agriculture sector of Pakistan, its importance/ role/ current policies

1. Agriculture Sector of Pakistan.

2. What is Agriculture?
 Agriculture is the practice of cultivating and
farming animals, food and other life forms that
are used to sustain life.

3. Do you Know!
 Agri
 Seri
 Pisci + Culture
 Viti
 Horti

4. Agriculture
The science and art of cultivation on the soil, raising crops and
rearing livestock . It is also called farming.
Sericulture
Commercial rearing of silk worms . It may supplement the
income of the farmer
Pisciculture
Breeding of fish in specially constructed tanks and ponds .
Viticulture
Cultivation of crops .
Horticulture
Growing vegetables ,flowers and fruits for commercial use .

5. Agriculture in Pakistan
 Agriculture is a vital sector of Pakistan's economy.
 It accounts 21 % of total GDP in Pakistan.
 It employs 41 % of the labor force of Pakistan.
 About 25 % of Pakistan's total land area is under
cultivation.
 Large contribution to foreign exchange earnings.
 Dates back to 4500 BC in Indus Civilization

6. Characteristics of Agriculture:
 About 20% of Pakistan total land is
cultivatable and is irrigated by one of the
largest irrigation systems of the world.
 21.3% of our GDP comes from Agriculture
 Irrigation by Indus Valley Civilization
(4500BC)

7. 1. Crops (major & minor crops)
2. livestock and poultry
3. forestry
4. fisheries
Different fields of agriculture:

8. Irrigation
 Pakistan’s has one of the largest irrigation
systems in the world.
 Pakistan irrigates three times more acres than
Russia
 Indus River and its tributaries are capable of
watering over 16 million hectares.
 Includes dams, barrages, headwork, canals,
and distribution channels.
 Indus Waters Treaty of 1960.

9. Limited Cultivated Area:
 Total area of Pakistan 79.6 million acre
 23.5% under use
 About 8-9 million area is un cultivated

10. Low Yield:
 Low per acre yield in major crops.
 Like wheat, rice and cotton.
 Other countries get more because of skillful
labor and use of technology.

11. Lack of Facilities
 Rural infrastructure is not good
 Lack of education
 Improper storage
 Far away markets

12. Crop Intensity:
 Crop intensity is lower.
 The number of crops grown on piece of land
is known as crop intensity.
 Low crop intensity than developed countries.

13. Crops of Pakistan
 Rabi Crops (harvested in early summer)
 (Wheat, Barley, Oil-Seeds)
 Kharif Crops (harvested in early winter)
 (Rice, Cotton, Sugar-Cane, Maize, Millets,
etc.)

14. Role of Agriculture:
 Source of National Income
 Source of Employment (45% of labor force)
 66.7% in rural areas depend on agriculture
 Reduction in Poverty
 Supply of food
 Demand for Industrial use
 Control over inflation
 Self-sufficiency

15. …World’s largest producer and
supplier of;
 Chickpea (2nd)
 Rice (4th)
 Cotton (4th)
 Mango (4th)
 sugarcane (5th)
 Milk (5th)
 Date Palm (5th)
 Apricot (6th)
 Kinnow/ Mandarin Oranges/ Clementine (6th)
 Onion(7th)
 Wheat (7th)

16. Main Crops of Pakistan:
 Wheat
 Rice
 Sugarcane
 Cotton
 These constitute about 75% of total crops
production.

17. Wheat:
 Country largest crop is WHEAT 21.6 million metric
tons (2005).
 Which is more than what all Africa produced
(20million) and nearly equal what all South
America produced (24 million).
 23-25 million tons of wheat in 2012

18. Cotton:
 World’s 4th largest producer of the COTTON.
 World’s 3rd largest exporter of raw cotton.
 COTTON produced is 15.6 million bales (2012).
 Bale of cotton is about 500 pounds.
 Rate per pound in US $ 0.84.

19. Rice:
 World’s finest long grained aromatic basmati
RICE known as Basmati Pak-10.
 Types: Super Kernel, Basmati Rice 385,
Brown Rice, Parboiled Rice, etc.
 Pakistan exports 3.75 million tons.
 573 USD per metric ton.

20. Sugar cane:
 Important Cash crop of Pakistan.
 35.4 t/hec with 760,000 hectors.
 Compared to World’s largest Brazil with 61
t/hec with 4055,000 hectors.

21. Contribution of Crops to Pakistan
Economy:
 About Rs.505,000 million by MAJOR CROPS in 2005 with
55% growth since 2000.
 Rs. 185,000 million by MINOR CROPS in 2005 with 41%
growth since 2000.
 Total Agriculture Sector export is Rs. 288 billion include food
grains, vegetables, fruits, tobacco, fisheries products, spices
and livestock.
(Federal Bureau of Statistics)

23. Agriculture Growth Percentages
source: Pakistan Bureau of Statistics
SECTOR 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15
Agriculture 3.5 0.2 2.0 3.6 2.7 2.7 2.9
Crops 5.2 -4.2 1.0 3.2 1.5 3.2 1.0
Important
crops
8.4 -3.7 1.5 7.9 0.2 8.0 0.3
Other crops 0.5 -7.2 2.3 -7.5 5.6 -5.4 1.1
Cotton 1.3 7.3 -8.5 13.8 -2.9 -1.3 7.4
Livestock 2.2 3.8 3.4 4.0 3.5 2.8 4.1
Forestry 2.6 -0.1 4.8 1.8 6.6 -6.7 3.2
Fisheries 2.6 1.4 -15.2 3.8 0.7 1.0 5.8

24. Problems in agricultural sector:
 Flood
 Water-Logging and Salinity (Land Cancer)
 Lack of Irrigation Facilities
 Ignorance of the Farmers
 Scarcity of Funds
 Land Erosion
 Inadequate System of Transportation
 Under utilization of Cultivable Land (59/79.6 M.Hectors) only 20 under
cultivation

25. Solution:
 Control of Water-logging and Salinity
(SCARP)
 Flood Control
 Increase in Agricultural Growth
 Training of Farmers
 Modern Techniques

26. Current Agricultural Policies:
 Kissan package.
 Value chain contract.
 Credit guarantee scheme.
 Livestock loan insurance scheme.
 Crop loan insurance scheme.
 Benazir tractor programme scheme.

27. Agriculture credit:
 Poor farmers cannot afford the expensive
technology, so supply of credit at easy terms and
conditions is necessary.
 Govt. has fixed a target for 2016-2017 at Rs680
billion.
 Currently 20 banks with around 37,00 agriculture
branches are facilitating farmers.

28. PM’s Kissan Package.
 Kissan Package is for the benefit of all farmers of the country.
Kissan’ package Fund of twenty billion rupees is providing
fertilizers to the growers at low rate. Twenty five billion rupees
have been allocated to provide Urea to the farmers at
reduced rates and directed the provincial governments to ensure
implementation of old rate of Urea from next month.
 support measures of Rs. 5,000 per acre to the farmers to the
extent of 12.5 acres, 2% reduction in rate of interest for rice and
cotton growers and rise from Rs. 2,000 to Rs. 4,000 in Production
Index Units (PIU) of agricultural land
 Federal government will pay premium for crop insurance scheme.
Interest free loans will be provided to the farmers
for installation of solar tube wells or converting existing ones to
the solar. Power tariff concessions for the tube wells.

29. PM’s Kissan Package:
 Duties on imported agriculture machinery have been
reduced from forty three percent to nine percent for
three years.
 Thirty billion rupees will be given as loan to three
hundred thousand small farmers without any collateral
guarantee.
 PM said that the ‘Kissan’ package is for the farmers of
entire nation and is not specific to any region and it is
the right of all the country’s farmers. PM further said
that the farmer community throughout Pakistan is
suffering due to non-implementation of Kissan
package.

31. Issuance of Rules on Value Chain
Contract Farmer Financing
 State Bank of Pakistan issued Rules on Value Chain Contract
Farmer Financing in October 2014 to encourage banks to
extend credit to small and relegated farmers by leveraging on
the strengths of inter-relationships that exist in the agriculture
value chain. The guidelines would benefit farmers in terms of
improved output in variety of ways such as availing quality
input facilities, adopting new technologies, insurance coverage
for crop/non-crop activities and most importantly assurance of
buyer in advance.

32. Credit Guarantee Scheme for Small
and Marginalized Farmers (CGSSF)
 SBP has confirmed Credit Guarantee Scheme for Small and
Marginalized Farmers (CGSSF) where SBP shares 40
percent of credit losses of lending banks on their loans to
Small & Rural Enterprises. The scheme has been launched
by the government to encourage banks to finance small
farmers. The government through State Bank of Pakistan has
ensured provision of guarantee to banks for up to 50 percent
loss sharing which will benefit 300,000 farmers. The size of
the total payment will be Rs.30 billion.

33. Implementation of Livestock
Loan Insurance Scheme
 SBP has successfully implemented the
Livestock Loan Insurance Scheme on the limit
announcements in the budget. The scheme
would protection the interest of farmers in
case of loss of animals due to death and
provide banks with a risk justifying tool, thus
hopeful them to improve the flow of credit to
this highly potential and underserved sector.

34. Enhancing the Scope of Crop
Loan Insurance Scheme
 Crop insurance is a risk management tool
designed to even out agricultural risks and direct
the values of natural disasters to make losses,
particularly to the relegated farmers, more
manageable. After the successful implementation
of Crop Loan Insurance Scheme for small farmers
of subsistence land holding, the scope of the
scheme has recently been enhanced up to 25
acres and government is bearing the cost of
premium on account of farmer’s up to 2 percent
per crop per season for five major crops.

35. Provision of HYV:
 For achieving sustained growth in agriculture
sector seed is a critical basic factor.
 HYV stands for high yielding variety seeds.
 The Federal Seed Certification and
Registration Department is providing seed
certification coverage to companies of
Pakistan.

36. Benazir Tractor Scheme:
 Government has launched Benazir Tractor
Scheme to deliver 20,000 tractors to the
farmers.

37. Pakistan agriculture research council
(PARC):
 start education programs for farmers and give
them training about farming them.

38. Recommendations
 Pakistan is still far from realizing the large
potential yield.
 Well-irrigated and fertile soil from the Indus
irrigation system could produce more than
present yield.
 The key to a much-needed improvement of
productivity lies in a more efficient use of
resources, principally land and water.

39. Recommendations
 Increase investments in research and
technology development
 Accelerate development of high
yielding/disease resistant varieties.
 Training Centers should be made for the
farmers
 Micro financing should be introduced at a
bigger scale in Pakistan for enhancement of
rural areas.

40. THANK YOU