agriculturistsand those engaged in

activities allied to agriculture,such as horticulture,forestry,fisheries,
and
237
animal
husbandry, dairy farming, poultry-farming, bee-keeping
sericulture. In
for
arrange
implements
its own
addition
credit. Moreover,
on
warehousing
functions
Bank
expected to
agricultural
also
was
supply of better seeds, fertilisers and
the
it could
also construct
provide financial assistance
and
use
this, the
to
facilities. The
Bank
its clients for
also carried
its normal
on
for
warehouses
to
action
and
providing
banking
taking necessary
objective.It was
specifically
required to give preference to the credit needs of small
It also provided facilities for training and research.
agriculturists.
for
of the
business
The
consisting of
Central
Bank
Government,
official of
an
representingthe Provincial
persons
from
by the Government
who
Director,
Directors,
within
the Provincial
and
Corporation, the
had
offices at Lahore
and
and
the
jurisdictionof the Bank.
had
opened
which
had
3 '25
Up
to
lakhs
up
to June
1959
been
was
three
office in
Dacca.
with
diiferent
those of the
Nine
areas.
fell within
Pakistan
the
Bank
wing of the country.

capital of Rs. 20 crores,
of
June
In
amounted
about
Rs.
29
with
start
and
Societies
Rs.
West
to
from
was
30 06
lakhs
Pakistan
Rs.
The
scribed
sub-
ments
Govern-
(Rs. 12 lakhs
business
from
of
15th
April 1959.
in East Pakistan
of which
Rs.
the total amount
8'52 lakhs
of which
outstanding
bulk
of
Pakistan).
the middle
branches
total amount
lakhs.
West
started
the
1959
to
disbursed. The
and
Pakistan
amounting
1959
East
Pakistan
in West
to
Co-operative
East
disbursed.
been
lakhs had
June
1958, and
had
An
matter
any
its head
(Rs. 2*0 crores).Provincial
Government
in
branches
loans
issued
been
each) and
the last week
sanctioned
share
respectivelyin
12-5 lakhs
December,
had
crores
(Rs. 50 lakhs
The
with
of the merger
the time
to
authorised
an
by the Central
Rs.
Up
in
and
Director
in West
twenty-two
the Managing
was
branches, eight in each
sixteen
Bank
Rs.
so
deal
to
institutions functioned
two
Pakistan
districts in East
The
was
overlapping of the activities of the Bank
avoid
To
representing
appointed
two
Officer of the Bank.
Bank
The
latter's competence.
the
Karachi
by
and
Managing
Board
the
by the
of Pakistan, four
Board
the
Executive
consisting of the
empowered
was
of
of Directors,
nominated
and
Governments
Chief
the
Committee,
Executive
Beard
Bank
the Directors
among
was
to
State
the
Chairman
co-operative societies. The
and
entrusted
was
its
Director, five Directors
Managing
to achieve
at
had
24'68
tioned
sanc-
Rs.
4-72
the end
of the loans
in
of
East
238
Pakistan
seasonal
was
and
livestock
they were
largely advanced
Corporation the Bank also tan
lakhs
for the first seven
for
a
months
development
deficit. It
of
in
and
loans
Pakistan
West
purposes.
of the order
was
its life ending March
Like
the
of Rs. 7
and
1958
of
Rs. 5*64 lakh"! for the qaarter

Bank
The
orchards,
sanctioned
loans
The
etc.
of
lack of
the
It established
attention.
Another
housing
the
sought.
remained
time
of
in the
the borrower
11 *13
these
in the
absence
From
face
to
gave
meantime
of suitable
and
was
ed
recruit-
training
buildingsfor
its expansion
debt
the
its earliest
of Pakistan's
handicapped
land
in
laws
gramme.
pro-
hampered
these, however, exemptions with
difficulties
hampered
were
ths
overcome,
Bank's
but
there
still
loaning operations,e.g.
registrationof deeds, lack of landed property with

as
of these properties were
security,etc. Most
to offer
either co-shared
possess
Bink.
which
some
taken
the
but
of the borrowers.
had
Bank
time
one
the Bank
and
State
restrictive
the
the
of
problem
tha
at
Bank
centres
own
offices. This
branch
Most
its
difficultywas
Moreover,
business
this
To
staff from
its management
scheme.
the actual needs
with
difficulties the
major
trained psrsonnel.
One
disbursed
not
were
in accordance
instalments
the
ending 13ih June, 1959.

loans for such items as tube-wells,tractors,
encumbered.
or
clear records
of their
In
many
cases
the
farmers
did not
rights.
Findings of the Credit
Enquiry Commission
The
Finance
CorpDration and the
Agricultural Bank were
variously criticised before the Credit Enquiry
Commission
appointed by the Martial Law Government
in February
1959."
The
main
of
criticism
included
points
the complaint that
1. The
("")To
of reference
terras
examine
of this Commission
the scope
working
and
facilitiesto agriculture, business

(//) To
suggest
of
measures
the
to
country
meet
the
by
facilities
where
creating new
agriculture,small business and
070
To
examine
ensure
by
(iv) To
proper
what
and
of
were;
the
agencies which
industry.
provide credit
agricultural and
improving
necessary,
urban
credit requirements
and by
existing facilities,
with
special emphasis on
the
industry.
special measures
are
necessary
implementation of the land reforms
in the
credit field to
recently approved
the Government.
examine
the training facilities for banking within the

country and to
the feasibility
of setting up an institution for such training.
The
Commission
headed
was
of the State Bank
by the Governor
of Pakistan
(Mr. Abdijl Qadir).The Report of the Commission
1959.
was
submitted
in
consider
September
239
they had failed to create any impact on the rural credit situation,that
their procedural requiremems seriously delayed the sanctioning and
disbursement
of funds, that credit was mainly confined to the propertied
elements,because of the statutory requirements that loans be secured
by the mortgage of land or the guarantee of the landlord, that cost of
borrowing was high due to expenses of travel involved, loss of income
due to absence, and charges of petty officials. Some
witnesses regarded
that
the rate of interest charged (5%) as too high. Others held
thi^ existingterritorial divisions between
confusion
In
the
derived
under
and
resulted
in
insufficient
which
finding was
that
number
"a
of
been
personnel have
sef."2 The
Commission
To
remove
were
was
ensured
the
impediments
to
hampered
required
be
of loans
recovery
and
restrictions
the
from
paucity
the outi
recoveries
simplifiedor relaxed.
they recommended
officials should
revenue
handicaps
that unless prompt

not
was
operate.i Their
to
statutes
own
procedure could
that, in East Pakistan, district
formidable
these institutions
of the view
the
the
legal and administrative
together with the requirements of their

of trained
of this criticism
much
appreciationof
institutions have
these
institutions created
two
in their operations.
inefficiency
opinion of the Commission
from
of loans
the
be empowered
agencies directlyfrom the defaulters

without the necessityof going through the procedure under the Public
Demands
Recovery Act. They also suggested that rewards should be
staff where recoveries
paid by the credit agenciesto Tehsil/Sub-Division
to
arc
recover
the dues
maintained
of the credit
above
certain
levels. After
recoveries
are
assured
procedure could be simplifiedfor which the Commission

ed
recommendrevising of the application form. They further recommended
the borrowers'
special efiForts to be made
to reduce
dependence on
local officials in meeting the applicants' requirements,raisingof the
limit of loans against personal security from
Rs. 500 to Rs. 1,000,
of the procedure of ascertaining the solvency of the
simplification
surety, fixing of the produce not subject to attachment
against debts,
reduction
of
formalities
through issue of
pass
books
in
connection
to land-owners
regardingtheir landed property,

the merger
They considered
1.
Report,
Z. Ibicl.
op.
cit.,
p. 76,
with
mortgaging
of
land
containing full information
etc.
of
the
240
Finance
Corporation and
solution.
in view
But
in the transition
of
to
the
of their fear of dislocation
which
institution,
new
implementation of
the
Agricultural Bank
the
land
reforms
in the
the
be
to
ideal
supply of credit
desirable
in view
was
not
and
of
reorganisation
the
as
mended
recomCo-operative Banks
suggested by them, the Commission
the appointment of an
at the end of two
expert committee
detailed plans for the establishment
of the new
out
years to work
widen
the scope of activities of the two
institution. To
agencies,the
recommended
that they should
Commission
accept deposits and provide
recommended
facilities.
amendment
remittance
an
Further, they
industries
of
in rural areas.
of the statute to permit financing
cottage
of credit policiesthe agencies
of the view that in matters
They were
should
be under
should
continue
so
far
as
We
the
the
of Pakistan, while they
to be
Bank
AgricolturalDevelopment
have
that
seen
of the
merger
criticism levied
also
of the State Bank
direction
subject to the Central Government's
administrative
and non-credit
policiesare concerned.
The
11*14
the control
the
PAFC
PAB
and
recommendation.
and
Government
the merger
regarded
the ideal solution
as
against these institutions.
repeated this
Commission
Enquiry
Credit
Second
The
to meet
Five- Year
This
principle was
the new
took place when
the
Plan
accepted by
institution,
of Pakistan," was
Bank
established
AgriculturalDevelopment
Ordinance, 1961, published
under the Agricultural Development Bank
established
"to replacethe
was
Uth
February, 1961. This Bank
on
and
the
Agricultural
AgriculturalDevelopment Finance Corporation
better
for
make
provision
of Pakistan, and to
affordingcreditBank
and to persons engaged in cottage industries
facilitiesto agriculturists
"The
in the rural
The
Bank
for matters
and
areas
has
share
capital of
fully paid-up shares of

issued by the Bank from time
lakh
the
Central
the
to time
Not
Government.
value
with
less than
crores
the
51%
divided
into 20
of Rs. 100 each
to be
previous approval of
of the shares
issued at
and the
by the Central Government
remaining shall be offered to Provincial Governments, Co-operative
of the public for subscription in such proporSocieties and members
tion
any
time
and
from
shall be subscribed
20
Rs.
nominal
'*
therewith.
connected
on
such
terms
as
for
may
be determined
by
the Central
time to time.
1. Gazette
of
Pakistan,dated
llth
February.1961, p.
1.
ment
Govern-
241
AgriculturalFinance
The
to
head
office of
other
any
place
regionaloffices
Dacca
Bank
The
directed
as
present
Karachi
by the
be
shifted
Government.
Its
but
Central
can
Rawalpindi, Lahore, Sukkur, Sylhet,
at
are
general direction
entrusted
are
is at
Rajshahi.
and
Bank
at
the
to
and
Board
superintendence of affairs of
of Directors
consistingof the
the
Chairman
(appointed by the Central Government), two

officers of the Central
Government, one each nominated
by the two Provincial Governments,
two non-officials,
from each wing, nominated
ment
one
by the Central Governin
and
with
consultation
such
other
Government
to
Chairman
The
Chief
framed
by
There
and
the
is
wings
other
than
The
The
of
the
and
directs
Board,
and
subject
years,
controls
to
rules
as
of the Executive
by
region
each
also
may
technical
on
the
Board.
with
Committee
There
the
appoint
is
approval
a
an
of
Technical
matters.
of the Bank
Functions
Bank
one
Bank
for advice
provides credit
of agricultureand
The
the Central
consisting of the Chairman

must
belong to each of tae
elected
appointed from
and
the
members
are
Bank
the purpose
in rural areas.
least
at
The
Government.
Business
of
Committee
of whom
Advisory Committee
11*13
by
members
Government.
of the country.
Chairman
the
Central
and
concerned,
officer),
appointed for five
behalf
on
Executive
an
Advisory Committee
the
Societies
of the Bank
Officer
Bank
three Directors
two
necessary
(a wholetime
Central
the
considered
Bank.
the
Executive
all affairs of
Government
represent Co-operative
public holding shares of

is the
Provincial
persons
or
person
the
in cash
to
persons
the
transact
can
or
in kind
to
for
agriculturists
engaged in cottage industries
following kmds
of business:
on
deposit.
(a) Accepting money
of the Bank's
for
the
(b) Borrowing money
business
purpose
of
the
otherwise.
assets
or
against
security
and
debentures.
of
and
bonds
selling
(c) Issuing
of securing its loans and advances,
(d) For the purpose
ing
acceptpledges, mortgages, hypothecation or assignment of any
kind
of movable
bank
guarantee
immovable
or
of
scheduled
property
bank,
or
or
unconditional
drawing, accepting,
discounting, buying and

exchange
and
one
signatures,
selling or rediscounting bills of

promissory notes bearing two or more
good
of
them
being that
of
scheduled bank
or
242
Pakistan, A Dewloping Meonomy

co-operative bank,
or
provided,
where
is made
by
however,
to
with
if
necessary,
with
the
Bank
propertiesas
individual
an
bond
other
one
such
or
It is
negotiable instruments.
loan
not
exceeding Rs. 1,000
agriculturist,it
the
Bank
agriculturistmakes
an
sureties
more
an
creating
security,
charge
as
on
any
secured
be
may
may
deem
agreement
of his
specified
credit seeds, agricultural

(e) Buying, stocking and supplying on
machinery, implements and equipment, fertilisers and
other
any
material
used
in
organisation for
the
agent for
as
(repayable within ten years)

ing
of any corporate body concerned
with agricultureor financindustries
in
the financing of cottage
agriculture or
(/) Subscribing
rural
the
agricultureand acting
sale of such goods.
to
debentures
areas.
jewellery,
(g) Having custody of valuables,like gold ornaments,
securities,etc., or collectingof interest or principalon such
securities,administration
of money
etc., remittance
or
immovable
banks
of
estates
and
as
executor
trustee,
or
securities,acquiring movable
properties, taking
over
of
of other
business
corporations, acting as agent of other

banks
financial corporations, investingfunds in Governor
ment
securities, selling of all properties and doing all such
and
acts
be conducive
things as may
of
to the attainment
the objectivesof the Bank.
Notwithstanding anything stated above, any loan guaranteed
or
financial
Provincial Governments
or
be made
by the Central Government
may
without any specific
security.
Ordinance
The
establishingth^ Bank makes
it lawful for any
in
or
a cottage industryin rural
agriculturist person engaged
to
areas
or
immovable
assign any movable
pledge,mortgage, hypothecate
or
property
The
to
the Bank
Bank
to
secure
is allowed
credit, marketing,
to
cottage
loans
taken
undertake
industry,
from
the Bank.
research
any
etc., and
agricultural
on
make
arrangements
facilitiesfor the benefit of its personnel.

for training.
In
to
give
The
transaetjngit" business the Bank

to
preference
Ordinance
the credit needs

lists businesses
is required, as far
of small
which
as
possible,
agriculturists.
the Bank
is
prohibitedto
AgriculturalFinance
undertake
in order
to
that it will
ensure
243
keep its financial foundatioMS
sound.
Provision
the
is made
for which
purpose
Bank
require
may
provisions
Bank
Central
and
on
the
year to year
until it becomes
must
be
loan
payments
time
which
are
coverable
re-
fund
called
tinij such
to
the
other
General
funds
as
the
Detailed
transferred
the General
to
subscribed
transferred
be
dues
Further,
provisions are also made

of the
profit and auditing the accounts
net
profit as determined
by the Board
the
may
forthwith.
of Bank's
to
dividend
Fund,
the shareholders,
to
Any balance
other
any
Reserve
capital of the Bank.
share
equal to
remaining profitcan be utilised for paying
is not to exceed
which
5% per annum.
these
is spent for
circumstances
the
certain
the
establish
to
disposal of the
percentage
in
recovery
direct.
may
that the loan
see
revenue.
from
to create
from
The
the
required
Government
regarding the
Bank.
repayment
of
of land
is
Fund
Reserve
and
for
arrears
to
it is made
the
made
are
as
The
for the Bank
left after
which
reserves
may
be created.
of the Bank
establishment
The
agencies has
duplication involved
been
centralised
in
decentralisation
the
business
attention
to
has
and
the process
personal surety
the
new
will be
medium-term
however,
the
The
It
should,
been
farms.
widened
The
scope
of
and
particular
small
agriculturist.
operations of the older
however,
as
have
been
of
relaxed
providing
supplement
sources
the
rather
of
"concentrate
meet
credit.
on
short-term
longand
"^
proposed by
I. Seeitrtd Plan,
has
improved. Loans on
is hoped, therefore, that
Societies
implemented.
control
been
Co-operative Societies
the
statutory
latter. The
the
Plan, it should
Second
requirements of
not
of
needs.
eflfective instrument
more
Bank
idea of the "pass book"

has
and
been
has
loans
of
Co-operative
the
has
need?
liberalised.
been
have
ultimate
clogged the
granting of loans
the
of recovery
institution
finance and
The
to
which
delayed
agricultural credit.
than
supplant the
As recommended
by
term
paid
the
the
the
will, however, be considerable
There
institution
new
for
against
and
requirements
local
restrictions
legal
credit agencies and
eliminated
been
agency.
meet
been
Various
has
one
of the
levied
of the criticism
much
met
substitute
as
The
the Credit
proposal
01^.eit..p.
S\.
Commission,
is that
pass
^44
Pakistan, A Developing
Economy
book
printed
should
securitypaper
on
be
supplied to
land-owner
every
might apply for a loan. It should contain a certified copy of

records
thereon
pertaining to his land, including any encumbrances
of
land in question.
and should provide information
regarding the value
who
this book
On
before
made
contain
Such
document
can
card, a certified copy

and
with
to
the
the
the
lending
execution
will
The
credit
are
repay
the loans
for
very
and
Pakistan
than
his
the
pass
This
identification
an
the
to
dealings
book
be
with
as
us
credit
the
be
may
to
worthiness
credit-
owner's
treated
appears
will
deposited
equivalent
useful
very
the
of time.
of Non-Subsistence
assuming
been
the
the
produce
Land-holders
the
that
that
almost
agriculturistswho need
they have the capacity to
that
sense
their
of
50%
of
in East
Pakistan
are
60%
number
Their
holdings.
subsistence
population. But it must be remembered

holding is not fixed and immutable
related
of
large proportion of farmers.
estimated
has
It is
procedure of granting
simplify
is
It
advantages.
hoped that the Government
credit-worthy in
from
transactions.
guide
deposit may
mortgage.
course
have
we
this
adoption
Problem
far
So
other
adopt it in due
11*16
case
its
apart from
record
and
agency
land,
the
is taken
credit
of
suggestion and
loans
of title to
etc. It should
cases,
repayment
purposes.
many
serve
complete
When
agency.
and
recording all borrowing
for
of transfers,
arisingout
Sub-Registrar, partitions,inheritance
space
all mutations
be entered
should
land.
The
But
Credit
this is
not
in West
probably operating
will grow
that the area
for
all
mission
Com-
Enquiry
owner-cultivators
the
on
less
with
the
of
subsistence
rise in
times, it being dircct'y
the
productivity of the land. If through the proper use of

better
could
agricultural techniques yield per acre
be increased,
non-subsistence
into
holdings could be transformed
subsistence
ings.
holdto
Therefore, potentially these holdings, at any rate a high proportion

of them, could
be regarded as economically viable. In the
words
of
the
Credit
their cultivators to
"For
Enquiry Commission:
become
credit-worthy there are
two
prerequisites:(a) theie must
be arrangements
for ensuring that the credit is productively used, and
of co-operative effort is engendered." By the co(b) a measure
operative
effort,the Commission
implies not grouping these farmers
into ordinary Co-operative Credit Societies,but some
sort of co-operative
We
of
shall
discuss
the
farming.
possibilities co-operativefarming
245
AgriculturalFinance
in Pakistan
in the
Co-operation. As regards the

kind of
it implies some
by the Commission,
which
is discussed
in the following section. Here
we
other valuable suggestions made
the
Commission
by
chapter under
next
firstrequisiteconsidered
supervised credit
may
mention
some
in this connection.
These
(i) Removal
of
Under
are:
legal restrictions
section
61
Governments
can
produce from
for
Civil
exempt
such
providing
In
circumstances.
Debtors'
and
Protection
execution
of
individual
credit
small
reasonable
(ii)Another
Such
safeguards
farmers
and
other
Punjab
than
extending
be
cotton
to
debar
credit
removed,
to
but
adopted.
also
may
be
extended
personal surety of
flexible
more
timing of
of the
matter
khaikhalashi
the
on
the
of
tends
be
must
basis
restriction
loans
is that
is not
for sale in the
should
They
of
10
the
attachment
from
agencies
borrowers
adopted in the
to
until
the
on
section
liable
holders.
suggestion
individual
(Hi) The
not
decree.
institutional
determined
Under
agricultural
regarded necessary
proportion
Act, standing crops,
are
sugarcane,
some
is
and
the
cultivator
this
Pakistan
East
are
as
the
to
crops.
Provincial
Code,
portions of
debts
subsistence
specified beforehand
individual
Procedure
for
attachment
harvest.
next
the
of
of
hypothecation
on
attitude
more
should
to
stantial
subbe
the repayments.
of finance
involving the grant of

of land, which
against the usufructuary mortgage
has
been
limited
scale in East
a
successfully tried on
this system
be
extended.
Under
what
Pakistan, should
method
credit
are
known
khaikhalashi
agriculturists against
sum
approximately
produce.
for
"The
banks
to
the
to
small
for a
mortgaged
one
year's total
of
the land
possession
of
value
obtains
mortgagee
loans
is
which
land
equal
advance
period not exceeding fifteen years. The mortgagor

to
cultivate the land on the burga system,
usually continues
i.e. on
on
a
being
share-cropping basis. The borrower
entitled only to half the
reduced
to
tenant
becomes
a
a
produce
for
after
meeting
6|%
and
fifteen
years." The
establishment
repayment
of
present practice is that
expenses
principal
at
2J%, interest at
6J%, the remainder
at
24".

is allowed
of
out
this
borrower.
his
accumulate
to
borrower
time
spite of
needs
(/v)In spite of
debts
losses
or
Spcieties are
of
millions
many
in
not
in
the
to
against losses by
of
it is
losses
the
be
should
loans
to
up
be
so
as
fore,
is, there-
guaranteed
prescribed percentage
lending
the
by
It
Government.
Government
because
Commission
The
by the community
met
the
Co-operative Society or
involved.
such
sustained
them,
bear
to
Co-operative
agency,
whether
statutory credit agency.
Supervised Credit
11 ; 17
The
to
during
assist the
the
discussed
as
the
credit needs
a
of
South
of
helping
the
1930's
adopted this
it has
then
American
the
in
financially embarrassed
farmers.
of low-income
possible method
U.S.A.
Since
Depression.
of the
some
and
low-income
Great
successfullyadopted by
meeting
first evolved
was
Security Administration
system of lending
farmers
credit
of supervised
concent
tlieFarm
when
the
banks
farmers, bad
The
occur.
are
suggested that such losses must

whole through taxes
paid to
a
that
any
These
of such
case
position
farmers
recommended
at
Co-operative Societies. In
the
the experiment
system,
bound
are
The
extended,
precautions
all
future.
mortgage
interest.
to
which
as
of
and
be continued
to
sum
the
to
money
in the
the
with
established
weaknesses
some
sum
and
addition
in
of
debt
into
borrower
granted
are
years,
tidy
getting
entire
the
been
far
so
fifteen
likes, terminate
if he
can,
of
gets
from
by paying
have
end
borrower
him
protect
may
the
After
the
of
loans
saving short-term
the
land
credit
the
to
been
countries
It has
been
subsistence
for
recently
farmers
in
Pakistan.
basic idea
The
behind
this
scheme
is
that
if
technology and
the
supplied together under
supervision, even
proper
be made
can
subsistence farmers
credit-worthy and their productivity
and livingstandards
markedly improved.
credit
are
The "distinguishing
features
of
this
svstem
of
providing credit
credit is used.
(a) It involves supervision and control of how
is
the primary
consideration
(6) TPrpspectsof increasing productivity
are:,
and
the offer of material
lending
agency
does
not
security for loans
merely
supply
is only
funds,
secondary, (c)The
it
also
helps in
247
AgriculturalFimxnce
planning of
the farmer's
business
operations
expenditure, (d)
lending agency
improved farming techniques, (e) It
The
interinediate-term
and
loans
granted
are
in kind
main
(/)To
and
purchase
to
rather than
The
needs
available
regarded
Loans
short
long-term
cases
usually given
are
the
whose
encourage
who
use
fail
otherwise
conservatism
either
to
an
tions,
lending institu-
their
farming, lack of
collaterals,
other
and
techniques
such
in farmers
emergency
or
farmers
among
due
techniques
lack of financial
or
not
are
is low.
better
adopt
to
self-confidence
create
due
capacity
of
of
who
the
by
of land
form
the
repayment
the
unit
small
farmers
to
credit-worthy
as
adequate security in
To
the
to meet
exceptional
facilities
credit
of
because
{Hi)
mainly
(/)
etc.
follows
the farmer
objectivesof the supervised credit are:j
usually
and
in
family living
as
in cash.
make
(li)To
is given
only
land,
it that
tc
sees
well
as
to
rance,
igno-
resources.
ties
facing financial difficulto
low financial
initially
resources,
(Iv)To turn non-credit-worthy farmers in credit-worthy farmers

thrbugh increasing their productive powers.
The
is based
system
national
importance
the
on
and
that
assumption
responsibilityof
it is the
farmer
every
the
is of
nation
that
he
kept productively busy whether
credit-worthy or not in
if
Even
business sense.
a grant-in-aidis justified,
necessary,
aLd
mixed
not
be kept separate
should
though its account
up with
role of the S (ate is
the
the
it is that
lending operations. Hence
he is
the
is
usual
speciallystressed
in the
ordinary business
let the
extra
payer.
In
long
productivity and
To
work
conditions'
to
loans
however,
run,
it pays
expensive
prove
be in national
it may
reasonable
may
limit, be
interests
borne
by th6
for itself through
to
fax-
increased
the national
welfare.
advantages contributing to
and
successfully,however, ccftaiii
fruitfully
system
be satisfied:
rnust
on
the
lather
be
must
lending agency
willingto
able and
of
increased
basis
of future
prospects
than
material
security. Such
necessarilybe
{b) There
system
other
the
must
(fl)There
But
sense.
expense, up
fhe
The
in this connection.
be
Government
or
an
technicians
agricultural
vity
producti-
agency
musV
body.
semi-Government
of
advance
the
requisite
248
Pakistan,
calibre
and
in the
matter
in
adequate
experts
qualificationsof
by
follows
as
Developing Economy
of the
Such
should
have
numbers
use
of
are
the
credit
authority:
foundation
"A
system. The
the
have
been
farm
ed
describ-
technician
in both
Specially he should
phases of supervised credit as
sciences.
physical and social

training in the various
have
v^rell as
pest control, livestock
soils,crops,
of
of this kind
competent
good
niques.
agricultural tech-
and
backbone
technician
supervise
and
advise
to
in such
subjects
as
diseases, demonstration
farming, planning, analysis of farm

earning capacity of a farm, rural
social psychology, rural banking and a broad
understanding
families."^
rural
with
work
how
to
of
smoothly
of
improved methods
business, determining
of
(c) There
be
must
the
agriculturaltechniques, of proved efiSciency,

of the
fitted for the conditions
concerned
country
which
can
farmer
by tbe agricultural technician.

Further, the supply of improved seed, fertilisers,
implements
be
made
available
in adequate
and pesticides,etc., must
be
used,
where
to
tt ey are
quantitiesat places
to
be
must
willing
co-operate wiih the advising and
(rf)Farmers
passed
be
the
to
on
lending
Pakistan.
as
credit
one-half
to
usual
in
banking
As
Pakistan.
two-third
about
farmers.
subsistence
the
offer. Even
or
those
on
These
cannot
who
crops
sometimes
we
be
have
considered
been
in
of
country
estimated
credit-worthy
in
and
normally uneconomic
country. They are not easily accessible
have
be attached
land
They
have
be
cannot
Nor
can
in lieu of payment
funds
even
State
1, Spfir(:e:
little
security
deprived of
their
to
it either
bullocks, implements
They may be
of loans.
of calamities, like
need
in this
seen,
farmers
till small
They
sense.
practical considerations.
genuinely victims
They
by the
withdrawing credits
or
have
of the
holdings scattered all over the

to the ordinary banking institutions.
legallyor
lend
to
enforced
non-co-operating farmers.
possibilityof introducing such a system
as regards the
is no
doubt
There
regarding the need and usefulness
supervised
from
by refusing
agency
be
can
course
the
from
Now
of
This
supervising agency.
drought, floods, insect pests, etc.

for their day-to-day domestic
needs
Bank
of
Pakistaq,
AgriculturalFinance
which
legitimate.If
are
farmers
such
249
could
be
helped
through
advancing of adequate credit and were also advised regarding the use
and discipline
of use and
enforced, they could
repayment
produce
become
and
more
The
is
shrewd.
that
knows
he
party
experience
making
of the
administration.
this is not
ed with
he
it. But
exploitation
This
without
always
inspiring officers
welfare
of
raiher
administrators
but
has
in most
people have
sympathetic
had
entrust-
servants
acted
cases
as
interested
in the
Before
fides
long
bona
mistrustful. And
friends
coming
is
change
he
representativesof
the
Government
painfully slow.
it is
the
he
past
of
better crops,
of
suspicious and
than
farmers.
the
the
part
The
reason.
of rural
the welfare
him
made
has
convinced
In
the
on
and
give more
be
must
in many
is buttered.
Once
side his bread
suggestion.
the
and
quite intelligent
will
of action
course
is
which
knows
He
follow
willingto
of the
farmer
Pakistani
average
quite
cases
economically solvent.
attitude
the
of the
full
expect
can
we
awe-
in
the
ensure
co-operation from the farmers, therefore, we
the
of
is
standard
in
requisite
advising and supervising agency
to inspire confidence
minds
in the
technical and human
qualifications
that
must
of the
advice.
recipientsof such
And
here
in
tual
level,technical knowledge
is the
Nor
lowest
in
the
agency
that of the V-AID
and
paucity of
experience
of
tue
V-AID
of his intellect
person
could
this
assume
mentioned
that
deliver the
goods.
Agriculture, who
is the
Department
official hierarchy of the Agriculture Department,
a
His prestige is even
lower
the purpose.
to serve
than
of the
Moqaddam,
suitable
the
It is doubtful
in this connection.
could
who
Pakistan
technically qualified persons

The Credit Enquiry Commission
responsibility.
worker
is great
There
bottleneck.
chief
lies ths
People of
worker.
agriculturaltechnician
in routine
this
could
level
perhaps
assist
matters.
nical
agriculturaltechnician would have to be a person of the techlevel of the present Agricultural Assistant, with
some
further
The
training in the
human
this level is at present

numbers
on
the
side
very
it will be wiser
limited
conditions
are
scale. To
most
inspirethe farmers
of his duties.
limited. Until
to introduce
favourable,
of other
so
areas
they are
the
with,
start
with
availaPle
the
may
in
ba
serve
desire
to
selected
as
of
adequate
of sapervised
should
they
of people
number
system
areas
that
the
But
credit
where
models
to
follow similar
^^^
methods.
Finally as
regards the agency to supply the funds. The

com-*
mercial banks, for reasons
undertake
this
already noted, will never
type of leading. The
Co-operative Societies have neither the funds
the technical
nor
competence
act
may
approached.
channels
as
Nor
through
the Government
can
and
Agriculturallmprovement
ever,
being. These, how-
it for the time
do
to
may
be
it directly under
the
farmer
the
which
undertake
Loans
Agriculturists'
cial
Provin-
The
Acts.
the proper
Budget would not allow it. Nor has the Government
needed
The
this purpose.
for
only
machinery of administration
which
Bank
fitted for this task is the Agricultural Development
agency
Agricultural Bank.
due
to
course
will have
to
up
11
'
The
to
eatire
the
cover
of its activities
scope
should
the
by
Bank
the
expanded
be
Government,
The
country.
suiTered
losses
underwrite
in
however,
this account
on
specified limit.
18 Role
At
of the
State
AgriculturalFinance
in
Bank
this stage it is necessary
constitution
chapter
in the
Bank
of the State
the
Corporation and
recently replaced the Agricultural Finance
has
of the
Banking in the second
on
that
the State
country
has
the
and
words
about
of
volume
of Pakistan
Bank
State
this
work.
fuller
the
utilisation
of
its
study
in
our
it may
bank of the
Here
in its
Bank
the role
shall
capacity as the central

responsibilityfor ensuring the monetary
be noted
the country
few
say
sphere of agriculturalfinance. We
functions
and
to
in
stability
productive
resources.
policies.
ends,
appropriate
pursue
With
the same
object it supervises the working of credit agencies to
like every
eflScient lending practices. Moreover,
sound
and
ensure
other central bank, it is vested with the responsibilityof being the
lender
of the last resort.
Apart from the traditional functions the
central
bank
of aa underdeveloped
State Bank, as the
country, has
institutional
found it necessary
to promote
to take specialmeasures
an
To
achieve
framework
economv
The
up
to
catering to the needs of

including the agriculturalsector.
Bank
Order,
allowed
established
was
1948.
to advance
a
credit
to
for
State
Pakistan
it has
these
To
assist in ttie
short-term
period of
considerablyextended
nine
the
loans
months
role
of
different
under
the
sectors
State
of
the
Bank
of
financingof agriculture it was
provincial co-operative banks

only. The State Bank Act of 1956
to
the
State
Bank
with
respect to
251
AgriculturalFinance
agriculturalfinance. Under this Act the State Bank has been
to give various types of assistance
to the co-operative banks
longerperiods than
make
for
funds
before.
available
to
Apart from
this it has
institution
any
promoting agriculturaldevelopment
1956
was
again
hold
and
sell shares
amended
lished to promote
recently.
and
bank
or
the
and
empowered
been
for
to
established
specifically
in the
Now
allowed
country.
Bank
The
Act
of
purchase,
can
estab*
banking company
and
development of a specifiedarea
of promoting agricul*
for the purpose
debentures
the economic
of any
also any corporationestablished

tural development in the country.
Under
the
State
Bank
of
Act
1956, credit facilitiesare
provided
and
other institutions for the financing of
co-operative banks
agriculturalcommodities, and financingof agriculturaldevelopment
to
as
under:
loans for a maximum

period of fifteen months
(1) Short-term
the
for
seasonal
are
financing
agriculturaloperations and
provided
loans are made
available
Such
marketing of agriculturalcommodities.
bearing two
by rediscounting bills of exchange and promissory notes
good signatures,one of which must be that of a scheduled bank.
loans and advances
for
or
(2) Short-term
repayable on demand
fixed periodsnot exceeding ninety days are granted against:
and
bills of exchange as are eligible
for
(a) Promissory notes
rediscount.
(fe)Promissory
of
ments
notes
of
title to
credit
or
scheduled
such
goods,
pledged
assigned or
cash
to
overdraft,
financing seasonal
bank
documents
any
such
supported by docu-i
ferred,
having been transbank
for
granted
agriculturaloperations
as
the
or
security for
purpose
the
of
marketing
of the crops.
(c) Trustee
securities.
for periods up to five years provided

loans
(3) Medium-term
for the financingof agricultureor of agriculturalor
anioial produce
against promissory notes bearing two good signatures,one of which
be that of
must
Central
scheduled
bank
or
any
corpordtion approved by the
Government.
(4) Credit
banks
facilities are
established
specially
development
in the country,
also
made
available to
institutions
or
for the purpose

of promoting agricultural
and
conditions
terms
on
determined
as
252
from
time
A
Bank
time
to
Rural
with
advances
Credit
Fund
initial
an
has
State
of interest to
Board
of Directors.
created
recently been
capital of
co-operative banks
to
The
by the Central
Rs.
for
crore
rural credit
and
the
by
State
grant of loans
and
agencies.
Bank
rate
of charging a lower
gives the concession
cial
co-operative banks than rates charged from commer-
banks.
Under
section
of
37
the
Act, provision has
scheduling of the co-operative banks. This

the co-operative banks
and
between
scheduled
the former
to
of
matter
enjoy
equally with
them
transfers
purposes
are
of
of
facilities the
scheduled
the
lower
banks
than
those
remittance
co-operative banks
banks, but
the rates
charged from
central
thus
the
to
co-operative
for
enabling
latter. In
not
the
only enjoy
charged for small
commercial
banks
made
the distinction
removes
all the facilities available
remittance
been
banks.
are
treated
For
as
provincial co-operative
improve
State
the
Bank
maintains
an
working of co-operative banks
warded
organisation for their inspection.Reports of such inspections are forto the Registrar of Co-operative Societies with suggestions for
where
also
The
State
Bank
improvement
helps the
necessary.
banks
the
trained
staflFand
in obtaining
services of
co-operative
gives
financial assistance for training their staff.
branches
the
banks.
In
order
to
the
As
a
required by the State Bank Act, 1956, the Bank has organised
special Agricultural Credit Department the statutory functions
of which
are:
(a) To
maintain
an
agricultural credit and

Central
Government,
other organisations.
(b) To
with
co-ordinate
study all questions of

be available for consultation
by the
and
provincial co-operative banks
to
the
in connection
operations of the Bank
agriculturalcredit and its relation with the Provincial
co-operative banks
the business
The
staff
expert
State Bank
of
and
any
other
organisation engaged in
agriculturalcredit.
is
greatly interested in encouraging research in

problems, particularlythose connected
with the credit system.
It has given financial assistance to the universities in botn
the wings
rural
for
carryingout socio-economic
and
other
surveys.
253
AgriculturalFinance
11
19 The
'
The
Second
Second
Plan
Plaa
Credit
Rural
on
makes
following proposals in connection
the
with
improving rural credit facilities:

well as further develop"
for ths rehabilitation
as
(1) Provides
main eflfortis to
of the co-operative movement
at all levels. The
ment
best
tha development of primary societies. "The
b" concentrated
on
prospect of solving the problem of rural credit lies in setting up
co-operatives."*
(2) Until
will continue.
co-operatives
to four tyoes of
areas:
mainly
extended
exist and
co-operative societies do not
(i)where
loans
iaccavi
country,
period they will be
the Plan
During
entire
the
cover
likely to be established; (u) where ofSces of the Agricultural

Corporation or Agricultjral Bank (now Agricultural Development
not
are
Bank)
do
exist;(iii)where
not
colonisation
is in progress
but
co*
operative societies have not beei or are not likely to be established;

land reforms
where
(jv) in special cases in areas
are
being implemented.
Plan recomcnends
The
simplificationof the procedure of
for making recoveries more
efifective.
gettingloans and measures
be
to
(3) The Agricultural Bank and the AFC
amalgamated
into
where
which
institution
new
should
co-operative societies
immediate
ars
non-existent
in both
where
or
being
co-operatives.
of their
prospects
branches
open
established.
supplant, the
the
there
The
interest
which
should
enable
administration,losses due
(5)
Plan
to
National
Credit
be carried out
all aspects
to
bad
the
debts
Survey
in order
societies
and
to
other
to obtain
no
is
to
various
a
rate
the cost
cover
of
of
liabilities.
recommended
as
are
Bank
supplement,
of the rate of interest charged by
(4) Rationalisation
credit agencies. In principle loans
should
be extended
at
not
wings
in
adequate and
the
accurate
First
data
of the
problem.
of a
(6) Establishment
warehousing corporation
as
mended
recomby the First Plan and also by the Credit Enquiry Commission
which should build godowns where
giving first priorityto
necessary
on
served
areas
by Co-operative Marketing
Societies
and
the
Agricultural
Bank.
(7) Establishment
of
co-operativecollegesin each wing for the
1. Second
Plan,
op.
eit,,
p. 178.
2S4
Pakistan,
DevelopingEconomy
training of personnel. A provision of R":. 203 millions is made

of
development
Pakistan
11
'
rural
Conclading
In conclusion
the
Pakistan
Rs.
millions, West
70
Rs. 93 millions.
Remarks
it may
be added
agriculturalcredit system,
that, without
properly organised
agriculturalsector
the
of
Pakistan
can*
level of progress
required for a developing

The
present needs
agriculturalcredit are much ahead of
country.
and
as
the existingsupplies
population grows and economic
develops
of
the
sector
the
will expand and so
exchange
proceeds,
ment
economy
f^r
need
credit.
One
of
the
the
will
agricultural
primary tasks of
wish to establish an
effective and
efficient agricultural
those who
in the
the agriculturalborrower
credit system
country is to make
well as the responsibilityattached
as
to
realise the importance
cultural
agribe made
must
to distinguishbetween
cêdit. He
productive
not
achieve
East
40 millions. Centre
Rs.
20
credit"
for the
necessary
of
and
unproductive
borrowed
means
can
be
process
of
repayment
productive
of
be
must
money
for the
of credit.
use
there
sums
be
second
of
country.
Their
to
as
way
and
hesitation
no
realise
to
that
create
the
credit
that where
in
the
is connected
needs
The
prevailing in Pakistan.
and
comparatively small means
conditions
men
meet
can
borrovved
problem
important
organisationwhich
such
made
using it.This is a
will achieve
results in adequate measures
to give it the necessary
emphasis.
slowly, but it is worthwhile

The
in
should
be
must
used
the
and
education
He
with
the
type of
of credit
supply under
agricultural producers
degree of credit-worthiness
are
scattered
is rather
all
low and
over
the
are
the
their pro*
human
hazards
control.
The
subject to many
beyond
and
tradition-bound.
illiterate
people are ignorant,
majority
of their pressing needs and laclc
be
because
easilyexploited
They can
done
as
of reserve
was
by the unscrupulous private moneypower,
lender
during the British period. The organisation which
supplies
the one
credit to such
hand
be intimatelyconnected
on
people must
with the life of the people at the village level, so
that it is in a
fession
is
of the
position to scrutinise
supervisethe way the
the
credit-worthiness
borrowed
funds
are
of
the
individuals and
being utilised.
On
the other
hand, it should have an ultimate central control at the provincial,if

not the national, level,for the sake of uniformity of policy,co-ordination
of credit with
other
needs
and
activicies of the peasants and
ulti^
sanction
mate
borrowers.
with
The
district,
the
ideal
bodies
the
pre-condiiions
will
have
agencies,
also
time
some
so-called
use.
Some
V-AID
only
the
could
that
the
as
hand
of
his
i.e.
credit
goae)
act
must
taking
land
the
is
not
an
efforts
labour.
measures
It
wich
to
the
to
supply
borrowing
increase
the
be
may
of
interest.
its
wasteful
that
(now
which
should
not
but
channelled,
problem,
associated
to
what
through
credit.
insolated
make
with
programme
be
For
farmers,
avoid
to
could
Attempts
societies
the
rates
medium
supervised
intimately
appropriate
and
as
process
for
of
nominal
oa
and
bodies
foundations.
secure
supplied
be
So
Government
co-operative
supervision
strict
marketing.
with
to
adequate
chapter.
next
public
proportion
have
certain
in
the
and
development
Is
of
sound
at
been
requires
the
the
to
it,
have
country
create
commuaity
credit
It
and
by
power
of
such
production
will
medium
and
large
educational
necessary
as
in
has
problem
treated
hand
of
in
subject
on
uader
done
such
serve
put
credit,"
kind
as
be
farmers,
be
must
the
in
supplements
as
to
successful
be
existed
role
quite
"subsidised
this
serve
come,
marginal
called
But
to
to
should
levels,
co-operatioa-minded
greater
to
tbis
become
them
help
to
national
not
to
not
only
not
have
come
play
to
far
so
shall
do
the
level
assisting
and
the
on
village
the
at
supervising
co-operation
which
people
as
and
unit
the
as
responsibility
of
sense
controlling,
But
We
long
necessary,
society
provincial
agency.
measures.
if
co-operative
appropriate
the
but
enforce,
to
2^^
Finance
Agricultural
be
realised
should
nor
the
also
be
it
of
process
should
credit
farmer
the
go
worthy,
credit-
productive
CHAPTER
12
Co-operation
12
Co-operation
"
"
world
The
reached
other
is torn
to-day
its high watermark

has
former
Compromise
manifested
Neither
of
its theory claims.
what
these
distinguishthe
Capitalism is based
which
own
lystem
is the
organise and
to
take
rent
are
demand,
of supply and
State. Individual
this system,
embodiment
pure
definite characteristics
of
of their
the other.
moves
on
more
within
though
even
latter
individuals
to
labour,
to
monopolistic organisationshave
lifeis controlled and regulateconomic
ed
under
freedom
is
the
Though
developed in various fields and

by the State in div2rse ways,
matter.
competition in economic
all determined
and
Capitalism
the
The
of
ownership of the means
of
The
this
private enterprise.
pivot
which
risks.
and
private
of
profitmotive
systems
from
on
freedom
production and
as
ttiey have
one
industrial system
has
one
Socialist State of the U.S.S.R.
knowa
But
ideologies.The
two
American
itself in the
is commonly
system
Communism.
between
in the
the
has
such
the
whole
the
system
allows
free
interest,profit and
Prices,wages,
less free operation of the forces
or
established by the
legalframework
been
claitLcd
freedom
as
involves
the greatest
economic
ooon
of
insecurity
for the less fortunate.

Soviet
of
the
Communism,
of
means
Production
the other hand, is based
production
does
and
not
on
socialisation
permit free enterprise.
planned system enforced by the

of the State, exercised through a virtual dictatorship
is carried
sovereign power
on
on
under
2-57
Co-operation
Party, which is a minority of the population.Each

find his place as indicated
must
man
by the exigencies of the plan.
though it
The system
individual freedom
seriously encroaches
upon
ensures
employment and care in sickness and old age and thus grants
of economic
the maximum
security.
is
and
points. There
the systems have their weak
Both
strong
of the Communist
of
growing body
undesirable
It
extremes.
of
characteristics
life of
economic
of
means
were
individual
production
regards both
of them
combination
of the best
be
could
to
be
could
Communism
and
community
system
which
suggested that
is
Capitalism
such
lines. Under
in the
opinion; however,
be
organisedon
and
freedom
preserved
achieved
as
if
co-operative
private property
the
without
tration
concen-
Capitalism. On the
of the personal greed encouraged by a system
other hand, instead
profitmotive, a sense of collective good could be inculcated
on
run
the regimentation of their lives involved
the people without
among
to
socialistic society.In this chapter we
propose
under a full-fledged
fields
study the applicationof the co-operative principlein the various
ment
instruas an
in the sub-continent of India in the past and its possibilities
in the planning of economic
and agency
development of Pakistan.
is Co-operationi
2 What
12
of economic
power
which
is the
of
bane
Says
well-known
authority
individuals associated
to secure
Co-operation:
end
common
to
the
share-holders of
speculative company.
with
given to Co-operation
Some
oft-quoted
capital"C"
definitions
A
a
gang
century
more
of Co-operation
"Every group
are
of
effort may
be
of robbers,
or
by joint
co-operate; for instance, a football team,
said
1.
on
of history has
precisemeaning.
It
given below:
theory of co-operation is very brieflythat an isolated and powerless

mutual
and
individual can,
by association with others and by moral development
in his own
available
degree the material advantages
to wealthy or
support, obtain
and thereby develop himself
of his natural
to the fullest extent
powerful persons,
advancement
abilities. By the union of forces material
is secured, and
by united
action self-reliance is fostered, and it is from the interaction of these influences that
the effective realisation
of the higher and
it is hoped to attain
more
prosperous
has been
characterised
better business, better farming and
standard of life which
as
Committee
better living" Maclagan
Report, para 2.
(i) "The
"
(h) "Co-operation is the act of persons,

voluntarily united, of utilising
forces, resources,
or
under
both,
mucual
reciprocallytheir own
to
management
common
profit or loss"
Harriets, Rural
Credits, quoted by Calvert, The Law
and Principlesof Co-operation, p. 12.
"
(Hi) "Co-operation
Co-operation, p.
7.
is
self-help made
efi'ective by
organisation"
"
Plunket,
258
Pakistan,
indicates
end
by
the association
honest
that the
basis
of individuals
feel
because
those
if
who,
in fact
who
meet
Thus
three
feel
which
at
real need
is
as
easilyon
important
member
himself
of
is
be
another."
only
it
enter
democratic,
of
not
writer, "is
those
men
will
admitted,
are
modest
status,
equality, will
resent
"i
equal footing.
an
characteristics
Co-operation
co-operation
of
forms
it aims
will
of
co-operative society
and
(a) it is voluntary,{b) it is democratic^

its aims
in many
economic
common
voluntary, because
need
only the honest

most
secure
personal knowledge of one

association," continues
the
same
economic
the
to
possess
of
(j)voluntary,(n) democratic:
who
Developing Economy
it is also essential
means;
individuals
"The
moral
(c) the
notable:
are
element
in
the material.
as
voluntary because
co-operative
is forced
person
no
becomes
society.He
to
become
only if he
member
joining the society will be to his good. Co-operation

external
securitythrough self-help without
pressure.
feels that
gives economic
"Economic
securitycould conceivably exist with a high degree of
material prosperity in the slave state but at the price of slavery."-'
tions
because
a co-operative society funcCo-operation is democratic
elected by members
the basis of "one
on
through a committee
of a
vote." The
membership
one
co-operative organisation is
man,
to
open
In
the
anyone
who
distribution
wishes
of
join it and
to
can
profits also
the
the
of the
the
among
The
members
in
third basis of
proportion
their
to
co-operation
society
those
is
dealings with
is its moral
who
tribute
con-
to
reserves
up
or
it.
principleis
democratic
of profitaccrues
to
preserved. Only a limited amount
surplus either goes to build
capital. The
strengthen the financial foundations
from
benefit
derive
distributed
the
outlook.
society.
It seeks
to
all
It gives equal opportunity

by man.
exploitation of man
aid
mutual
and
of
self-reliance
among
and aims at creating the habit
business
but
stresses
better
teach
does
not
It
merely
the members.
of
better
living.
the importance
tion
of the co-operative principlein its practical applicaThe
scope
field
economic
co-operative
a
is as wide as life itself. In the
to
avoid
1.
2.
from
Labour
Strickland, Co-operation
Quoted
by Co-operative
Co-operative Organisation
Oflace.
in
and
India, pp.
Planning
Post-War
15-16.
Committee
Report
Relief, published
(1946), p. 4,
by International
25P
Co-operation
Production,
be organized for a vast
variety of purposes.
societycm
societies
have
fields. You
can
finance,marketing are the well-known
social
in
for better
living, education, sanitation, improvement
etc.
customs,
play a very significant

co-operation can
local
The
democratic.
make
effective role. It can
and
planning
co-operativesocietycan act in a dual capacity. It can educate public
of the plan and see that
interest in the purposes
opinion and awaken
In
planned
economy
properly implemented in the area of its influence

One other hand, it can
and jurisdiction.
keep the State authorities
reactions of local opinion.
informed
of the views, aspirations and
these
are
purposes
Further, it
act
can
the
as
unit
economic
which
through
the
poses
pur-
plan can be realised.

One
specialfeature of the co-operative principleof organisation
well as
as
note
that capitalistic
is its adaptability.It is significant
to
socialistic societies have
adopted this principle for their purposes.
control
is open
it
the
to dispersion of economic
While, on
hand,
one
the other hand, it is capable of achieving a high
into local units, on
of creating
of control
through the method
degree of concentration
and
of smaller
federations
12
of the
programmes
units.
History of Co-operation in India
has been
co-operative method
the U.K., Germany, France, Denmark
have
be used, as we
It can
noted, in
The
wholesale
trade, production
countries like
tried in various
with
and
Sweden
the
field of finance, retail and
great
in general, in fact living in
success.
general.
sought primarily to solve the problem of

of agricultural
ed
extendindebtedness.
the growing menace
Later, it was
other
fields as
to
well, though credit co-operation has
always
the most
field
remained
in
this
sub-continent.
important
in India
Co-operation as a movement
was
already forty-three
In
India
its aid
was
the
country was
years old when
instructive to trace its history and
partitioned in 1947.
achievements
before
It would
be
the emergence
of Pakistan.
the
During
faced
closing decades
of
the
nineteenth
century,
India
was
debt, which
assuming
problem
About
this
time
the
of
small
success
menacing proportions.
village
and
banks
in Germany
attracted
the
attention
of
those
who
Italy
was
were
with
anxious
the
to
solve
of
this
rural
problem.
Mr.
Frederick
Nicholson,
260
Madras
the
Civilian,
and
system
Mr.
Dupernex
Captain
which
deputed by
was
his report
in
the
Crothwaite
could
Famine
be
Credit
Purjab
registered under
Commission
of credit
the
Provinces
of 1901
associations.
The
this Act
of
object
among_
means."
societies
The
speaking,
in
the
Raiffeisen
and
in
have
societies
to
were
organisation
capital,
entrarce
fee and
or
has
limited
capital from
The
in
and
Act
the
of the
credit
pays
ofiBce
until
features
predominantly
passed
Credit
out
village, no
ship,
member-
wider
fee
entrance
provision is
to attract
were
Report, Royal
in
and
partly
workers
movement
movement
and
of the
Commission
for other
the
forms
anxious
was
enthusiasm
had
conditions
its birth.
initiative and
to
yet
to
that
take
charge
forthcoming."'
to
of
of any
outcome
of
the
These
It has
been
control
have
Government.
under
8,177
on
since
of the
way
such
were
the
restrict the
to
specially educative
which
under
ment
move-
the
not
established
be
the
India
the
was
inevitable
formed
of the
course
partly because
was
pave
features
three
out
deliberatelydecided
people. Public
should
of the hands
the
Government
the
was
to
were
influenced
movement
unofficial
credit
societies
there
to
has
(1928) pointed
could
of the
it
struck
have
model
bearers, charges
only. This
which
was
department
movement,
1.
It
Thirdly,
government
restricted
Schulze
of debt
problem
the condition
created.
Raiffeisen
followed.
joint responsibility about
The
was
credit
to
society
demand.
ameliorate
Schulze-Delitzsch
of
were
last-mentioned
"Firstly, it
co-operation. Secondly, the

popular
Germany)
principlesof
the
well-to-do.
India.
importance
1911-12
societies
in
The
liability.
the
operation of
never
rural
Agricultural Commission
policy which all along
new
of
of
Generally
urban.
or
those
of limited
persons
rural
societies
dividends.
and
either
liability,
membership
no
thrift,self-helpand
encourage
members,
more
distributes dividends
be
Co-operative
of the
be
of urban
that
ten
unlimited
"to
was
(both pioneers of Co-operation
value
introduction
the
passing
artisans
agriculturists,
co-operation
of the
the
was
The
Law.
ordinary Company
strongly recommended
result
and
Maclagan
Edward
organising credit societies
were
the
this time
About
Societies Act, 1904.
The
and
and
study
to
Governirent
published in 1895-97.
was
United
in
the Provincial
the
Act
societies, with
Agriculture
in India
of
a
1904,
and
membership
(1928).p. 444.
by
of
261
Co-operation
403,318
and
working
however, certain
it did
discovered
were
give legal protection
not
other
capital amounting
defects
credit.
than
Secondly,
in the
growth
first
for
formed
place,
purposes
of societies
number
the
of
Soon,
crores.
the
In
Act.
societies
to
"the
3"35
Rs.
to
rise to
difficultyexperienced
raising capital locally gave
form
of central organisation to
the question of establishing some
also to
and
supervise them."'
provide capital to local societies
the
and
in
Thirdly, classification into
unscientific. This
and
inconvenient
Societies Act, 1912.
following
in the
and
rural
This
led
to
Act
new
societies
urban
the
passing
sought
found
was
of the
tive
Co-opera-
these
meet
to
be
to
defects
manner:
(i) Non-credit
o'
forms
co-operatives affecting purchase, sale,

recognised,
production, insurance, housing, etc., were
organisations for supervision, audit and supply of
(if) New
capital were
(a) Unions
recognised:
consisting of primary societies for
control
and
audit:
banks;
{b) Central
(c) Provincial
(Hi)
banks
of
Instead
societies,
limited
liabilityof
societies
cultivators
were
left to the
capital increased
for sale of
those
and
other
the
1.
Government
have
The
liability.
were
registered
which
of
aimed
members
at
of which
The
liability.
unlimited
others
in this respect.
of the members
produce, purchase of
a
movement
in its report
of the
majority
the
to
were
members
urban
between
option
the growth
of the
considerably stimulated
number
of societies,their membership
and working
kinds of societies were
steadily.New
formed, e.g.
necessaries
appointed
whether
and
was
unlimited
Societies
and
made
1912
of
The
movement.
the
limited.
be
to
was
were
Act
with
society of which
provision of credit
The
those
and
rural
between
distinction
scientific
more
supply of capital.
for
old] distinction
the
with
those
and
of the cultivator.
Committee
"
manures
and
In October
Maclagan
Committee
sound
farm
1914
"
the
to
lines.
developing on
(1915) made
far-reachingproposals for
was
implements
ment
Govern-
investigate
This
the
mittee
Com-
ment
develop-
movement.
Report,
of
Co-operative
India, p. 5.
Plaoning
Committee
(1946), appointed
by
tht
262
After
the
of 1919
Act
of
end
the
the movement
War
(1914-18)and
entered
its second
coDstitutiop, Co-operation became

under
the
the control
by
tried
passing
Provincial
Governments
and
education
appointed inquiry committees

and
recommendations
to
the
set
of the
made
sound
on
movement
varietyof
footing in their
committees
movement
The
1925.
in
Act
the progress
These
led the way
Bombay
of
movement
the
institutions for paganda

proProvinces
Some
movement.
the
study
to
recommendations.
make
to
mould
to
Province
promote
to
Subject
Transferred
Co-operative Societies
encouraged non-official
separate
new
During the early years of
of responsible ministers.
new
the
phase. Under
Provincial
reforms, various Provinces

needs.
The
according to their own
passing of the Reform
respectiveareas.
The
rapid expansion until
showed
movement
Depression again made

been pointed out by the Maclagan
which
and
been
had
concealed
be
may
regarded as
the
phase of
agriculturalproduce in the Punjab,

of view of co-operation,fell by 50%.
in
other
burden
parts
decreased.
which
just managed
He
available, if
were
money-lender
to
societies
bound
to
was
to
of committees
suggest
On
him
help
ways
the
and
of
whole,
the
The
out.
deteriorate
inquiry were
There
developments
took
of
obligations
accumulations
past
of
to
gold
silver
or
to
resort
the
co-operativecredit
circumstances.
these
appointed
his
back
form
point
place
fell,while the
the farmer
condition
before
decade
little
was
the
pay
of
value
province from
he had
under
the
in diflferent Provinces
meeting the situation.
of consolidation, rectification and

movement.
1933
his
cases
setback.
development. Agricultural
lucky, in the
In most
of
means
live upon
was
of his womenfolk.
ornaments
number
to
he
of
capacity to
His
of his debt increased.
Similar
and
high prices
serious
and
the best
income
The
India.
of
its
1929
prices fell disastrously. Between
1915
as
of post- War
received
movement
the third
early
as
by the conditions
prosperity.
With
the Depression
This
Committee
the
had
defects which
the
prominent
worldwide
when
1929
War
World
rehabilitation
expansion
II
in the
and
was
period
history of the
official
control
was
tightened.
With
the
phase. With
World
the
(1939-45)II the movement

prices the
in agricultural
War
rise
entered
conditions
its fourth
of the
Co-operation
improved.
peasantry
their debts
the
to
The
members
improved
Further, the deposits of central

from
affiliated societies
faced with
planning
the
post-War
issued
by
Reconstruction
of India.
to
the
before
Even
Plan, the Second
the
All these
As
e.g.
of the Council
of
Mr.
the
The
agency
Conference
the
causes
of limited
the
whole.
other
reliance
undue
on
of
plan
1946.
in
progress
of the
movement
causes
honorary
of the
the
the
small
services
manship
chair-
operative
Co-
1945, irs
recommendaiions
the
Committee
reorganisation of
country.
in
movement
tackle
being
January
importance
the
the
co-operative development."
Their
for
the State, the

to
of
in
co-operative activity.This
development
laissez-faire
policy of
The
up
speciallystressed
of economic
failure of the
draw
of recommendations
They
plan
"the
aspect
large number
movement.
"to
reported
every
in any
to
being
apointed
was
of
of India
Provincial
Bombay
Saraiya, Chairman,
Committee
Committee
almost
a
G.
The
of reference
made
Bombay
Planning
of the Government
passed by the Fourteenth
resolution
R.
Bank.
covered
for
schemes
Registrarsof Co-operative Societies in 1944, the Government

under
appointed a Committee
consisting of twelve members
terms
spiritof
important place
for carrying out
an
gave
thus
were
Reconstruction
on
tion.
posi-
the demand
country
forward,
suitable
and
ended, various
planning schemes
as
the
financial
banks
Many
In
put
Report
latter's
repay
of the plans.
resi;lt of
were
position to
increased
the War
Committee
co-operative movement
the purposes
banks
decreased.
reconstruction
economic
Industrialists'
for loans
in
the
of surplus funds.
problem
abroad.
was
thus
were
societies. This
263
of
co-operation
Regarding the
India, they attributed
cf
illiteracy
the
life of
individual
the
it
people, and
as
size of the
with
primary unit and

resultant
inefficiencyin
management."'
No
developmenttook place, in this field,between the

in 1945, and partitionof the country in August 1947.
notable
of the War
1.
Co-operative PlanniDg Committee
Report,
p.
12.
end
264
Pakistan,
The
Developing Economy
following table givesan
idea
of
the
growili of
the
ment
move-
in pre-Partition India.
Table No.
All-India
29^
Figures
No.
No.
Years
of
of
Working
Capital
Members
Primary
Societies
Rs. crores)
(1,000)
(lakhs)
The
of
progress
the
however,
movement,
uniform.
not
was
The
ties.
of socieof the number
leading in the matter
Bengal were
after,
came
As regards membership, Bombay
stood first,Punjab
followed by Bengal. As regards working capital,Bombay
topped the
followed
in its turn
list,followed by Sind which
by the Punjab.
was
Punjab
Thus
and
Pakistan
advanced
in
concerned.
a
12
comparatively well
especiallythe Punjab, were
statistics of societies were
co-operation so far as mere
areas,
On
the
whole,
small portion of the

"
population
the
of the
country.
and
followed
only aflfected
had
movement
4 Eflfect of Partition
Partition
The
of
people
accompanied
was
the borders
across
it. The
West
Pakistan, left the
In the words
were
1.
Compiled
from
the
India, published by Reserve
countries
of
in
state
Bank
Statement
of India.
relating
to
rendered
co-operatives were
Statistical
mass
which
Pakistan,
from
Co-operation Adviser
hud
money-lenders, who
of
thousands
by the
and
of the Marketing
gone,
two
of the country
economy
of Pakistan, "lakhs
crops,
of the
migration of non-Muslims
from
in
however,
to
of
tion
migraresulted
especially
paralysis.
ment
the Governfinanced
the
ineffective
Co-operativeMovement
265
Co-operation
Secretaries,
Managers, Cashiers, Accountants, etc., had left,and
hundreds of branches of joint-stockbanks closed dus to the departure
of their staff."' "The
banking organisation,"says a State Baok r"port,
"suffered what appeared to be irreparabledamage and almost all the
as
banks
closed their doors
curtailed their activities."2
or
curtailed
the activities of the
co-operatives
the
of the
migration
by
gaps
non-Muslims
in the field of agriculturalcredit,financing of cottage
and
industries,marketing of produce, both industrial aid agricultural,
Pakistan
areas
banking operations in general, had to be filled.The
financial institutions.
were
already less developed with respect to modern
The
same
that
causes
created greater work
of them.
institutions
The
of finance and
trade
individuals
and
were
caused
The
who
carried
predominantlynon-Muslim.
the country
and with their assets in most
cases
of
life
the
bound
economic
the
to
was
paralyse
"
rotting for
artisan did
was
of
want
not
know
hand-made
Their
at such
"
the functions
nation.
leaving
short
notice
Crops
the agriculturist
and
marketing facilities;
which
way
unemployment
large-scale
of
on
to
among
articles,the
for credit
turn
the
cottage
market
were
the
facilities.There
workers, the
for which
ducers
pro-
either existed
India,trade relations with which country had almost stopped, or

had developed
in other foreigncountries, with which the non-Mnslims
The
broken.
now
trade links,which
were
wholesale, retail, import
suffered
in
trade
all
and export
varying degrees. Moreover, refugees
India poured into Pakistan in lakhs. Among
them
from
were
small
credit
needs
had
and
artisans
to
whose
be
looked
after
agriculturists
of their new
and
homeland.
they had to be fitted into the economy
resettlement
the problem of the post- War
Added
to that was
of the
retired militarypersonnel. The only agency which could come
to the
the co-operativeorganisationwhich in its turn
aid of the people was
had suffered through losing its trained staff. This vicious cricle had
broken
And
it was
through the sheer pressure of
to be broken.
of the people to
determination
that
necessity and the grim
see
the
of
Under
Pakistan was
made
the Provincial
leadership
a success.
societies
the
vitalised and
existing
were
Co-operative Departments,
In
1. S. A. HussaiD, "Co-operation,
Review, April 1955, pp. 216-17.
2. State
1948-40.p. 3.
Bank
of Pakistan, Report
Way
of Life," Co-operationand Marketing
of the
Central
Board
of
Directors
266
new
societies formed
the
outlook
function
to
in
co-operative banks, especially
of agricultural
only financed the movement
Central
loans.
advance
out,
was
societies began
credit
The
1947
the year
Before
arose.
entirely changed.
was
and
the need
as
the
Punjab and N.-W.F.P., not

banking. In the field
produce, but also took up commercial
cotton-ginning were
of production, flour-milling,rice-husking and
and
artisans
undertaken
by single or multipurpose societies. The
provided occupations through
were
technicians coming from India
for spinformed
ning,
formation
of industrial co-operatives.Societies were
Within
etc.
few
months,
other
and
footwear
of
weaving, manufacture
their turnover
into
ran
stabilised,confidence
prices were
produce
financing and marketing of agricultural
of
1947
In other
12
"
the
words, the emergency
5 Stracture
The
articles,
kather
By the end
crores.
and
restored
was
were
the
fully resumed.
met.
was
of the Movement
structure
of the
movement
the
be visualised from
may
chart
below:
Cosoperative
Societies
^
(
),
Secondary
Primary
'
I
(
Credit
I,
Non-Credit
Provmcial
Central
Unions
Banks
Banks
Agricultural
~~)
Non-agricultural
Non-agricultural
Agricultural
It will be
seen
that
the movement
has
developed
on
the
federal
pattern. At the base, at the village level or in urban areas, as the

be, there are Primary Societies. These maybe credit societies
case
may
or
non-credit
or
societies. Each
of this kind
non-agricultural, depending
upon
may
the
be
either
majority of
agricultural
the members.
a
been
has
recently, particularly in East
Pakistan, there
tendency to form multipurpose societies. These societies are primary
credit societies,but they also perform non-credit
for their
functions
members, like helpingthem In marketing their produce and purcha*-
More
267
Co-operation
ing fertilisers and
other
of agricultural
suppliesfor them. The liability
is,normally speaking, unlimited. But in recent years
there has been a tendency in the former
Sind area
to organise limited
societies. These are known
liability
locallyas Taluka Banks or Zamincredit societies
dara
Banks.
At the
Unions.
There
for
even
with
secondary level,there
is
part
usuallyone
of
the Central
is open
Unions
of their
given
only societies.
Unions
perform
are
The
primaries and
institutions.
also
The
serve
as
system
of
areas.
and
the
links
Bank
Primary
The
and
Banks
for
Co-operativo
district. It may
Societies
Unions
are
federations
the
functions
between
supervision has
be
afiSliated
are
membership of
societies,the members
While
area.
individuals
to
Central
Central
district. The
Banks
of societies within
Banks
are
Centra!
of
the
supervision of the
and
the financing
them
cf
been
not
found
tory.
satisfac-
done
superficialand
by the
overlaps with the work
inspecting staff of the financing agencies.A banking union could do
the work of supervision in addition to financing,and this is the usual
of
shall come
We
to a detailed consideration
practice in Pakistan.
central banks
presently.
It
At
is
the apex
Bank.
of the whole
Its fuoctioa
is to
structure
is the
Provincial
finance, co-ordinate
and
tive
Co-operacontrol
the
It serves
working of the central banks in the area of their jurisdiction.
banks.
it
the
central
as
a
Moreover,
serves
as
a clearing-house for
and
market
the
link between
the general money
co-operative primary
does not
societies in the village. Generally speaking, the apex bank
ia which central
deal directlywith primary societies except in areas
banks have not
developed.
12
'
6 Provincial
At
the
time
Banks,
Basks
of
in Pakistan
Partition
Pakistan
had
three
Provincial
operative
Co-
i.e.:
Punjab Provincial Co-operative Bank, Ltd*

Sind Provincial Co-operative Bank, Ltd.
(ill)The Frontier Co-operative Bank, Ltd.
Provincial
Bank
As regards East Pakistan, a new
was
established
East
Pakistan) Provincial
operative
Coin April 1943 [the East Bengal (now
Provincial
Co-operative Bank of undivided.
Bank], since the
(i) The
(//)The
Bengal
was
situated
at
Calcutta.
265
When
"
the
integratedProvince
difficulty
arose
Bank.
This
the
over
Bank
had
view
ihould
that since it
be under
of Sind it
ment
Govern-
1958, the Provincial
their control. In March
took
authorities
Province
of the former
the bank
was
that,
Registrar,
the
of
Pakistan
West
Co-operative
maintained
control
the
being
into
came
and
office at Karachi
by virtue of this fact,it came

under
Co-operative Societies, Karachi. The
the
Pakistan
of the Sind Provincial
control
its head
of West
the
institution,
Regional Co-operative Bank,
bank
for financing of societies in Khairpur and Hyderabad
an
as
apex
Divisions. With the dismissal of the suit filed in the High Court
at
Karachi, the control of the Sind Provincial Bank passed to West
the
With
obscure.
Pakistan, but in practice the position remained
sponsored
of
merger
banks
Banks
merged into
the
the
Credit
the
Regarding
58 lakhs
25%
the
to
unsatisfactory.In
dispute referred
its total advances
of
allowance
assets
Punjab Bank
transferable
liquidityof
two
to
fall short
would
the Commission
bad
and
presumption
its
liabilities.
that if
of the view
transferred
became
evacuees
the
of
was
above.
unremunerative
for
made
was
were
to
"the
effect
East
The
fairly adverse."*
Bank
in no
Pakistan
Provincial
better position. Of its total
was
advances of Rs. 927 lakhs 30% were
overdue
than three years.
by more
Most of its funds
consisted of borrowed
advances
or
by the
money
on
the
due
it
of co-operative institutions
its realisable
that
Rs.
Bank,
in the shares
investment
the
Co-operative
Provincial
found
Commission
confused
Frontier
Pakistan
West
one.
debts. If further
doubtful
was
of
Province
the
Enquiry
position was
the
to
into
regards the financial position of the
As
As
new
Karachi
were
Sind
Provincial
Bank
the
would
be
Government.
recentlythe financial position of the West Pakistan PrO'

vincial Co-operative Bank
has improved considerably. Compared to
and other funds
1958-59, by 1963-64, its share capital and reserves
More
increased
had
and
lakhs
total of Rs.
6867
lakhs
to a total of Rs.
its
working capital increased from

1,144-47 lakhs during the same
period. Recent
Rs.
East
,12
from
"
Pakistan
7
Provincial
Co-operative Bank
Central Co-operativeBanks
The
Central
Banks
1. Credit
have
been
are
Rs.
68624
123*39
lakhs to
statistics about the

not
available.
organised since the passing of the
Enquiry Commission
Repoft,
op.
cit.,p. 42.
269
Co-operation
Co-operative
and
to act
Societies
their
as
Act, 1912,
balancingcentre.
finance
to
the
banks
Such
primary societies
it
make
possibleto
draw
wider field for the benefit of primary societies.

capital from
a
cies
deficienThey also help in adjustingand balancing the excesses
and
of
working capital of primary societies within the area of their

jurisdiction.
Besides financingsocieties,they carry on banking business
like
accepting deposits, bills,cheques,
loans
to
individuals
varies; sometimes
against real properties.Their
it
is
district
circumstances require.In the former

taken
by
the Taluka
Banks
formed
Credit Societies. In the former
Partition, the District
North-
sometimes
and
Sind
by
the
West
they advance
Sometimes
etc.
area
a
of operation
tehsil
as
the
their
place was
province,
of
Primary
amalgamation
Frontier
Co-operative Banks
were
Province, after
merged
into
the
Frontier
vincial
Co-operative Bank, which acquired the status of a ProCo-operative Bank.
Though the central banks were
primarily created for financing
commercial
primary societies,after the Partition they undertook
functions
the banking crisis that faced the
and
helped to overcome
by acting as their agents.
country. They also helped the Government
In the Punjab, for instance, they were
appointed agents for the
led
and other controlpurchase and sale of cloth, agriculturalcommodities
and non-members,
articles. They financed individuals, members
by
advancing loans against stock-in-trade,jewellery,agriculturalproduce

and trust securities. In the Frontier
Province, Co-operative Banks
lished
estabwas
Co-operative Bank
central
banks
the four
and
were
amalgamated with it. The
of the Bank
so
constitution
changed that the Bank could make
was
and firms, other than co-operative
advances
to individuals
short-term
of
goods, jewellery and bills.
on
security
societies,
achieved
similar results. The
Frontier
of 1959 came
to the conclusion
Enquiry Commission
that "the central banks in both wings of the country constitute a very
this
weak link in the co-operative credit structure."' They attributed
the following factors: (a) poor
administration; (b)
weakness
to
measures
passed during the Depression, e.g. Bengal Agricultural
The
Debtors'
Credit
Act,
1935, providing for compulsory scalingdown
of debts
agriculturists,including debt to co-operatives; (c) commercial

lendingfor which they had littleexperience and which led to corrupt
of
1. Credit
Enquiry Commission
Report,
op.
cit.,p. 48.
2/^"?
practices;{d) unqualified staff; (e) domination
by individuals who
used
the
io their personal
banks
interest; (/) high proportion of
loans to a few
influential individuals, without
adequate security;
(g) favouritism through which directors and their associates derived
undue
in Registrar's control, who
benefits;[h)basic contradictions
has
highly technical
The
the
Government
control
in
tliose which
should
by
the merger
be in
into the
efforts for
interests. The
of the
exercising
Enquiry
Credit
central
into the
banks
that
They recommended
liquidatedand others should be
be
bank.
of the apex
branches
made
attention of
country.
sh:)uld
insolvent
were
time, drew
to
and
vested
wings of the
both
time
weaknesses
these
recommended
banks
turned
Pakistan, from
resisted
was
Commission
apex
of
to
which
limits,a task which
hands.
Bank
State
credit
recommead
to
powers
The
was
same
to
be done
banks
and Zamindara
(calledTaluka
banks in the Sind area) provided their depositsexceeded
Rs. 50,000.
did not favour commercial
The Commission
leadings by co-operative
with the larger primary societies
banks
and
recommended
of
programme
phased
from
withdrawal
business.
such
Since
the
the Commission
ineffective,
banks
should
control
under
be
the
Registrar had
recommended
declared
exercised
now
of
existing control
scheduled
that
banks
by the State Bank
over
found
been
the
reorgaaised apex
and
subjected to the
all banking companies
existingbanking legislation.
75 co-operativecentral banks in West
are
Pakistan
membership of 35,000. They had ia 1963-64 share capital,
and
other
funds amounting to Rs. 416-77 lakhs as
against
At present there
with
reserves
Rs.
and
Rs.
268
74 lakhs
in 1958-59
deposits to
2,018-36
12-8
Rs. 2,575
lakhs
loans
Societies
and
their loans
lakhs
and
amounted
to
Rs. 877 lakhs
against Rs. 299-74 lakhs

deposits respectivelyin 1958-59.
as
Primary
Agricultaral Credit
primary agricultural credit societycan
and
"
be
formed
by
ten
or
(maximum
100; by applying for registration to the
persons
Registrar of Co-operative Societies. The area
of operation of such
a
society is usually a village.
This
is to ensure
mutual
knowledge
and
supervision on the part of members.
The
of members
liability
more
is unlimited.
outsiders
members.
The
and
The
to
idea
is to
stimulate
inspire confidence
mutual
working capitalia
control
derived
and
in
the
minds
of the
the
supervision among
from
entrance
fees,deposits
271
Co-operation
vinces,
the Pakistan ProAmong
capital,if any, of the members.
it was
only in the former Punjab that share capitalwas issued.
ment,
Capital is also secured from outside loans and depositsfrom Govern-
and
share
from
other
Loans
given
are
(a) short-term
credit for
tive purposes
etc., and
in
provided for
societyif it does
which
all
capital.In
Ten
per
profitsare
the
cent
for
on
In
like
(b)longunpioduc-
ceremonies,
usuallygiven
are
security of
instalments.
easy
(//) for
marriage
Loans
of old debts.
property,
of
case
etc.
disputes,
The
Registrarcan
discourage litigation.
not improve its working in spiteof warnings.
to
Every society is required by

to
e.g.
sometimes
on
arbitration is
dissolve
amounts,
redemption
is allowed
agriculturaloperations and
improvements of land;
personal security and
Repayment
for:
current
moderate
(Hi) for
provincialbanks.
(") productive purposes
central and
from
members
to
credit for permanent
term
on
societies and
credited
law
to
in the
case
build
up
fund,
reserve
of societies
with
no
sLaie
profit is carried to this fund.

of the profit,
be spent for
if the Registrar allows, can
of
case
others, 25%
charitable purposes.
Accounts of the societies
of
annually audited by officers deputed

by
Registrar.The societies enjoy certain privilegeslike exemption
from stamp duty, registration
fee and income-tax.
Their
shares
cannot
be attached and
they have a prior claim over creditors.
The
of an
management
agriculturalcredit society is in the
hands of two bodies, viz. the General
Committee, consistingof all the
members, and the smaller Managing Committee
elected by the general
body. The current
business is disposed of by the Managing Committee,
e.g. granting loans, admitting new
etc.
The
members,
General
Committee elects the Managing
Committee, appoints the paid secretary,
are
the
amends
The
working of the co-operative credit societies in
Provinces
of
Sir Malcolm
movement,
gone
into
of the
pre-Partition India
Darling found
was
was
far from
of the
most
encouraging.In 1934,
that
during the thirtyyears' life of the

24%of the total number
of societies started had
liquidation.Six years later,the Reserve Bank, in its review
as
much
movement,
played a
PSses
bye-laws,etc.
as
found
that the finances from
disproportionately
large part
greated
and
the
the
reserve
external
fund
sources
in many
without making any provision for bad debts and
wa?
272
Pakistan,
often
invested
in
DevelopingEconomy
business.
society's own
Depression
had
hit
deteriorated
considerably.Debt
credit
the
societies
In
hard
the
the
meantime,
and
position
adverse eflFects,
had also
legislation
its
their
like Bengal, a memb:r

in many
Provinces
owing
could
iile
before
Conciliation
the
an
application
society
because
debt to his
Board
and
suspend payment of his instalments until the award was made by the
Board
and approved by the Registrar.This led to the direct freezing
of the
of the ultimate outcome
of the funds of the society,irrespective
of the weakness, however, lay much
application. The basic causes
fundamental
these
being the indifferent
among
deeper, the most
of the co-operative principles even
observance
during the years of
War
II, the financial position
comparative prosperity.During World
of the credit movement
improved considerably,because of high prices
conditions prevailedduring the two
of agricultural
products. The same
and
the partitionof the
the end of the War
country.
years between
of diflferentdegree
however,
was
The rehabilitation of the movement,
according to local conditions.
9 Co-operativeAgriculturalCredit since Partition
12
No.
31 and
32 give some
Tables
interestingfacts about the
primary agriculturalco-operative credit societies in the two wings
of Pakistan
separately.From Table No. 30 it is clear that during
the first decade after Independence, only a very moderate
progress
in different Provinces
'
had
been
made
in
this connection
in the Province
of West
Pakistan.*
tabulated, i.e. those with

categories of societies are
Limited liability
and
those
with unlimited
limited liability
liability.
found
in Sind. They are
societies are
larger sized resulting from
also known
as
the
amalgamation of primary societies. They are
is comparatively very
Banks. Their number
Taluka Banks or Zamindara
Here
two
by the greater
of their paid-up capital,working capital,reserve
funds,
They had been showing better profitsalso as compared
small, but their importance is much

relative share
deposits,etc.
to the other
societies. Their
overdues
greater
is shown
as
percentage of
particular year. Moreover, their
formed
smaller
outstanding loans during any

rate of progress was
higher.The majority of the societies are, however,
of the unlimited liability
kind. They appeared to be in a stagnant condition,
is indicated
increase in
as
by a very moderate
percentage
their number,
membership, share capital,working capital,reserve
their
], Later statistics are
not
available for both
provinpes for Retailed analysis,
273
Co-operation
funds
and
overdues
deposits,
In
and
15%
recent
more
unlimited
in the
25%
to
profitlevel also had
of their advances
percentage
as
against from
Their
etc.
case
separate figuresare
years
been
had
of limited
And
low.
33%
about
as
societies.
liability
for limited
available
not
societies. Consolidated
liability
been
figuresshow
some
gress
pro-
increased
by these societies since 1958-59. Their number
11,453 in that year to 13,937 in 1963-64; their share capital
made
from
iccreased
lakhs
172 lakhs
Rs. 69 lakhs
In
94
from
lakhs toRs.
East
during
lakhs
the
and
Pakistan
the
Table
In
has
movement
organised from
the
great
societies which
the
year
fall in the
as
well. These
1949-50.
number
of
review.
fall between
The
137
1950-51
purely credit societies,

societies but perform
latter societies
began
to
be
striking feature of the table is

primary credit societies during the
fell from
26,664 in 1947-48 to
A
and
1956-57
and
are
factory
unsatis-
given regarding two
are
main'y credit
are
number
The
peried
18,471 in 1950-51, to 12,132 in 1953-54
under
Rs.
still more
shown
31 statistics
No.
fuoctions
non-credit
from
reserves
period and working capitalfrom
same
types of societies: (a)primary societies which
(b)multipurpose
their
1,380 lakhs.
to Rs.
progress.
175
to
to
alone
only 1,989 in 1956-57.

was
in order
of about
90%. Corresponding fall took place in the same

degree of their
membership, share capital,working capital, reserve
fund, deposits
well
and
formed
as lendings. Overdues
about
borrowings as
75%
advances
of the
from
individuals
in
1956-57.
outstanding
Such
societies,therefore, had become
negligible and they had all along
been facing losses.
and
importance of primary societiesdecreased,multipurpose

societies took their place.Though the number
of multipurpose
As the number
their
societies had
not
increased
membership
has
increased
much
at
between
a
much
1950-51
higher
rate.
and
1956-57,
Their
share
and
fund
reserve
increased
from
capital,working capital
100% to
and
their
than
200%
borrowing more
400%. Their overdues
were
and
the
level
however,
quite high,
profit
they had shown
was
not
recent
M
ore
not
available.
significant.
figures
are
very
The
findings of the
Credit
in 1959 indiEnquiry Commission

cated
"dismal position.On the basis of audit classification
a still more
they found that, of the 10,985 societies in 1956-57 in West Pakistan,
2,421 or about
one-fourth
were
in the
class, i.e. they
were
defunct
274
Pakistan,
t*"ooo
Developing Economy
o
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00
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+
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00
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en
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275
Co-operation
NJ5
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276

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1/-)
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(53
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o5
277
Co-operation
en
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op
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-^
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m
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2p^
a
-r
2^S'8
and
the verge
on
of
liquidation,while
2,194 societies
another
(ii)category, i.e. they were

nearly defunct.
40% of the total societies were'în a moribund
words,
other
In
in
were
of
and
condition
over
no
4,730 societies listed as
Pakistan, of the
In East
financingpurposes.
societies,as^many'as 1,231 or more
agricultural
than
in D
for current
consequence
one-fourth
were
class,i.e. working
not
class
below, 3,002 societies
or
More
satisfactorily.
very
in C
were
figuresare
recent
not
available
The
Credit
partly to
such
external
Don-co-operative
to
factors
uses,
Department
frequent transfers
lack
and
due
of
attributed
Commission
Enquiry
of real Government
Commission
The
and
cut
unpaid
en
of
operating
societies "should
on
basis
capacityor
be
undertake
of the cultivators
needs
the
limited
salary should
whose
term
State
Tfacy
on
of
individual
recovery
the linking up
of
lending on the
circle of people whom
credit
principle of limited liability
to
staff.
the
aiming
of the view
were
of
by
financingof
not
credit
clear-
promoting
at
that
the
the
Government
large-sized single-purpose
basis and
liability
the
met
of
enunciation
policy ia
tli; establishmeat
encourage
societies
the
strongly urged
well-articulated
co-operativemovement.
should
the
ciencies
defi-
societies,including low
gradual shift
dowa
securityof land which narrowed
could be granted, the unpopularity of
dependence
addition, 'they found
In
of the credit
borrowers,
of senior officials
selection
poor
support.
structure
credit limit for individual
and
[^thisstagnation
co-operative funds
operative
politicalintervention, weakening of the Coof trained staff after Partition,
to exodus
Registrarsand
in the internal
diversion
the
as
of
run
by paid staff, part
co-operative banks.
seasonal
exceeding
the
limits based
needs
and
Such
medium-
period of three
years
repaying
primarily on
experience."'The Commission
ed
further recommend-
primary credit
marketing
societies
with
societies
higher level,and they wanted

the union level societies in
Pakistan organised either through voluntary
West
of existing
merger
societies
where
piimary
primary societies did not already exist,
or,
situated
at
of
establishment
the
them
upgrading
societies. The
of the staff of the
additional
The
new
Commission
also recommended
Co-operative Department
and
giving
powers.
Commission
found
l;
the
Report,
existing position regarding

op.
ciL,
p. 3S.
super-
279
Co-operation
vision and
audit to be
that audit
unsatisfactory.They recommended
o
f
the
responsibility
Co-operative Department; the
of audit without any charge should
be considered, the staff
possibility
for supervision and audit should
be separate
and
the
co-operative
banks should have
the powers
to inspect all co-operative societies
should
be the sole
affiliatedto them.
It appears
not
that these
recommendations
of the Commission
have
adequate attention of the Government.

10 Single versus
Multipurpose Societies
A tendency in co-operativepractice in recent
years, particularly
in East Pakistan, has been the establishment
of multipurpose co-operative
societies
societies. The
for
to
idea is not
organise separate
different purposes,
like marketing, supply of seed, better living,etc.,
but to have
one
society which should help the peasant in every
12
yet received
"
life.
aspect of his social and economic
It was
purpose
as
early as 1937 that the question of organising multisocieties
mooted
was
in
pre-divisionIndia.
The
occasion
was
Bank
the appearance
of India's Report on the Banking
of the Reserve
followed
bulletin of the
Union
which
was
at Kodinar
by another
Bank
Co-operative Village Banks.
on
formation
of such
societies
in
of
agriculturalindebtedness
and co-operation affords the
movement
must
cater
must
give up
The
Bank
recommended
following words:
the
"If
the
the
problem
through co-operation
for solving it the co-operabest means
tive
dealing with its members
piecemeal and
for all their wants.
is to
be
solved
"
"
Their
be
object must
comprehensive.
be
For
whatever
multipurpose societies.
apparent
it
is
of
contact
a
society started, must serve as a point
and
purpose
must
be
other
that
so
developed
gradually
ultimatelythe
purposes
is dealt with. That should be the goal set
whole of man
before the
There
must
movement."
the Bank
later publication,
suggested the steps through which

graduallyone purpose after another should be brought under the control
with
credit for current
of the same
society."Starting
needs, a
societymay get the old debts of its good members
liquidatedthrough
better
business
introduce
and better monetary
a land-mortgage bank,
to
members
sell
their
return
produce co-operatively,
by inducing its
of crops by purchasing
varieties
the
their growing of
ensure
improved
In
seeds for them,
tbejr
save
otjier needs
on
purchases by arranging for
and
jointly
at
rates
profitable
on
the
an
purchase* of
indent
system
^^0
Pakistan, A DevelopingAconomy
without
incurringany risk or liability,

save
litigationexpenses
by
effecting
arbitration,improve the outturn
of crops
consolidation
by
of holdings,supply of pure seed and improved implements, supplement
the income
of its members
take to subsidiary
by inducing them
to
industries,introduce better living measures
by adopting bye-laws
which will curtail ceremonial
by common
consent,
expenditure,and
remove
habits, provide medical relief and so on."'
insanitary
The
who
new
ideas
rise to
controversy.
There
of Economics,
"may
people
a comprehensive approach to the rural problem as a
comparative failure of the usual credit co-operation,"
gave
were
hailed it as
whole.
wrote
"The
a
well-known
Indian
Professor
attributed to the fact that it addressed
itself to
the
be
largely
solution
of the
problems of credit only and did not simultaneously take up the

which give rise to it and make for the
campaign againstall the causes
further pointed out
unbalanced
that
budget of the farmer."^ It was
the farmer does not like too many
agenciesto deal with. In addition
benefits
claimed for the multipurpose
other
were
to the above, many
the idea : greater loyaltyand sustained
societyby those who welcomed
from
wider
the evils of cash
interest of members; freedom
economy;
economical
and efficient management;
of operation,hence more
area
and
in the rural upliftmovement
the promotion
of subsidiary
its utility
with
industries concerned
agriculture. It could serve as a
for the rehabilitation of rural life as a whole; it would
good agency
have a comprehensive understanding of all the various problems that
had to face. In any case, a proper
the agriculturist
co-ordination
of
deemed
activities
various
if
the
was
there
co-operative
necessary even
separate societies for each
were
On
purpose.
the other hand, its opponents
raised
number
of
objections
strained;
villagermight be over-
against it, e.g. the business abilityof the

the danger of its becoming cumbersome
in mechanism
and
the simpler members; failure of one
to
line of business
unintelligible
might affect other limes. The disadvantagesdue to the larger area of
held that on
of the
account
pointed out. It was
operationswere
failure
and
"
the part of members
on
trust, an
1. Reserve
to
secure
esseatial purpose
of
Bank
Review
fieri in
The
the necessary mutual knowledge

the co-operative movement
of the Co-operative
Movement
in India
(1940-41),
p. 1942.
2.
p. 51$.
S. G.
Indian Economic
Journal, Conference
Nunr.ber,1942,
281
Co-operation
would
be
defeated.
Moreover,
small
village unit was regarded

limited liability
of such
the
trainingground. Then
also objected to.
was
In spite of these objections, however, there was
a
growing
number
of people who
favoured
this kind
before
of society even
necessary
as
societies
Partition. The
Thirteenth
Conference
of
Registrars of Co-operative
held at Dehli
Societies,
in December
1939, passed the resolution
"that provinces should
experiment with multipurpose societies to
ascertain more
clearlythe conditions under which they are
likelyto
thrive,and the form which they should take, with specialreference
to their area
and
of operation, liability
purposes." The Madras
Committee
The
Co-operationalso favoured
Co-operativePlanning Committee
on
the idea.
mended
reporting in 1946 recomthe reorganisationof the primary societyin such a way as to
make
it a multipurpose society. "We
wrote
the
recommended,"
and
Committee, "that the primary credit societyshould be reformed
for the general economic
centre
a
reorganised so as to serve
as
of
in
and
its members
improvement
particular:{a) finance crop production,
of
nearest
the
sale
to
(b)act as agent for the
tive
co-operacrops
farmer's
the
needs
for
simple
marketing organisation,(c) supply
agricultural
crop production like seed, cattle feed, fertilisers and
implements, and also consumer
goods liks cloth, kerosene, salt and
matches
indent basis or on the basis of established needs, {d) serve
on
as milk-collecting
station for the nearest
for
dairy and as a centre
animal first-aid and the maintenance
of stud bulls,(e)serve as a cencre
for maintaining agricultural
machinery for the joint use of members,
and (/)encourage
subsidiaryoccupations for its members."*
After takinginto consideration
all the arguments
for single and
of 1959
multipurpose societies,the Credit Enquiry Commission
favoured the single-purpose
society.They were of ths view that such
a
society is necessary to establish clear-cut links with the financial
institutions of the co-operativemovement
and to permit an accurate
mission
evaluation of the credit record and standing of societies. The Com-
recommended
should
reconsider
that the East Pakistan

their
Government
policy in this field.
particularly
tion
They suggested a bifurcaof the organisational network
with the existingunion
level
societies confiningthemselves to credit activities only and with separate
I. p.eport.Co-operative
Planning Committee
(1946).
282
societies to be established
We
think that
no
for
standard
tions.
dischargingthe supply and service func-
pattern should
be
forced
upon
the
they
people. Where
multipurpose societies are working successfully,
and
should
be encouraged
continue
their work
improve the
to
that
such
conditions
are
technique of their handling it. But where
a
multipurpose society is unmanageable by the people concerned,
they should confine themselves to the single-purpose model. In our
view the bias should be in favour of the multipurpose model, since
it aims
which
12
at
are
comprehensive approach
more
the
to
farmer's
problems
all interrelated.
VillageSocieties
sion,
Another
considered by the Credit
Enquiry Commispossibility,
the formation
of multi-village
societies as againstthe single'
was
indicates,is one
villagesocieties. A multi-village
society,as its name
which covers
of villages.Its advantage
not one
villagebut a number
is that it yieldsa sufficient turnover
of business to allow employment
of paid staff without subsidy. It,however, runs
ciple
contrary to the prinlaid down
about fifty
by the Maclagan Committee
years ago
embodied
in the formula "one society to one
villageand one village
of
to one
society."It has always been believed that for the success
is
members
co-operation mutual
knowledge and supervision among
essential and this is ensured in a singlevillagebetter than
in several
villages.In actual practice, however, this principlehas not worked
well. Managing Committees
have not always exercised real discretion
in sanctioning loans nor
them.
have
they taken steps to recover
sive
Moreover, village factions have led to strife and formation of exclugroups. On the other hand, it has been argued that multi-village
societies will deter the poorer class of peasants to join them. Such a
societywill involve the peasant'stravelling
miles away
to a place some
from his villagemostly on foot along with a surety to get a loan.
Further, it will be difficult to get a quorum.
It is also objectedthat
largersocieties may
over-facilitate the supply of credit and if loans
are
given too freely,recoveries
be difficult. The
Commission
may
"
11 Multi-
favoured
making experiments with such societies,

but not by amalgamating
alreadyexistingsocieties,which are working well, into
the
largerunits. We
12
"
12 Limited
The
think it is the
or
right course
to
adopt.
Unlimited Liability
agriculturalcredit
societyin
this
sub-continent has been
283
Oo-operation
organised on
the Refeisen
This
has
model
because
been
individual
model
which
involves
unlimited
rsgarded suitable particularlyfor

member
our
liability.
villages,
is
and
of small
usuallya man
means
members
usually belong to the same
villagecommunity with full
knowledge of each other's character as well as economic
position.
Unlimited
careful
liabilityensures
supervision of the members
themselves, since all of them are
equally poor. No oae stands
among
to lose more
his
than
worthiness
neighbour. Mutual
surety increases the creditof the societyand enables it to get more
funds
from
the
do otherwise.
the
On
higher financing agencies than they would
other
the principle of
hand, the experience of 1930's has made
its cover
unlimited liabilities unpopular among
the villagers.
Under
the clever members
of meeting the debts
able to put the burden
were
of the societyon the more
well-to-do, honest, and unsophisticated
members.
resulted in hindering the growth of co-operative
This
unlimited societies have been transformed
into
savings. In Sind many
limited liabilityco-operative banks.
In East
Pakistan
unlimited
societies are
gradually being liquidated since they have
liability
proved a failure. Thus there has been a definite tendency in favour of
the limited liability.
It would, however, be unwise to turn successfully
societies.
working unlimited liabilitysocieties into limited liability
formed
The latter,however, may
be
on
an
experimental basis where
an
circumstances
12
13 Other
"
So
far
favourable
are
Types
we
have
societies. These
are
for them.
Primary Societies
been
talking of agriculturalcredit of primary
in Pakistan
if we
by far the largest in number
of
multipurpose societies of East Pakistan in this group.

They
form about 60% of the total primary societies in the country. Other
be grouped as follows:
forms of primary societies may
(0 Non-agriculturalcredit societies.
(h) Non-agriculturalnon-credit societies.
Agriculturalnon-credit societies.
(///)
societies.
(jv)Miscellaneous
We shall dispose these of briefly
except that, in the third group,
have
we
co-operativefarming and co-operativemarketing which will
count
need
.
areas
detailed account.
some
(/)Non-agticuUuralcredit societies. These

and
limited
follow
the
Shulze
high
liability,
Delisch
dividends.
model,
In
found
are
i.e.
Pakistan
in the urban
large membership,
these
societies
have^
ô4
taken
the
the
form
of urban
banks.
position is quite sound in
Their
former
In East
Punjab Province.
their position i"
Pakistan
most
unsatisfactory.Working capital is mainly contributed by share
are
and
capita] and reserves
deposits by individuals. Advances
business and are being strangled
They are not doing much
meagre.
is about
2,000, their
by excessive overdues. Their total number
membership about 2 lakhs and working capitalabout Rs. 30 crores.
They are mostly found in West Pakistan.

non-credit societies: This category of societies
Non-agricultural
(//")
co-operative
includes industrial societies,
co-operativehousing societies,
stores, etc. Their total
them
are
in West
20 crores;
Rs.
working capital about
and
4 lakhs
ship
7,000, member-
is about
in Pakistan
number
two-third
of
Pakistan.
co-operatives" is the largest single category of

non-agriculturalsocieties in Pakistan. There is a considerable scope
societies,particularlyfor organising
for the development of such
in the former
already made
They have
progress
cottage workers.
Punjab and East Pakistan. They are mostly weavers' societies.
kinds:
generally of two
Co-operative housing societies are
(a) tenants' co-operativesocieties which build or purchase houses for
and
(b) building societies which help
sale or lease to their members
"Industrial
acquire houses
security.In Pakistan
their members
mortgage
Karachi.
needs
through advancing
to
is about
number
Their
encouragement
most
since
houses, e.g. the supply of
50.
of
loans
these
societies
Formation
of such
made
exist
on
in
societies
specialadvantages for building

material is facilitated and the middleman's
they have
raw
charges avoided.
Consumer's
of the
needs
and
enable
stores
members.
the
are
The
idea
of
consumers
is to
small
large-scaleoperations.In Pakistan
much
for
established
the
the
save
to
means
consumers'
supply of domestic
middleman's
charges
get the advantages of

stores
have
not
made
progress.
non-credit societies. Such societies did not develop

(Hi)Agricultural
in
same
extent
pre-PartitionIndia as credit societies,and their
number
in West
Pakistan is about 7,000 with a membership of about
to
the
4 lakhs.
The
reasons
why
co-operation did not

progress
did credit co-operation, were:
of 1904
Act
The
(a)
in earlier years as
made
no
provision for
Act
of 1912
that
non-credit
such
such
societies
societies and
began
to
only after the

be formed.
(6) In other
it
was
285
Co-operation
countries
also, e.g. in Europe
developed later
due
to
and
much
greater training and
credit societies,
(c) The
America, the non-credit
and
slower
than
credit movement,
the
experience necessary
industrial
backwardness
ment
move-
for
running
non-
of the country
and
of the mass
illiteracy
of the people also stood
in the way.
(d)
credit
societies
non-credit
in
also
Finally,
took
cases
many
up
functions,
such as purchase of implements, seed and manure,
etc.
In later years,
non-credit
however, non-credit
societies,
especially
agricultural
considerable
societies,received
attention
and
showed
good progress.
introduced
tural
over
a large field of agriculThey were
operations,e.g. sale of agriculturalproduce, production and
sale of implements, development of irrigational
projects,consolida"
tion of holdings,
co-operativefarming, etc.
need
(iv)Other societies which
mentioning are: fishermen's
men's
consolidation
of holdings, livestock breeding, etc. Fishersocieties,
of
societies exist in East Pakistan and the Hyderabad Division
West Pakistan,but they have not made
much
progress. Consotidatioa
of
holdingsocieties
but their
in the former
formed
were
Punjab and N.-W.F.P.,
There
in suspense
at the moment.
the former Punjab and
Pakistan
and
operationsare
societies in East
breeding societies in the latter area.

12
14 Co-operativeFarming
Co-operative farming is a system
health
are
also stock-
'
in
management
which
the
farmers
of
cultivation
organised
are
it has taken
principles.Historically,
land
forms
many
on
among
and
co-operative
which
the
followingare worth mentioning:

Kolkhos
is an economic
(a) The Russian system. The Russian
and undertake
community of farming families,who pool their resources
chosen
work
a
to
by
managing committee
together under
themselves. The working members
are
organised into groups and paid
in work-day units. They have no
according to work done measured
ownership rightsin land. The capitalneeded in the form of equipment
is provided by the State. A largeportion of the crop is also sold to
contracted rates.
the Government
at specially
(ft)The Israeli system. This form of co-operative farming is
known
"Kuvutza."
as
This
is
an
even
familyhouses.
Each
Not
member
more
is the land,
only
property but livingis also
the Russian
common
Kolkhos.
has
room
on
in
advanced
form
than
livestock,machinery, etc.,
joint basis.
a
commonly
There
owned
are
no
build-
286
ing and
is fed
in
from
communal
dining-room. Children
common
their parents
almost
nurseries.
schools
from
their birth
and
are
taken
away
brought up in
in kindergarten, primary or
of the
working members
They are educated

they become
are
secondary
The
workers
all their needs
and
community.
get no
wages
are
A
free.
small
is
to
meet
sum
given
supplied
annually
holiday expenses.
This type of organisation is set up by the National
Federation of
which
Labour,
Jewish
until
has
to establish
religiousfervour
funds
enormous
on
is motivated
by
for the Jews.
separate home
Another
type of co-operative farm
family life is retained and each member
is known
as
"Mosha."
cultivates his
own
Here
holding.
like credit, marketing, etc., are supplied

co-operativebasis. Another model is between the two mentioned
services, however,
the
All
and
family
their
this the
Under
above.
houses
farm
well
as
farm
in common,
but members
have
gardens. They receive payment

for
to
the
work
according
done, but according
not
working on the
to the family needs.
is held
as
(c) The Italian system. In Italythere
are
two
types of co-opera,
tive farms:
Unita.
(/) Conduzone
(ii)Conduzone
Divisa.
unita
conduzone
Under
the
land
is cultivated
jointlyby
bers
mem-
of
production belong to the society. Members

the work done by them
and also receive a
receive wages according
income
in
earned
of
the
the
to
proportion
surplus
portion
wages
the
and
means
to
after
of
costs
production have
been
and
met
provision made
for
reserve.
Conduzone
tenants
to
whom
divisa
land
is
co-operative farming societyof small
is leased
out
for
individual
cultivation. The
supplies credit, marketing and other

society gives directions
well
as costlymachinery.
services as
ship
Thus co-operativefarming may
cover
varying degrees of ownerof production or even
of the means
consumption. The extreme
and
case
is the Israeli kuvutza
and
the mildest
form
is the
zone
Italian condu-
divisa.
The
All-Pakistan
Co-operative Conference
held in 1957
classified
co-operative farming societies into four catagories.

(0 Those which take over from the rcembers
proprietary rights
of the land and
its management.
287
Go-operation
allow the proprietary rights to be retained

the land-use rightsand management.
but assume
which
(i7)Those
the members,
which
{Hi)Those
allow
the
members
to
retain the
by
proprietary
land-use,but undertake to supply their requirements

of fertilisers,
seeds and implements, arrange for marketing the produce
aad lay down
the cropping pattern to be followed by the members.
requirements but do
(/v)Those which only supply the members'
rightsas well
as
not control the
The
cropping pattern.
ruled
Conference
out
the
of
suitability
the firsttwo
types
his
Pakistan,since the farmer here is so attached to his land as

forms
thought that the second and third
personal property. It was
speaking,
could be acceptableto our farmers. But these types, strictly
individual
farming
systems
not co-operativefarming. These are
are
assisted by the co-operativeprinciplein the supply of certain essential
for
services.
co-operative farming is voluntary pooling of

and carrying
land and equipment, by their owners
resources, including
each
other's
help,the proout the various agricultural
duce
operationswith
and
other
done
work
resources
being divided in proportion to the
was
of its models
suggested
contributed to the common
pool. One
work Poverty
about thirty
years ago by Tarlok Singh in his well-known
to be taken
and Social Change. Under
was
this scheme the whole village
to be
as a unit and
undetaken.
of the entire land was
stock-taking
favour
The
of the
to surrender their ownership in
proprietors were
The
of
essence
societyin lieu of
of the land
the shares to be allotted in accordance
with the value
pooled was to be divided

into economic
the basis of one-plough farms. The entire
units on
working population of the villagewas then to be surveyed and each
individual was
to
be given work according to his capacity.Wages
to be paid on
were
then to
the basis of work units. The profitswere
be divided in
This
so
surrendered.
proportion
The
thus
land
to the shares held
by
the members.
system preserved the ownership in land though converted
it
the
into
ownership of shares. But such a system is rather complex

and requiresa
degreeof organisingcapacitywhich is not likelyto be
found
in most
Some
former
years
of
villages.
our
ago
an
FaO
Punjab Government
suited to the conditions
was
expert, Dr. Schiller,
to
suggest
invited by
the
ing
system of co-operative farm-
region.He recommended
a system
Of individualfarming
which involvedsurrendering
of cultivation rights
of this
288
in the land in favour

lots of
who
method.
subsequent division into

each. These
acres
lots were
to be cultivated by farmers
be supplied essential services through the co-operative
ten
to
were
of the
This
also did not
scheme
since it involved
society and
evoke
its
ethusiasm
firstsurrenderingof their land
the farmers
among
society.
the
to
likely that farmers will

their rights in land whether
voluntarily agree to surrender
they
receive back shares or consolidated
lots for cultivation only. They
first be convinced
of the clear superiorityof the system of comust
operative
farming. The best method is to proceed by steps. One way
be to develop a single-purpose societyinto a multipurpose
would
societyundertaking the supply of one service after another until the
method
is to
land is also pooled. Another
final stage is reached, when
by-pass the ownership complication and start such societies on State
confer ownership of the
lands and, after the system is established,
under
Thus
land
on
the
ownership
conditions
our
society.The
on
individual
to be cultivated
on
society
members
it is
may,
not
condition
on
co-operativebasis. This
this
fit,confer
if it deems
that the
appears
area
to
continues
have
been
development in Pakistan.
first experiment in
The
co-operative farming in Pakistan
of resettling
displaced
organised in 1948 in the Punjab as a means
was
of land, the total area
allotted 12| acres
farmer
was
persons. Each
members
farmers
had to become
The
covered
being 178,000 acres.
of a co-operative society which
supplied interest-free credit to
houses and godowns for
purchase agriculturalequipment, construct
maintained
improved
storage, etc. It provided irrigationfacilities,
the line of
provided marketing services. Social services like

ty.
schools and drinking water
also supplied by the sociewere
mosques,
sion
studied by the National
This experiment was
Planning CommisCommission
found
that it had undoubtedly
in April 1959. The
implements and
achieved
of
measure
compulsion but,
country
as
success.
the Second
certain
amount
doubt, it involved
No
Plan
of
has
guidance
Inevitable if co-operativeaction,however
make
any
The
OB
put it,"for
and
limited
an
poor
element
and
of
ward
back-
supervisionseems
in scope, is
ever
to
headway."'
Second
Plan
suggested that "co-operative land management

the lines of the Punjab experiment should
be introduced
in other
I. Second Plan, op. cit.,p. 130,
289
Co-operation
the
particularly
areas,
projects,"with
recentlyopened
areas
assistance
up
by the large irrigation
and
regard to management
Co-operative farming is the only effective solution
of the problem of small, fragmented, uneconomic
holdings. All efforts
necessary
with
technical advice.
should
be made
induce
to
in land
people
and
revenue
in
justified
is also
water
this system,
adopt
to
certain
rates.
cessions
including con-
of
amount
pulsion
com-
the initial stages.
considering a
proposal for transferring
ready
property rightsin the land to the co-operative farming societies alThe
is
Government
formed
on
In the meantime
the introduction of mechanised

has been undertaken
in Comilla
have
in the
been introduced
of
programme
farming
thro
in East
experimentation for
ugh co-operativesocieties
Pakistan
and
similar
co-operativesocieties of the western
such programmes
subsidised machinery is under

12
provided proper
against the land-ownership passing into

of the co-operative
leading to the breakdown
individual hands, thus
Expansion of
be done
may
introduced
safeguards are
farming system.
land. This
Government
the basis of subsidised
on
consideration
of the
plans
wing.
services and
Government.
Co-operativeMarketing
in our
have
We
chapter on
already noted
Marketing that to
position of the cultivator increase in producimprove the economic
tion
be made
is not enough. Attempts
must
to
get him a fair price
have
for his produce. We
also
that
seen
during the
period
before the Partition a large number
of intermediaries
used to deprive
to his labour as a producer. The produce
the farmer of a fair return
was
usuallydisposed of through three agencies:
small purchases on cash or
(o) The village shopkeeper made
the
barter basis and took
produce to the nearest mandi after
thus collectingit.
(fe)Itinerant purchasers like beoparis,telis or kumhars
bought
their
in
the
the produce
own
account
village on
or
as
-
IS
agents of mandi
(c) In
most
financier.
the cultivator
cases
took
the
produce
the mandi
to
himself.
Whatever
low
To
price and
save
of
procedure adopted,
the
the
him
the middlemen
from
former
shops, however,
did
the
producer got
tively
compara-
made
enormous
profits.
exploitationthe Co-operative Department
commission
organised
Punjab
shops. These
such
not
make
direct
purchases, but handled the
290
Pakistan,
produce
for
advances
to
being
the
commission
on
But
the
members.
purchased
But
a
In
there
the
no
basis.
the
that
value
other
they failed
there
were
for
co-operative basis. Such
give the
not
commission
to
command
sale
some
outrightfor
arrangement
Ttiey could also give

of the produce tillit
shops could
credits, as
addition
produce
was
of
these
such as unsecured
facilities,
was
mainly because of this
of
DevelopingEconomy
of 75%
extent
sold.
actually
was
sold
same
agents. It
!he
loyalty
societies which
sale to
other dealers.
subsequent
ultimate disposalof the produce on
societies could
not
im the
succeed
absence
of
co-operatives which could take the place of the big dealers in the
face
to
Moreover,
hostilityfrom the private
they had
useful
service to the producer by
Even
then
rendered
a
arhtiyas.
they
acting as an alternate agency available to him free of malpractices,
la fact, they drew
public attention to the malpracticesof the mandi
and
thus led to the regulatinglegislation.
middlemen
After the Partition,these societies rendered
even
greater service,
since they filled the gap
caused
by the exodus of the non-Muslim
of business handled
before and after
dealers. The amount
by them
in
Partition
the Punjab is shown
by the table below.
mandis.
Table No.
3S^
Operations of Co-operativeMarketing Societies
in the
Punjab (1946-53)
Pakistan
In West
these
types
of
multipurpose
Some
members.
is yet
no
basis. The
1.
the
societies.
societies
such
In
ultilised
only
newly established
marketing of the produce of their
East
undertake
societies
has
Pakistan
the
also exist in West
Pakistan.
There
co-operative marketing system organised on a systematic

of 1955 enumerated the
Co-operative Enquiry Committee
Report, Co-operative Enquiry Committee
(West Pakistan), 1955, p. 65.
292
Co-operation
main questions which
following
must
be
tackled
by
successful
operative
co-
marketing system:
(a) Facilities for producer to dispose of his produce;
{b) Provision of necessary finances;
(c) Adequate storage arrangements;
{d) Transport of the produce from the villageto the mandis;
of produce;
(e) Standardisation
(/) Processing;and
ig) Ultimate disposal.
The
Committee
proposed a system of co-operativemarketing
the
the proposed set up," thus runs
to tackle these problems. "In
summing-up of these proposals,"the primary society will deal with
the
villages.In the mandis, secondary

institutions will be formed
the primary societies of all those
and
which
villages
served by a particularmandi will be affiliated to the
are
secondary institution in that mandi. For the final disposal of the produce
a tertiary
organisationat the provinciallevel would be necessary.
It will dispose of the produce internally
for consumption and externally
for export."' The storage facilitiesand standardisation
and processing,
where necessary, will be provided at the secondary level and
finances suppliedby the Central Co-operative Banks
tions
or
higher institube. This is good enough a model.
as the case
may
The
Plan was
scheme
almost
proposed by the Second Five-Year
marketing of
the
identical. In the words

should
be
should
handle
produce
of
the
in the
Plan, "In
sizable
market
towns
there
co-operativemarketing society(secondary level)which

the produce of its constituent
primary credit societies
well as of their individual members.
as
The
marketing societies will
undertake
the disposal of produce, construct
godowns at suitable
centres
and supply improved seeds, fertilisers and other requirements
a
of the members.
The
"2
proposed to establish 100 marketing societies in West

Pakistan,each servingabout twenty to thirty-member primary co-operatives.
They were to market the produce and buy suppliesneeded by
members.
In East Pakistan thirty central multipurpose societies were
to
be reorganised. They were
to act as central marketing association
for
the affiliated union societies. They were
to purchase the produce from
them
as
Plan
well
as
from
their individual
1. Ibid., p. 68.
2. Second
Plan,op. cit,p.
180
members.
292
Governments, following these recommendations,

of
for the purpose
Plan
prepared programmes
during the Second
The
reorganising the co-operative credit and marketing structure.
reiterated by the
necessity of reorganising primary societies was
The
Provincial
Plan.
Second
According
Banks
should
recommended
that
Apex
a
have
in
the
to
individuals
no
sizable
every
members.
as
market
primary societies and
it
Further,
was
should
there
town
and
Banks
be
handle
society (secondary level) to
co-operative marketing
produce of its constituent
Central
structure.
new
the
for their individual
members.
of the Second
Plan in East Pakistan,
Following the programme
500
union
(primary level) multipurpose co-operative societies and
thirty central (secondary level)multipurpose societies were developed
established.
Marketing Society was
Further, the Provincial Co-operative Bank, fifty-fourCentral Banks
Banks
also reorganised and nine
were
Land
and
Mortgage
seven
and
reorganised and
Provincial
established.
Banks
Mortgage
District Land
Pakistan, 500
large-sizedco-operative societies at the

primary level, sixty-fivemarketing societies at the central level and
organised during the Second Plan
about
3,000 service societies were
In West
period.
co-operative banks at the secondary level have
totallystopped lending to individuals, though in West Pakistan no
Pakistan
In East
been
has
progress
loans
medium-term
and
medium
Rs. 3-5
crores
long-term loans
had
from
programmes
Credit
have
been
will
greater attention
cover
prepared
twice
the
credit
for making
and
1963-64
agencies.By
five-yearAction
the Provinces.
included
in
Bank
in this fund.
the
during
is
number
reorgnised for linking credit

Plan
Second
period. Already
Thus
an
their working efficiency.
as
the
agricultural sector,
of
(begin-
Plan.
regarded
the Third
Plan
Important aspects of these
in the Third
co-operation, which
State
co-operative banks
to
rural
to
accumulated
1963-64) for both
in the
set up
advances
and
1962, the State Bank
In
much
has been
rural credit fund
ing
in this respect.
made
Plan
primary
core
will
period. The
of
be
the
given
programme
and
secondary societies
and
marketing compared to the
reorganised societies will improve
attempt will be
made
to cover
the
293
Co-operation
bulk
of the
short-term
long-termcredit
needs
and
medium-term
will be left to
be
credit
covered
requirements. The
by the Agricultural
Development Bank.
Due
good results achieved

by the Co-operative Farming
and
districts in bringing new
Multan
Montgomary
under cultivation and in increasing agriculturalproduction, the
areas
retaining individual
holdings) will be
experiment (with farmers
extended to other areas
during the Third Plan.
to
Societies in the
It
is realised
that
the
main
growth of co-operative movement

general and specialeducation among
reason
for
in Pakistan
the slow
has
been
and
uneven
the lack of
people. Efforts will,therefore,

the teaching of the
institutions to introduce
in educational
Educational
of co-operation.
campaign will also be carried
principles
on
by th"paid secretaries of the reorganised co-operatives.Further,
six co-operative training institutes
the co-operative college and
Pakistan
which started functioning in West
during the Second Plan
period will be strengthened. In East Pakistan a co-operativecollege
have
Divisions
already been
and
four zonal
institutes in four
be
increased
to eight durwill
ing
of the latter
established. The number
the
be made
the Third
period.
established during the Second
was
Advisory Committee
under the auspices of the State Bank.
Plan by the Ministry of Finance
and
co-ordination
It provides machinery for consultation
of the
Plan the work
activieties of rural credit agencies. During the Third
of this body will be enlarged.
Plan
A Credit
12
16 Evaluation
of the Movement
in the Indo-Pak
sub-continent
co-operativemovement
has
the
time
to time, to
subjected,from
searchlight of criticism by
various writers,committees
and commissions.
On the one
hand, the
achievements
of the movement
and its possibilities
have received high
has been regarded as an utter
praise and, on the other, the movement
failure. Some
have
regretted its oiScial character, while others have
regarded this feature of it as an element of hope and strength. The
on
Royal Commission
Agriculture almost
forty years ago appraised
follows: "Knowledge
the movement
of the co-operativesystem
as
is now
widespread,thrift is being encouraged, trainingin the handling
and in the elementary banking principlesis being given.
of money
is strongly established,
there has
Where
the co-operative movement
of interest charged by the moneybeen
a general lowering of the rate
The
been
394
lender,the hold of the money-lender has been loosened, with the result
that a marked
change has been brought about in the outlooks of the
people."!
authoritative
An
Darling,^
(moral) progress,
the
as
in
elusive
too
are
progress
of facts, but for all that,they are

of
and
drunkenness
problems of the Punjab, M.L.

give conclusive evidence of this
signs of moral
statement
rural
on
difficult to
observers
close
to
is
"It
wrote:
pinned down
writer
the
gambling
all
are
able
unmistak-
Litigation and
movement.
at
discount
be
to
gance,
extrava-
in
good
industry,selfa
co-operative society, and in their place will be found

and arbitration,
reliance and straightdealing,education
thrift,self-help
for
it
claimed
the
and mutual
Thus,
was
movement
that it had
help."
of interest
the rate
in
rural
encouraged the habit of

saving and investment, decreased consumption borrowing and.improved the moral tone and outlook of the people.
reduced
most
of
character
and
that
out
hand,
other
the
On
associated
could
in
had
rural credit
and
remarkable.
Even
the
about
in
reduction
co-operative credit
field
official body
an
1931, had
which
to
admit
its
that
of the
societies. It
the
achievements
there
or
the fact that

with
like the Central
tive
qualita-
measured.
was
tion
co-opera-
problem
were
not
of
very
Banking Enquiry
very
little evidence
of total indebtedness
societies for
through the agency of the

in a position to finance
not
they were
of
old
debts. The
discharge
various
agriculturists
adequately for the
Provincial Banking Enquiry Committees
percentage
formed
also
that
of
were
actually achieved
were
quite a small proportion
emphasised
mainly
occupied
been
even
were
pointed
movement
for it
established
definitely
results that
They
movement.
India
Committee,
that
the
claimed
be
not
the societies
only with
the
of
critics of
the
achievements
the
Further, they asserted
areas,
current
needs
of
further
also noted
agriculture was
pointed
membership
that
only a small
suppliedby co-operative
writers that official

by some
number,
and capitalof the societies were
the basis of these
unreliable. 3 Even
on
had
figuresthe movement
touched
only a small proporation of the total population. "All that
figures of
1. Report,
2.
was
the
Darling
Royal
was
Commission
once
on
out
Agriculture
in India.
Registrar, Co-operative
Societies in the pro-Partition
Punjab.
pp.
3. See S. K. lyenger's article ia the Indian Economic

Journal,January 1942,
406-08, for examples of defective presentation of figures.
'
295
Co-operation
has been
done," wrote an eminent Indian writer (SirM. Visvesvaraya),

"amounts
only to a scratching of the surface."
As long ago as
Agriculture,
on
1928, the Royal Commission
while
referringto
"increase
the increase in number
of
societies, observed
that
ment
accompanied by improvein quality."About
later, the Agricultural
a quarter of a century
the
of Pakistan
(1952), while recommending
Enquiry Committee
creation of a national co-operativeorganisationunder official guidance
in
has
numbers
and
supervision,observed
on
the
present
been
organisation"will need to be built

which
they regarded in general as
that the
foundation,"
weak,"
"disappointingly
An
always
not
reform
in which
in any
be needed
would
case.
the recommendation
Co-operation appointed on
of Pakistan AgriculturalEnquiry Committee, reporting in 1955,
be expected in
observed that "co-operation has suffered and cannot
national
its present form to serve
development and
as a vehicle for
Expert Committee
on
advancement."
As
to
the
reasons
opinion has given

on
Agriculture,the
for these failures authoritative
similar views. According
to
the
Royal Commission
qualitywould appear to be "that while societies have

lack of patient and
been registeredfreely,there has been
persistent
of
and
education of the members
meaning
in the principles
tion
co-operaunder
task
the
efficiently
to
perform
by teachers competent
were
given by the Commission
adequate supervision."Other reasons
guidance, inadequate
of supervision and
withdrawal
premature
for low
reasons
trainingof
members
thrown
responsibilities
assume
upon
them,
official interference,unsound
against undue
The main causes
given by
resentment
etc.
to
the
transactions,
Co-operative Planning Committee
(1946)for the limited progress of the movement

of
laissez-faire
policyof the State, the illiteracy
in India
the
people
were
and
"the
the fact
that the movement

did not, speciallyin its initial stages, tackle the
mentioned
life of the individual as a whole."
Among the other causes
by the Committee
were:
the small
size of the
primary unit and
undue
day-to-day work with resultant

honorary services for even
and mismanagement.
inefficiency
The National Planning Board in the First Five- Year Plan quoted
with approval the following judgment pronounced in the Report of
the Rural
Credit Survey of India as equally applicable to Pakistan:
reliance on
"It
is
generally recognised that
credit movement
in India has
the
been
development
inadequatein
of
co-operative
three
important
^96
respects.There are large parts of the country which it has hitherto

in those areas
not covered; even
it has extended, there are
to which
large sections of agriculturalpopulation which still remain

its membership; and even
if attention is confined
to those
outside
who
are
of
members
co-operative credit societies, largebulk of their credit

other than co-operatives.
What
raquirements are met from sources
is
adequacy
not as widely recognised is that the magnitude of this three-fold inis such as to warrant, from the quantitativeas distinguished
the qualitativeaspect, only one
from
judgment, namely, 'failure,'
the fifty
years'record of the Co-operative Credit Agency in this
on
other
description
country. The data of the Survey confirm that no
of the record would be appropriate." To this judgment the National
Planning Board added further: "It is probable that, if a survey were
in this country, an
carried out
unfavourable
judgment
even
more
have
would
failure
be
to
is attributable
in which
environment
in
large
opinion of
In the
pronounced."
to
measure
co-operativeshave
socio-economic
tne
function:
to
Board, "This
the
spread
poverty, wide-
uneconomic
land holdings, lack of business
illiteracy,
ence,
experiviolent price fluctuations,
tion
villagefactions,petty oflacial exploitations
and officialhigh-handedness, domination
of co-operative institureluctance of members
by powerful individuals and urban interests,
and scrupulouslywith their friends and neighbours,
to deal impartially
on."^ Tue Credit
the large magnitude of overdues, and
Enquiry
so
Commission
about
the general
of 1959 has talked in similar terms
of the meagre
causes
All these
of agreement,
the
judgments
and
are
very
and
true
though they cover
even
of failure of
causes
of the movement.
achievements
Committees
the
of
the
working during
various
the
last
defects
are
among
the people. This
long
which
defects
ultimatelytraceable
process
will be
as
lack
sense
by-product of
1. First five-Yeur
who
is
be
Plan, op. cit.,p.
removed
term
process
287,
in its
of these
co-operativespirit
of the
the
have
through the
of its life. Most

of the
missions
Com-
opinion
required
discovered
been
have
the
the
What
its rectification
cannot
in the widest
of
been
farmer.
the
all
authority,
have
years
to the
basic defect
of education
acquired
that
sixty
over
generation,regarding
of
individuals
degree
remarkable
Nevertheless,
expressed their views on the movement,

that co-operation is the only hope of
is not
but
abandoning the movement,
removal
whole
movement.
and
show
in
day.
its needed,
of economic
297
Go-operation
and
social
is sometimes
of the fact that
made
development. Much
the co-operativemovement
in this sub-continent
did not arise out of
the consciousness
from
above
of
need
the part of the

Government
action
to
through
on
people. It
imposed
problem of
was
solve the
of rural indebtedness. The

growing menace
movement
to
other
it
fields but
lost its official character.
spread
never
the
true; but
and
it could
backwardness
be
not
of
the
helped, because
people. If the
the people perhaps

initiative,
would
of the
State
later
is
This
general illiteracy
had
not
taken
the
thought of co-operation
as
of solving their problems. In fact,official agency
a method
could have done even
than it actuallydid. There in no question
more
of withdrawal
of Government
responsibilityand control in this
The
connection.
First Five- Year Plan particularly
emphasised the role
that the State must
play in this regard. "Co-operation," in the words
of the Plan, "must
remain the responsibility
of the Government
until
the social and
economic
of the rural
areas
in
The
Plan
also
Second
13*17
Conditions
have
never
of the country,
conditions
as
whole, and
particular,undergo a
implicitlyaccepted this position.
radical transformation."*
of Success
rapid progress and without

official patronage, in some
of the countries of Europe. Moreover,
there much
is expected of co-operation than
material
more
mere
well-beingthrough the supply of credit and other needs of the farmer.
human
the whole
"It is expected to transform
being, his personality,
character, attitude to the community and attitude to life."2 Denmark
differ greatlyfrom
is a classical example. But conditions in Denmark
of India. Accordconditions that have prevailedin the sub-continent
ing
The
to
movement
Sir
John
has
made
Russell, four
more
essential
conditions
of
success
are
pr"!sent in Denmark:
(1) The
village population is homogeneous;
correspondingto caste
(2) The cultivators
there
is
nothing
distinctions.
are
literate.
set
where
people's high schools were
up
and
in the
eultivators were
taught better living both in the home
ideas of corporate
responsibilityin village and
villageand where
(3) From
the outset,
1. Ibid.,p. 223.
2. Co-operative Action
Ofllce,
p.30,
in
Rural
Life,a
survey
by the Internatippal
L^bouf
^^^
national
life were
inculcated.
taking
mostly trading societies,
the produce from the cultivator,working it up into marketable
over
form
and
sellingit for him. Also they supply him with all materials
for use in the home
and on the farm. They are merely financed by the
local banks and members
severallyliable to the loans.
are jointlyand
As depositors the members
provide a substantial part of the funds;it
(4) The co-operativesocieties
their
are
each
that is lent to members, and in consequence

money
borrower feels himself under the necessityof repayment.^
IS
In
and
own
Pakistan
to-day,
the force of caste

The
is not
population is
strong
so
much
homogeneous
more
in the rest of the
as
nent.
sub-conti-
cational
eduare
no
however, is low. There
percentage of literacy,
institutions corresponding to
people'shigh schools of
Denmark,
almost
the
nor
is
they been in the past. Gorporate responsibility
have
entirely absent.
cultivators
The
too
poor
of local banks.
are
to
provide a substantial part of the funds

In fact,one of the chief causes
of the slow
growth of
tion
of the
in
Pakistan
has
been
majorityof
the peasants
societies. The
words
the meagre
lack the means
income
to become
even
be able to
co-opera-
masses.
A vast
members
of
are
Bengal Banking Enquiry Committee

stillapplicable:"At the end of the scale there are people who are
"o
well
the
off that
of the
they do
themselves
liability
by enlisting
are
who
persons
so
are
if,therefore,
not unfair
represents
the medium
to
incur the risk of unlimited
members.
At the other end, there
desire
not
as
that
poor
to assume
membership. It
the co-operative population
they are
that
refused
population."^
agricultural
It
comparatively more
population of the Punjab made the highest progress
a
matter
of accident
in the whole
activity
leadingthe others in
that
the
of undivided
India. In Pakistan
is,therefore,not
rural
prosperous
in co-operative
also this
area
is
this respect.
lacks the conditions which
On
the whole, however, Pakistan
But there is no
Biake for the success
of the co-operativemovement.
despair.For one thing,co-operation,short of socialism,

the best of it in
make
is the only hope of our rural masses.
We
must
That
co-operation
"piteof the adverse character of the environment.
succeed especially
in Pakistan, is indicated by the excellent results
can
occasion
for
1. Sir John
Russell, Report
tural Research, 1937, p. 63.
2,
on
the Work
of the Imperial Council of Agrlcuh
Banking EnquiryCoinniitteeReport,p, $9.
299
Co-operation
tion.
achieved,especiallyia the field of non-credit co-operationsince PartiThe
marketing societies of the former Punjab, the N.-W.F.P.
and
East Bengal did brilliant work during the post-Partitionperiod.
Co-operative farming experiments, in both the wings with all their
limitations,
are
encouraging. Industrial co-operativesalso have shown
good results,
especiallyin the rehabilitation of refugee artisans. With
the spread of education and greater co-operativeexperience,with the
transfer of larger powers
to the common
people under the Basic
Democracies, the rate of progress is bound to increase.
12
18 Suggestionsfor Improvement
The Pakistan AgriculturalEnquiry Committee
(1952) made some
The
valuable
suggestions for the improvement of the movement.
Committee
in favour of continuing guidance,supervisionand control
was
of the movement
the part of the State. But they emphasised
on
that the process
of educating the people with the aim of ultimately
continue. The
Committee
must
making the movement
self-generative
recommended
in the
that the Registrar should be given wider powers
appointment and displacement of the staff engaged by the societies
*
and
determining the
of their service. Such
power, however, is
democratic
control
the
on
terms
likelyto be resented by the societies. The

should be preserved.The Registrarmay, however,
part of members
have the power
of mismanagement
to interfere in cases
and
tion.
corrupThe
Committee
rightlydrew attention to certain defects in
of Pakistan
which
hinder
co-operativelegislationin certain areas
the
of
recovery
is made," wrote
and
the
the
debts
of the
the Committee,
claims
of
other
This defect needs
to be
Committee
that
society. "Insufficient distinction
"between
the claims
creditors, institutional
removed.
useful
Another
of
and
co-operatives
otherwise."
suggestion of the
village co-operatives should extend their

services to non-members
at a
higher price. This may be tried as
an
experimental measure
only, because the danger is that nou'
less equal facilities,
or
members, by getting more
may not think it
their
while to become
members.
worth
Finally,the Committee
were
of
the
view
was
that
"for
the
societies
sectional activities in
other
than
addition
credit and
for societies
credit,the condition
of membership can convenientlybe on a limited liability
basis provided
basis."' The suggestionis
credit section is on an unlimited liability
which
have
I. Report,
to
AgriculturalEnquiry Committee,
p. 68.
300
good in principle,but it will give rise to practicaldiflaculties in the

of multipurpose societies. The
ease
Credit
Enquiry Commission, as
have
we
seen,
also favoured
In March
1957,
AU-Pakistan
order
of the
Conference
outline the
to
then
the
of rural
were:
the
Among
for
need
credit structure; State
called
an
Marketing in
and rehabilitation
suggested by the
measures
credit
rural
and
for the reform
needed
measures
the
Credit
Co-operation,
on
liability.
of Pakistan
Minister
Prime
co-operativemovement.
Conference
limited
the trend towards
reconstruction
survey;
participationin the
share
capitalof
largerco-operativesocieties,especiallyat the apex level;and organisation

societies which would allow
of co-operativefarming by establishing
proprietary and land-use rights over his land,
but would
to cater to his requirements of fertilisers,
undertake
improved
for marketing of the produce
seeds and modern
implements, arrange
of cropping, etc.,
and would
lay down an agriculturalplan in matters
would
be required to plan the cultiwho
for the individual members
vation
of their holdings accordingly. As regards marketing, the Con-i
that the agriculturalmarketing staff should be
ference recommended
adequately strengthened to carry out their functions of survey of
and development, supervision and
marketing conditions, education
that compulsory grading of exportable agricuN
regulationeffectively,
and those consumed
tural commodities
internallybe implemented early,
the
to retain the
owner
marketing and credit societies
and that
of
consumer,
and
of these
Many
12
'
industrial
the need for
and
labour
co-operatives
co-operativeeducation
suggestionshave
19
Co-operation under
In
the
First
be linked. The
should
already been
was
was
ment
establishmended
recom-
greatlyemphasised.
carried out.
the Plans
Five- Year
Plan, the responsibilityof
the
ment
Govern-
controlling the
assisting,influencing, supervising and
as
a part of the rural development programme
co-operativemovement
stressed. According to the Plan, it must
improve and advance in
was
The Planning Board suggestunions with other parts of the programme.
ed
should
that initially
three co-operative planning groups
two
or
for
be
formed
in each
Province
under
the
officials of the
Civil Service,
experienced in rural problems, assisted by a senior co-operativeoflScer,

of the
of the State Bank of Pakistan, a representative
a representative
These
Provincial Co-operative Bank, and a co-operative accountant.
the
should
co-operative credit institutions. Credit
teams
survey
are
be classilled into three grades: (a) those which
societies should
Go-operation
301
fuactioning
fairlysatisfactorily;
ib) thoss"hich
with reasonable
(e)
those
fiaancial and
which
staff assistance
appear
activities of the first category

second
type should
taken
to
be based
close
be
the
the
be
to
assisted
third
incapable
should
kind.
be extended
The
of the
of
Government;
and
The
the
intensified;
should
measures
rehabilitation
planning
rehabilitated
rehabilitation.
and
required and
as
be
can
from
be
should
programme
suggested above, and

include,where necessary, (a) an increase in the size of primary
societies,
(b) extension of operations, both in varietyand volume, and
(c) appointment of new
staff at
the expense
of the State. These
on
report
group
should
suggestions deserve
One
of
the
alreadynoted,
in
the
been
principles of
co-operative
other in
West
reiterated the
his
is able
to
in
one
to
that
ensure
that
facilities from
such
the
sale
administration.
they become
The
Plan
made
he
will be
co-operative society and
that
way
the
proceeds of
units
economical
same
suggestions for
his
the
agency.
produce
after
the size of the
to
and
at
borrowed
the amount
sold
way
co-operative
during the Second

Plan
(and the Second
through the co-operative agency. As

primary societies,the Plan suggested that they should
such
all
the
and
East
necessity of linking credit and
in order
get credit
as
done
was
emphasised
the
produce through
movement,
personnel trained
Plan
suggested that
First
established,
farmer
the
of the
far.
so
of suitable
The
This
suggestion)
of
received
have
imparting training to
further
Arrangements are to be made in

from
by the farmer is deducted
it has been
be
they
progress
inadequacy
co-operation.
Plan
same
able to market
slow
otherwise.
or
marketing needs
time
the
Pakistan, for
period. The
same
the
colleges should
workers, official
Plan
of
causes
has
than
attention
more
be
organised ia
have
sound
improvement of
it regarded the rehabilitation
the
co-operativebanks at the district level. But

of the problem, of
of the primary villagesociety as the crux
battle of co-operation will be won,
"The
improving the movement.
satts-^
when the villageco-operativesbegin to perform their functions
cultural
whether
factorily,
tiiey are financed by co-operative banks, the Agrithe
Bank
the
same
or
from
other
sources.
"i
The
Second
view.
1.
Plan, op. cit.,p.
296.
Plan
also
expressed
CHAPTER
13
State and
13
"
1 The
Agriculture
Role
of the
State
In
play in relation to agriculture?
of preserving
every country the State has to perform basic functions
of
law and order, recognition of rights in property and enforcement
life is
Without
such
contracts.
protective activities,no economic
of the functions the State
possible.We have already discussed some
performs in relation to agriculturein Pakistan apart from the above
constructed
The
has
basic functions.
State
huge irrigationworks,
roads
and
extensive
railways; it provides credit for agricultural
improvements directly,and, by creating statutory bodies for this
it has initiated and it controls and supervisesthe co-operative
purpose,
and
it has
for the
movement,
passed many
legislativemeasures
protection of the tiller of the soil from the money-lender and the
landlord. Moreover, through its Medical, Public
nary
VeteriHealth
and
it
seeks to preserve
and improve the health of the
Departments,
also
agriculturistand his livestock. The
Education
Departments
What
do
part
their
in
the
Planning.There
still remain
to
State
literacyin the rural area. In recent years it

of planning development including agricul-*
the task
development
attention
the
spread
to
part
has undertaken
tural
does
are
be
at
the
second
national
volume
certain
discussed
of
level.
this work
activities of
in
This
the
will
under
occupy
Development
State, however,
the present context.
our
Such
that
activities
are:
(a) Activitiesin
connection
with the
improvements in the methods
State and
303
Agriculture
undertaken
of carryingon agricultural
primarily
operations.They are
by the Provincial AgriculturalDepartments with valuable help from
involve:
the Central Government
agencies and institutions. These
implements,
(i)agriculturalresearch with regard to seed, manure,
and
ducing
pests
diseases, etc.; (ii)agriculturaleducation, aiming at prothe
olficers
for
agricultural
agriculturalresearch workers,
departments and practical
farmers; and {Hi)popularisationof results
achieved through research
by propaganda, distribution of seeds,
manures
and
implements,etc.
(b) Rural
reconstruction.
This
activityis of
wide
non-official effort. It aims
scope
volving
in-
raisingthe
material,mental and moral level of villagelife as a whole. It involves,
in a
through suitable agencies, bringing to the door of the villager,
beneficent
departments of
practicalform, the benefits that the various
AID
the Government
The
falls
him.
Villageconfer on
programme
can
under this category. More
being achieved
recently these aims are
both
through the
official and
at
institution of Basic Democracies.
primarily not what the

policy. This concerns
State gives to agriculture,
from it. But it
but what the State demands
distress,
may have a relief aspect, when, during periods of agricultural
the State may
reduce, suspend or remit the land revenue
charge.
In fact,the land revenue
do
with
lot
has
to
a
agricultural
Policy
prosperity.
This we shall discuss in the next chapter.
Let us take the AgriculturalDepartments first.
(c)Land
13
revenue
AgrlcnitaralDepartments in British India

The
of Agriculture" was
idea of establishing a "Department
mooted
until 1870 that the "Departnot
as earlyas 1886, but it was
ment
of Agriculture, Revenue
and
created by the
Commerce"
was
Government
of Lord Mayo. Due to lack of sympathy from While HalJ,
however, this department gradually degenerated into a Revenue
absorbed
in the Home
Department, and was finally
Department.
*
2 Evolution
of
In
of the Famine
1880, at the recommendation
Comniission
which reported in that year, the Central
of Agriculture
Department
re-established and
also Provincial
was
created.
Departments were
The Provincial Departments concerned
themselves at firstwith agricultural
statistics.Experimental farms, however, were
at
opened
Saidpct
(1871),Poona (1880),Cawnpore (1881) and Nagpur (1883).
In
1889, Dr. J.
A. Voelpker of the
Royal Agricultural
Society
39i
appointed
agriculture.His
to
inquire and report
improvements of Indian
monumental
Report appeared in 1893. He
emphafor better irrigational
siied the need
facilitiesand the use of better
He attributed low
manures.
productivity to smallness of holdings,
of capital,rural indebtedness
and
defective land tenures.
want
He
was
laid stress
the need
for detailed
on
the
scientific
investigationregarding
practice in India. He gave a warning against the belief
agricultural
that Western
knowledge could simply be grafted on Indian
practices,
followed by some
This Report was
appointments to the scientific stafif
of the Imperial Department of Agriculture.
on
In 1898, Sir Frederick
suggested that the Government

from
ihould
turn
agricultural inquiry to agricultural
improvement.
Commission
"the
that
Famine
In 1901, the
pointed out
steadyapplication
is
the
of
research
to agricultural
crying necessityof the
problems
recommended:
Commission
times."
The
(") a strengthening of the
itaflFof agricultural
tion
departments in all Provinces; (ii)further legislaAlienation
Land
duction
lines
the
the
of
Act, 1901; {Hi)introPunjab
on
lines. The
of co-operativecredit societies on German
tion
Irrigaof 1903 also emphasised the importance of agriculCommission
tural
research and improvement.
In
the
to
the
Agricultural Chemist
appointed. In 1901, the first Inspector-
1890,
in
meantime,
of India had
Government
Nicholson
been
an
added
appointed. The same
Agriculture was
year was
an
Imperial Entomologist was
Imperial Mycologist. In 1903, an
same
appointed. The
year an American, Mr. Henry Phipps, donated
for
scientific
in India. Lord
research
of "30,000
Curzon
ed
devota sum
of
General
the
greater part of this
AgriculturalResearch
The
to the establishment
sum
Institute
at
of the
Imperial
Pusa.
reorganisation of the Department of Agriculture that took

1905 provided for a Central Research
Institute at Pusa, com^
place in
pletelystaffed Provincial
Departments of Agriculture, with Agricultural
Colleges and ProvinciaI,ResearchInstitutes and an experimental
farm in each important agriculturaltract.
In
central
the
and
1906, the Indian

institutions
that
Imperial Cattle
the
last was
AgriculturalService
were
created
in
subsequent
Breeding Farm at Karnal,

Imperial Sugarcane Breeding Station
a
branch
of
the
constituted.
was
the
years
Creamery
at
ImperialInstitute which
were:
at Anand
Coimbatore.
w^s
Other
This
transferred
State and
from
Pusa
Delhi
New
to
305
Agriculture
after the Bihar
Earthquake of 1934.
Institutions and
also
established in connecdepartments were
tion
with animal health. The Imperial Institute of Veteriaary Research
at Muktesar, started
in 1893 as a small observatory for research
on
rinderpest,later became
institute. The
a
fully equipped research
Civil and Veterinary Department
formed
in 1891 and was
was
uader
the control of the Inspector-General until l9I2. This department was
of India, howcompletely provincialised in 1919. Tha Government
ever,
continued
and
13
finance and control the Muktesar
to
and
agriculturalresearch
the
The
removed
for
Provincial
trouble
being shifted from

of
Provinces
which
had
burden
had
revenue
had
to
rely on
by
they did
from
tfecipiddl?man. These
of
sources
that
from
in the central
finance
1930
Economic
from
revenue
to
be
still
was
onwards
Indian
Depression,
the
do
was
very
to
wonder,
done
certain
have
received
the
bution
distri-
protective
our
vincial
Pro-
agriculturalprogress.
exploitationby the money-lender,

nie^sures
in
revenue
therefore, that the
little to stimulate
pass
revenue),
fact, the land
expansion.
to be
if full justicewas
No
Reforms
(mainly land
In
for
of taxes.
could
Government
the tenant
workers
was
the Great
that
to be reduced
most
reasons
in the meantime
little scope
very
research
of 1919
along had been
of agricultural
main responsibility
development was
main
the Centre
to the Provinces, the
expanding
for
the
and the
Centre,
were
being preserved
of the burden
The
of the
all
onwards, while the

sources
subjects,but it could not incur

provincialsubjects,except on
beyond their control. This deficiency was

which
was
inaugurated from
Autonomy
thus
April, 1937, But

agriculturewas overwhelmed
The
cialised.
provinsupervision,
during Dyarchy (1921-1937)were not

extension
agriculturaldevelopment beyond some
subject and
under
of
Ministries
the 1st of
save
trainingof
also
was
powers
Provincial
central institutions,however, continued
facilities. One
irrigational
reserved
on
some
Government.
Provincial
able to do much
still had
revenues
and
various
Central
Veterinary Department
transferred
over
central
institutions. The
1919, Agriculture became
Government
control
from
expenditure^
under
the
Subject and
The Central
direction
of
Reforms
the
Transferred
Institute
station at Izzatnagar (Bareilly).

Agriculture ProTincialised
"
Under
of
Research
its branch
measures
the landlord
to
and
attention elsewhere.
306

An
of
event
period between
of
World
4 The
"
The
and
I and
War
Royal Commission
in British India
and
to
of
agricultureand the
ûral population and
"(fl)the
on
is
to
necessary
Agriculture
was
appointed in
know
in
measures
1926
examine
"to
agricultureand rural economy

for the improvement
recommendations
make
promotion of the welfare and prosperityof the
the present condition
on
the
Agriculture. It
on
Royal Commission
Royal Commission
report
the
agriculturist
during the
Depression was the appointment
for
this Commission.
something about
13
great importance
now
of
particularto investigate:
being taken for the promotion
of
tural
agricul-
and
veterinaryresearch, experiment, demonstration
of
statistics
for
education:
for the compilation
agricultural
and better crops and for improvement
of new
the introduction
in agriculturalpractices,dairy-farming and the breeding of
and
stock;
"(fe)the
marketing of agricultural
of transport and
existingmethods
produce and stock;

"(c)
agriculturaloperations are financed
by which
and credit afforded to agriculturists;
"(d) the main factors affecting the rural prosperityand welfare
the methods
of
the
agriculturalpopulation, and
make
to
recommenda*
tions."
The
from
problems
the scope
since these
in matters
The
field
aim
the basic
comprehensive report
in
relatingto the subjects discussed

recommendations
of
education
the
and
of
the
were
was
excluded
unfortunate,
agriculture.The
1928 which ia subsequent
by
Commission
and
Government
action
the Commission.
covered
very wide
of holdings,
fragmentation
livestock,irrigation,
marketing, co-operation,
rural reconstruction.
Generally speaking, the
recommendations
throughout the whole
tenure
inquiry. This
problems of Indian
including subjectslike sub-division
of
land
the basis of all fruitful discussion
improvement
rural
and
revenue
Commission's
among
issued
formed
years
land
of the
were
Commission
of
was
to
and
bring about
greater efficiency
agricultural production, in order to

the business of farming more
profitableto the cultivator. They
emphasised the necessityof widening the outlook of the peasant and
stressed the importance of Governinent
initiative in promoting
render
field of
State
agriculturalprogress.
problem
should
of
One
the creation
"to
throughout India
parts of
the
13
5 The
in
constructive
of
mobilise
its
Council
This
Depression.
defensive
to
machinery
Indian
Commission,
the
of the Great
The
measures.
rather
to
ment
imple-
agriculture
attention
The
of
than
positively
afifected agriculture more
Depression
of the less elastic

industry all over the world, because
supply of its products. Agriculture in a country like
of its primitive and
because
scattered
more
even
the
suffered
India
co-ordinate
could
thus diverted
was
seriously than
of
of
Depression
the vortex
the Government
nature
of
Government
the
caught
was
Royal
the
Agricultural
agriculturalresearch
with agriculturalresearch
in other
Council
Empire and in foreigncountries."
recommendations
the
Imperial
of
in 1929.
Impact
Before
of the
to link it up
British
established
was
and
taneously.
aspects simul-
recommendations
guide and
promote,
that the rural
suggestions was
in all its various
whole
important
most
was
Research
as
307
Agriculture
of their basic
be tackled
the
Commission
One
and
to fall in
rigidityof the costs of production. Due
prices of agriculturalcommodities, the value of total agriculturalproduction
reduced.
of
The value
in India was
seriously
principal crops
and
character
in 1933-34
crores
declined
India
British
in
the
"
Rs.
from
10,21
in 1928-29
crores
goods fell less,the terms of

to
adverse
particularlyof the type like India. Due
of relative prices of imports and exports, the balance of
adverse
the country
and
of his debt
burden
was
Until
the
increased
coming
put
due
to
meet
it to
to
the
of Provincial
littleaction to
took
hard
While
invisible accounts.
on
to
Rs.
4,74
54%. Since the prices of industrial

trade turned against all agriculturalcountries,
fall of nearly
the
meet
income
same
trade
became
foreignobligations
of the peasant
fell,the
causes.
in
Autonomy
the situation
her
movements
created
1937, the
ment
Govern-
by the Depression.
Agreement, 1932 ;
signed (e.g. Ottawa

Indo-Japanese Pact, 1934; Mody-Lees Pact, 1935), but here the motives
trade
but to
Indian
strengthen Imperial ties,
not to encourage
were
Pact
of 1934.
A
the only exception being the Indo-Japanese
tive
protecand
wheat
wheat
flour. The
was
imposed on
duty, however,
Some
rupee
at
the
trade agreements
was
delinked
old
from
ratio. The
were
gold bat that was

general monetary
to
keep
and
the
sterlinglink
fiscal policy of the
up
S08
Government
An
deflationarywhich
was
the situation.
accentuated
further
of the Reserve
period was the establishment
Bank
of India in 1935, with its Agricultural Credit
Department. This
be given the credit of devoting itself to the study of
department must
important
of the
event
It gave
expert advice to
problems of rural reconstruction.
valuable
agricultural,
co-operative and other departments and made
wider
contributions
building
the
to
13
"
With
the
of
establishment
the
on
of
problems'
Autonomy
ProviDcial
Agriculture under
literature
general rural reconstruction.
in fact
"gricultural credit and
of
up
Provincial
in
Autonomy
1937
the
towards
agriculture received a
policy of the Provincial Governments
accentuated
by the
new
vitality.The problem of rural indebtedness
received
and
high priority.
still in the forefront
Dcpreision was
were
LegisUtive measures
passed to reduce the burden of old debts
of
"nd
also
to
regulate the practices of money-lenders. Reform
tenancy
line
another
was
veterinary, and
like education, health, co-operation,agricultureand

their
findings
peasant's door.
the
to
and
created
Congress
that
Before
September
in
1939
The
Government.
for the
diversions
could
much
coalitions
resigned and the new
of the
confidence
the
place hardly I'commanded
Ministries
took
and
problems
new
to
Reconstruction
Rural
Provinces.
in the
established
Departments were
be achieved, however, World
out
II broke
War
the
of the Provinces
nation-building departments
activities of the various
bring
co-ordinate
legislation.To
useful
of
their
in the Provinces
people.
13
"
7 The
The
Impact
had
policy of
priceswere
urban
fion
brought
war
economy
to
returns
be
finance
war
II
War
its
about
mobilised
led
kept under
classes. The
was
of World
to
inflationary rise in
control
in response
who
agriculturist
of Continental
by
the
Some
war.
maximum
towards
able to take full advantage

offered
and
needs
own
to
effort. The
war
prices.Agricultural
demands
the
The
of the local
suffered
had
of
problems.
the
during the Deoresopportunities for higher
commodities
suffered due
to the
loss
struck
Bengal due to the
major famine
of imported foodthe sources
loss of Burma
and neighbouring areas,
the part of the Provincial
to Japan and also bungling on
grains (rice),
and
Central
markets.
Hoarding and
high profits,while
Governments.
Large landlords
made
black-marketing
the
small
were
peasant
rife.
gained
State and
httle. In
fact, he had
purchases. The
to
problem
exports of foodgrains and

A
"Grow-More-Food"
The
food
their imports
campaign
Bengal Famine
Government
which
activities
in its technical
aspects
from
in
were
Australia
organised
was
Commission
that great catastrophe recommended

their Report published in 1945.
The
309
higher prices for his non-agricultural

tackled
scarcity was
by stopping
pay
of
Agriculture
with
and
Canada.
limited
success.
investigatedinto the
lines
of
relation
to
of
causes
agriculturalpolicy in
agricultural development
of
the responsibility
the Provincial
institutions. Before
Departments of Agriculture and the Central
ths
Partition, the most important Central institution relatingto agriculture
the
was
(latercalled
Imperial Council
Indian
Council) of
Agricultural Research.
13
"
8 Provincial
The
is
Pakistan
AgricaltureDepartments
present organisation of the Provincial
under.
as
in the
There
is
Secretary
the Joint
three
Peshawar, Lahore
"
is under
Division
and
The
Agriculture Department.
Department is
regions
to
Province
Secretary.The
and
(Regional) Director.
the
Hyderabad
There
is
Agricultural Department
Government
technical
has
been
of West
head
divided
regions. Each
Deputy
of the
Director
into
region
in each
of
Agriculture is in charge
District. The field staff consists of Agricultural Assistants and
There
Moqaddems.
is generallyone
or
more
Agricultural Assistants
in each Tehsil while one
is now
proposed for each Union
Moqaddem
an
Extra
Assistant
Director
of each
Council.
The
functions
comprise the
supervision and control
of: (a) agriculturaleducation, (b) agricultural
tion
and
research, (c) demonstration
propaganda, (d) distribuof improved
artificial
etc.
manures,
seeds, implements and
Some
of these functions
the
to
Agricultural
been
have
passed on
in each
Derelopment Corporations established
a few
years ago, one
Province.
As
of
the
Provincial
Department
regards agriculturaleducation
Agricultural University and

Lyallpurand Colleges at Tando
an
and
research
Agricultural Research
we
have
Institute
an
at
tutes
(old Sind) and Agricultural Instiat Peshawar
and Dacca.
AgriculturalColleges and University
impart agricultural education, both theoretical and practical.They,
along with Research Institutes also carry on research on agricultural
problems, either independentlyor under Central guidance.The research
Jam
310
Pakistan,
relates
to
view
yield,and
of
the
DevelopingEconomy
evolving of better varieties of seed from

disease and
to
etc. The
results of this research
attached
to
step is
located
to
supply
and
case
conditions.
own
to
Then
seed
the
farms
farms
demonstration
proved
the
or
institute. The
or
arrangements
The
experimental farms,
on
research
is thus
success
the cultivator.
Government
tested
moddl
on
seed, the implements
the
large scale on
producers, if
them
villages.Their
be,
may
then
are
university,college or
demonstrate
in the
his
under
the
are
crops
point of
drought-resisting qualities,pests and

subject,better implements and manures,
diseases
which
the
to
are
the
made
seed
plots
cultivator
to
produce
the
whatever
manures,
improved
next
is produced
on
is
purchased from private

manufactured
Similarly, implements are
necessary.
under the guidance of the department. The sale is arranged through
stores or
depots maintained
by the department at convenient
places.
The
help of co-operative societies is also taken, if available,to
approach the cultivator.
research
The
Central
organisations are operating under
the
of the Presidential Secretariat. They
and
Food
Agriculture Division
and
Food
Committee
Agricultural Council, Central Cotton
and
arc:
Central
Committee.
Jute
The
or
and
Food
following functions
AgriculturalCouncil
was
in 1949
set up
with
the
research.
(/) Promoting scientific,technologicaland economic
research
into
matters
Co-ordinating
(h)
relating to food, agriculture,
animal
husbandry and fisheries,and determining in
order schemes
what
of research
shall
be
pursued.
disseminating knowledge relating to food,

(///)Acquiring and
agriculture,animal husbandry and fisheries.
functions
other
(iv)Discharging such
as
by notification
may,
in the
oflacial Gazette, be
assigned to it by the Central
Government.
A
on
Pakistan
Central
the lines of the Indian
deals
with
the
Cotton
Committe
Central
Cotton
improvement
in
the
was
established
Committee.
cultivation
The
and
in 1948
Committee
marketing of
regarding the production
in Pakistan.
of good quality cotton
This work
comprises a large
schemes
of
number
botanical, physiological and
technological"
in the Punjab and
which had been undertaken
Sind
in the past. A
cotton.
The
Committee
"
is
co-ordinating work
/state and
Pakistan
Institute of Cotton
in 1956 for
idea
The
Research
technologicaltestingof
is to
the
produce
"ill
Agriculture
Technology was established

samples used by cotton-breeders.
and
finest cotton
in
and
Pakistan
double
to
the present output.

In
Punjab
districts of the
some
cotton-seed
took
To
place.
1948, mixing
in
such
meet
of
Cotton
situation, the
and
cotton
Committee, in consultation with the Provincial and Central Govern'*

for growing
ments
inaugurated a scheme under which separate areas
different varieties of cotton
defined and mixing of cotton
been
have
and
cotton-seed
in
In
1950,
Central
Jute
being continued
which
before
Institute
being done
was
under
research
all
on
on
maintain
the
Indian
Central
the
has
jute was
continuity of
work
research
to
which
mittee
Com-
Jute
Partition.
Another
series of
relate
measures
against pests and diseases. A

immediately after Partition
pests and
undertake
to
order
in
established
was
its establishment
Dacca
at
Committee
Jute
Research
aspects of jute. Until

research
porated
later incor-
was
Act.
an
established
scheme
prohibited. This
been
has
protection of plants
plant-protection service was organised,

to
agricultuialplants against
protect
been
of Plant
Protection
has
Department
established
which
has already done
now
some
good work. At first
it was
cricket in
responsible mainly for controlling the blackhead
where
it did considerable
Kalat, Sind and Baluchistan
damage to
wheat,
diseases.
the
to
kinds
a
and
sugarcane
activities like
oil-seeds.
This
service
also
has
undertaken
cleaning of fruit trees against the various

insectory has been improvised at Karachi, where
spraying
of pests. An
parasite which
feeds
and
the
on
of
eggs
and
borer
sugarcane
taus
being multiplied and distributed in the affected

Resistant
varieties of various
areas.
as
plants are being evolved
of
the
a
An
measure
rust.
quarantine of
against
organisation
controls
plants
Pakistan
thus
its ravages,
been
has
of
to enter
One
the
of
established
exotic
examined
is
and
insects
health
in
and
order
to
diseases.
the
prevent
imported
they
All
before
certificates issued
into
entry
plants
are
are
allowed
country.
the
Large breeding
greatest dangers
areas
to
plants and
of this pest lie in West
territories
neighbouring
of Iran
and
Pakistan
Arabia
on
is the
trees
the
as
well
one
locust.
as
in the
hand
and
312
PaJcistan,A
India
been
the
other.
taking
measures
on
conference
to
should
Pakistan
that
co-operation with
In
held in
was
Iran,
is
Mekran
Pakistanian
certain breeding
of
which
have
(Baluchistan)
of
been
the
locust
in
taken
for
survey
the
affecting
been
been
has
anti-locust
centre
already
locust
joint
has
recommended
control
important outbreak
Measures
activities
An
menace.
and
for this pest have
areas
countries, Pakistan
Tehran
at
survey
an
India.
these
locust
1948
this recommendation.
implement
and
the
to
arrange
and
Pakistan
control
September
Peninsula, which
Oman
Developing Economy
to
Iranian
carried
out
relevant
to
and
located.
Government
agricultural
relates
to
for the improvement of
development
measures
other
livestock.
Animal
cattle and
husbandry is a Provincial
Central
Government,
however, is responsibls mainly
subject.The
facilities and
post-graduate training and
for
providing research
Another
set
for the co-ordination

Centre
at
one
for
of
established
has
the
work
done
Animal
three
Karachi, another
at
Provincial
and
imparting post-graduate training
third
the
level. The
Research
and
Husbandry
Peshawar
at
the
at
tutes,
Insti-
Comilla,
manufacturing biological
and
products.
have
already been held and
Husbandry Conferences
to improve livestock
regarding the measures
their recommendations
being implemented by the Provinces.
are
statistical service for
The
necessity of establishing a proper
of Pakistan.
statistics is fullyrealised by the Government
agricultural
of
of
the
reference
of
the terms
one
Agricultural
This subject was
Animal
The
which
the Government
appointed in 1951 and
Enquiry Committee
recommendations
made
valuable
which reported in 1952. The Committee
for the
the
to
rural
this
undertaken
to
collection
relating to
the
co-ordination
phenomena.
The
important task
of statistical
the collection
Bureaus
and
of
Statistics
Statistical Office
Central
along
data
have
agriculturalsector.
ing
statistics relat-
of concrete
with
other
functions
has
now
related
vincial
publication. The Prostatistics
also compiled valuable
An
was
ducted
conagriculturalcensus
and
their
in 1960.
The
has
from
been
our
Food
and
Nationi
Agricultural Organisation of the United
helping Pakistan in its agriculturalproblems. On invitation
Government
visited Pakistan
and
number
undertook
of
a
top-ranking
rapid survey of
FAO
our
experts
have
problems, e.g.
8tate
and
313
Agriculture
fisheries,underground water
waterlogging, agricultural
resources,
extension service, improved facilitiesfor storage of foodgrains,agricultural
machinery, etc.
'
Government
The
under
the
Assistance
FAO
of Pakistan
United
in
agreed
Nations
has
Expanded
respect of several
to
lend
asked
Pakistan
advice
from
Programme
of
schemes
experts
of
great
the
Technical
importance.
forestry, rural
on
FAO
The
economy,
connected
animal husbandry and other matters
agriculturalstatistics,
with agriculture.A great portion of the expenditure on these experts
is met by the FAO.
Advice
on
waterlogging and salinity has been
and
who
U.S.S.R,
lought and received from experts from U.S.A.
visited the country
recently to study this problem and have given
their recommendations.
On
the
recommendations
the
and
mission
Agricultural Comthe
is establishingAgricultural Development
Government
Corporations, one in each wing of the country. More of this presently.
13
9 Village-AIDi and Rural Development
Eighty per cent of Pakistan's
population lives in its about
100,000 villages. These
people have
problems and needs,
many
which
be
satisfied by them
can
through self-helpduring their vacant
hours. There being considerable
under-employment in the rural areas,
of
Food
"
of the
much
Under
proper
Efforts
with
time
leadership,this
have
only limited success,

and inadequate range
them
in this direction.
in the words
which
"The
of the
technical
be used to draw
time
because
forth
the
Five- Year
villages,to channel
create
by which
The
Five-Year
they
Plan
can
set
productively.
development, but
unscientific
was
approach
another
from
the
attempt
skill,energy
Government
and
money,
productive use,
be progressivelyenlarged."^
forth
to
Village-AID Programme,"
Plan, "is to provide a means
by
of
resources
activities.
the
assistance
exist in the
means
the
conceptsof
financial
and
past
of
in harmful
rural
at
of the efforts. V-AID
basic
First
be used
can
in the
made
been
if not
idleness
in
is wasted
them
the
into
following as
the most
can
which
and
to
tant
impor-
objectivesof the programme:

(a) To
1. AID
raise
stands
2. Plan,
rapidly
for
the
output
Agricultural and
op. cit.,p. 197.
and
Industrial
income
of
Developmeat.
the
villagers
814
of
expansion
the
and
farming
better
through
Developing Economy
Pakistan,
cottage
industries;
{b) To
spirit of self-help,initiative and co-operation

tinuing
be the basis for conthe villagers"a spiritthat can
create
among
economic, social and politicalprogress;

(c) To
as
for
conditions
create
wâter
for
social activities including recreation

It
recognised
was
the programme
there
that
of this kind
are
such
areas"
supplies,etc.; and
richer and higher life, through
schools, health centres, pure
{d) To
rural
services in the
multiply the community
obstacles
many
is to succeed.
men
Among
and
to
these
women.
if
overcome
illiteracy,
are
staff,backward
communications, inadequate technical

ill-health,
poor
local institutions,
particularlythose for credit,for villagegevcrnment
and
for
co-operation,
apathetic
listless and
attitude
among
the
obstacles,
others. These
villagers,outmoded
traditions, and many
provided imagination,
however, are not regarded insurmountable,
which
the
drive and
forthcoming in adequate measure,
are
energy
basic idea of the
J^tw
was
supposed to provide. The
programme
i
rogramme
ihe
self-helpand
to stimulate
was
villagers,so
that
they
may
become
arouse
enthusiasm
among
progressive,self-respecting
Village-AID programme
was
a development
area
normally comprising from 150 to 200 villages,
staff in the development
lakh. The
with a population of about
one
consisted of villageworkers, supervisors,a development officer
area
basic unit in the
and
confident
citizens. The
and
technical
specialistsfrom
of the
the
various
development departments
Government.
villages
charge of from five to seven
workers.
and each development area
had about
Village
thirtyvillage
Their
officers.
the
workers
operated under
leadership of development
function was
to keep in continuous
with the villagerand to
contact
and
stimulate
guide self-help organisation in their planning and
development activities. They were
supposed to provide solutions to
simple problems of the villagersand act as liaison between the
many
The
villagersand the technical specialistsin the development area.
was
villageworker
responsibleto the development officer,who in his
Each
turn
was
rufal
villageworker
was
put in
responsible to the district

assisted
by ^wo supervisors.He
was
developmeni
work
and
was
office.
in fact
The
was
expected
to
development officer
the key figure in the
provide initiative,
State and
leadership,drive
co-ordination
Village-AID
and
of
315
Agriculture
supervision of tiie villageworker.

nation-building activities within
all
He
programme.
advised
was
and
assisted by
consistingof non-oflScial leaders and assisted by

It was
departments working in the area.
advice
in
needed
was
or
some
ensured
He
limit^ of
the
a
committee
committee
felt that
senting
repre-
specialist
followiag subjects:farm
all of the
husbandry, co-operation and
animal
marketing, health
and Sanitation,social education, cottage and small industries,
fisheries,
etc.
forestries,
management,
range
management,
of
Some
important
the
activities carried
under
on
the
gramme
pro-
were:
youth clubs
of
(a) Formation
for
whicii undertook
boys and girls,
projects in poultry-farming,sheep-breeding, vegetable

and food production, etc.
small
and
clubs
women's
of
(b) Establishment
projectslike clothing,food
undertook
improvement,
maternal
care,
child
co-operative
of
(c) Establishment
marketing
and
facilities and
social
which
centres
preparation,household
eduoation,
care,
societies for
etc.
providing credit
performing
various
purpose
multi-
functions.
and
of agronomy
(d) Promotion
horticulture, popularising the
of artificial fertilisers,distribution
and
of
improved
of
line-planting
food-crops,use of
crops,
of improved
implements, land
insecticides, introduction
and
reclamation
irrigation,animal
husbandry, prevention
of animal
disease, poultry-farming, construction
and
cure
use
seeds
of
for
use
various
etc.
fish-tanks,
like digging of wells and

sanitation
measures
and
(c) Health
the filling
up of drainage ponds, prevention of epidemics,
of sanitary conditions, providing first-aid and
improvement
medical
(/)
care.
Education
and
recreation, e.g. opening
classes, establishment
of
of
and
recreation
adult
cultural
literacy
centres,
etc.
(g) Construction
For
were
of minor
public works,
bridges and culverts.

training workers to carry
established both
out
e.g.
building
the programme,
in East Pakistan
and
West
of
roads,
tutes
traininginstiPakistan.
The
316
Pakistan,
firstof them
trained
opened ia
was
Developing Economy
1953.
They
produced
of
large number
workers.
The
First
of
areas
little over
ment
envisaged the setting up of 172 developvillages each during the Plan period, covering a
Five-Year
150
one-fourth
Plan
of the
countryside of Pakistan.
entire
1960,
By
in East Pakistan
seventy-nine such development areas
and ninety-threein West
covering a total of over 25,000 villages.
with
achieved
A degree of overall success
regard to this
was
there
to
were
be
into 176
communities
and
development
contributed
other
services
and
was
programme
of
172.
The
against the target
areas
about
Rs.
miles
of
constructed
and
condition.
dug,
of
of
People
old
roads
of roads.
roads
1,000
were
in serviceable
put
were
health
laid out,
were
unmetalled
of
miles
3,000
4,000 miles
plots
village
education,
improvement
and
for construction
150,000 agriculturaldemonstration
were
for
12 millions
About
canals
duced
intro-
The
period.
during the First Plan
programme
quicker to adopt
ments
general,however, "the accomplish-
development
were
areas
improved agricultural practices.In

in agriculturewere
short of expectations."i
set
During the First Plan five double-capacity institutes were
up
institutes
in East Pakistan
and three double
and three
single-capacity
in West
workers
Pakistan
(including
450
(1,750 in East Pakistan

Certain
women)
and
were
difliculties,however,
necessitated
the
and
strong intervention
by
the
particularlyin West Pakistan.

the temporary
(ii)Another
handicap was
organisation. For
this
number
with
of
people
reason
it failed
necessary
institutes
nation-buildingdepartments
satisfactory.Unhealthy
not
5,000 village
these
Pakistan).
in the working of V-AID
arose
V-AID
in
trained
3,250 in West
organisation:
(0 Co-operation between
was
Nearly
village workers.
train
to
rivalryarose
Government,
Central
nature
to
which
of
attract
the
an
qualificationsand
V-AID
adequate
to
retain
them.
These
tackled by integrating the representatives

problems were
departments with the Councils of Basic Democracies, which
made
within
their respective
responsible for development
of relevant
were
1. The
programme
Second
formerly
Plan
entrusted
(original) provided
to
V-AID.
Rs.
484
millions
to
carry
out
the
State and
The
areas.
V-AID
programmes
of Basic
ceased
entrusted
were
Democracies
11,000
Over
the
wings
meet
the
to
training needs
of
East Pakistan
and
of
its
village council, the institution

of this
workers
presently.
required in both
were
of
programme
these
and
Second
the
Plan
the
Plan.
To
the
proposed
single and one

double-capacity institute in
doubling of the capacity of one
single institute in
one
Pakistan.
The
and
Two
1959
the
Plan:
were
for
and
Peshawar
literacy started during the First Plan

its shortcomings.
made
to remove
adult
attempts
Academies
at
under
for
campaign
continued
Village Development
Comilla.
administration
of
They
Governors.
providing orientation
to
Says the Second

trainingpersonnel
senior officers and
The
programme.
development
the needs
technicians
will promote
of communities,
and
of
of
problems
to
courses
development
in techniques
research
admistration, determination
in addition
with
concerned
of departments
Academies
refresher
in-service
and
in
institutions
autonomous
are
of
Boards
established
were
with the task of

entrusted
"They are now
of Basic Democracies
philosophy and responsibilities
in the
of
the
department
separate
villagelevel. More
village workers
additional
out
as
the
to
at the
carry
establishment
West
exist
to
317
Agriculture
public activities
community
and
development
generally."!
Activities
carried
of the
under
on
the
kind
pursued under
Rural
Works
mentalitry of Basic Democracies.

in order
13
10
"
could
Basic
Democratic
serve
as
authorities
words
about
instru-
the latter will be
in
was
leadershipwhich
through local institutions. Such institutions

link between
the villagesand the higher administrative
'
urban
of the processes
1959. Later
missing in Village AID
effective
supplied through
where
centres
of economic
the creation
these also served
at the
The
few
being
now
the
Institutions
major factor
become
respect
through
Programme
are
here.
The
could
Village-AID
vital
decisions
development. Such
of institutions
as
the organ
for
of Basic
made
were
a
link
Democracies
carrying out
works
in
wts
in
grammes
pro-
villagelevel.
structure
of Basic
Democracies, which
1. Second
Plan,
op.
cit.,p. 393.
have
been
entrusted
318
with
social
political,
well
as
comprises of
functions,
economic
as
four-tier system:
Council.
(0 Union
(ii)Thana/Tehsil Council.
(Hi) District Council.
{iv)Divisional
Council.
Council.
Union
villagelevel. A union
council
The
of villages.
200
villages)two-third
and
one-third
council
over
jurisdiction
the
number
through adult franchise
elected
are
to
(each representingabout
of members
which
nominated
are
systen] is closest
the
have
may
consists
of
of
unit
basic
This
from
by Government
non-
among
officials.
village council are to provide rural

to
small development projects and
co-operate with
police,undertake
called for. It can
impose local
the Government
departments when
civil and
of minor
and has certain judicialpowers
in the matter
taxes
main
The
criminal
In
of
functions
cases.
urban
at this level there
areas
(ii)Union
Committees,
15,000 and
the latter when
All Chairmen
Committees
are
the former
elected. They
undertake
fees, and
get grants from

in East
Pakistan
of
and
town
the
various
Council
Tehsil
their
tier of the
in West
of
of representative members.
the Tehsildar
They
are
work
of
in West
entrusted
the
various
with
The
Sub-Divisional
Pakistan
union
councils
town
projects.
is Tkana
system
These
Pakistan.
and
Town
Government
exceed
the
number
Officer in East Pakistan
the Chairmen
of these councils.
supervisingand
co-ordinatingthe
are
the task of
not
the
raise taxes, levy
can
finance
higher
next
Union
aspects
projects.They
to
and
elect their Chairmen.
turn
of officials should
number
than
of
Councils
of the Union
by the Chairmen
various
and Thana/Tehsil level officers of the
departments. The
and
members
Committees
of Town
in their
are
constituted
Committees
and
both
Government
The
Committees
(i)Town
the
population is less
more.
development
ThanajTehsil Council.
Council
when
after
look
life and
are:
Committees
Members
committees
These
it is
of Union
Committee.
Municipal
are
and
have
no
authority to impose
taxes.
District
The
former
Council. This
body
selected
from
are
has
official and
non-official
district level officers and
members.
the
latter
State and
include chairmen
of union
It has
The
should
Commissioner
Deputy
committees
councils,town
Representative members
members.
319
Agriculture
less than
he
not
palities.
munici-
and
official
of the District is the Chairman.
impose taxes and raise funds for its development

etc.
programmes
consistingof buildingof roads, schools, dispensaries,
Divisional Council. This is the highest tier at the Divisional level.
to
power
It also consists of official and

fixed
by Government.
co-ordinates
only
is
It
non-official members,
a
supervisory body
district council.
the activities of
supervises
and
It has
is
number
whose
neither
power
development expenditure on its own.

used to be a provincialAdvisory Board
at the
top of the
^rstem but it was later abolished. The system is supposed to be flexible
enough to adjust to changing conditions. For instance, it is proposed
levy taxes
to
to incur
nor
There
abolish
to
nominations
make
and
the union
councils
consist
entirely
of elected members.
13
"
11
It
The
Works
Programme
felt during the Second
was
necessary to improve conditions

to wait for the fruits of development
was
due
of
course
time.
Basic
for this task. To

and
thus
The
after successful
Kotwali
Thana
was
to
rather
the
than
villagein
in
in East
from
1961
by supplies
programme.
results obtained
backed
was
programme
first introduced
undertaken
villagelevel
percolate
to
positiveeffort
strument
appeared to be the best ininjectionof new
purchasing power
avoid
PL-480
programme
the
at
Democracies
promoting inflation,the
of food-stuffs under
period that
Plan
Pakistan
in 1962-63
pilot project
the
Director
in
Comilla
of the
by
Academy
Development located there. The first allocation was Rs. 100
millions (Rs. 10 crores) for 1962-63, which was increased to Rs. 200
for Rural
millions for 1963-64
and
In the meantime
Rs.
250
millions
for 1964-65.
in 1963-64
this programme
allocation of Rs.
in West
Pakistan with an
raised to Rs. 150 millions for 1964-65.
United
1. The
States Government
(mainly foodgraics}
Law
our
No.
480.
case). This
Funds"
and
Oovernmept.
Ttese
money
is used
The
Pakistan
to
are
sold
makes
(and
in the
some
local
100
available
other
works
programme
is
which
was
agriculturalcommodities
countries) under
market
being financed
introduced
millions
for local
kept sep rately with the

mainly for development purposes
is
also
was
State
in
mainly
the
(rupees in
currency
Bank
as
"Counterpart
consultation
from
Public
this
with
source.
S.
^20
Pakistan,
Since
the
Since
1963-64
Developing Economy^^
pilot project at Comilla

and successundertaken
was
ully completed by the Thana
Council, in 1962-63, Headquarter
of fifty-foursub-divisions
n Thanas
were
given separate allocations
nd in 1963-64
all Thanas
in East
Pakistan
were
given separate alloations to undertake
development work in rural areas.
igher council.
left
of
schemes
After
level
approved by the next

implementation of the projects
every
approval actual
project committees
formed
are
for the purpose
usuallyfor each
releases funds in instalments
reject. The Government
to the project
ommittees
to give advances
for implementation of the project.
difficulties have been experienced in the implementation of
Some
(le projects mainly due
to
the
staff" and
shortage of technical
then good results were
achieved
ladequate supply of materials. Even
Pakistan. Thus
1 East
during 1963-64 in that Province 270 miles of
acca
roads, 392 bridges and culverts and 153 drainage schemes
were
and repaired in the urban
oBstructed
In the rural areas
463
areas.
1
to
liles of
roads, 24,139
pucca
mbankinents,
onstructed
of kutcha
miles
5,058 bridges and
repaired.Moreover, 245
lent Centres, 2,066 Union
Community
Centres
constructed
were
lunity
during
Pakistan
also the funds
ere
entrusted
as
entation
Government
in
laid down
)nditioBS
isic
project
placed in the Deputy
unit
of
Duncils which
smocracies
[rector
tached
estions
of
"rangements
;
Basic
Provincial
and
the Local
this
have
and
been
Democracies
implementation
responsibilityfor impleCommissioner/Political Agent to
delegated all powers
subject to
rural
to
The
works
district is thus
transferred
are
the Union
high
for
Institutes
training and
at
Lala
West
Tehsil
But
the
has
of Basic
concern
and
been
an
at the
and
deals
with
provincial level.
orientation
Musa
acd
office of
created
level committee
general supervision
made
to
the
Commissioner.
Programme
A
the
Councils.
is the
programme
Government
Department
Works
in
programme
the
Department.
policy
and
The
however,
level
Com-
in 1963-64.
started
was
with the Deputy
remains
were
period.
same
manual.
delegate them
(Projects). Rural
to
in
powers,
in turn
pervisory control
the
works'
administration
ikistan. Substantial
At
the
88 Coastal
and
in instalments
committees.
Provincial
Centres
the
of
Training and Develop-
Thana
programme
released
were
to
was
the
hom
works
the
miles
culverts, 5,940 drainage canals
and
In West
785
roads,
Tando
coursessin
Jam
for
State and
the successful
implementation
In West
works
Pakistan
of the programme.
the
comprises
programme
of metalled
construction
roads
ranging from
Karezes
(underground
culverts
of
kutcha
variety of
the Punjab and
wide
in
channels) in Baluchistan.
water
During 1963-64, the first

Pakistan, 112 miles of metalled
2,810 miles
321
Agriculture
of
year
the
roads, 410
of
West
of treated
miles
miles
roads, 1,500
in
programme
roads,
villagetracks, 2,000
and
constructed
and
bridges and about 3,000 schools were
to
Social
repaired.Apart from these some
Health,
projects relating
Welfare and Housing were
also executed.
The
has been included
as
an
integral part of the
programme
Third
Five-Year
It will form
Plan.
mainly with the growth

allocation
for East
of Rs.
will be
available.
from
13
"
labour
Government's
surplus for which

months
works
Rs. 600
against
as
Through
this
ment) fell from

The
is also
224%
in
construction
has
will
of labour
Pakistan
East
be
tributed
con-
in
under
worker
in
force
the
urban
the
area.
people
only
to
comes
for the
average
employed.
under-
or
where
it
was
dry winter
unemployed
are
opportunities
Second
Plan.
(including under-employunemployment
1960-61 to 20-3% in 1963-64.
the
resulted
country
in
in
rural
form
of
which
has
the
irrigationchannels, embankments
of the economies
in the two
wings.
extended
Plan, has
in the Second
development activityin
22%
the increase
on
head
5,250 per
Rs,
programme
programme,
farmers
job
of employing
cost
average
In
creates
programme
live. The
Plan
needed.
the
Unemployment
The
Five- Year
were
of
1,500 millions
Rs.
1,000 millions
is utilisation of surplus
programme
works
at low
for constructive
cost.
At
areas
three-fourths
Rs.
the
of
jobs
which
Programme
Second
the
An
economy.
resources.
own
of Works
in rural
beginningof
of
balance
concern
provided (Rs. 1,500 millions

for West
Pakistan). PL-480
from
the programme
primary object
power
been
1,000 millions
Rs.
The
12 Assessment
The
the
and
finance
to
has
will
of the rural
development
2,500 millions
Pakistan
will continue
and
and
sector
separate
areas.
the
Much
scope
of
useful
roads, drainage works,

increased
productivity
important of all,it is an attempt at introducing planning

remote
of people spread over
areas.
from below involving multitude
Most
The
main
problems
have
been
lack
of
technical
skills and
322
supervision and
be
desired.
standards
thus
much
leave
Public
and
WAPDA
associate
is to
solution
One
completed projects
of
to
Works
Greater
supervision
closelywith this programme.
over,
Moreneeded.
is
of
funds
wider publicity regarding allocation
to
for a comprehensive
is need
there
training programme
Department
and
impart
more
skills.
the necessary
Non-availability of materials
and
inputs has been

regular and adequate
essential
other
make
It is necessary
to
difficulty.
of
for the supply
essential materials.
Further, it is as
arrangements
for maintaining the projects after
important to make arrangements
It is, therefore,
them.
they have been completed as it is to construct
another
conclusion
In
opened
provide for such
to
necessary
opportunities to
up
administration.
and
various
rural
and
masses
It has
incomes.
rural economy
our
that
the
the programme.
works
has
programme
leadership,organisation
the
co-operation among
ing
with planning and execut-
the local talent for
encouraged
departments concerned
It
Government
development
add
may
we
within
maintenance
has
It has
programmes.
direct
impact
the life of the
on
offered them
opportunities for increasing their

helped in the building up of the physicalbasis of
ments.
in the form
of
canals, roads, bridges, embankhas
agriculturalproduction and
for the products of agriculture.It is an
markets
new
up
because
the old V-AID
it supplies more
on
programme
and
has institutionalised the raral
supplementing self-help
It has
opened
advance
resources
contributed
to
increased
uplifteffort.
13
1959
In
and
13 Food
the Government
of Pakistan
appointed
Commission"
to examine
Agriculture Commission
ways
Commission
The
agriculturaldevelopment.
of promoting
and
the Food
in December
their Report
The
Governors'
Conference
of the Commission
Report
Central
findingsof the Committee
The
Governments.
I.
1960.
representingthe various
Committee
are
in March
summarised
1961.
The
was
were
main
there
should
Corporationwith
(1) Provision
the
of
be
meani
submitted
examined
Ministries
and
by
Provincial
accepted by
the
recommendations
below:
AgriculturalDevelopment Corporations.For
country
and
"
established
an
each
wing of the
following objectives:
adequate suppliessuch as seeds,fertilisers,
plant-
State and
protection materials
aad
implements
(2) Dissemination
of
323
Agriculture
at
level.
Union
of
knowledge
scientific methods,
new
cropping patterns, mixed

uses,
farming, better soil and water
co-operative marketing, warehousing, etc.
(3) Injection of more
capital into agriculture and
ment
improvenew
of credit facilities.
(4) Organisation of small
farms
agricultural blocks
into
or
co-operative farming societies.
Corporation should have two

wings: (a) a supply wing
of
distribution
and
supplies
handling
{b) a field wing dealing with
Each
the rest of the

The
work.
Government
have
these
accepted
with
recommendations
modifications.
some
felt that
The
Commission
Agricultural Research.
agricultural research was
planned on a national basis and
research work
direct responsibilityof the Central Government,
unless
II.
field could
have
not
of
the
Pakistan
Jute Committees,
and
besides
in this
agriculturalproduction. They,
establishment
of an
an
therefore,recommeded
Council
impact
made
the
on
abolition
the creation
of
of
the
Division
Research
and
present Cotton
in
the
Ministry of Agriculture for organisation and co-ordination

purposes.
the
For applied research
strengthening of the
they recommended
Provincial
by
the
The
Government
Tea
also
into
came
Institute would
III.
decided
be made
existingsystem
of land
the cultivation
of various
revenue
crops
They,
therefore, recommended
which
may
differ from
its
to
zone
zone
they
acted
decision
submitted
IV.
duties
as
of
to
for
of
specialcommittee
Irrigation.In
this
the
conducive
to
in accordance
more
view
taxation
replacement by
both
Government,
Committees
Jute
and
the
that
the
fluctuates with
production.
more
fixed land-tax
with
recommended
produce should
agricultural
disincentive
the
a
on
which
also
agriculturalpotentialities.They
of export
was
is not
be
to
bodies.
subordinate
under
been
accepted
implemented.
the
and
Cotton
Commission
The
Taxation.
the
being
when
that
have
still remain
in principle,but
Government
CouBcil
recommendations
These
Departments.
the
that
current
the
be re-examined
production. According
these
recommendations
levy
since
the
to
were
fcr consideration.
context
the
Ccmmission
recommended
324
as
Pakistan,
Developing Economy
follows:
(0 Priority should
drainage should
(//)Use of water
be
surface
is achieved
for
of
water
(in) Ground
in order
per
should
acre
Indus
Basin
by
of
should
committed
further
be
not
until this
and
maximised
be
On
of
charging
responsibilityof
recommendations
these
large and
in
stored
small
dams
exploitation.
system
be the
to
be
under
which
system
delivered at the water
water
ceases
taken
its
present
substituted
amount
should
water
increase
to
(iv)The
the
charges
are
and
outlet
should
rate
water
be
payable for the

of water
assessment
the
IrrigationDepartment.
have
been
following decisions
by the Government:
(/)Drainage
should
the Provincial
to
be
projects.
new
rate
of
given to drainage and

programmes
implemented immediately.
drainage should
(ii)No
receive
Government
have
whether
to
as
surface
be
left
sub-soil
or
first priority.
major
new
priority though it should
commitment
of
Indus
Basin
should
water
be ordered.
(h7) The
urgently.
(iv)As
be
should
tried in
if this
areas
V.
for
production
Development
decided
progress
13
"
to
of
18-21.
public yet.
The
should
system
failed
be
should
be
observed
to
of
development
Co-operative
water
rate
extended
to
other
strike
the
present
They, therefore,
roots.
co-operatives both
entrusted
The
that
for marketing
the
proposed Agricultural
as
already noted,
Government,
to
Development
Board
for
promoting
co-operation.
for
Implementation
Government
1. Taken
The
Corporations.
up
charging
14 MeasDfes
The
pp.
set
investigated
places, having varying conditions,
Commission
has
movement
that the
of
be
succeeds.
Co-operatives.The
recommended
should
proposed system
selected
basis.
experiment
co-operative
and
the
few
of flood-water
use
first step
experimental
an
on
planned
from
accepted
the "White
Report
of
the
most
of the recommendations
Paper." Budget, 1961-62,

Agricultural Commission
Government
is
not
of the
of
Pakistan,
available
to
the
State and
Commission.
them.
In
Several
order
to
have
measures
translate
West
the
325
Agriculture
already been
implement
into practice,
taken
to
ideas
Commission's
been
Corporations have
set
in East
up
and
Pakistan.
Their
task
is
twofold:
(/) they have to organise agricultural

supplies to make them available in adequate quantities at the union
level,through co-operatives wherever
possible,and (//)they have to
for intensive application of measures
develop projects in selected areas
recommended
enabling the
Bgricultureand market
farmers
change
to
scientific
to
over
economy.
In the
project areas
departments to provide
the
Corporation
has
full powers
allied
over
problems.
is also
Agricultural research
being reorganised through the
establishment
of co-ordinated
institutes and an Agricultural Research
of low yield and
Council.
idea
The
to
is to
investigate the cause
suggest methods
As
of
co-ordinated
approach
to
the
increasing output.
regards co-operatives, arrangements
increase their utilityand
being
are
made
to
Bank.
the policy of
have
decided to continue
Further, the Government
subsidisingfertilisers,partly subsidising seeds and continuing the
that
of
the
practice of offeringplant-protection facilities. These measures

in agriculturalproduction.
encouraging increased investment
present
are
Another
two
and
Agricultural Universities,
the other
in West
offer facilities to
methods
of cultivation.
is to achieve
Pakistan
East
Mymensingh
at
at
has
Scheme
Finally, a Model
agriculturalproduction in East and
the scheme
in
of
Lyallpur. They will provide trained

for receiving training in advanced
farmers
Pakistan
staff and
one
establishment
is the
step recently taken
important
better
been
West
for
introduced
Pakistan.
increasing
basic aim
The
of
yields by:
the
land
the
already under
(0 increasing production from
plough through improved agriculturalpractices and efficient
for the supply of fertilisers;
arrangements
cultivation
land under
(") bringing more
irrigation;and
measures.
(Hi) adopting anti-salinity
Under
this scheme
seven
districts of West
with
the
help
Pakistan
of
and
pump
about
326
Pakistan,
selected
seven
been
selected
The
in
West
sub-divisions
for
East
in
being
extended
due
to
more
the
by
the
over
of
districts
in
November
to
Economy
Pakistan
East
have
cultivation.
increased
production
five
introduced
was
Pakistan
Pakistan
in
intensive
scheme
production
wheat
Developing
previous
areas
in
same
in
10%
drought)
East
and
years'
both
year.
the
As
Pakistan
West
48%
in
Pakistan
in
selected
production.
wings.
July
1960
tural
agricul-
result
(in
spite
of
sub-divisions
The
and
scheme
low
of
is
OHAPTER
14
Land
14
Revenue
Systems
Policy
1 Introduction
"
Land
Revenue
will receive
the second
as
volume
the
before
The
all been
have
demand
of
always
but
we
in Pakistan
revenue
the
chapter
various
reforms
shall
that
study
first
in their
which
in
been
been
ment,
assess-
since
long
platform.
the
attributed
even
to
of the
little
this
system
of
consensus
should
reform
such
of
manner
poverty,
reform
land
condemned
lie.
of land
prevailing systems
perspective and then evaluate
the
historical
have
time
The
has
there
from
chronic
one
Government.
to
and
press
at
the
time
in
the burden
revenue
and
time
their
were
opinion regarding the directions

this
charge
from
been
land
the
of
of view
has
of
system
peasantry,
stressed
been
point
burden
Legislature,the
the
part of the
the
on
The
attacked
like famines,
calamities
the
State
Finance
with
concerned
are
calculating the
of
indebtedness
has
equal force.
methods
we
from
Provincial
with
agriculture.This
on
Partition,in the
natural
Here
of the
of income
source
deal
we
Government
the
charge
justified with
its collection
when
of this book.
of this
and
important
an
attention
our
policy of
revenue
In
and
suggested from
time
to
time
in
these systems.
14
'
2 Land
The
from
two
Revenue
land
revenue
System
prevailing in
Pakistan
may
be
classified
points of view:
(z) Whether
it is revised
the
land
revenue
The
periodically.
is fixed
former
once
for all, or
is called
the
whether
"Permanent
328
Pakistan,
Settlement"
is
called
of the
until
and
the
of
Developing Economy
recentlyprevailed in East
Settlement"
"Temporary
and
the
point is
paying the
(a) Under
to
basis of
see
is in
force
paying
(b) Under
land
tenure.
is
land
land
the
to
revenue
Mahalwari
the
is
it
system
of
owner
the
latter
it
system
regarded
feature
distinctive
is
But
is made
with
that
is at
of
village
individually and
are
holder
the
"is
in
that
practice of
the
were
the
only in the
found
mainly
the
14
"
Orissa
Dewani
Shah
was
Alam
of
settlement
and
year
holding, or,
wastelands
as
by the
is realised
cases
rent-receivers
middlemen
with
of East
Pakistan.
Province
in
Punjab
former
the
Sind
the
Ryotwari
sub
(right
conferred
in 1765.
to
on
The
1. Report, Indian
the
land
settlemsnt
North-West
is
Zamindari
vailed
pre-
system
Frontier
predominant.
preceded
East
in the lodo-Pak
torically,
Hisother
Enquiry
Sub-continent
Bengal, Bihar and

India Company
by the Emperor
revenue) of
airect collection
Taxation
Pakistan
Mahalwari
The
and
of
continent.
Settlement
collect
permanent
system
under
Settlement
in the Indo-Pak
Provinces
in all the
Zamindari
History of Permanent
The
the
that
Permanent
systems
revenue
from
is found
former
In
Province.
but
in such
revenue
system
diflferenc3
the
by
words
originaloccupants.
Zamindari
The
land
the
cultivators
th; actual
from
the
emerged
have
middlemen
land.
of
"owner"
system,"
this
ment.
Govern-
the
to
revenue
as
individually
is
relinquish part of his

conditions, to add to it taking up
tenures
is
or
liberty to
Ryotwari
subletting and
who
responsible for
cultivating proprietor year
the
in
even
have
responsibility
Mahal
the
Committee,
Enquiry
Taxation
he
is
is
subject to
opportunity arises."'
is
rest
Government.
the
of
The
the
We
Zamindar
hence
and
the
system
(c) Under
Ryotwari
every
of
land
for
the
payment
responsible
"This
the
placed
land-proprietors who
responsible for the change.
collectively
with
the
prevailingin Pakistan.
systems
shoulders
Zamindari
community
who
in
Thus:
the
the
tenure
whose
on
is
classification
land
various
revenue.
made
not
latter
The
Pakistan.
country.
(ii)The second
already studied the
Here
of land
Committee
revenue,
ho,vever,
(1924-25),p. 43.
Land
did
Revenue
begin until 1772.
not
At
territories in India
The
Decennial
clear
the
Settlement
wastelands
made
in 1790
March)
that
the
The
Regulation I
Decennial
proclamation
induce
to
Corawallis
la
included
landlords
be
in
22nd
(on
regarded
the
to
therefore,
1793,
proclaimed
would
jungles.
with
overgrown
cultivation.
was
of the Company's
one-third
failed
Settlement
329
Policy
about
were
extend
to
jungles
provide incentive. Lord
to
The
time
that
and
in order
and
Systems
as
manent.
per-
Book
Statute
as
of 1793.
Settlement
conferred
dent
(and indepen-
Zamindars
the
on
Talukdars) hereditary proprietary rightssubject to the condition

that they paid the fixed amount
of revenue,
which
fixed in cash
was
in perpetuity.The rate
fixed was
lO/Uth of the rents realised by
the
Zamindars
share.
This
which
the estate
charge
l/Uth being
had
paid within
could
should
It
the time,
at
to
be sold
noted
be
be
left
the
The
later
the
the conditions
charge
revenue
of
value
the
that
whom
on
persons
as
limit
time
their
failing
those
the
proprietary
lands. They were
collectors
revenue
were
for
in
landlords
advisers
who
did
the
time
the
not
of the country.
fixed
fairly heavy
was
land
the
fixed
latter
by auction.
conferred
of
were
never
owners
rightswere
officials
of
who
the Mughal rulers,
originally
commission
basis.
mistaken
on
They were
his
and
Cornwallis
English sense
by Lord
understand
the
to
gradually rose
charge became
due
at
but
increased security and
to
the
light.This enabled
Zamindars
their rents, since no legallimitations
to increase
were
put
the other
the enhancement
of rents by the Regulation. On
on
hand,
subsequent Regulations (in 1794, 1799 and
1822) and later the Act
of 1885 authorised
the proprietors to increase their rents
on
certain
income
increased
with increased
grounds. The Zamindars'
tively
produc-
higher prices and
of
very
land, while the share of the State stood

estimated
that
was
officially
1900, for instance, it

to
Government
Rs.
Rs.
from
whilst
crores,
16J crores.' More

Permanent
too.
Beiiares
permanently
rentals
1, Government
the
areas
same
it
amounted
area
came
fixed. In
was
revenue
paid
to
less than
to no
less than
areas
of India
of this later.
Settlement
came
in
settled
where
the land
under
was
extended
it in
1795
of India's Resolution
on
to
where
Land
other
some
also the
Revenue
Bengal model
Policy, p. 82.
230
Pakistan,
was
followed.
the
Government
prominent
also the
it
individual
Ryofwari
Attempts
bidder.
the
Ryotwari
under
to
Permanent
parts of Bihar
the
During
to time
highest
be replacedby
system
the
could
adopted,
already come
also
was
be
extended
to
(Oudh).
U.P.
nineteenth
further
to
to
existed
available.
to
Presidency had
The
Settlement.
and
by auction
this system
of the
one-third
there
were
miserably and had
failed
Before, however,
system.
Presidency
the
substitutes
create
dency,
of the Presi-
parts of the South,

former
ruling chiefs,
intermediaries
such
no
system
one-fifth and
the
of
some
of
descendants
major portion
made
But
between
the
also in
Madras
In
north
in the
other
some
or
Settlement.
Permanent
and
ignoredand
villageswas
of the chief co-sharers
one
then,
villages where
were
joint landlord
landlords,
in
But
of
tried. It succeeded
was
called
was
Developing Economy
the basis of
on
system
same
existed.
the
dealt with
person
as
where
existence
The
extend
century
proposals
the system
from
made
were
Settlement.
of Permanent
time
But
all
the
In
meantime,
finallyrejected in 1883.
the British rule extended, the revenue
adopted and land
as
system
Where
land
tenure
recognised were
according to local conditions.
under
was
occupation of high chiefs or landlords, the landlords'
was
proprietaryrightswere recognisedthough the settlement of revenue
to be temporary.
tary
Where
were
strong, the proprievillagecommunities
such
proposals
rights were
land
which
were
vested
existed
ownership in
as
such
existed, the
communities
which
land
of the
as
each
individual
occupied by him.
in the State.
Thus
it
ownership
village community
to
occupier contracted
The
ultimate
ownership
in
that
was
settlement
came
Mahalwaii
(villagecommunity)
to
in parts of the
the
in parts
prevail
N.-W.F.P.
or
settlement)in Bombay, Sind, Madras,

During the nineteenth century, as
were
made
permanent
again
and
settlement
again
all
over
to
induce
India.
to
was
pay
induced
be
introduced
revenue
of land
Zamindari
of the
Punjab, U.P.
U.P.
we
have
the
Eyen
to
in
the
vested
and
was
C.P.
duced
intro-
C.P.
already said, proposals
Government
as
was
Ryotwari (temporary
and
Assam
was
temporary
settlement
and
on
was
Indo-Pak
temporary
and
individual
where
ultimate
the
community. Where
not
strong and speciallywhere the cultivators were
and
cultivate
land, the Ryotwari system
occupy
regarded
especially in the
villagecommunity,
Even
the village common.
in the
late
as
to
the
introduce
end of th?
Land
Revenue
century in 1900, R.C.
Dutt
India), in
Letter
his
"Open
policy
revenue
of
the
and
the Permanent
European
memorial
to
in 1902
of
which
the
issue of Permanent
have
of witnesses
Assessment
His
ceased
be
to
it before
of India
in
time
some
1924-25, for instance,
In
the
The
defended.
and
live issue for
always existed.
favoured
presented
led to the issue
Government
outlined
was
also
Letter"
"Open
quences
conse-
certain retired
with
Along
of the
land
policy. Dutt
the prosperity
he attributed
Civil Service, Dutt
policy
Settlement
though its supporters

number
to which
memorandum
revenue
dreadful
this
to
of
Historian
criticised the
Curzon,"
attributing the
Secretary of State.
land
Economic
Bengal peasantry.
of the Indian
famous
the
their
of
331
Policy
close of the century
Settlement
rasourcefulness
members
Lord
to
the
at
and
(the well-known
Government,
of the famines
favoured
Systems
Land
Bombay
Revenue
Committee.
Later, three
of the Bengal Land

Revenue
important members
of Disseat
(1938-40) in a Minute
argued in favour of the
Settlement, though the majority of the Commission
mended
recom-
Commission
Permanent
its abolition.
Commission
The
a
favoured
and
Ryotwari system
added:
of the Permanent
the
have
also
so
bringing
at
Report
of
of Zamindari
1940.
examined
but
was
aeeount
on
consequences
peasantry uibearable
of
taking
Province.
introduced
The
the
any
the
has
national
eloped
dev-
intesest.
interests
that
of
policy should
position
the
into
to
Commission
system
acquire the
the
be
to
of "tenants
and
Bengal
action
to
Land
in the Provincial
of 1943
the famine
reform
upon
the
taken
was
the
Assembly
but
purpose,
The
lime.
plight of
Government
outmoded
Acquisition
the
and
before
land
in
the
the
at
made
issued
was
special officer appointed for
impressed
and
recommending
Settlement
Permanent
no
war
war
measures
Commission
Revenue
and
by
of the
of the
of
suited
its defects. Provided
terms,
cultivators
Land
the
the abolition
It
serve
the
longer
no
by
fication
justi-
system
Government."
holding directlyunder
The
to
to
reasonable
on
actual
the
ceased
devised
be
can
classes of rent-receivers
aim
it has
the
been
that the Zamindari
remedy
satisfactorily
will
practicable scheme
may
majority
time.
present
have
in 1793, it is
Settlement
defects that
many
"Whatever
the conclusion
to
come
half-measures
No
a
of the
conditions
of
replacement
the
the
system
Tenancy
it could
sity
neces-
of
Biil
be
the
the
was
passed
332

the Partition.
came
After
Partition, in
the
a
Bengal (now East Pakistan) framed
and
which
Bill
State Acquisition
Tenancy
February, 1950. and
15th
on
We
already discussed
have
Tenure.
Land
our
chapter
its
signiiicance was
on
for
the land
it
its charge. But
made
ownership right should

charged by
rent
rate
The
charged.
would
Government
longer
no
Plan,
the
on
revenue;" it
"land
adopted
not
the
on
only possible
from
come
increase
the
part
that
the
the rent
Pakistan.
in West
that
not
in the
be
if the
would
Government
would
revenue
and
ground
the
on
of the
income
of land
as
was
of rent and
cultivator
revenue
It
condition
recommended
however,
conferred
revenue
since it nationalised
for the cultivation
replaced by land
was
curtailed, since the
the
was
in the Act
land-owners
became
tenants
be
be
State
recommendation
This
be
the
But
system.
is
which
records
in
Settlement.
Permanent
land
revenue
of land
point of view
charge for the ownership of land

took the place of the old Zamindars.
Five- Year
First
provisions of this Act
was
which
of the State
The
land
were
main
the
of
charge of the State
the
Provisions
rent.
From
preparing
sound
the
in 1951.
assent
Governor's
the
it terminated
that
also necessitated the
precedent
received
ly
the Assemb-
passed by
was
"
Bengal
East
Bill" the
new
East
of
Province
Pakistan
the
1948
as
high
as
of
the
income
of Salami
(the price of
payment
Plan, "this
suggested by the Second
the
ownership. But, as
only on the assumption that the upward revision
justified
argument
ment
is not
possible."'Actually the question of enhanceof land revenue
is already under
ment.
consideration
of land revenue
by the Governof the
Plan
has
Second
The
repeated the recommendation
the cultivators.
on
First Plan that full ownership rights be conferred
land)
for
is
endorse
We
14
"
this view.
Temporary
Temporary
character.
(a) The
Settlement
settlements
difference
The
character
charge
was
(b) Differences
(c) Differences
in
of the
pre-PartitionIndia
arose
tenure
due
were
of
not
of the
person
from
whom
period of the settlement.

in the method
of calculatingthe charge.
in the
Plan,
op.
form
uni-
to:
collected.
1. Second
cit.,p.
191.
the
Land
We
have
Systems
alreadyexplained (a) under
As
forty
Revenue
regards
the
in
years
period
the
of
Indo-Pak
twenty to thirty years;
in
and
section
333
Policy
14-2 above.
settlement, it varied
sub-continent.
from
C.P., it
In
to
twenty
from
was
Berar, from
twenty-five to thirtyyears; in
and
of Bengal it was
temporarily settled areas
thirty years.
In the Punjab, it was
forty years. Roughly, the period was
thirty
in Ryotwari
years
and
and
areas
forty years in the Zamindari
Madras
Mahalwari
The
areas.
"net
estimated average
estates
of
assets
estate,
an
annual
deductions
cultivation as ascertained
The
assests"
"net
rentals"
in the
as
As
the
to
may
to
words
of
Revenue
of net
the
this further
kuown
force
as
"About
assets.
careful
Saharanpur
authorised
of
of recorded
"subjectiveimpressions"
the
which
system
also
was
of this later.
assets
net
the
rental
the
or
State
of the
of India
limited
was
century," in the
Resolution
Land
on
Mutiny, the question of the

the landlord
in net produce of the soil
view
the
in Northern
of the
matter
The
Rules.
of the
demand
of the
middle
the
Government
consideration
the
basis
"the
on
the demand
century
of the State and
under
of
group
or
ordinary expenses
empirically on
as in Bombay
Policy (1902), "i.e. before
again
came
estimated
or
well-known
relative share
estate
the
means
revenue,
nineteenth
two-third
estates,
torically
again differences prevailed. Histhe
percentage
appropriated in the various
less than in the early years of the British rule.
much
was
in the
the
Officer
land
as
speaking,
Early
be
Punjab
of
though later modified. More

maximum
proportion of the
value, charged
Provinces
of
group
estimated."'
or
of the Settlement
followed in Sind
surplus produce of such
after
remaining
or
India, and
embodied
was
money
result
in what
Rules
Settlement
the
are
previously in
of two-third
value
of
of the
in respect of land
share
produce of an estate as the Government
that in
The
Rules, issued in 1855, laid down
revenue.
Saharanpur
consideration
the
with other data into
assets
taking the net average
net
Collector will bear

heretofore
of
the
in mind
that about
well-ascertained
net
one-half
assets
and
should
not
be
two-third
the
as
ment
Govern-
demand."
Now,
as
1. Section
Act III of 1926.
to
the actual
38 of Land
practice prevailing at present in Pakistan,
Revenue
Act
XVII
of 1887,
as
amended
by the Punjab
234
Pakistan,
in the
temporarily settled
leave 30%
of the
rcvenue.i
and
In
the
is
practice is
the
areas,
demand
the
to
East
correspondingly
charge 33^% of
to
and
allowances
paid
are
70%
take
to
reduced.
the
principle is
the
Pakistan
landlord
higher
cases
some
State
of
areas
assets
net
Developing Economy
the
to
Sind
though
assets
net
landlord
former
the
In
as
to
land
the
of the Lloyd Barrage.^

40% after the construction
In the former
Punjab up till 1928 it was
50%, but since then it has
been fixed at 25%. In practice it rarely reached 20%
of the net assets.'
the
former
N.-W.F.P.
is the same
The
in the Punjab.
as
practice in
the most
usual practice is to charge from
Thus
one=quarter to one-
fixed
standard
was
third of the net
"
Is the land
less
Manu
of
war
or
under
Akbar.
even
two-fifth
from
Muslims
the
sometimes
to
As
more.
to
but
The
actually it
the Hindu
in
came
1936-37
as
percentage
rule
the
produce the average

gross
was
only 6-7%. "If we were
product and in "times

share
was
a third of (he
duce
gross proand
took
one-half
Punjab
under
30%
of
the
charged
take
It
the
was
one-half
at
to
rulers. Thus
fourth.'' The
produce.
demand
less than
demand
of the g-/-055
been
at
the
of
terms
the
the Muslim
or
much
as
finallystood
maximum
to
It has
sixth of the grojj
Sikhs
a
one-third
fixed the
British
though
either under
twelfth
excessive?
public calamity"
other
under
more
the
from
took
where
high.
too
argued that the

heavy. Historically,the charge is considerably
very
it was
than
now
Pakistan
Revenae
burden
revenue
is far from
burden
of Land
lacidence
5 The
in East
except
higher; in fact, it is
is much
charged
14
assets
in
three
varied
1860
of the nel
rental.
for
the
Sikhs
that
assets,
Measured
years
in
ending
last three
pre-depresCommittee
Punjab Revenue
(1938), "the
with
proportion would probably be less than 5%. Compare
this the
taken
by Sikhs a hundred
33J% to 40%
years ago.""
contended
the
of the prevailingland revenue
It was
by
supporters
years,"
sion
system
before
wrote
World
1. Kban
Bahadur
2. A.H.
Yusufzai,
the
War
Mohammad
II
that
the
Mahmud,
burden
Pak
of
Economic
land
revenue
per
Journal, August
1950
p. 49.
1950,
p.
3.
Punjab
Tenure
in
Sind,"
Pak
Economic
Journal,
Land
Revenue
Committee, Report, 1938, p. 2 (Table).
Enquiry Committee, Report (1924-25),p. 39.
Report, L. R. C. op cit,,p. 11.
4. Taxation
5.
"Land
107,
August
Land
acre
well
as
as
that, compared
significant.
The
average
Punjab per cultivated
Rs. 1.9-2 for three years

it was
less than
cultivators.
had
burden
reduced.
had
and
rent
hence
been
not
Whether
versy for
long
only academic.
been
and
rent
fixed and
the
in
collected
capacity of
the
to
the tax
being
production and
rulers
livelycontro^
its interest
these
arguments,
At
pay.
prosperity
while
was
present,
could
land
the
burden
kind; therefore, its
assessee
to
revenue,
it, though
Muslim
the
and
Hindu
tax
or
shall discuss
we
of
cost
not
cultivator.
the
regards ths other

following manner.
(0 Wnder
was
was
and
the
rule
land
ihe
the
into
As
in the
met
the British
under
enter
not
revenue
time
suggested that
was
prosperityof
affect the
land
it
less than
if this burden
even
rent-receivers
the
to
go
And, finally,that
tax, did
did not
increased
that
only
population
and
Madras
and
in-?
was
was
acre
of
head
per
asserted
Moreover,
of the cultivators
and
Bombay
Bengal. Further, it was

abolished, the benefit would
the actual
the
2 in
Rs.
in
1938-39
ending
1 in
were
the
it
times,
pre-British
for
be
and
extremely low
was
to
for 1939
Re.
population
it used
what
to
of the
head
per
335
Policy
and
Systems
Revenue
have
revenue
varied
with
sions
remis-
though
even
is
suspensions are granted, the charge being fixed in cash,

it becomes
and
low. The
amount
prices are
very oppressive when
methods
of collection now
much
more
rigid than they used to be
are
and
under
the Indian
rulers.
considerably increased during the

to increase
in population and
decay of handiafter a high percentage of gross produce was
taken away
rulers
the total produce -per
family being larger, the
(h) The pressure

British period due
ciafits. Even
by Indian
residue
Now,
is
was
the
on
land
them
in their customary
comforts.
enough to maintain
their total produce
land per family is very small and hence
hardly enough
to
maintain
them
for
the
portion of this small produce may

impose
family resources.
{Hi) Even if we accept the proposition
is lighterthan it used to be several hundred
justifythe
apply
the
present
burden
if it is
sixteenth-century
in the twentieth
1. V.
century. A
Anstey,
an
standard
revolution
Economic
year.
small
painful burden
that
on
years
ago,
unjust
of justice when
occurred
Development of India, p.
We
we
it does
not
must
not
are
since the
377.
the
burden
the present
burden.
has
Even
living
Mughal
336
Pakistan, A Developing Aconomy
times
and
in the
the
conception
ruled.
We
to
that
say
judge
must
merits, according
(jc)To
of Government
modern
the
the relations of the rulers
and
justiceof
theories
the
land
its
on
revenue
of taxation.
the benefit of abolition
will go
only
to
the rent-
will
land
hardly stand examination.
revenue
Many
payers
fited
are
peasant-proprietors;they will be directly and immediately benereduction
abolition
from
of this charge. As regards
or
any
is too light rather than too
the big absentee
landlords, the burden
not
land
as
They should pay higher amounts
heavy in their case.
but as agriculturalincome-tax.
revenue
receivers
regards the increase in the
(v) As
is not
prosperity of cultivators,this
fact. Opinions differed whether
the
definitelyestablished
cultivator
some
wholeduring the British period enjoyed a more
and
health
than
he
used to do in centuries gone
food, clothing
Even
his
had
decreased
if
by.
(we can
hardly talk in terms
poverty
of prosperity),that was
f
or
no
justification
putting a burden on him
average
for
which
who
had
his economic
capacity did
under
reallyprospered
befit him.
not
the British
Did
rule pay
the
classes
their quota
in
similar proportion?
iyi) The
cultivator
land
this
14
"
if uneconomic
even
the effect
revenue,
to
as
relief
why
reason
that
was
disastrous
to
real
holdings
preclude all reforms
the
to
would
in this direction.
have
We
shall
the land
is
revenue
tax
or
rent
was
controversy
of
long standing, but with little practical bearing on

called it a "war
of words."
Even
policy. Baden-Powell
that the State
in
the land
Pakistan
(and India) is
is
revenue
rent, this does
of this
charge without reference to the

enlightened,may
exempt uneconomic
the landlord
nny
is also
theoretical
If the
the payment
a
tax
or
But
so
come
Rent
or
Whether
he is
been
point later.
6 Tax
hence
peasant-
exempted from
were
finances
Government
on
denied
was
as
the
right
the
to
small
he is
State, the
holder
making
as
the
universal
revenue
we
landlord
agree
and
not
of
the
imposition, should
land
if
justify the imposition

a landlord, if
people. Even
holdings from rent. When
welfare
requires
of
matters
relief, he
is
subjects,and
be
must
its
primary
pot
sideration.
con-
get it whether
theoretically
regarded
as
rent.
it is,certain
exceptions apart, the State in Paki
stan
(and
Land
India)does
to
Revenue
claim
not
the
right
British Government
been
soil "has
pointed
districts of Bengal, North
joint villagedistricts
of
the
had
United
with
regard
and
Oudh
and
and
Provinces
that
referred
areas,
not
property
and
to
the
Punjab,
right in
the
State
to
Referring
that
in the land-holders"
vested
made, in the latter
out
Madras,
definitelystated
declared
337
Policy
ownership of land.
the
to
pre-Partition India, Baden-Powell
the Zamindari
and
Systems
the
the
tions
reserva-
any
rights but
and
the
to
districts
tenants."
In
holders
Ryotwari
"rightsof subordinate
with
to
vacated
and wasteland,
regard
the State had
a "residuary right"
"except as a result of
to ejecta cultivator
but had no power
of
in default
process
payment." Hence,"
revenue
But
is
not
well
then
even
it is
Since
rent.
as
collected,it resembles
it and
no
element
to
it has
in addition
tax
of
might think it is a
remarks
Vera
Anstey,
of
there
income
an
14
7 Lines
"
far
So
as
doubt
no
that would
of Land
as
of
made
in
view
this
of taxes;
The
the
of
land
the
2. Some
by
Various
(0
revenue
suggestions
lands
V.
revenue
pay
is
in
as
large
owners,'
'land-
sence
receiving
pockets."3
as
nue
reve-
revenue-free
3. V. Anstey, op. cit.,p. 376,
tax
of
relief to
payers
for
is concerned,
system
or
rent
is
been
suggestions
three
objects
are
Usually
kept
have
holders
of very small
of the burden
of taxation
the
and
reform
grants,
of
payers
in different
Anstey, op. cit.,p. 376.
were
are
is
kinds
(in) uniformity of incidence
Quoted
to
is
present
under:
1.
India
into their
go
that
and
rent,
on
equitable distribution
various
have
(leviablealso in others),
would
be nearest
to say,"
in
present system.
the larger land
between
periodically
Reform
connection:
holdings; (ii)more
as
otherwise
reforming
the
improve
to
as
provinces it
some
that the Government
Revenue
the
tax
cultivators
consequence.
no
it is
"that
already said, whether
matter
in
is
it
"Perhaps
rent.
actual
the
tax
incomes
agricultural
on
one
proportion
in
and
progression,
large
revenue
of
State
all lands
since almost^
But
tax.
land
features
levy of the
compulsory
that
charge contains
This
tax.
all in
at
qualifiedmanner."!
very
exist
not
categoricallysay
cannot
we
but
rent
parts only in
in other
part of India, and
does
Government
'recognisedownership' of
concluded, "the
he
may
other
forms
areas.
be
indicated
as
338

(1)
Some
substitution
in its
abolition
the
suggest
of
place
of the land
income-tax
an
derived
incomes
on
such
as
revenue
and
from
agriculture.
principles of income-tax
i.e. exemption of small holdings and
imposition of
(2) Others
to land
a
revenue,
graduated
(3) Some
net
would
assets
rate
like
14
this estimate
Relief
One
the
This
Punjab, and would
of
system of land
uniform
arisen
has
to the Small
school
which
scientific.
more
need
in
manner
calculated,especiallyin the former
are
Pakistan.
8
"
of
defects
the
expose
(4) Bringing into existence

West
the
largerones.
on
writers
like to make
apply
to
in
revenue
recentlysince integration.
more
Holders
thought
of the land
entire abolition
the
suggests
charge and substitution in its place of an income-tax on

be intracan
agriculturalincomes. Of course, agriculturalincome-tax
revenue
for
duced
aims
revenue
without
owners
in the former
done
was
larger
Punjab
primarily
this payment.
In this
the
land
and
elsewhere.
The
abolition
relievingthe small holder
at
connection, therefore, several
carefullyconsidered
to be
of
abolition
before
decision
any
can
revenue
as
of land
of the burden
of
questions have
be taken:
and
on
political,economic
(/) Is it desirable and justifiable
ethical grounds that the small holder should be entirelyfreed from
making
direct contributions
any
(li)If
he is
improvement
(Hi) What
in
what
are
will
be
loss
likelyto be
the
ment?
of the financial loss to the Govern-
the extent
be
made
of
of this curtailed
the
If not,
by alternative sources?
up
consequences
welfare
the
expenditure on
people
"
Government
including the exempted
holders?
small
(/) The
the
land
the
revenue
keeping
rights, etc., and

and
significant
far will it make
a
given this relief,how
of production?
his standard of livingor methods
this
Could
of the State?
to the revenue
of
of
records
these records
economist.
and
assessment
collection
no
doubt
land, its produce and
sitate
neces-
property
to the administrator
of great value
Politically,land revenue
payment
are
was
linked
adult suffragehas been introduced.

voting rightthough now
be justithese are only incidental advantages. The
fied
system must
with the
But
on
more
fundamental
ttee of 1938
drew
grounds.
attention
The
Punjab
to the ethigal and
Land
Revenue
social aspects,
Land
The
Reveune
land-owner,especially in
privileges"
and
protection
contribution
some
One
witness
that
the
small
from
the land
dignityand
exemption.
tax
if other
and
classes
the
be put forward
have
taxed
not
are
Punjab
being
like
his
exempted
holders
Small
mittee
Com-
self-importance,
will
jump
protection
still more
exploited by
for imposa justification
ing
capacity to
no
being
the
as
the
to
his
"privileges,"the
be
to
of
L. R.
enhances
regards
former, if they
the
on
the
doubtful.
very
class, liable
by
make
should
he
virtue
not
which
appears
339
Policy
Hence
before
would
charge
given by the State to

privilegedclasses,cannot
State.
treasury
asserted
As
and
Punjab (they held), enjoys special

the
State
holder
revenue
fzzat. ^This
the idea of
the
given by
the
to
land-holder.
at
Systems
degree
same
this burden
bear
of burden.
Anstey expressed the view that "judging

from
likely that part of the increased
past experience, it appears
income
would
be squandered on increased expenditure on ceremonies,
and
be swallowed
that the rest of it would
up by an increase of
("), Mr.
Regarding
population, rather than in

or
methods
of
"3
of cultivation.
Does
the
Government,
the
population, probe into

is reduced
tax
social
abolished?
should
be
as
decr"e
mortgaged
or
cannot
authority,and
and
The
can
and
burden
a
Province
2.
to
under
be
Civil Court
he
is entitled to retain enough
an
is not
Act
for
of
1934
Report, op. cit" p. 38.

Anstey, op. cit.,p.
337.
for the
and
more
p. 74.
which
they
should
away
in execution
on
of
maintenance
done
of
be
money
the
of
owner
landrevenue
himself
attached.
can
money-lender,
principal. When
he
of his debts
unless
being
charged
set
up
If he
be reduced.
the
Boards
are
be
years.
limits,they
the
get
can
part of their
twenty
and
the poorer
course,
seed cannot
ttian twice
ant
import-
as
recreations
the intervention
has passed is
Conciliation
Report,
than
if the
spent
are
This
certain statutory
liable for the payment
to settle his debts."
3. V.
land
plough, cattle, implements
him
in
be sold
without
evicted by
land
of
by taking
agriculturistscannot
non-agriculturist for more
passed against
kinds
manner
of these
of proving that consideration
his ancestral
Finally
not
facilities,
be
ceremonies
incomes.
their small
his interest charges exceed
decree
the
to
as
be
his family. His
is sued
social
various
are
instructed
advantage from
by extending educational
land
would
money
better-placedclasses. Of
the
best
1. "The
the
way
Certain
cultivator
expenditures to
sections
the
or
the poor
to
in the
of life
standard
improvement
is
a
This, again,
very unconvincing argument.
while considering taxes
other
classes
on
any
upon
all over
nor
dies
it.
the
^40

incomes
meagre
in the form
Finally (j"(7)
we
main
reason
of 1938
to
be abolished
the
Committee
2,000
exempted, the
to
the
exempted,
view
"land
loss
Rs.
10
The
Revenue
mittee
Com-
the
finances
of
the
Government
of the
would
unless
In
that
be raised from
words
250
Rs.
2|
crores.
year
78-6
Rs.
make
and
this
would
could
gap
of
the
the
better-to-do
Committee,
(with the
those days) were
Rs.
4J
exempted,
were
In
less
or
lakhs.
crores
of
terms
to be
were
Thus
in their
significantchange in
no
holder, it would
Government
sources.
the
been
have
Rs.
10
paid Rs.
in
to
up
over
Rs. 500
from
will be reduced
who
year
seriously curtailed. The
exemption limit
loss at
position of the small
in
can
the
would
be
if incomes
Even
if only those
while
Land
Punjab
paid less than
who
revenue
estimated
the
economic
if those
that
Rs. 39 to 40 lakhs."'
revenue
the
would
the income-tax
"
total
the Committee
land
of which
Government
estimated
of Rs.
assets
basis
considerations.
financial
the
rejected this suggestion was that if land revenue

were
(and an income-tax
imposed on agriculturalincomes)
of
revenue
tax.
to
come
the
on
of
create
serious
the
gap
curtail useful activities

be
"the
classes is
made
up
of
amount
not
from
very
othtr
revenue
large and
the process
known
as
commonly
'soaking the rich' which is fruitful
in -this
limited
enough in a wealthy country like England had
scope
to
for
was
only method
raising any considerable sum
country. The
the whole
community
by levying a small
spread the fiscal net over
on
as
sum
people as possible."^
many
This
after the publicationof the
died down
soon
controversy
Report
of the
of 1938,
Committee
due
to
World
War
II. From
1941
the
ties,
pricesofall commodities, includingagriculturalcommodirise
of
and improved the position
the agriculturists,
began to
who
had
The
created its
those
sell.
to
war
some
particularly
surplus
came
problems and in about two years after the end of the war
own
created
further
the Partition, which
problems of great magnitude.
inflationary
Since 1947 priceshave risen still further, in fact to an
onwards
The
general impression now

and the agriculturist
hardly needs
extent.
has
revenue
1.
Report,
2.
Ibid.,p.
not
op.
73.
increased
cit.,p.
72.
to
is that
any
any
agricultureis
relief. Moreover,
very
while
paying
land
significantdegree the income
of
Land
the
agriculturist has
Partition
the total
serious
now
be
surplus
to
number
of such
We
in
its
shared
the
not
exemption
may
be
the
substitution
of
put
on
that
recommend
exemption
so
prosperityof
current
classes
hardly
have
of
any
and
the
population has grown
for giving relief to
The
case
even
abolition
an
not
nov/.
of
land
and
revenue
the
with
agriculturalincome-tax
its
as
confers
ownership
of
below
areas
on
limit
specified
We
holders.
the
from
only
the land
charge.
revenue
One
encourage
now
objection
in view
land
Government
can
holdings
is to encourage
too
are
worthwhile
for the
limit
specifiedarea
cultivate those
cultivated
small
area
areas
at
to
on
The
the process
that
it would
objections is
not
of sub-division
land
revenue
individual
joint farming by those whose
It may
be economically operated upon.
Government
from
put
was
policy of the
the object of reducing, if
a lever for
as
units offarming. Thepolicy of the present
used
be
holdings.
fact, the
In
eliminating,uneconomic
Government
of
of the limitation
reforms.
exemption
such
against
sub-division
further
new
by the
be
[are
from land
Incomes
ordinary income-tax.
different
footing considering certain special
limits
advantages
not
has increased.
recommend
place the
holders
holders
small
holders, therefore,is quite strong

do
Therefore,
7%.
back.
the
meantime
holders
same
valid
of
of
percentage
proportion by all the
same
33% of
tion
contribu-
the
the
small
the
vince
of the Pro-
revenue
about
to
preof
revenue
in which
Thus
33%
the
II, it formed
that the so-called
in the
total
total
crores.
century
the
crores
exempting
large number
sell. In
10
about
remembered
agricultureis not
A
agriculturists.
150
of
revenue
War
the
present
Rs.
from
quarter of
as
World
Rs.
implications of
It should
small
At
and
341
Policy
land
5 crores,
is about
fallen
and
The
before
crores
is about
has
financial
Rs.
revenue.
revenue
revenue
the
15
Pakistan
of land
land
about
Provincial
of West
Systems
risen manifold.
Punjab was
being Rs.
Province
the
Revenue
the
to
payment
exempt
of land
all holders
revenue
jointlywith others so as to make

specified amount
a
least equal to
following suggestions are put forward
in this connection
below
provided they
jointly
the total
of land. The
for
tion
considera-
of the Government.
Owners
of subsistence
holdings, or
below
subsistence
holdings.
342

defined
as
exempted
carry
from
the
becomes
equal
Commission.
is defined
by
and
acres
As
the
L.R.
provided they
revenue
may
be
agree
to
Commission,
other
similar
owners
unit of
one
brought under
economic
an
holding as defined by the
already noted, a subsistence
holding
thus
Commission
as
an
50
holding from
of from
area
64
to
12J
This
acres.
to
16
will
be
acres
time it
giving relief to small holders and at the same
will increase agriculturalproduction by bringing the agriculturalunit
handled.
be more
to
a size which
can
efficiently
Any loss of revenue
will thus be, at least partly,covered
by greater production.
a
good method
to
Reform
co-operation with
area
have
we
economic
an
in
total
the
Land
of land
payment
that
way
cultivation
same
Pakistan
West
joint cultivation
on
in such
the
by
of
holders.
So far the small

holders
land
The
extremely light due
become
burden
revenue
the
on
the
larger
tural
agricul-
high pricesof
is no
down
in
products. There
prospect for the pricesto come
in the first place to
the foreseeable future. It is,therefore, necessary
increase
in the land revenue
an
bring about
charge. Taking the
for
like
wheat,
instance, which is much
less subject
price of foodgrains
fluctuations
of
account
international
to
on
price
forces, it has risen
has
at least
the land
years
should
the
of
it will
there
basis
should
the
with
of what
four
be
hardship
progressiveway.
to
surcharge
the increase
may
last
times
involve
not
increase
the
during
raised, say,
is
increase it in
to
and
times
nine
revenue
ago,
will be
rate
eight to
be
following pattern
to
on
thirty years.
compared
the payers.
There
it. The
in the total
called the "standard

may
be
to
Therefore, if
its level
The
best
should
rate
be
of the
charge
rate."
thirty
method
a
basic
surcharge
calculated
as
on
slidingscale
suggested merely for illustrative
purposes:
Table
Slabs
of Basic
Rates
Rs.
Up
to
Rs.
100
101-250
251-1,000
Above
No.
34
Surcharge
0/^
j^jj
50/
100/
1,001-1,500
150/
1,501-2,500
20"/
2,501-5,000
Rs. 5,000
30o/"
40%
Land
14
9 Definition
"
Another
Revenue
of Net
attack
assets.
We
Punjab
area
are
Professor
on
have
tisn
by the Punjab
not
the
words
to
true
population
are
class.
Under
share
should
what
it
net
of
in
assets
of
assets
the matter
Committee
was
arrivingat
the
under
1938, that these
former
the
landlord.
considera-
assets
net
were
when
soil. Land
the
alternative
no
net
are
Government,
of
In the
applied to the owner-cultivator.
Brij Narain, "The non-cultivatinglandlord is able
of
because
of the constantly growing pressure
tenant
on
there
They
the
the methods
to
how
contended, when
assets
of Professor
exploitthe
Punjab,
already seen
L.R.
net
343
Policy
policy of
revenue
relates
estimated.
BrijNarain
and
Assets
the land
especiallyin the former

the net
Systems
is
means
conditions
sueh
and
relativelyto demand,
livelihood
for
the
teoant
earning a
scarce
of
surprisingthat the landlords'
it is not
that
large element of loot.''^ He recommended
should be taken of
net assets
should be calculated directlyand account
all the items of costs including fair wages
his
for the cultivator
and
If adequate wages
for the cultivator
assumed
family workers.
were
and his family working on the farm, he contended, the net assets would
be about 32% less and revenue
demand
less than half per acre
than
and
contain
in
was
Lyallpur.
alternative
quoted
"cooked"
not
real
Committee
The
figures
old
figures.The
the former
Punjab was allowed

for revising the
method
case
production including a fair wage
before
of
14
the
sample
So
assets
done
have
we
of which
the standard
was
of relief
1.
system
to continue.
of
at.
the
to
This
this view
asserted
calculatingnet
were
in
assets
is,however, still a
There
All costs
assets.
workers
could
with
agree
calculatingnet
rate
revenue
at the time
prices. In
was
of the
the
introduced
Brij Narain,
AgrarianIêform,
the
be
must
be decided
Land
p. 10,
the
on
of
allowed
basis
But
to
arriving at the
be taken
to
assessment
circle.
conditions
may
through abnormal
Lyallpur Tehsil in 1935
of
for the land
Reform
revenue
in the
payers
in
Punjab, issued
case
by
net
determine
This
change
rises
settlements
settlement
Fevemie
was
for the whole
settlement.
tvvo
of
method
specifiedproportion
land
considered
during the period between

falls in
of
not
Professor
Sliding-scaleSystem
far
out
the
surveys.
10 The
"
figureis arrived
net
did
which
or
system
prices of
the Institute of
344
Pakistan,
agricultural commodities
time
due
fell
Great
the
to
The
extended
was
other
to
known
is
system
the
as
subsequent
in
areas
that
about
done
seriously as they had
Depression.
and
Sliding-scale System
Developing Economy
settlements.
object
The
of the
pitch its demand

of prices risingto
meanwhile
the
take
to
into
level of the
average
possibility
the
account
thirty years,
or
harvest
each
at
Government
the
last twenty
adjust this demand
to
enable
"to
was
high enough,
to
and
system
new
to current
prices."'
According to the
during the period from
relief could
and
fall in
great
system, the standard
one
be
settlement
of
this
system
the
to
character
this
necessitated
1930
by
change
not
remissions
of crops.
The
system.
The
new
described
thus
were
did
rates
another; of course,
to
according
given
prices after
features
main
old
communique
of the Government:
(1) The
commutation
been
have
worked
(2) Average
those
prices and
circle
as
be fixed
to
the
with
ment
by Govern-
law,
revenue
on
years.
will determine
worked
will be
rates
revenue
the
for
rate
average
according
out
the
to
assessment
whole.
the
Within
be
cases
some
circle
assessment
the
with
present, in accordance
will in
in accordance
out,
of twenty
the average
prices proposed
higher
the
revenue
class of land
than
the
and
rates
will vary,
other
factors.
rate.
average
other
In
as
at
They
cases
they will be lower.
(3j The
rates
revenue
as
for
finally announced
particular
Government
which
maximum
the
square will represent
during the period of forty years.
any circumstances
rates
take these maxima
will not
Government
can
(4)
general
level
of
prices is
at
least
as
high
as
that
prices given in the Schedule attached .^

(5) If in any year the general level is higher
by
the
the
Schedule, the
payers
revenue
take
the
unless
representedby
than
that
in
the
ed
represent-
will be given full advantage
of
excess.
(6) If in
1, L.
R.
any
year'thegeneral
Committee,
?. Commutation
Report,
prices based
op.
on
level of
prices is lower
than
that
cit.,p. 40.
twenty
years' average
before
the
settlement,
Land
represented
given
Revenue
by the Schedule, a remission

following year proportionate
the
Thus, while
maximum
the
rate
Government
fixed"
as
in the
"bound
was
they would
"giv3
full benefit of the fall ia price, however

To
are
calculate
taken
into
(a) The
the amount
important
average
(c)
The
commutation
for which
remissions
to
remains
constant
and
year,
will
index
new
depend
given.
average
preceding
that
strongest
Brij Narain.
He
the
Unless
will
be calculated
of
critic
raised
the system
(n) That
it is
has
based
rice
the
that
to
exceptional
are
of
the percentage
in
specifiedmarkets
crops
and
that
successful
and
the
Each
"i
years.
and
to
of remission
amount
in Sind
of the
the standard
that
index
during previous
very
then
1938
in
on
extended
was
an
to
cotton.
sliding-scale system
was
Professor
objections against it:
two
(0 "That
that
introduced
proved
of wheat,
there
figure according
will be
40%.
given then
remission
was
nique,
commu-
will
previous
year
will suppose
"We
The
It
the cultivation
The
for the
harvests
two
crops.
the
continues
yield per acre is also constant."

keting
prices current
during the mar-
average
the
the level of prices
on
experimental scale.
cover
the
that
sliding-scalesystem
The
an
of those
figure. They
index
figure
be
to
1,000 and
prices is 600.
new
index
during specifiedmonths.
is
each
under
crops.
figures together,"
take
of the
figure
factors
three
area
for each
assumed
will obtain
are
They will, however,
index
of those
contray, it will be assumed
reasons
districts
these
corresponding
season
matured
total
acre
pric;
Government
the
the
yield per
multiplying
a
be."
may
given,
be
to
the
payer
revenue
crop.
The
calculate
of
percentage
"the
that
great
remission
the
to
the
exceed
to
not
account:
(b)
"By
of
will be
rates
revenue
difference.
the
to
345
Policy
and
Systems
taken
not
on
no
of the
account
real but
cost
"theoretical
or
tion."
of cultiva-
paper
nc.
assets."
prices fall heavily,"

less heavily, it is possible
"When
costs
1.
Punjab Land
Revenue
wrote
that
Committee,
Professor
net
assets
Appendix
Brij Narain, "and

wholly vanish.
may
A, pp.
157-59.
S46
Pakistan,
But
the
Developing Economy
sliding-scaleassumes
provided
assets,
be
the
granted
system.
remission
according
income.
reverse
The
when
of the
the
proportion
rising again,"
it may
time,
in
fallingprices
any
ownsr-cultivator's
an
to
defect
this
fall
his
added,
they
be
in
supposed,
net
"the
the two
other."^
each
prices seems
rise in
to
land
is little
or
level,"
wrote
hope
no
which
back
of
Professor
prices, which
vindicated
have
this
prices
be
should
made
not
to
of
world
be
assessments
the
''actual
as
has
based
absurdly high
therefore, recommended
He,
on
commutation
structure
than
on
"There
future
normal
more
1914-1929?"4
of
"The
based
are
the
to
that
was
prices.
paper
prices equal
regard
should
Brij Narain
system
mere
Narain.
in
are
this
were
of
Brij
altered. Why
fundamentally
current
rise
demand
world
supply and
under
rates
revenue
years
by Professor
taken
objection
prices twenty
assessment
period
fall in
of
prices."^
actual
recognised
th3
to
start
and,
enormous
second
average
in
and
merely
not
Committee.
standard
on
in
Committee
in
prices
sets
recent
bs
not
neutralise
The
the
proportion
process
tendencies
view
agreed
would
"But
net
'Vemissions
assets,
net
commutation
that
in
fail in
the
to
They
given
income
gross
always erjoys
fall in
according to the difference between

The Punjab Land
Revenue
of
Zamindar
the
prices is not 100 per cent."*

that
Brij Narian, therefore,recommended
Professor
should
that
that
distinct from
that
prospective
assets."^
Referring
there
that
during
"This
and
assumes
ignores
next
a
the
forty years,
1.
the Land
the
such
commodities
Brij Narain, India Before
and
Since
2. Ibid., p. 617.
3. Report,
4.
op.
Brij Narain,
cit.,p. 51.
op.
cit..Vol. II,p.
5. Ibid., p. 617.
Report,
op.
Revenue
Committee
least can
at
we
prescience to which
of
which
war,
unhappy possibility
prices of
it did happen.
inflate
so
no
was
the
in his evidence
Brij Narain's contention
ing
possibility of a period of high prices return-
Professor
to
cit.,p. 66.
614.
as
wheat
the Crisis, Vol.
and
II,p.
lay
added:
claim,
no
might
greatly
cotton."^
611.
And
Rev
Land
while
Thus,
Lyallpur
sold
years
war
18
Rs.
or
cor
Rs
at
more
even
lised the
14-11
ihe
Settlemen
Tehsil
per
The
There
Present
Positi
at
are
presei
Pakistan, namely, the

Punjab system, which
N.-W.F.P.,
as
water
i
!
separi
and
rates
of assessment
an
Pu
Bahawalpur
is assessed
revenue
over-assessment
agricul
is the
nets
circle. Th
assessment
25% of the net assets of

Punjab system is both fi
is
which
prevalent in
includes
number
water
is le
rates
according
to
narily calculated
Moreover,
in
this sy
wj
cotton,
in respect of other
while
has
of
cro
at
under
respect
ar
sub-divis|
Nasirabad
and
Recently, the Advisi

approved the pro
unification
of the
the
Province.
that
the
syste
In
this
of 1
assessment
lately throughout the Prl

system
and
it should
of
be
i\
certain
parts
decided
that
separate age
should
b" set up
abiana
of
former
the
of
accordance
with
where
Que
Punjab
assessment
areas
the
land
the
(here
nciea
throughout
system; and
revenue
on
Province
the
that there
the
basis
sliding-scale
system.
is fixed
assessment
be
fluctuating
of the cultivated
In the
at
lines
-/.isting
ot:
should
case
of
area
in
non-irrigated
present, it is not
necessary
348
to
Pakistan,
it
alter
been
has
It
calculated
that
unit
means
to
admit
an
upper
of
at
of
been
provided
present
of
land
previous
of
cultivators
the
of
under
the
at
recently
of
time
Land
of
legal
to
in
reassessment
fixed
be
restriction,
Act,
the
has
It
should
Revenue
divisions,
They
Provincial
to
the
at
as
ment
enhance-
relation
were
It
this
is
then
for
to
the
that
will
committee
The
starting
End
and
on
introduced
June
by
1966.
the
which
committee
legislation
in
landlords
consideration
by
be
obtain
to
leading
further
considered
expected
Assembly
Commissioners
and
Commissioners
Deputy
of
the
the
forwarded
were
reported.
recommendations
Punjab
no
or
formula.
reassessment
be
be
should
enhancement
sliding-scale
should
there
which
assessment.
respective
Council.
Advisory
session
that
decisions
views
has
and
the
pattern,
homogeneous
there
of
purposes
of
period
the
revenue
of
rate
These
the
that
years
under
as
revenue
that
rates,
be
circle
sufficiently
are
for
Punjab
assessment
assessment
limit
lower
no
land
decided
twenty
of
set
former
an
which
estates
revenue
but
be
should
revenue
the
on
should
common
ceiling
remission
also
of
land
that
formula
assets
assessment
group
of
decided
net
Economy
assessment.
further
25%
on
the
fluctuating
the
to
Developing
the
in
of
lines
the
next

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PAKISTAN

abridgement, reproduction, etc., reserved

Press, 9, Rattigan Road,

Pakistan, A Developing Economy

Agriculture in the Economy

Prospects of Increasing Cultivated

Pakistan, A Developing Economy

Adjustment of Property Rights in

Marketing Organisation of the Government

Suggestions for Improvement

sector, that is,the

by the products which do

similar countries,for example, many

correspondence between low per capita income,

history,the vast majority of

currently underdeveloped countries enjoys a better

only a few centuries back. What

the part of these

people,or at any rate

by and following the two great

the support of the

developed countries to the desire for development

has also provided

for the discussion

(a) Social elements.

emphasised that economic

highlycomplicated and involves

already been made

favourable social environment

with, economic development requires

people of the country concerned, for material

the part of the

lives rather than

has, however, made this

the influence of the Press, the radio

problem less difficultthan

the films have

interested in the welfare

advantage. Where democratic institutions are tried,they create

partly due to limited opportunitiesfor honest

look into the

quick changes in the psychologicalattitudes and institutional

{in)Quantity and qualityof the capitalstock available

ib) improving the health,education

technologicalknowledge through research

important and most difficult

problem is that of the start. An

thus involved in what

calls the "vicious circle of

"Take-off" stage has been

reached, the economy

and the inventions

system of centralised economy

Europe. Their eff"orts were

strategicfactor for economic

reinvested for further increase

increase the national

underdeveloped countries the

5% to 12% of the national income, is a most modest estimate,

basic obstacles which

degrees in different countries.

Theoryof Economy Growth,

imported. For instance,Japan's industrial structure is based mainly on

the vicious circle has