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Contents
1.

GREEN REVOLUTION ............................................................................................................................. 3


GREEN REVOLUTION ......................................................................................................................... 3
Factors responsible for green revolution. ..................................................................................... 3
Impact of Green Revolution .............................................................................................................. 4

2.

MAJOR CROPS OF PAKISTAN................................................................................................................. 6


MAJOR CROPS OF PAKISTAN ......................................................................................................... 6
(A) FOODS CROPS .............................................................................................................................. 6
(B) CASH CROPS ................................................................................................................................. 7

3.

OBSTACLES TO ECONOMIC DEVELOPMENT IN PAKISTAN .................................................................... 9


1 Economic Obstacles ........................................................................................................................... 9

4.

GREEN REVOLUTION ........................................................................................................................... 14


GREEN REVOLUTION ....................................................................................................................... 14
Factors responsible for green revolution. ......................................................................................... 14
Impact of Green Revolution ................................................................................................................ 15

5.

LAND REFORMS IN PAKISTAN ............................................................................................................. 17


LAND REFORMS IN PAKISTAN ....................................................................................................... 17
(1) Land Reform Proposals of Agrarian Committee 1948 .......................................................... 17
(2.) Land reforms of 1959 ................................................................................................................ 17
(3). Land reforms of 1972 ................................................................................................................ 18
2. Claimed benefits of land reforms............................................................................................... 20
Factual position of land reforms. ................................................................................................... 20
Obstacles to land reforms: .............................................................................................................. 21
COMPARISON OF LAND REFORMS IN PAKISTAN .................................................................... 21
2. Exemptions. .................................................................................................................................. 21
3. Compensations. ............................................................................................................................ 22
4. Land-lord tenant relations.......................................................................................................... 22
5. Consolidation of holding. ............................................................................................................ 22

6.

ROLE OF HUMAN CAPITAL IN ECONOMIC DEVELOPMENT................................................................. 23

7.

ROLE OF EDUCATION IN ECONOMIC DEVELOPMENT ......................................................................... 26


II-Manpower Oriented to Agricultural Activates: ....................................................................... 27

8.

NATURAL RESOURCES AND ECONOMIC DEVELOPMENT ................................................................... 28

9. OBSTACLES OR CONSTRAINTS ON THE PATH TO ECONOMIC DEVELOPMENT IN DEVELOPING


COUNTRIES.................................................................................................................................................. 31
10.

Agriculture in Pakistan .................................................................................................................... 35

1.GREEN REVOLUTION
Updated on March 24, 2011

GREEN REVOLUTION
Green Revolution was based on the idea of agricultural revolution. Green revolution infect started
with the introduction of high yielding variety (HYV) of wheat by Dr. Borlaug in 1950. Dr. Borlaug was
of the view that man should not entirely depend upon Nature for the production of agricultural goods.
Man himself should make efforts to increase agricultural output by God. The technological
innovations and then leave the result in the hands of God. The technological and pesticides in
evolving seeds of agricultural output which is known as Green Revolution. Green Revolution thus
is the break through or remarkable increase in the quantity and quality of agricultural output
through the institutional and technological reforms.

Factors responsible for green revolution.


There are several factors which are responsible for break through in agricultural production. These
factors mutually support each other in ushering the green revolution. The package of factors in brief
are as follows.
(1) Miracle seeds. The primary factor which brought agricultural revolution is the introduction of high
yielding variety, (HYV) seeds. The use of new variety of seeds has very much increased the
agricultural yields per hectare. For example, in Pakistan, the yield of wheat was 1189 Kg per hectare
in 1971-72 and has increased to 2769 kg per hectare in 2006-07. Similarly, the yield of price which
was 1554 kg per hectare in 1971-72 which has gone up to 2107 Kg per hectare in 2006-07.
(2) Agricultural research. The agricultural research on higher yielding plant varieties, better
methods of controlling insects and deceases have resulted in higher production output.
(3) Fertilizer. The increased use of chemical fertilizer is now playing a key role in raising the
agricultural production.
(4) Multiple cropping. Due to new seeds maturing early, it has now become possible to get three or
even four crops instead of one or two from the same piece of land in a year.
(5) Modern machinery. The farmers are gradually replacing the bullocks cultivation by the modern
machinery like tractors, thrashers harvesters, tube wells etc. The time saving use of modern
machinery in agricultural sector has made it possible to sow, grow and harvest crops in the shortest
possible period of time.
(6) Support prices. The new or improved technology increases agricultural production and reduces
the cost per unit of output. In order to sustain agricultural progress and keep the prices of agricultural
products profitable to the farmers, the government of each country offers support prices to the
growers so that agriculture creates potential for higher real income to the producers.

(7) Processing, storage and marketing facilities. The processing, storage and marketing facilities
have been now greatly improved and extended in almost all the countries of the world. The
increased agricultural production is put to profitable use. The provision of these facilities brings
facility in the prices of agricultural goods and ensures reasonable return to the growers.
(8) Credit facilities. Availability of institutional agricultural credit on time to the farming community
enables it to carry out the agricultural operations efficiently.
(9) Institutional changes. Green revolution is carried out more effectively and efficiently by
institutional changes like land reforms, flow of market information etc. These are also adopted along
with bio chemical technology.
Summing up green revolution, is composed of package of improvements namely (1) high
yielding seed varieties (2) increased use of fertilizer (3) improved water supplies (4) better
agricultural practices (5) measures of plant protection from pests diseases, (6) increased
mechanization operation and credit facilities. All these improvement are effective only if they
are all combined together. None is wholly effective without the other.

Impact of Green Revolution


The main effect of green revolution on the economy of a country are as under.
(1) Increase in production. The use of higher yielding variety seeds, chemical fertilizer, pest and
insecticides, improved irrigation, facilities etc has remarkably increased the production of wheat, rice,
sugarcane, cotton, maize etc in all the countries of the world including Pakistan.
(2) Reducing regional imbalances. The agricultural scientists are developing new technology
which should suit the different regions of the country. New improved variety of seeds has been
developed which suits the barani farming areas also. The introduction of modern technology in
agriculture has greatly helped in reducing interregional and intraregional disparities.
(3) Unbalanced cropping pattern. The green revolution in its coverage of crops is partial and
lopsided. In Pakistan the production of wheat, rice, cotton has remarkably increased due to the
adoption of new technology. However, the production of pulses, grams, maize, barley etc has
recorded only a marginal increase in output.
(4) Social imbalances. In its first phase the green revolution has favored the large land owners.
The rich farmers were and are able to use the package of new technology. They therefore earned
handsome profits from the increased output. In the second phase now, the peasant proprietors and
the tenants are also using new technology. The difference in income of the large landowners and the
small land owners is, however, significant and socio economic gap is widening as the time passes.
(5) Impact on employment. Agriculture still is the largest source of employment (48% of the total
labour force) in rural areas. The rural labour force is mainly self employed and unpaid family helpers
still dominate the employment scene. During the sowing harvesting seasons, the labour force is
nearly absorbed. Sometimes there is also shortage of labour in peak periods of agricultural

operations. The use of intensive farming methods associated with new technology has increased the
overall employment.
(6) Increase in investment. The farmers benefiting from the new technology are investing more and
more of their increased income for the improvement of land. Purchase of machinery, pesticides and
other inputs. We can say that the farmers are plugging back a major portion of their income on farm
improvements.
(7) Economic stability. The new farm technology has helped in increasing export of agricultural
goods, absorption of rural labour in the manufacturing sector. The rise in net income from the sector
has given stimulus to industrial growth and has helped in promoting economic stability in the country

2.MAJOR CROPS OF PAKISTAN


Updated on June 12, 2012

MAJOR CROPS OF PAKISTAN


The main crops of Pakistan are classified into food crops and non-food crops. The food crops
include wheat, rice, maize, coarse grains, grams and other pulses. The cash crops are cotton,
sugarcane, tobacco, mustard and sesame. The total area, yield and production of each crop is now
discussed under separate heads.

(A) FOODS CROPS


(1) Wheat: Wheat is the principal food crop of the people. It occupies an important position i farming
policies. The share of wheat is 3% to GDP. The area under wheat crop was 8494 thousand hectares
and wheat output stood at 23.52 million tons and it contributed 14.4% to value added in agriculture
in 2006-07.
The area and yield of wheat has gradually increased in Pakistan dye to the introduction of new
wheat varieties, improved agronomic practices, increased water availability and improved water use
efficiency greater use of fertilizer wide spread use of mechanical implements, better storage facilities
and a support price policy and favorable weather conditions.
The agriculture of Pakistan is to face another big challenge from the World Trade Organization
regime (WTO) from the year 2005. According to the WTO agreement on agriculture, it is necessary
for each country, to provide market access to international commodities and to do away with
domestic and export subsidies. Pakistan will now have to take steps to minimize the cost of
production of crops and also maintain quality of goods to compete in the international market.
With the advent of Green Revolution the wheat production has increased from four million tones
in 1960 to 23.5 million tones in 2006-07. In order to increase the yield of wheat per acre, some
additional measures shall have to be taken. These in brief are(i) Development of new high yielding
varieties (ii) production and distribution of certified seeds (iii) Timely sowing of wheat (iv) Timely
availability of fertilizer and (v)elimination of weeds from fields.
The production of wheat in 2006-07 is highest in the history of country. Pakistan now is not only self
sufficient in wheat but is also in a position to export the surplus wheat to other countries.
(2) Rice: Rice is the 2nd largest food crop in Pakistan. It is now a major export item accounting
for 6.1% of total export earnings over the last five years and contributes1.2% to GDP. The
production of rice during 1999-2000 was 5156 thousand tones. It came down to 3882 thousand
tones in 2001-02 and increased to 5438 thousand tones in 2006-07. The Government of Pakistan is
taking effective measures to increase the yield, production quality and export of rice. Research
efforts are continuing on developing high yielding basmati and Iris varieties. Emphasis is also being
laid on agronomic research as well as on improved extension services fertilizer use, direct seeding

etc. The flow of inputs and credits is also being substantially increased. Spray is also provided to the
rice growers at subsidized rates.
Pakistan produces finest quality of rice named as ''Basmati'' It enjoys monopoly in the international
market. After Thailand, Vietnam, USA and India, Pakistan is the fifth largest rice exporting country in
the world.
(3) Maize: Maize is an important food grain as well raw material for edible oil production. It is also
used to produce starch and poultry food mixes.
The total area under maize was 1026 thousand hectares in the year 2006-07 which has doubled
since independence. More than half of the crop is growth in NWFP and almost all the remainder in
Punjab. The total production during 2006-07 was 2968thousand tones.
The main reason for the poor performance in this crop is the lack of adequate seed supplies and
inadequate farm practices required to obtain high yields from hybrid and synthetics. Efforts to
remove existing constraints are urgently required to increase the production of this valuable crop.
(4) Barley: Barley is an important coarse grain crop. It is grown in dry, arid conditions. The total area
under course grains in the year 2006-07 was 93 thousand hectares.
The use of barley for human consumption has declined considerably in recent years. It has been
replaced by wheat. However, the course grains constitute an important food and fodder source. It is
also being increasingly used in the poultry feed.
The low yield of course grains is mainly due to inadequate fertilizer use, poor land preparation, lack
of plant protection and thinning of crop for fodder.
(5) Gram: Gram is an important source of vegetable protein and play an important role in the diet. It
is grown both as rabi and kharif crops.
The total area under gram was 1073 thousand hectares in 2006-07. The total production
was 842 thousand tones in 2006-07.
The production of gram and other pulses remain concentrated largely in Barani areas. Gram
with 2.3rd of total acreage under pulses, is the dominant crop. The production of gram and other
pulses fluctuates sharply due to varying rainfall and frequent blight damage. The production can be
increased by introducing tolerant varieties of seeds and support prices.

(B) CASH CROPS


(6) Cotton: Cotton is the most important cash crop of Pakistan in terms of area and value addition. It
is the main foreign exchange earnings for the country with the production of 13.0 million cash return
to the farmers. It supplies raw material to the textile industry and provides employment to the people
living in both rural and urban areas. Its contribution is 1.8% to GDP, The area and yield of cotton
from the year2002-03 is given below:

The Government of Pakistan has provided following support to cotton production system in the
year 2006-07.
(1) Subsidy of Rs. 200 per bag of fertilizer.
(2) Electronic media was used fr quick technology transfer among the growing community.
(3) Availability of agricultural credit at the door step of the farmers.
The Government plans to increase cotton production to 14.4 million bales in 2007-08
(7) Sugarcane: Sugarcane crop serves as a major raw material for production of white sugar and
gur and is also a cash crop. Its share in value added in agriculture is3.5% and in GDP 0.7% in 200607. Sugarcane was cultivated on an area of 1029thousand hectors during the year 2006-07. The
higher sugarcane production is the result of increase in area, timely rains, easy availability of
fertilizer and pesticides and attractive prices of sugarcane offered by the millers.
(8) Tobacco: The total area under tobacco, during the year 2006-07 was 62thousand hectares and
production 126 thousand tones.
The production of fine Virginia tobacco is mainly concentrated in lower landaus Basin, plains of the
Punjab and NWFP. Pakistan is meeting its domestic requirements of tobacco and is exporting a
sizeable quantity of manufactured tobacco in the from of cigarettes.
In order to increase production new varieties of tobacco need to be development. Funds should also
be provided to boost the research and development programmers with a view to reducing the cost of
production and improving tobacco quality. Tobacco growers cooperation should also be organized.
(9) Oil Seed and Vegetable Oils: The main crops grown for oil are rape and mustard seeds
sunflowers, safflower soybeans. Total requirement of edible oil was1.9 million tones. which 32% was
met through domestic production and remaining68% was imported.

3.OBSTACLES TO ECONOMIC
DEVELOPMENT IN PAKISTAN
Updated on June 11, 2012

Pakistan inherited an extremely narrow economic base at the time of Partition in1947 Since then, the
Government of Pakistan is making rigorous efforts to build up infrastructure and productive potential
of the economy through the process of development planning. The start for preparing the country for
future advancement was made by launching a Six Year Development Programmer (1951-57) named
as Colombo Plan. The Plan was suspended two years before its completion due to the
repercussions of Korea War. In addition to the Colombo Plan, Five other Five Year Development
Plans were drawn up and implemented. The Sixth and Seventh Five Year Plan are complete. The
8th Five Year Plan (1993-98) has been implemented.
If the economic performance since 1947 is evaluated, the overall results are not very encouraging.
The per capita income at market price is only 925 dollars per year in2007 in Pakistan. The major
portion of the population is just above the poverty line (poverty line 23.9%) The disturbing feature of
the economy is that whatever economic growth has been achieved, it is accompanied by unequal
distribution of wealth. |This has created social tension in the country and has slowed down the rate
of economic growth. Pakistan has devised various strategies to quicken the tempo of economic
development but it has not been able to break the vicious circle of poverty and enter into take off
stage. The main obstacles which have affected the rate of growth in Pakistan are grouped under
following heads.
(1) Economic obstacles (2) Social and cultural obstacles (3) Administrative obstacles. These
obstacles are now discussed in brief:

1 Economic Obstacles
(1) External debt: There was a rising trend in external debt which posed a serious threat to the
economic future of the country. During the last five years, serious efforts are being made to reduce
the external liabilities as far as possible. The external debt even now stands at $ 38.8 billion in 2007.
(2) Fiscal deficit. Another serious constraint in economic development is the higher levels of budget
deficits. The overall budget deficit was 8% of GDP in 1990-91. It was brought down to 5.4% in 19992000. The present government has succeeded in bringing its down to 4.2% in 2006-07. The large
fiscal deficits reduces the capacity of the government to spend on key development activates.
On the revenue side, the tax GDP ratio stands at around 9.5% during the last several years. It is
mainly attributable to narrow tax base, inelastic tax system, complex tax laws, heavy reliance on
foreign trade taxes, large tax exemptions and incentives, tax evasions, weak tax administration etc.
On the expenditure side, defense and bebt serving are taking a very major share of the current
revenue.

(3) Banking and Financial Sector in Crisis. The second major economic impediment to economic
development was that the public sector banks and development financial institutions (DFI's) were
mainly in crisis. Excessive bank credits, large scale defaults in payment of loans were great fault
lines of the economy. The poor performance of the financial sector had adversely affected
development in various sectors of the economy till 2000. However, due to rapid economic growth
from 2000 onward, the banking sector is earning profits. The investment of the banks is mostly on
consumer products.
(4) Persistent deficit in balance of payments. Another important obstacle to economic
development is the persistent deficit in the balance of payments over the years.
(5) Financing the budgetary gap. Oneof the serious factor distorting the fiscal system and
obviously economic growth is the huge amount of borrowing to finance the budgetary gap. The
budgetary gap is financed through three sources (i) External borrowing, (2) Domestic non bank
borrowing, (3) Borrowing from the banking system. Excessive bank borrowing creates inflationary
pressure in the economy.
(6) Deficiency of Capital. Deficiency of capital is an important obstacle in the way of economic
development. If a country is to achieve rapid rate of economic development, it must save atleast 25% of GDP each year. In Pakistan, the rate ofnational saving is very low. It is about 16.1% of
GDP which is hardly able to maintain current per capita level in the country.
(7) Scarcity of Foreign Exchange. Pakistan, like other developing countries, is foreign trade
oriented. It is concentrating mainly on the export of cotton, carpets and manual labour leather, rice,
sport goods. The excessive dependence on export of a few items has made the economy unstable
and is a great obstacle to economic growth, which are mainly primary commodities. The increase in
the prices of imported goods and their rising flow in the country is a big strain on the foreign
exchange resources.
(8) Rapidly Growing Population. The population is growing at the rate of about 1.8% annually in
Pakistan. As a result of the rapid increase, the proportion of dependants below the age of 15 years
and above the age of has gone up to 73% which is a great burden on the meager resources of the
country and a big obstacle to economic development.
(9) Low Level of Technology. One of the obstacles to economic development in Pakistan is the
use of low level of technology in various sectors of the economy. We do not stress and even do not
recommend that Pakistan should adopt most modern and sophisticated technology. The
technology to be applied in Pakistan should be appropriate to the conditions prevailing in the
country. For instance we should preferably use cheap sources of energy, simple farm equipment,
smaller plants and scale of machinery etc suitable to the local conditions.
(10) Dualistic Economy. Dualism is an another important obstacle to economic development in
Pakistan. There is a vast regional disparity in income. The use of technology differs from sector to
sector and region to region. There are differences in the social customs, habits and attitudes towards

work of the people living i different provinces of the country. The occurrence of dualism stand in the
way of optimum utilization of factors.
2. Social and Cultural Obstacles:
The socio-cultural attitudes of the people also stand in the way of economic development of our
country. In Pakistan, more than 50% of the people are illiterate. They are ignorant of the
development taking place in their own country as well as in the world. society. The people are mostly
conservative in their habits. They feel pride in the native culture and are generally not receptive to
foreign methods of production. People lack self confidence and initiative. The joint family system,
though on the decline, has also killed the sense of initiative and the incentive to work. The caste
system functioning mostly in terms of occupation tailors, carpenters, goldsmiths, etc restrict
occupational and geographical mobility. The occupational classification which is mostly village
centered impede the economic development. The religious beliefs of the people condemning the
accumulation of wealth, dependence upon fate and the will of God only are also obstacles to
economic growth. People forget here that God has also said, ''Your duty is to do and then put the
result in the hands of God.''
The unnecessary expenditure on marriages, deaths, births, litigations, class pride etc. has reduced
domestic saving and has adversely affected economic progress. About half of the population
comprises women folk. Our social taboos and customs prevent them from working and improving the
standard of living. The basic needs of the people remain largely unsatisfied. We do agree here that
socio-cultural factors have impeded economic progress. We should not forget here also that the
adoption of socio-cultural attitudes of the West have brought down the quality of life as well.
3. Political and Administrative Obstacles:
For accelerating the rate of economic development, there should be political stability in the country.
If there is a change in the government set up due to elections, or of dictatorship, the planning job
done by the previous government should not be altered altogether.
The planning machinery and all others involved in administration should be loyal to the country. They
should be competent sympathetic and honest in the performance of the duties assigned to them. In
Pakistan, since its inception, there are rapid changes in governments. Each government which came
into power condemned the planning work done by the previous governments. They framed their own
plans, formulated their own strategies of development and left the claim without achieving the targets
of the Plans. The history of planning show that with the exception of the Faith Five Year Plan, all
other Plans have failed to achieve their targets. The overall line of the planning machinery in
Pakistan is bureaucratic rather than professional. The administration working in various departments
is generally weak, incompetent and unsympathetic. Self interest is dominating over national interest
which is a great barrier to economic development. Another administrative obstacle line the way of
economic development is that we have not so far been able to decide about the nature of economic
system to be adopted in Pakistan. Mixed economy, Socialistic economy. Islamic economy all are
talked about but nothing concrete has actually been practiced. There should be clarity on this

fundamental issue so that planning is drawn up according to the socio-economic objective of that
system and a path of development laid out.
Remedial Measures for Economic Development
We have discussed the major obstacles to economic development. The practical means of setting
aside the barriers to economic development are now to be stored out. It is a big challenge to the
planners. We are of the opinion that if following measures are right earnestly applied, the rate of
economic development can go up.
(1) Expanding the tax base. For expanding the resource base, it is necessary that the coverage of
indirect taxes be reduced. In designing the tax reforms, care has to be taken to minimise burden on
the common man. The share of direct taxes has also to be increased.
(2) Tax on agriculture income. The government can raise more revue by brining the agriculturists
income in the tax net on proper footings.
(3) Self reliance. Pakistan is knee deep in foreign debt. If we are really desirous of increasing the
rate of economic development, we shall have to lessen our dependence on foreign assistance. The
strategy of self reliance, as far as possible, should be followed for financing development projects.
(4) Export led growth. For the rapid development of the economy, the strategy of export led growth
should be carefully chalked out. The production of value added goods on large scale, having
comparative advantage in production will greatly solve the problem of limited size of the domestic
market. The production of import substitutes at home will save the precious foreign exchange.
(5) Industrialization. Another approach to development planning within the framework of mixed
economy is to give priority to the establishment of those industries which meet the basic needs of
the various sectors of the economy. The production of improved basic agricultural implements will
greatly help in raising the agricultural production.
(6) Strategy of self management. In communist countries, the development planning is being
decentralized. Development planning is declared a right and obligation of the planning agents. The
system if adopted in a coordinated manner shall help in quickening the tempo of economic
development in this country.
(7) Development of agricultural sector. The Government of Pakistan, in view of the importance of
agriculture in the national economy, is attaching high priority to the development of this sector.
Expanded credit facilities, provision of fertilizer, pesticides and improved seeds are the right steps in
improving agricultural production which contributes 20.9% of GDP and accounts for 46% of foreign
exchange earnings in Pakistan.
(8) Improvement of the infrastructure. A great deal of improvement in the means of transport,
power, roads, banking, education, etc. has to be made for economic development.

(9) Constitutional cover. The state owned industrial units which are being privatized and other
private units should be given Constitutional cover. The state of uncertainty of their nationalization
again be removed once for all.
(10) Stable fiscal and monetary policies. In order to accelerate the rate of economic development,
the fiscal and monetary measures should be carefully chalked out There should not be frequent
changes after a few months in the import and export policies, revision of taxes etc.
(11) Promoting Technology. For economic take off, it is very essential that we take effective steps
in promoting science and technology. The technological development will help in keeping our
products and exports competitive in the world market.
(12) Administrative Reforms. There should be far reaching administrative reforms in the country.
The professionally qualified personnel should be inducted and assigned specific targets to be
achieved in the allocated sectors. There should be reduction in the administrative expenditure also.
(13) Development of physical and human capital. Development of physical infrastructure, roads,
railways etc. and increased investment on education, health and nutrition etc. can play a dominant
role in increasing economic development in the country.
(14) Slowing the rate of population growth. High rate population growth (about1.8%) is also
intensifying constraint on the development of savings, foreign exchange and human resources. If we
want the qualities of human life, prosperity in place of poverty, education in place of ignorance,
health in place of illness, environmental beauty in place of deterioration, we shall have to take
measures to control the family size.
During the last four years, the government has identified five key sectors for promoting economic
growth and bringing it to the level of 8% growth rate. These sectors include (i) agriculture (ii) housing
and construction (iii) small and medium enterprises (iv) information technology and (v) oil and gas
sectors.

4.GREEN REVOLUTION
Updated on March 24, 2011

GREEN REVOLUTION
Green Revolution was based on the idea of agricultural revolution. Green revolution infect started
with the introduction of high yielding variety (HYV) of wheat by Dr. Borlaug in 1950. Dr. Borlaug was
of the view that man should not entirely depend upon Nature for the production of agricultural goods.
Man himself should make efforts to increase agricultural output by God. The technological
innovations and then leave the result in the hands of God. The technological and pesticides in
evolving seeds of agricultural output which is known as Green Revolution. Green Revolution thus
is the break through or remarkable increase in the quantity and quality of agricultural output
through the institutional and technological reforms.

Factors responsible for green revolution.


There are several factors which are responsible for break through in agricultural production. These
factors mutually support each other in ushering the green revolution. The package of factors in brief
are as follows.
(1) Miracle seeds. The primary factor which brought agricultural revolution is the introduction of high
yielding variety, (HYV) seeds. The use of new variety of seeds has very much increased the
agricultural yields per hectare. For example, in Pakistan, the yield of wheat was 1189 Kg per hectare
in 1971-72 and has increased to 2769 kg per hectare in 2006-07. Similarly, the yield of price which
was 1554 kg per hectare in 1971-72 which has gone up to 2107 Kg per hectare in 2006-07.
(2) Agricultural research. The agricultural research on higher yielding plant varieties, better
methods of controlling insects and deceases have resulted in higher production output.
(3) Fertilizer. The increased use of chemical fertilizer is now playing a key role in raising the
agricultural production.
(4) Multiple cropping. Due to new seeds maturing early, it has now become possible to get three or
even four crops instead of one or two from the same piece of land in a year.
(5) Modern machinery. The farmers are gradually replacing the bullocks cultivation by the modern
machinery like tractors, thrashers harvesters, tube wells etc. The time saving use of modern
machinery in agricultural sector has made it possible to sow, grow and harvest crops in the shortest
possible period of time.
(6) Support prices. The new or improved technology increases agricultural production and reduces
the cost per unit of output. In order to sustain agricultural progress and keep the prices of agricultural
products profitable to the farmers, the government of each country offers support prices to the
growers so that agriculture creates potential for higher real income to the producers.

(7) Processing, storage and marketing facilities. The processing, storage and marketing facilities
have been now greatly improved and extended in almost all the countries of the world. The
increased agricultural production is put to profitable use. The provision of these facilities brings
facility in the prices of agricultural goods and ensures reasonable return to the growers.
(8) Credit facilities. Availability of institutional agricultural credit on time to the farming community
enables it to carry out the agricultural operations efficiently.
(9) Institutional changes. Green revolution is carried out more effectively and efficiently by
institutional changes like land reforms, flow of market information etc. These are also adopted along
with bio chemical technology.
Summing up green revolution, is composed of package of improvements namely (1) high
yielding seed varieties (2) increased use of fertilizer (3) improved water supplies (4) better
agricultural practices (5) measures of plant protection from pests diseases, (6) increased
mechanization operation and credit facilities. All these improvement are effective only if they
are all combined together. None is wholly effective without the other.

Impact of Green Revolution


The main effect of green revolution on the economy of a country are as under.
(1) Increase in production. The use of higher yielding variety seeds, chemical fertilizer, pest and
insecticides, improved irrigation, facilities etc has remarkably increased the production of wheat, rice,
sugarcane, cotton, maize etc in all the countries of the world including Pakistan.
(2) Reducing regional imbalances. The agricultural scientists are developing new technology
which should suit the different regions of the country. New improved variety of seeds has been
developed which suits the barani farming areas also. The introduction of modern technology in
agriculture has greatly helped in reducing interregional and intraregional disparities.
(3) Unbalanced cropping pattern. The green revolution in its coverage of crops is partial and
lopsided. In Pakistan the production of wheat, rice, cotton has remarkably increased due to the
adoption of new technology. However, the production of pulses, grams, maize, barley etc has
recorded only a marginal increase in output.
(4) Social imbalances. In its first phase the green revolution has favored the large land owners.
The rich farmers were and are able to use the package of new technology. They therefore earned
handsome profits from the increased output. In the second phase now, the peasant proprietors and
the tenants are also using new technology. The difference in income of the large landowners and the
small land owners is, however, significant and socio economic gap is widening as the time passes.
(5) Impact on employment. Agriculture still is the largest source of employment (48% of the total
labour force) in rural areas. The rural labour force is mainly self employed and unpaid family helpers
still dominate the employment scene. During the sowing harvesting seasons, the labour force is
nearly absorbed. Sometimes there is also shortage of labour in peak periods of agricultural

operations. The use of intensive farming methods associated with new technology has increased the
overall employment.
(6) Increase in investment. The farmers benefiting from the new technology are investing more and
more of their increased income for the improvement of land. Purchase of machinery, pesticides and
other inputs. We can say that the farmers are plugging back a major portion of their income on farm
improvements.
(7) Economic stability. The new farm technology has helped in increasing export of agricultural
goods, absorption of rural labour in the manufacturing sector. The rise in net income from the sector
has given stimulus to industrial growth and has helped in promoting economic stability in the country.

5.LAND REFORMS IN PAKISTAN


Updated on April 5, 2012

LAND REFORMS IN PAKISTAN


Land reforms means to break up large estates in small size for distribution to the farmers with or
without payments. Land reform in the past was mainly carried primarily for equity and social justice.
Now it is mainly carried out for increasing agricultural productivity as well as the income of the
farmers. The main lend reforms introduced in Pakistan since 1947 are as follows;-

(1) Land Reform Proposals of Agrarian Committee 1948


The all Pakistan Muslim League the then most significant political party formed a Land Reform
Committee in 1948 to examine the land tenure system and recommend suitable changes in it. The
main recommendations were as under.
1. All the Jagirs as well as the proprietary rights of such land as awarded imams by the British
Regime should be taken over by the Government without any compensation.
2. A landlord cannot have more than 150 acres of canal irrigated land, 300 acres of semi irrigated
and 450 acres of barani land. The area in excess of the above limit, after being paid suitable
compensation in lieu thereof should be distributed among the cultivators.
3. A legal recognition of the fact that occupancy tenants are the virtual owners of their cultivators.
4. Levying tax on farm income at par with non farm incomes.
5. Guarantee of adequate security of tenure to the tenants-at will which should not be less than 16
years in any case.
6. A landlord cannot have more than 25 acres of land for self-cultivation.
7. The share of tenant, out of total produce should be raised from 50% to 66%.
8. To check sub-division and fragmentation of holding, co-operative farming should be promoted.
The above recommendations of the Agrarian Reform Committee were appreciated.
The interested parties, however, stood in the way of their final approval. The recommendations were
therefore shelved.

(2.) Land reforms of 1959


. Late Field Marshal Mohammad Ayub Khan constituted a Commission of nine members to consider
the problems relating to the ownership and tenancy of agricultural land in Pakistan. The Commission
presented its report on January 24, 1959. The salient features of the report were as under:

1. A person could not own more than either 500 acres of canal irrigated land or 1000 acres of
unrelated land or 36000 produce index units whichever is more. In addition, an owner was allowed
to have 150 acres of land for gardens and pastures. Over and above the limit, the land was to be
taken by the Government after the payment of suitable compensation to the owners.
2. Utilization of resumed area. The excess land acquired by the Government was sold on
reasonable conditions to the tenants. Afterwards, the remaining land was sold to the deserving
persons.
3. Creation of pool. The sale-proceeds of the acquired land was pooled in a separate fund. This
fund was utilized for payment of compensation to the landlords to meet the administrative expenses
in implementing the development projects in the acquired land and clearing of the bad debts.
4. Jagirs. Every kind of jagir, religious, charitable or educational institutions, was abolished,
However, the institutions were given grants-in-aid.
5. Protection to tenants. Illegal ejectment of the tenants was prohibited. In case a tenant was
legally ejected, he was to be provided alternative land. He was also to be properly compensated for
the improvements made in the land.
6. Proprietary rights for the occupancy tenants. The existing law with regard to giving proprietary
rights to the occupancy tenants was made operative as usual.
7. Prohibition of illegal exactions. Illegal exactions by the landlords were prohibited.
The ownership ceiling under 1959 reforms was quite high because.
(i) It applied to individuals instead of families.
(ii) the owners were allowed to transfer land up to a specified limit before calculation of their
entitlements.
(iii) special exemptions were also granted for land under orchards and livestock farms.
As a result of reforms, a total of 2.5 million acres of land was resumed and 2.3 million areas of land
was distributed to nearly 1.8 lakh peasants. These reforms however set the ball rolling for
successive agrarian reforms and started a movement for voluntary reductions in individual
ownership, encouraging creation of a strong middle-class of owner-operated farms of economic size.

(3). Land reforms of 1972


The late Mr.Zulfiqar Ali Bhutto, after assuming power in December, 1971, introduced land reforms
on March 1, 1972. These were not confined merely to reduction of size of ownership holdings but
had many other agrarian reform features. The salient features of the land reforms were as under:

1. The ceiling on land ownership was reduced to 150 acres in the case of irrigated land, 300 acres in
the case of unirrigated land or 12,000 produce index units whichever was larger. Owners with
tractors or tube wells were allowed to keep additional 2,000 produce index units (PIU's).
2. The area under ''Stud and Livestock'' farms was resumed free from any charge whatsoever.
3. The area shikargahs except historical shikargahs was resumed by the state for distribution among
the peasants.
4. The land acquired by the state was distributed to the landless tenants free of charge.
5. In case of economic or above holdings, further sub-division by alienation or partition was
prohibited if the resultant holding would be less than economic land.
6. Similarly in case of subsistence or above holdings, further sub-division was not allowed if it
resulted in less than subsistence holding.
7. Restrictions were placed on the ejectments of tenants by the landlords. A tenant could only be
ejected if he failed to pay rent or used the land in a manner which made it unfit for the purpose he
got the land or sublet his tenancy.
8. In 1975, the Government gave revenue concessions to small land-owners holding up to 12 acres
of irrigated land or 25 acres of n0n-irrigated land. These cultivators were exempted from payment of
land revenue land rates, development cases with effect from rabi crop of 1975-76.
9. On December 18, 1976, the Government declared that the tenants and the tillers of soil having
less than subsistence holdings will be given cultivable and cultivable waste state land. It was also
announced that all occupancy tenants of state land were declared the owners of the land.
Under the land reforms of 1972. a total of 1.3 million acres was resumed. Out of this .9 million acres
were distributed to the farmers. The land reforms of 1972 were not effective as the landlords had
distributed most of their fertile land among the relatives, friends and even to tenants.
New land reforms of 1971 by Mr. Zulfiqar Ali Bhutto
. Land in excess of prescribed ceilings was resumed without compensation.
. Payment of land revenue cusses water rate taxes surcharges levies on land and provision of seed
was made the responsibility of the owners.
. Cost of pesticides and fertilizers was to be shared equally between the tenants and the owners.
. The tenant was given the first right of pre-emption in respect of sale of land under his tenancy.
. Owners were forbidden to levy cusses on tenants or take free labour from them.
. Contravention of these regulations was made punishable by rigorous imprisonment extending up to
7 years and confiscation of immovable property in case false declarations were made.

10. On January 5, 1977, the Government announced a further reduction in the ceiling of land
ownership. The individual land holding was reduced to 100 acres of irrigated or 200 acres of nonirrigated land equivalent to 8,000 PIUs whichever was more. These reforms also had some agrarian
features such as abolition of land revenue on holdings of 25 acres or less and imposition of
agricultural income tax on large land-owners.

2. Claimed benefits of land reforms.


1. The total land resumed as % of cultivated land was only 0.4 in 1977 and 2.6 in the land reform
of 1972 against 6.2% of the land reform of 1959. The actual steal surrender of land was small.
2. The occupancy tenant cultivators, though small in number, got the right of ownership of land.
They, being the owners, now take greater interest in raising the yield per hectare.
3. The tenants have been saved from the exploitation of big landlords. They cannot be ejected at the
sweet will of the owners of the land.
4. The area declared as excess by the landlords was distributed among the landless peasant. The
economic position of these tenants has improved.
5. As the ceiling were fixed on the size of economic holdings and subsistence holdings, the chances
of further fragmentation of land have been eliminated.
6. The landlords greatly lost their traditional superiority. They do not wield as much political power as
they had before the agrarian reforms.
7. The land reforms have helped in increasing the middle income group. This group is more
conscious of its duties and obligations to the fellow citizens and the state.
8. The consolidation of holding has made it possible to use the modern inputs more. The income of
the small farmers has increased.
9. The landlords with decreased area of land have started taking interest in improving the agricultural
production. They are using modern agricultural technology which has greatly increased the yield per
hectare.
10. The increase in the income of the small farmers has increased the demeaned for various
manufactured goods. The market for the industrial goods has thus widened.
11. As the tenants have now greater security of income in the villages, the large scale migration of
labour from agriculture to industry has declined.

Factual position of land reforms.


The land reforms introduced by Field Marshall Mohammad Ayub Khan and Mr :Zulfiqar Ali Bhutto
were only cosmetic reforms. The actual position is that vast acres of land were exempted and left to
the landlords for growing orchards to illegally transfer their big holdings to their relatives. The land

was even transferred to their loyal servants, after having them signed ''power of attorney.'' The
landlords have seized back their lands from all of them. The land is still owned by the same
landlords.
However, these measures were implemented half heartedly. The various land reforms introduced
were largely a political legal eyewash. They exist mostly on paper. The main obstacles to land
reforms are as under.

Obstacles to land reforms:


(1) Lack of political will. The dominance of vested interest in the Government is the basic obstacle
in the implementation of land reforms.
(2) Transfers on papers. The land transferred under the various agrarian reforms is mainly on
papers. Technically, the landlords are still the owners of land.
(3) Incomplete land records. The inadequacy of land reforms benami, transfers etc have also
created impediments in the implementation of land reforms.
(4) Lack of efficient enforcing machinery. Inn implementation of land reforms, the role of
administration is very crucial. The agency charged with this responsibility have local vested interests.
So the halfhearted enforcement causes further delay in the enforcement of land reforms.
(5) Weak position of tenants. Whatever, little agrarian reforms have been introduced, these too
have not been enforced due to weak and pitiable conditions of the tenants. The unlawful ejecments
of tenants and their exploitation by the absentee landlords is still prevalent as before.

COMPARISON OF LAND REFORMS IN PAKISTAN


1959
1. Ceiling of ownership.
500 acres of irrigated or 1000 acres unirrigated or 36.000 produce index units.
1972
150 acres irrigated or 300 acres unirrigated or 12.000 Plus.
1977
100 acres irrigated or 200 acres unirrigated or 8.000 Plus

2. Exemptions.
(a) Orchards hectares 150 acres.
(a) All exemption withdrawn except for recognized educational institutions.

(c) There were no exemptions. Owners with tractors or tube wells were allowed addition 2,000 Plus.
(b) Gift to heirs 500 acres.
(b) Shikargah (historical) was transferred to state.
(c) Gift female dependents 166 acres.
(d) Livestock farm studs were exempted.
(e) No ceiling for recognised educational institutions.
1959

3. Compensations.
(a) The recipients to pay the price of land in installments at different slab rates.
1972
(a) There was no compensation for the acquired land.
1977
(a) Compensation at a fixed value of Rs. 30 per Plus.

4. Land-lord tenant relations.


(a) The occupancy tenants to get ownership of the resumed land on payment of the price of land in
installments.
(b) Resumed land distributed to tenants without making any payment.
(c) The tenants were distributed land free of cost.
(b) The landlord could not eject the tenant so long he fulfilled the required conditions of tenancy.
(b) No landlord could eject the tenant at his own will.
(c) The tenant was given first right of pre-emption if the landlord sold the land.

5. Consolidation of holding.
(a) A programmer for different areas was announced for consolidation of holding above economic
and subsistence holding.
Consolidation of holding above economic and subsistence level continued.
Consolidation of holding above economic and subsistence level continued.

6.ROLE OF HUMAN CAPITAL IN


ECONOMIC DEVELOPMENT
Updated on March 6, 2012

The modern economists are of the view that natural resources i...e forest minerals, climate, water
power etc. play in important role in the economic development of a country. A country which has
abundant natural resources is in position to development more rapidly than a country which is
deficient in such resources. They here how ere emphasize that the presence of abundant resources
is not a sufficient condition of economic growth. Physical factures they say are passive factors of
economic growth. They are to be combined with human resources of a country who are active
facture of economic development.
Human resources of a country are the size of population rate of growth of population urban rural
distribution of people and quality of population. The quality of population as measured by health
standards educational levels and technology is vitally important in influencing a nation's cultural and
economic progress. A country which has developed the skills and knowledge of its people can
exploit natural resources, build social economic and political organizations and can carry forward
national development.
The less developed countries of the world are now making investment in human persons
for increasing their skills abilities ideals health on the job training programmers. These productive
investments have a strong bearing upon increasing human capabilities which is called human
capital.
WHAT IS HUMAN CAPITAL? ITS ROLE IN ECONOMIC DEVELOPMENT?

Human capital can be described as the skills training and health acquired through on the job training
and education Michael Pakistan Park in defines it as ''The skill and knowledge of human beings.''
It is also defined as the endowment of abilities to produce that exists in each human being. It
can be increased through formal education, on the job training and improved health and
psychological well being. To be more precise. If the people of a country are well educated,
well nourished, skilled and healthy, they are said to have more human capital.
Human capital formation:
Human capital formation as described by Professor Harrison as ''the process of acquiring and
increasing the number of person who have the skills, education and experience which are critical for
the economic and political development of a country.'' Human capital formation is the act of
increasing the productive qualities of labor force by providing more education and by increasing
skills, health and notarization level.
According T.W. Schultz, there are five ways of developing human capital.

(i) Provision of health facilities which affect the life expectancy, strength, vigor and vitality of the
people.
(ii) Provision of on the job training which enhances the skill of labor force.
(iii) Arranging education at the primary, secondary and higher levels.
(iv) Study and extension programmer for the adults.
(v) Provision of adequate migration facilities to families to adjust to changing job opportunities.
IMPORTANCE OF HUMAN CAPITAL:

Human capital is the fundamental source of economic growth. It is a source of both increased
productivity and technological advance. In fact the major difference between the developed and
developing countries is the rate of progress in human capital. The underdeveloped countries need
human capital to staff new and expanding government services to introduce new system of land use
and new methods of agriculture, to develop new means of communication to carry forward
industrialization and to build the education system. Prof. Galbraith is right in saying that ''we now
get larger part of economic growth from investment in men and improvements brought about
by improved men.''
Problems of human capital formation in LDC's
The main problems of human capital formation in less developed countries (LDC's) including
Pakistan in brief are as under.
1. Faster increase in population. The population of almost all developing countries of world
including Pakistan is increasing faster than rate of accumulation of human capital. As a result
thereof, these countries are not making the satisfactory use sector expenditure on education is about
2.5% of GDP for the last over five years.
2. Defective pattern of investment in education. In the developing countries of the world, the
governments are giving priority to primary education for increasing literacy rate. Secondary
education which provides critical skills needed for economic developed remains neglected. Another
problem related to investment in education is that in the public and private sectors there is a
mushroom growth of universities without trying to improve their standard of education. There are
also mass failures at primary, secondary & higher levels of education resulting in wastage of the
scarce resources of the countries.
3. More stress on the provision of building and equipments. Another major problem of
investment in human capital in developing countries of the world is the politicians and administrator
lay more stress on the construction of buildings and provision of equipments than on the provision of
qualified staff. It has been observed that foreign qualified teachers and doctors are appointed in rural
areas where there is little usefulness of them.

4. Shortage of health and nutrition facilities. In the less developed countries of the world there is
shortage of trained nurses qualified doctors medical equipment, medicines etc. The less availability
of health facilities pose threat to the millions of the people living there. The people are faced with
unsatisfactory sanitary conditions, polluted water, high fertility and death rates urban slums, illiteracy
etc. All these deficiencies affect the health of the people reduce their life expectancy.
5. No facilities of on the job training. On the job training or in service training is very essential for
improving or acquiring of new skills to the persons employed in various importance is given on the
job training for the employees. The result is that the efficiency and knowledge of the workers
remains technicians etc. is therefore of utmost importance for the efficient use of human resources.
6. Study programme for adults. Study programme for adults can also be introduced for improving
literacy rate. Programme for adults was introduced in many under developed countries of the world
including Pakistan for providing basic education. increasing skills farmers and small industrialists.
The scheme has miserably failed as no interest was shown by the adults in getting such training.
7. Halfhearted measures for promotion of employment. In most of the world the ratio of
unemployed or underemployed persons is very large. For increasing employment and reducing
under employment proper investment in human capital is required which is visibly lacking in LDC's.
The govt. of Pakistan has taken a number of steps for increasing employment opportunities in the
country such as establishment of SME Bank for the promotion of self employment at the grass root
level, encouraging domestic and foreign investment for increasing employment opening of technical
and vocational training centers etc. etc.
8. No manpower planning. Due to non availability of reliable data there is little manpower planning
in less developed countries of the world including of course Pakistan. As a result thereof, there is no
matching of demand and supply of different types of skills. The result is that large number of skilled
and highly qualified persons remain underemployed. The frustration and discontentment among the
unemployed or underemployed graduate and post graduates result in brain drain from the
country. It is a huge loss to resources of developing countries.
9. Neglect of agriculture education. In LDC's where agriculture is the major sector of the
economy., very little attention is paid for educating the farmers to the use of modern agricultural
practices. Unless the farmers are provided agricultural education and training on the fields, they will
not be able to raise the agricultural the outlook of the farmers.

7.ROLE OF EDUCATION IN
ECONOMIC DEVELOPMENT
Updated on June 12, 2012

The development economists until 1960s attached great importance to material capital such as
machines new factories new buildings etc. in the development process of the country. The
manpower was not regarded an important variable for increasing productivity and income. Since 60's
the emphasis is gradually shifting to manpower as an important factor of development.
Education is considered as the cornerstone of broad based economic growth and the poverty
reduction Education is a key to change and progress. The consensus is the Pakistan economic
growth can be achieved with higher emphasis on the quality of its manpower.
Manpower consists of all segments of a society which are engaged in one from or the other in
development activities. If a country has a trained manpower, it makes economic activates highly
productive both in quantitative and qualitative aspects. If the manpower is illiterate, unskilled undernourished and of poor health, the output per man is low. This eventually leads to low income, low
investment and the country remains trapped in vicious circle of poverty.
The government of Pakistan is trying its best to improve human capital so that it should server as a
leading factor for the socio-economic development of the country. Public sector expenditure on
education as percentage of GDP for the three years remains on average at around 2.4%. The
illiteracy rate is estimated at 54% in the year 2006-07.
There is no doubt that in the last over three decades, the literacy ratio has increased to 54% and the
quality of education has improved, yet the progress on the whole is not satisfactory. The mass failure
of students in the examinations, the misdirected education is resulting in the waste of precious
resources of the country. It is therefore suggested that to meet the present and future requirements
of manpower in different sectors of the economy, it should be development on the following levels:
1. Manpower Oriented to the industrial Requirements.
2. Manpower Oriented to Agricultural Requirements.
3. Manpower to Cater Services Requirements.
I-MANPOWER ORIENTED TO INDUSTRIAL REQUIREMENTS.

The present day plants are becoming highly complex. There are rapid changes in the production
patterns. In order to meet the changing requirements of the industrial sector, the education and
training has to be carried on the following lines:1. Handling new production lines innovations.

2. Handling of new sophisticated equipments.


3. Technological assistance in maintaining the plant and the machinery.
4. Expansion in plant facilities.
5. On job facilities for improving performance.
6. Training for managerial performance.

II-Manpower Oriented to Agricultural Activates:


Our economy is basically agricultural employing about 60% of the total population. We can hardly
boast of an existence of an effective manpower in this sector. In order to increase effective
manpower for the sector, it is suggested that development should be made on the following lines:
1. Establishment of new rural academies and strengthening of the existing ones for imparting
agricultural know-how at the levels of primary, secondary and higher education.
2. Compulsory enrollment of young people to these academies.
3. Development of experimental farms attached to academies for practical education and
demonstration.
4. Establishment of rural based industries side by side and providing technical training.
III-MANPOWER TO CATER VARIOUS SERVICES REQUIREMENTS:

Service sector's requirements are of a very wide range. The areas wherein manpower specially
requires to be developed include skilled masons, technicians, electricians and electrical services,
qualified workshop operators, steel reactors, machines plumbers, foremen/supervisors and
computer literates etc. The development of this intermediary manpower would be greatly rewarding
to the entire society as the performance in the various sectors will be greatly improved. Secondly the
exportable manpower will be much more qualified to secure better jobs and earn more in and
outside the country.
Summing up, we can say that developed manpower would be the greatest sources for (1) promoting
moral values (b) creating a national self respect, (c) promoting self reliance on domestic resources
(d) providing link for coordinating all agents of economic forces and (e) creating a sense of
confidence and security among the new generations.

8.NATURAL RESOURCES AND


ECONOMIC DEVELOPMENT
Updated on June 25, 2012

Mineral, power and forest resources are the foundation of economic development They help in
giving an initial push to the raising of production in all sectors of the economy. If the quality of
manpower is high a country, it will make the best use of the natural resources and attain
development in the shortest possible period of time. Human and natural resources are thus both
determining factors in economic development.
We, in this article, briefly examine the importance, quantity and the quality of the mineral power and
forest resources available in Pakistan. The resources are discussed under separate heads.
1. MINERAL RESOURCES
The minerals, like the forest are the precious wealth of a country. These are extracted from earth.
Some minerals like coal, iron, copper et .are found in solid forms and some like gas, petrol, oil etc
are discovered in liquid shape.
A country with large deposits of minerals provides a sound base for the development of a large
number of industries viz.. iron, steel, petrol chemicals, cement, pottery etc. The discovery of varied
mineral deposits provides employment to a large number of persons living in that area. Their
economic condition improves. The availability of mineral resources in the country reduces the import
bill of many items like oil, chemicals machinery etc. The mining sector thus makes a significant
contribution to GDP.
MINERAL DEPOSITS

Natural Gas.
The discovery of huge reservoirs of natural gas is a great blessing of God t Pakistan. The gas is a
very good substitute for coal and petroleum. It is also used as a raw material in various industries
such as fertilizer, rayon, plastic, resin etc. The Oil and Gas Development Corporation (OGDC)
assisted by a few other foreign oil companies is making hectic efforts in the survey and exploration
of gas and oil resources in different parts of the country. These efforts have born fruit at many places
like Pirkoh Toot and Dhodak. The recent discovery of oil and gas reserves at Dement is very
significant. As on April, 1,2007, the recoverable reserves of natural gas have been estimated
at 31.81 trillion cubic feet. The average production of natural gas by 13 different gas companies
is 3876 million cubic feet per day.
LPG: LIQUEFIED Petroleum Gas:

The LPG is economical, clear, and environmental friendly fuel. It is the most popular domestic fuel in
areas where supply of natural gas is technical or operationally not feasible. All present
about 1650 million tons per day LPG is being produced daily. There are 22 LPG companies
marketing the indigenous and imported LPG in the country. The Government has deregulated the
allocation and price of LPG from Sept. 2000 to keep the prices of LPG at reasonable level.
CNG: compressed Natural Gas:
The use of CNG in automotive vehicles is being encouraged to reduce pressure on petroleum
imports and improve environment. The Government has issued instructions to promote CNG in the
transport sector as an alternative fuel.
2. Crude Oil. Oil is called the liquid gold. It is an important source of energy. It contributes
about 44.6% to the total energy supply of the country. The balance recoverable reserves of crude oil
s 1.1.2007 is estimated at 317 million barrels.
3. Coal. Pakistan has a sufficiently large resource base of coal of about 185 billion tunes. Deposits
of over 175 billion tunes in the deserts of Send have been discovered. The drilling is in progress.
During the year 2006-07 the PMDC (Pakistan Mineral Development Corporation) has
produced 4.9 million tunes of coal.
4. Chlorite. Chlorite is an important mineral and is used in hardening and refining ores, leather
tanning, manufacture of steel goods, chemicals etc. Fairly large deposits of Chlorite have been
found near Muslimbagh in Zhob District (Baluchistan). Chlorite deposits also occur in Peshawar and
Kalat Divisions but are not being mined. The production of Chlorite has been persistently declining in
the past few years due to the tough international competition from Rhodesia, Korea, Turkey, and
U.S.A.
5. Barite. Barite (commonly called drilling mud) is mainly used in oil well drilling operations. Fairly
large deposits of Barite have been discovered in Khuzdar district in Baluchistan and in Hazara
district NWFP. A Barite grinding plant has been set up at Khuzdar.
6. Gypsum. Gypsum is being used in the production of cement, chemical fertilizers, plaster of Paris
etc. Very large deposits of gypsum are found in all the four provinces of Pakistan.
7. Limestone. Limestone is used in cement industry, building and constructional material. Large
deposits of limestone are found in all the provinces of Pakistan. The total production of limestone
was 14.6 thousand tones in 2006.
8. Rock Salt. Rock Salt is used for domestic and commercial purposes. Its main deposits are found
in Jhelum, Mianwail and Kohat district. The annual production of rock salt was 2012 thousand tones
in 2007.
9. Silica Sand. Silica Sand is mainly used in chemicals metallurgical and refractory industries. Its
deposits are in Mianwali. Dera Ghazi Khan, Dera Ismail Khan, Dadu and Hazara districts.

10. Soapstone. Soapstone is used as a raw material in many industries like paints, roofing tiles
soap insecticides etc. The production of soapstone was 42 thousand tones.
11. Magnetite. Magnetite is mainly found in Nasal in Zhob district. Some quantity has also been
discovered in Sherwan in NWFP.

9.OBSTACLES OR CONSTRAINTS ON
THE PATH TO ECONOMIC
DEVELOPMENT IN DEVELOPING
COUNTRIES
Updated on May 10, 2012

At present there are about 6.2 billion people living in the world. Out of these 75% (4,2
billion) persons are living in developing countries. The per capita income in these countries is
estimated at around $ 600 per year whereas the per capital incomes in USA is estimated at around $
41400 per year and in Germany $ 30120 per year. In developing countries it ranges from $ 600 to $
1000 per year. Why the economic growth in developing countries is low? What stops these countries
from developing economically? The answer to these questions is not simple. However, the main
obstacles which the underdeveloped countries, including Pakistan are generally facing for promoting
development can be identified as under.
Obstacles or constraints to economic development
1. Political Instability. In most of the developing countries, the governments are not stable. A new
government comes into power overnight, either through coup defeat or army take over. The new
government introduces a new system of rules for the operation of business which causes frustration
and discontentment among the people. How does political instability affect growth is discussed in
brief below.
(i) Influence of political instability. When there is lack of political stability in the country, it directly
affects economic growth. It closes off sources of internal and external investments.
(ii) The external investors. The external investors do not invest in a country where there is political
instability. The flow of investment in countries where there is civil war coups, army take over etc. is
either negligible or zero.
(iii) Internal investment. Political instability also limits internal investment. The wealthy class in
developing countries have enough income to spare. They can invest their savings in profitable
projects. Generally, they avoid investing founds in their own country for fear of nationalization of their
projects, large scale interference by militant trade unions, harsh and exploitative attitude of the
various govt. agencies involved in the setting and operation of the projects etc. The well off people
including the politicians in developing countries prefer to take their money outside the country or
channel their investment out of their own country. The developing countries are therefore, deprived
of investment funds which adversely affect economic growth.

(iv) Internal disorder. The defeated political parties, the rich landlords, the various ethnic groups
etc. who are not able to capture power take up and support anti govt. activities by taking out
processions, making bomb blasts, killing the innocent people by indiscriminate firing etc. All these
activities result in creating political instability in the country and as such adversely affect economic
development.
2. Corruption. Corruption is another obstacle to economic development in developing countries.
The bribery or gift of money has becomes institutionalized. The govt. officials think bribery is built
into their pay structure. The businessmen, if they are to stay in business, have to pay bribes to
different departments of the govt. The employees give gift of money to their superiors. When bribery
is an acceptable practice, it then becomes difficult for businessmen and industrialists to take part,
stay and grow in business. Bribery thus limits economic development. It is one of the major
obstacles to economic growth in Pakistan also.
3. Lack of investment. For an economy to grow, it must have investment. The funds for investment
can come either from domestic savings or from abroad. Both these sources of investment funds
have their own peculiar problems which in brief are discussed as under.
(i) Investment funding by domestic savings. For economic growth we must give up
unnecessary expenditure so that the economy can achieve even greater consumption in the future.
In developing countries, the people with per capita incomes of as low as $ 600 per year hardly meet
the bare necessities of life. They have little to put into savings. The middle class persons do save for
their old age, marriage of children etc and put their money in saving banks. The rich people prefer to
invest their savings abroad. The overall result is that domestic savings in most of the developing
countries is as low around 13% of GDP; whereas it should not be less than 25% of GDP to promote
growth.
(ii) Investment funding from abroad. Another way to generate funds for investment is to obtain
(a) Foreign loans or (b) foreign private investment or (c) both. The foreign loans or the foreign private
investment has their own peculiar problems.
(a) Foreign loans. For financing development of the less developed countries (LDC's) the flow of
capital comes from (i) individual national govts (ii) multinational assistance organizations and (iii)
multinational companies. (i) The individual national govts give financial assistance to LDC's mainly
for their own economic and political interests. So long as the developing country is protecting the
interest of the donor countries, the flow of capital counties. It is stopped or very much slowed down
when the recipient country is of no benefit to them (America stopped financial assistance to Pakistan
after the Afghan War was over). A developing country, therefore, cannot rely on such foreign aid for
economic growth. (ii) Same is the position now of the multinational assistance organizations like the
Word Bank and international Monetary Fund (lMF) These organizations which are mainly funded by
the developed capitalists countries of the world are also using these organizations to promote their
own economic and political interests. All the developing countries including Pakistan are now knee
deep in bebts of these organizations. The problem of debt servicing, rescheduling has adversely

affected economic growth of the poor countries. (iii) As regards the flow of capital from multinational
companies, they make investment in those countries where infrastructure facilities such as
transportation, power, cheap labour force, raw material etc. are available. As these companies do
not generally help in establishing infrastructure in poor countries, therefore they do not contribute
much to economic growth of the LDC's. The problem of lack pf proper investment, therefore, remains
in developing countries.
4. Right Education. The provision of right education to the citizens of a country is a necessary
component of any successful development strategy. In developing countries, the educational system
is defective. There is mush-room growth of English medium schools in cities. The syllabi taught to
the students at each level of education reflects the Western culture and not the culture and
requirements of their own country. The result is that the students holding degrees remain jobless
which creates discontment and frustration among them. The brilliant students of the developing
countries go outside the country. The outdated syllabi of various classes, the mass failure of the
students in various board and university examinations, outflow of the brightest students from less
developed countries to the developed countries (Brain drain) create gaps in business,
administrative circles and become obstacles to economic growth.
5. Over Population. In developed countries of the world, only 2 to 4% of the population is
engaged in agriculture and produces enough food and fibre to meet the requirements of their
citizens and also earn foreign exchange by exporting surplus goods. Through technological
progress, they have avoided the fate predicted by Thomas Malthus. The developing countries, on
the other hand, are struggling very hard to avoid the Malthusian fate. In these countries about 50%
to 60% of the population is engaged in agriculture. The diminishing marginal productivity has
exceeded technological change. The result is a falling output per person and a slow economic
growth. The rapid population growth in developing countries is a major obstacle to economic growth
Effective measures shall have to be taken to reduce population growth falling which development of
these countries will remain a dream.
6. Inefficient Human Capital. In addition to physical capital, human capital is also limited in
developing countries. The quality of population as measured by its skills, education and health is far
below the standard in developed countries of the world. Deceases, starvation, glut of unskilled
workers stand in the way of economic development of the developing countries of the world.
7. Dual Economy. In developing countries, there are two types of economies which are generally
functioning. These economies are somewhat unrelated to each other. One economy is the market
economy and the other is a traditional non market or subsistence economy. The life stile of the
people, social customs, the methods of production etc. differ very much from each other in these two
different economies. The occurrence of dualism stand in the way of optimum utilization of resources.
Thus dualism is also considered an important obstacle to economic growth.
8. Demonstration effect. Demonstration effect on consumption level is also a major constraint on
the path of economic development of under developed countries. The international demonstration

effect increases propensity to consume of the people and reduces the rate of saving and investment
in the countries.
9. Inadequate infrastructure facilities. The under developed countries suffer from lack of basic
infrastructure such as transport and communication system, power supply, banking and other
financial facilities. The provision of inadequate infrastructure facilities stand in the way of economic
development of the poor countries.
10. Inappropriate Social Structure. Inappropriate social system such as outdated religious beliefs,
caste system, irrational attitude toward family planning etc. is also a constraint on the economic
development of developing countries.
11. Market imperfections. Market imperfections in the form of immobility of factors of production,
ignorance of market conditions, price rigidity etc. are serious obstacles in the path of economic
development of the backward countries.
Summing up we can say that economic development is a complete process. It is directly influenced
by economic, social, cultural, administrative and political factors.Ragnar Nurkse has rightly said,
''Economic development has much to do with human endowments, social attitudes, political
conditions and historical accidents. Capital is necessary but not a sufficient condition of
progress.''

10. Agriculture in Pakistan


Pakistan's principal natural resources are arable land and water. About 25% of Pakistan's accounts
for about 21.2% of GDP and employs about 43% of the labor force. In Pakistan, the most agricultural
province is Punjab where wheat and cotton are the most grown. Some people also have mango
orchards but due to some problems like weather, they're not found in a big range.
Early history
Main article: History of agriculture in the Indian subcontinent

Mango Orchard in Multan, Pakistan


Barley and wheat cultivationalong with the domestication of cattle, primarily sheep and goatwas
visible in Mehrgarh by 80006000 BCE. They cultivated six-row barley, einkorn and emmer wheat,
jujubes and dates, and herded sheep, goats and cattle. Residents of the later period (5500 BC to
2600 BC) put much effort into crafts, including flint knapping, tanning, bead production, and metal
working. The site was occupied continuously until about 2600 BC.[1]

Indus River Delta


Irrigation was developed in the Indus Valley Civilization (see also Mohenjo-daro) by around 4500
BCE.[2] The size and prosperity of the Indus civilization grew as a result of this innovation, which
eventually led to more planned settlements making use of drainage and sewers.[2] Sophisticated
irrigation and water storage systems were developed by the Indus Valley Civilization, including
artificial reservoirs at Girnar dated to 3000 BCE, and an early canal irrigation system from circa 2600
BCE.[3]

Marala Headworks on River Chenab, Sialkot


Archeological evidence of an animal-drawn plough dates back to 2500 BC in the Indus Valley
Civilization.[4]
All agricultural affairs and activities in Pakistan are overseen and regulated by the Ministry of
Agriculture.
Rankings
Pakistan is one of the world's largest producers and suppliers of the following according to the
different sources i.e. Food and Agriculture Organization of The United Nations and FAOSTAT given
here with ranking:

Chickpea (3rd)

Apricot (6th)

Cotton (4th)

Milk (5th)

Date Palm (5th)

Sugarcane (5th)

Onion (7th)

Kinnow, mandarin oranges, clementine (6th)

Mango (4th)

Wheat (7th)

Rice (14th)

Pakistan ranks eighth worldwide in farm output, according to the List of countries by GDP sector
composition.

Agriculture and land use in Pakistan. (Only major crops)


Crops
See also: Rice production in Pakistan

Wheat Fields in Punjab, Pakistan


The most important crops are wheat, sugarcane, cotton, and rice, which together account for more
than 75% of the value of total crop output.
Pakistan's largest food crop is wheat. In 2005, Pakistan produced 21,591,400 metric tons of wheat,
more than all of Africa (20,304,585 metric tons) and nearly as much as all of South America
(24,557,784 metric tons), according to the FAO.[5] The country is expected to harvest 25 to 23
million tons of wheat in 2012.
Pakistan has also cut the use of dangerous pesticides dramatically.[6]
Pakistan is a net food exporter, except in occasional years when its harvest is adversely affected by
droughts. Pakistan exports rice, cotton, fish, fruits (especially Oranges and Mangoes), and
vegetables and imports vegetable oil, wheat, pulses and consumer foods. The country is Asia's
largest camel market, second-largest apricot and ghee market and third-largest cotton, onion and
milk market.

The economic importance of agriculture has declined since independence, when its share of GDP
was around 53%. Following the poor harvest of 1993, the government introduced agriculture
assistance policies, including increased support prices for many agricultural commodities and
expanded availability of agricultural credit. From 1993 to 1997, real growth in the agricultural sector
averaged 5.7% but has since declined to about 4%. Agricultural reforms, including increased wheat
and oilseed production, play a central role in the government's economic reform package.
Outdated irrigation practices have lead to inefficient water usage in Pakistan. 25 percent of the water
withdrawn for use in the agricultural sector is lost through leakages and line losses in the canals.
Only a limited amount of the remaining water is actually absorbed and used by the crops due to poor
soil texture and unlevelled fields.[7]
Much of the Pakistan's agriculture output is utilized by the country's growing processed-food
industry. The value of processed retail food sales has grown 12 percent annually during the Nineties
and was estimated at over $1 billion in 2000, although supermarkets accounted for just over 10% of
the outlets.[8]
The Federal Bureau of Statistics provisionally valued major crop yields at Rs.504,868 million in 2005
thus registering over 55% growth since 2000[9] whileminor crop yields were valued at Rs.184,707
million in 2005 thus registering over 41% growth since 2000. The exports related to the agriculture
sector in 200910 are Rs 288.18 billion including food grains, vegetables, fruits, tobacco, fisheries
products, spices and livestock.[10]
Livestock
Main article: Animal husbandry in Pakistan
According to the Economic Survey of Pakistan,[11] the livestock sector contributes about half of the
value added in the agriculture sector, amounting to nearly 11 per cent of Pakistan's GDP, which is
more than the crop sector. The leading daily newspaper Jang reports that the national herd consists
of 24.2 million cattle, 26.3 million buffaloes, 24.9 million sheep, 56.7 million goats and 0.8 million
camels. In addition to these there is a vibrant poultry sector in the country with more than 530 million
birds produced annually. These animals produce 29.472 million tons of milk (making Pakistan the
4th largest producer of milk in the world), 1.115 million tons of beef, 0.740 million tons of mutton,
0.416 million tons of poultry meat, 8.528 billion eggs, 40.2 thousand tons of wool, 21.5 thousand
tons of hair and 51.2 million skins and hides.[12]
The Food and Agriculture Organization reported in June 2006 that in Pakistan, government
initiatives are being undertaken to modernize milk collection and to improve milk and milk product
storage capacity.[13]
The Federal Bureau of Statistics provisionally valued this sector at Rs.758,470 million in 2005 thus
registering over 70% growth since 2000.[9][dead link]
Fishery
Main article: Fishing in Pakistan
Fishery and fishing industry plays an important role in the national economy of Pakistan. With a
coastline of about 1046 km, Pakistan has enough fishery resources that remain to be fully
developed. It is also a major source of export earning. Aquaculture is also a rapidly developing
industry in Pakistan. Especially the Punjab Province has demonstrated rapid growth in fish farming.
GIFT Tilapia culture has also been introduced quite recently in Pakistan especially Punjab province.

Forestry
Main article: Forestry in Pakistan
About only 4% of land in Pakistan is covered with forest. The forest of Pakistan are a main source of
food, lumber, paper, fuelwood, latex, medicine as well as used for purposes of wildlife conservation
and ecotourism.