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Industrial
Management
MR. SALMAN KHAN | MGT-227
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Agro-Tech Economy
Of Pakistan
 Today topic Description 4

 Agriculture:

 Over View of Agriculture Sector of Pakistan:

 Background:

 Significance of the agricultural sector in the economy:

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Agriculture

 It is the primary sector of state’s economy making direct use of

natural resources.

 It can be defined as “Agriculture is basically the science or

practice of farming, including cultivation of the soil for the
growing of crops and the rearing of animals to provide food, wool,
and other products”.
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 John Salazar (former US Commissioner of agriculture department) said;

 “There is only one thing that can bring our nation down our dependence on
foreign countries for food and energy. Agriculture is the backbone of our
economy”.

 So, Agriculture is Primary sector of economy.

 Agricultural sector contributes about 24% to GDP.
 The total geographical area of Pakistan is 79.6 million hectares. About 27% of
the area is currently under cultivation.
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GDP
 The gross domestic product (GDP) is one of the primary
indicators used to gauge the health of a country's economy. It
represents the total dollar value of all goods and services
produced over a specific time period; you can think of it as the
size of the economy.
 Over View of Agriculture 8

Sector of Pakistan
 Background:

 Pakistan from its birth has faced so many problems infect every type of
problems, those problem can be inequality, war, economic, terrorism means
we can say that Pakistan has never seen a constant peace in its time.

 As already discussed that Pakistan has faced every problem but the main
problem that Pakistan is facing from its birth is economic problem and this
problem has occurred because of mismanagement and lack of planning.
 Cont… 9

 Also we can say that the problem has occurred because

 the main source of Pakistan’s income that is Agriculture is
backward or we can simply say that it is not fulfilling the
demands of the people
 because of lack of technology while when we talk about the
industry of Pakistan then it has also not made any good
contribution for the development of Pakistan.
 But this thing is true that if Pakistan wants to get developed then
it must have to develop first Agriculture and its industry.
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 So let’s have glance on Pakistan’s agriculture.

 Pakistan has a rich and vast natural resource country,
 covering various environmental and climatic zones; due to which the country
has great potential for producing all types of food produce.
 Agriculture has an important role in generating economic growth. Agriculture
affects the economy in three ways namely,
 first, it provides food to consumers and fibers for domestic industry;
 second, it is a source of rare foreign exchange earnings;
 and third, it provides a market for industrial goods.
Significance of the agricultural 11

sector in the economy

 Like many developing countries, agriculture is the backbone of
Pakistan’s economy.

 Agriculture in Pakistan provides food to consumers and fiber for

domestic industry;

 it provides livelihoods and employment to the majority of the

country’s population, and is the major source, directly and
indirectly, of the country’s export earnings.
 Cont…. 12

 According the 1998 survey, the total population of Pakistan is 130

million.
 With a population growth rate of 2.6 percent there is a net
addition of 3.4 million people each year.
 In 1947 the population of Pakistan was 32.5 million; in 50 years it
has increased fourfold.
 During this period the production of wheat, the major food crop,
has increased only 2.9 fold.
 Cont…. 13

 During 1970/71 the amount of wheat imported was 0.3 million

tones;

 it has increased to 4.1 million tons in 1997.

 Wonderful efforts have been carried out to narrow the gap

between population growth and food production.

 The total geographical area of Pakistan is 79.6 million hectares.

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 About 27% of the area is currently under cultivation.

 Agriculture contributes about 24 percent of the gross domestic

product(GDP) and employs 47 percent of the national employed
labor force.

 A major part of the economy depends on farming through

production, processing and distribution of major agricultural
commodities.
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 In foreign trade agriculture again controls, through exports of raw

products such as rice and cotton and semi-processed and
processed products such as cotton yarn, cloth, carpets and
leather production.
 Agriculture is essential for sustainable improvements in internal
and external balances of the total export earnings, the share of
primary commodities and processed and
 semi-processed products constituted almost 60 percent of the
total exports.
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 There have been some structural changes over time, but the
contribution of agro-based products has more or less sustained
its position.