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PAKISTAN ECONOMIC SURVEY 1981-82 GOVERNMENT OF PAKISTAN FINANCE DIVISION ECONOMIC ADVISER’S WING ISLAMABAD. CONTENTS Pace Tables in the Text w Preface - i) Suate of the Economy (ni) (CHAPTAR 1. Human Resoureess ss a EE PEE EH eeee Er ional msoaeee+r ee Hr PeEEEEEEREEEEEESPEEE HAHA 3, Asticulture 4, Industry BEE PeeE CHEE eeU eee eet eeH east 5. Minerals 6 6, Money and Banking n 3, investment and Capital Markt eB Pageants geasasaaatcdfostosicCisstasiceisifaricifatiaristeaiianii 9, Trade and Balance of Payments See oe tn, Foreign Economic Assistance TS 11, Transport and Communications 6. wea BB 12, Energy Situation eee Berea eeeeereeee al V3. Féuewtion coor eee eet 14, Health : : EEE HSS 15, Population Welfare Planning eeereneeryeiteae:) 16, Physical Planning and Housing. ce elo 17. Rural Development Epeeeeeetee eel: 18. Planning 187 1°, Islamisation of the Economy : 2 WS STATISTICA, ANNEXORE 1-185 Giossory 186 « TABLES IN THE. Human Resources |. Population by Rural;Urban Areas. 2. Distributilon of Labour Force, Employment an Produc tivity . 3. Estimated Labour Forse by Major Oeeupiona! Groups and Level of Edweation : : 4, Estimated Sectoral Employment Seta 5. Eimpolymet Distibution by Major Oscapationat Grows and Level of Education 7 6. Labour Emigration pee National Income 1, Sectoral Value Added and Growth Rates at Constant Factor Cost of 1959-60) : : ce 2. Per Capita Income. eH eeH erent eed 3, Svetoral Value Added and Growth Rates at Current Factor Cost, 4, Souroes and Uses (at Current Market Prices) 6... 5. Sources and Uses (at Constant Market Prices) Agriculture 1. Area, Production and Yield per Heotare of Wheat 2. Despaiches of Wheat to Provinces, Procurement, Releases to Flour Mills, Import and Stocks .. . 3, Area, Produetion and Yield por Hevtare of Rice. 4, Area, Production and Yield per Hectare of Contton 5. Prices of Seed Cotton (Phuiti) and Cotton Lint - 6. Area, Production and Yield per Heotare of Sugreane 7. Minimum Prices of Sugarcane at Factory-gate . 8, Fertilizer Prices. ts 9. Area Covered under Plant Protection .. ~ i) Pas 10 u 26 u PAGE vo. Retes of Subsiyané Premiasn on Porebase of Improved Seeds + x 1 Ageeultyral Credit Disbursement by ABPHCIeS - i x 12. Commodities Graded and Tested ++ pees 0 13, Livestock Popuston in Bakissan 7 3 14, Livestock Products a eee 3 15, er Capit Availability of Major Lisestoxk Products Lvs! Sourees « : ee : 3 16, Plantation Raised by the Provinezal Forest Departments -- 33 Industry 1, Trond of Industrial Production + Peete Al dehe Existing Capacity of Fevtizets nt 38 Be Capacity under Constcuetion eee 9 4, Production, Internal Consumption and Sees of Pakistan Steel : pect eee a “Minerals 1. Reserves of Principal Minerals Coos 6 2, Production of Minerals + ** ase e 3. ube Sector Investinent on Mineral Development + 6 Money and Banking 1, Components of Monetary Assets et 2, Bank Advances to the Government for Procurement of ‘Commoditi . 4 3, Declaration of Profits by Banks - a 7 16 4. Credit Limits Sanctioned by State Bank against Local 7 Sales and Utilization Ee ef n 5, Refinance Prov: jded by State Bank under Export Finance Scheme . oe “ 8 oa Investment and Capital Market 1, Dividend Announ wucnts by ‘Companies'Corporations Listed on Karas i Stock Exchange oH - 85 @) ESTUCEERSCCECHCCEESSSH ttn vrctn Ee Price Situation 1 2 3. 4 Wholesale Price Index (by Commodity Groups) Consumer Price Index (by Commodity Groups) Consumer Price Index (by Oceupation Groups) Average Retail Prices of Essential Commodities ‘Trade and Balance of Pay ments 10. Balance of Payments . 7 ta Export Unit Value Index by Groups 6. ++ Import Unit Value Index by Groups.» Grox.th of Exports eH eeeeeeeiet ee Exports by Major Commodities ite oe Quantum of Exports by Major Commodities... Direction of Exports Pee ee ereeeees Growth of Imports. BEECH eee Imports of Major Commodities Direction of Imports Foreign Economic Assistance Net Aid Infllows Net Inflow of Non-Project Aid a . Commitments of External Assistance . . 4, Commitments of Foreign Eeomomic Assitance 5, Disbursement of Foreign Ecomomic Assistance 6. Eoonomie Assistance from Muslim Countries. ‘Transport and Communications 1, Pakistan Railway's Performance 9, Import and Sale of Trucks, Buses and LVS Passenger and Cargo Traffic Performance of PLAC o PAGE uy ug 18 119 120 121 124 125 128 1. Energy Supnly by Source Crude Oil Produetion 3, Total Supply, Production and Fenpent of OH 133 4, Production of Gas 137 ‘i 5 Consumption of Gas by Sectors 137 6 Generating Capacity of Various Poser Stations of WAPDA 140 3. Annual Generation of Power by WAPDA wy §. Consumers by Eeonomic Grouns wa Anuual Target and Achievement of Village Feletrification 143 10, Use of Bletricity by Economie Sector 143 11, Anawal Power Losses: of WAPDA 144 12 Gentation of Electricity «+ 144 Education 1, Sub-sector Wise Expenditure and Allocation for Education 148 Health 1. Programmeavise ADP for Health Sector 455 Population Welfare Planning J. Physical Achievements of Population Welfare Planning Programme ” 163 Physical Planning and Hlonssing 4. Physical Tragets and Achievements.» 168 2 Loans Advanced for the Construction of Houses 169 Rural Development 1, Financial Allocation and Utilization jn Punjab 18 2, Finascial Allocation and Utilization in Sind 19 3, Financial Allocation and Utilization in NWFP 180 i 4. Financial Allocation and Utilization in Baluchistan -- 181 1S Bioanal Aton ad Ustavon in ead Jamum & gp wi) a Planning 1 Financial Aocation and Utilizaition in Northern Areas Financisl Allocation and Utilization in FATA Financial Allocation end Utilization in Federal Capital Area : : Allocation and Expenditure made in Rural Development Sector ctoral Analysis of Fifth Plan Islamisation of the Eeonomy 1 6 Assat-nise Deduction of Zakat at Source Collection of Zakat on Voluntary Basis, ‘Amount of Zakat Releases to the Provinces Beneficiaries of Zakat in 1980-8] Beneficiaries of Zakat From Ist July 1981 to Sst Decem- ber 1981 - . . Rehabilitation of Mustaliequeen Sanetions on Profit and Loss Sharing/Hire Purchase Basis Interest-Free Agricultural Production Loans Proviace-wise Sanction of Qarz -¢- Havana for Education Gi) PREFACE The present issue of Pakistan Economic Survey analyses the per- formance of the national economy with sectoral developments during 1981-82. It mainly focuses on major growih ends and salient policy measures taken during the course of the year in the background of the recent past. Since data on annual basis for the year was not finalized at the time of printing, estimates for the whole year where possible and firmed up data for the first nine months of the year have been used in the analytical review. The Survey also contains a com- prehensive series of economic indicators covering major fields of the economy. H. U. BEG. : Secretary to the Government of Pakistan. Finance Division. Islamabad, Tune, 1987 &) STATE OF THE ECONOMY FISCAL year 1981-82 has marked, in general, a continuation of the process of economic revival and financial discipline that has characteris- ed economic policy since 1977. The economy was hit by some harsh exogenous developments—in particular, a deepening world recession, the collaps: im world cotton prices and the growing influx of Afghan refugees. These forees had a marked impact on the balance of pay- ments and the budget, Yet the target for growth in output was realiz~ ed and both balance of paymenis and budget deficits kept within plann- ed evels, However, the export growth momentum was temporarily reversed and tax receipts fell below budget provisions 2. THE growth in Gross Domestic Product (GDP) has been esti- mated at 6.6 per cent, above the year’s target on the basis of a wheat crop of 11.75 million tonnes which now appears to be in doubt. The output growth is estimated to exceed 6 per cent even if the wheat harvest, bit by excessive rains and storms in the last month, tums out to be Jower than lst year. ‘Thus, for the fifth successive year GDP growth is likely to surpass 6 per cent, (xi) 3, ALL the sectors of the economy contribuied significentiy 10 the ising (rend of GDP, Nevertheless, the commodity producing seciot vuipaced the growth ia services sector, 2 contiguous phenomench curing The ast 3 years, The manufacturing production has risen by (21 pet fant ane its lngescale component by 1 Pet cent not only excelling whe las year’ growth but stso Plan target for the S85 It has resulted fram «substantia expansion nthe production of a large mumber of eystriat items. ‘The ouput of sugar, which started increasing from Inst year after @ serous production cuss [2 the preceding two years, ves showin a record inerease of 4 pet cents AS A result, the country ve doit in sugar has not only achieved self-sufficiency but has atiained a sizeable export surplus, unfortanetely in a year of bighly pressed works prices. Produetion of chemical fertilizer and cement Thay also vecorde shasp Hnevoases thereby CAS the balance of pay- mronts situation and aseuting unintenruplee supply for domestic users. os oder industrial projets aso registered significant increases CTE growin trends thus far registered in the industrial produc: ion are indicative of a positive response from the private sector to the ongenai frame-work Haid down by the Gowmineht for the private coor andthe wide spectrum. of incentives ered (9 it coveting fiscal fend monetary concessions, liberal import of 8 materials and machinery, vr streutining investment procedure, The climaly hhas been’ made onducive in all respects to industrial prOBres ‘The pace of industrial spatins has taken @ dramatic turn end shot yp a & fast pace. “The sanctions issued during the period 197177 amounted to Rs. 94 bition which inreased (0 Rs, 37.0 bifion daring July 1977 to March Tos2,atmeat 4 ines the amount savetioned io The previous 5 years sttal investments, which foitowed sanctions with @ lag, have doubled in the three years ending 1981-82, 5, THE new policy of prudent inci management and ecentratiza- sion hes yielded frutfal results in the public sto: industties conttolied ty the Federal Ministry of Production which recorded an increase. of 13 per cent in the prodution index during 1981-82. Like-wise their sales have risen by 17 per cent. For the second year in succession, all the Corporations have shown profit, It is of special signficance to mention hat Pakistan PVC, Larkana Sugar Mills, Associated’ Cement and Pakistan Engineering Company which were eaclier running in loss have shown profit this year. A Polyester Plant at Karachi and a, Urea Plant at Haripur Hazara have gone into production. The Mustehkam Cement Factory at Hattar was expanded to double its production capacity, The first blast furnace of Pakistan Stoel was fired om 17th ‘August, 1981 which has ushered in a new eta of industrial development in the country. ‘The second coke oven battery anc sintering machine, second blast furnace and oxygen plant, refractories and line calcination plant and the billet mill wii also be completed during the curteat financial year. 6. PAKISTAN is now on the threshold of developing an en goods industry. A National Engineering Manufactures and Council has been set up to look after the growth of engineering i tries and to suggest ways and means to promote it in tine with national industrial policy. Most of the industries are expected 10 be set up in the private sector but some projects in the public sector are also going uhead. The Government has decided fo launch a programme for progressive local manufacture of imported components. The pro gramme has been finalised for progressive Jocal manufacturing of motor cycles. refrigeraiors, aireoctivioners and agricultural tractors neering 7. THE agticultu sector which is the largest single sector of the economy and accounts for 30 per cent of GDP has grown by 4 per cent during 1981-82, close to the last year level, despite little or no increase in fertilizer use and water availability. The main contribu tion to this growih came from major crops which all combined grew at the rate of 41 per cent, The country has already achieved sell- sufciency in food grains when the sueplus rice exported is taken (ail) ecount, The import of wheat was discontinued last year Despite the sual caits which badly afeted the wheat progction, te coun as reached seltsuficieney in wheal, Even if final estimates 2 sabstontinily Jower than those currently available, the eoumy would ot face any shortage since Iarge reserves are in stock fom Inst esr crop, §, THE Government attaches a high peority to the development oi agricultre, Tis policies aim at increasing the preduetion not oniy t varrain seltsuficiency bat also to be able to export foodgreins besides roosting output of imported agricultural products Tike pulses, oi seeds ‘and dairy products. These envisaged goals have been uligaed with the navons! policy of uplifting rural standards, The develope’ strategy pursued endeavours 10 ensure imely and adequate provision ff essential agricultural inputs coupled with commensurate Prost ment[support prices, improvi cultural practices to make whe most ficiem use of inputs and opfimisiag the use of the extensive canal etwork, These polices are aimed ot briagiag about adequate reams To the farmers and improvements in productivity, Some agriculiueal inputs ke ferilizr ate being subsidized. However the Government nuns fo ubimalely withdraw the subsidies and im feck the proses of arodual withdrawal has already been initiated, Ts implet On COP Costs is being systimatcally cwhioned by an upward revision in procurement pris au programmes desianed 1 rise {he erop response to fertilizer fe, the grain-natrient rao. 6 MECHANIZATION of agrcultse a1 cultivation el chresiing stages has further progressed during the year with the import of @ large Tamer of tractors and cel production of thresbers. A tractor aR Tactring plant as Deen inaugurated, Cred faites through institu- tional agencies have been greatly enbanced, The secter continues enjoying Tower interest on loans, subsidies on tubewells, fertilizer, pesti- fides and eletrity charges, Wer management programe BS eso stared in the finigated zones. Gi) 10, TURNING to another sphere, the highest priority is being ‘attached to substitution of indigenous for imported sources of energy. Oil import bill bas considerably increased since 1973. It is estimated to be 5 1.667 billion which is roughly 66 per cent of exports. The Government has evolved a National Policy of developing indige- nous energy sources. All the four main sources of energy used in the country have reconfed substantial gains in production during Ju March, 1981-82 : about 2 per cent in cil, 8.6 per cent in gas, 11.6 per cent in electricity, and 104 per cent in coal, The exploratory efforts have further been stepped up. A significant discovery of oil has been made in the southem Indus basin at Khaskheti and five wells have been com- pleted there. Efforts are being made to realize production of 5,000 barrels per day from these wells by first July 1982, A mumber of oil companies have been attracted to explore further prospects for petroleum availability, Efforts are under way fo reactivate petroleum exploration in the off-shore areas. The construction work on Pek- ‘Arab Refinery pipeline has been completed which hes considerably reduced the load on railway tank wagons and has also ensured econo tical, eficient and safe transportation of POL products, Compressed rratural gas a5 fuel for buses, trucks, cars ele. has been introduced om pilot scale. 1, THE tempo of mouetery expansion after reaching a peak at 25.9 per cent in 1975-76 has started tapering off. During the year, the monetary policy continued to conform to socio-economic goals laid down in the national development plan. The target of expansion in the total ‘money supply was fixed at 15 per cent for the year to balance the needs cof expansion in production and stability in prices. Credit expansion in the first three quarters resulted mainly from a substantial increase ia bank credit in private sector amounting 10 Rs, 9,448 million during July-—March, 1981-82 compared to Rs. 4.774 million in the correspond ing yeriod last year, The composition of mouctary expansion bes uncocgone a marked shift, In the monetary espansion, the share of cime oy) deposits has increased substantially Stom 147 per cet in July—Mareb, ‘Sot to 796) per cent in Suly—March, 1981-82 while thet of demand deposis dectned from 1581 per cent to 3.6L pet cant and that of urrency in cicculation from 67.92 per cent 10 1697 per cet 12, PRICES continued to be an area of major cancers to the Govern: snont despite the fact thatthe sing tempo has been curtailed consider ably ducing the year under review. ‘The supply augmenting policies have pushed up the domestic prodectin fevel and shulansovsiy the prudent Bosal and amonclary measures hive helped to check exces expansion ip demand, This has to o great extent cased the demand pull fores in enening their pressure on pests. The Governmeat continues to adminis ter the proes of essential commodities and opernts « ration system ip ace of wheat and sugar at reasonable prices. sides, a fnrty extended nity sores chan and extension of Tuma Bez, stared «vo veHis 889 in the Capital, 10 other cis and towns have supplemented the Gover ment efforts in stabilising the prices. The infation rate recorded during the frst 9 months of the year sbows a marked decline over the Year snerease in the wholesale prees had declined ftom 105 per cent to 36 pes eent end inthe case of consumer price dex fom 120 per ent to 177 per cet, 13, THE Government is determined to Islamise the economy and is efforts in this direction have been further intensified during the year ‘Tho sytem of Zakat introduced on Fune 20, 1980 remained in operon “The via! amount of Zakai dissibued during 198081 stood at Rs. 4115 villi and the number of Zakat beveicivies wes 12 million, During the fet 6 mmoniis of the current yeor Zakat ewouning to Rs, 2583 rnillin was oirbuted among 1+ million beneficiaries. As & poner MMfort, Bankers Bquity Limited has secured registration as Modaraba Company and floated a twin-ioner Modarbe with a tot of RBs 15 maifion, Tt has been over.subserbed by overseas and resident Pakistanis ‘The aleady Ilamised TCP operation has started processing applications from Ist January, 1981 for providing Participation ‘Terms Certifcaes tov) National Investment (Unit) Trust, Small Business Finance Corporation and House Building Finauce Corporation continued their operations on the Islamic lines as already decided. ‘The profit and loss sharing scheme of the nationalised commercial banks has received a creditable encourage- ment from the public. ‘The total amount of these deposits under PLS system was Rs. 8,231 million as on 25th March, 1982. 14, THE international trade and balance of payments situation during the year was severely affected by deepening world recession, a crash in the demand for and the price of cotton, appreciation in the value of the US dollar and slow down in the inilow of home remittances. For the first time in several years, world trade declined owing to intensifi- cation of recession ang protectionism in developed market economies. The general recession was accompanied by an exceptionally sharp fall of 30 per cent in cotton prices. With the demaud for rice, the other main export commodity, also sluggish and exports of wmanofactures being affected by the link of the rupee with the appreciating dollar in the first half of the veer, the recent growth irend of about 26 per cent per ‘annum in export earnings was halted 15. IN fact, merchandise export earnings are likely to fallin 1981-82 compared with the level in the previous fiscal year. The rapid inflow of home remittances witnessed during the last several years was also affected during the first half of the year by dollar appreciation. Even though remitianoes improved since February 1982, the growth was much Jess than the previous year. ‘The eamings from goods and services are, therefore, expzcted to be much below the target set in the Annual Plan for 1981-82. At the same time, however, import payments will also falt well below the forecast for the year because of import substitution in fer- tlizee, cement, sugar. wheat ete.. and a fal in the import prices of various manufactures, 16, THE net impet on the hlenoe of payments has been more or less offsetting, According to Jatest estimates, the current account deficit in ‘he balance of payments is expected to increase by $ 218 million and (xvii) the besie balance by § 232 milion. ‘These ineresies do not differ appre- cjably from the ‘angels for the Yer. 17 THE foreign trade potiey pursued during the year was fully backed up by Bical and) monetary inceties © encourage exports and ensure equate provision of machinery and 8 materials for vital domestic vege of the economy, Hloweve, he lik of the Pak rupee with the US Ghar sited serving a6 a anges om eSDOHS 36 result of appreciation the deli in the fist ba of 1981-82 Jy order to check this adverse Teadency he Pak-rupes was cesinked fom the dollar and bas been auigneg with « basket of cuencies front oth January 1982. This steP fas bee taken to improve the competinve strength of traditional com- rodities in the international market. SOTWITHSTANDING the sustained ceonenis recovery since 1477-76, sieuctaral weaknesses stil persis ‘As such, both the efficiency anc producivigg ave sil low. Savings 13° remains poor by compare Fnternaticnal sends and Wide an COnLNS to exist between invest- Treat an. savings, ond exteral balanee of payments. This has vgesstaed dependence o foreign aid ond consequently the Jevel of standing cebt { contmuonsly Fsng, FO OP with his situation domestic savings need 10 be spond UPs and the level of exports spenosed and its composition iversifed, “Deve 8 some deficiencies in veil gectors despite a considerable expansit% their coverage and provement in quality in recent Years ‘The increases in the adon's ert, improvements in eficsnes ‘and development of Ausnatt capital ave comple: ae intercelated ‘Though these objectives are being nade the focus of attention in preparation of the Sixth Five Year Plan, decisive thrust in this direction is Dene incorporated in the Budget and Annual Plan for 1982-83. xvii) HUMAN RESOURCES BEING a dynamic factor of production, human resources play a vital role in the socio-economic development of an economy. Pakistan is endowed with vast human resources having huge development potentials. However, the employment opportunities have not kept pace with the growth in labour force. Thus, the economy is faced with the problem of large scale unemployment and under- employment. Keeping in view the importance of development and effective use of human resources, efforts have constantly been made to equip the manpower ‘with the tight type of education, skill and necessary expertise. An institutional framework which includes universities, professional colleges, vocational instiv- tions and thousands of schools have been set up in the country, These efforts have resulted in attaining at present a Tteracy ratio of 24 per cent and treining of thousands of persons in various professions. However, the limited availbility of financial resources and the continuous application of capital intensive tech- nology ate persistently standing in the way of full uflization of the cxisting human resources. Popolation Growth 2. According to the 1981 Census, the population of Pakistan was 83.78 million (as on march, £) which is estimated to have gone up to 85.65 million as in January, 1982 ‘The populstion is increasing at an annual rate of about 3 pet cont. "The fast rale of population growth has been mainly due to substantiat Gifference between Crude Death sate and Crude Birth rate. The Crude Death rate fs falling on account of growing literacy and medicare. Crude Birth rate is also eclining but still excceds the death rate, 3. The population in 1981 increased by 28.28 per cent over the 1972 Census. ‘The intercensal growth has varied among the provinces. Tho highest increase was in Baluchistan where the population increased by 77.23 per cent followed by Sind, showing an increase of 3398 per coat, The increase in| NWEP was 29.77 per cont and in Punjab 25,28 per cent. The Census resulis show that Serer ree er ee 2 pnxista ECONOMIC suRVEY 19882 there are 111 males pes 100 famalet, TH Sr cof urban population has also there Or and is 2828 pez cent of the, 18) polation, Table T indicates the inerarban comparison of the populson ‘TABLE I Population by Rural/ Urban Areas in thoussed) ros Percent 196i Percent shore share share ee ee t res Heese 3.8 ee BEeee reece eee eee eee ereee eee Pabisten s,140 300.0 42880 100.0 659 00.0 83.182, 100.00 bitte PEPE ee are CH ae Ea qs NG 4.6 0.054 THT urban spss 17.6985 228 4 BT 78.28 Sess ee av of Si Federal ities ‘Sowrce.—Census Orgerizato The density of tho population according. the 1981 Census was, 105 per cquare Milo mete, The densi, VST ‘pes widely among the provi wr Punjab bas the highest density, © Soo. persons, compared to 12 Fee dos per square Kilo metre in Beluehsi Yad in. Sind, 146 in Nosh Wester ‘ors ger Province and 80 in Federally ‘Afeninistered Tribal Area. Labour Foree 5. "The labour force during te yeas 198LD estimated at-25.24 million out of thy taal estimated population of $5.65 ‘nilion (as in January 1982). Dusine She last four yeas, Inbour force has Beea # sing at the rate of about 3.2 pee Bee per angum, Thus, in TORL-S2 Were 7s an_ addition of about 0.79 million onthe labour fovee. The incense mployment level over 198081 is BeOS 9 per cent or 0.69 million. The Saploviment level for the year 1981-82 Phos estimated t0 be 2450 million TABLE 2 Disiribwion of Labour Force, Employment and. Productivity —_—_— a, Tait 197475 1977-78 197 ae ae be We TatourFore «+: Mflfon De Bn BA BO BAS shou Fore Growin => agnt 29 a9 320 uF a2 38 Growth Employment + Millon | 0.07 21.84 22.54 B13 Bal 3.50 4 Productvig _ Ropsts e465 TNA per capita eo Participation Rate {6 The labour foree participation ale in Pakistan is estimated at about aq pet cent shoving « high dependencl Fm ‘The participation rate among the 30 Be population is very tow ad according /° the last Inbour foree epost EEEEEEeer eer eevee eevee cece HUNAN RESOURCES 3 (1974.75), it was estimated at only 4.3 per cent. Paticipatiod’ fate among the male population is $2.08 per vent Labour Force by level of Education nate level, the increase in the level of educated enurants in fhe labou: i about 33 per cent whereas the increase of ‘Sducated persons who: have atteined alleast primary tevel in the labour foroe is Sipiper cent, At below primary level, including iterates uhe rate of entrants Jato labour force is worked out to be 3.0 per cent, 8, A ceview of the labour foroe by major occupational groups shows that jn 198L-82 the increase in labour force in_ various occupational groups varies fom 2.7 per cent in agrizuliure and services workers 10 52, per cent tt respect of profesional workers, Is also noteworthy that at the depres (general ree Revel, there i no increase of sles and agriveultare workers in 1981-82 eeoeehnpered 1 1990-81, Simiarly at the level of degree and postgradual: a nother than general ecucation, the labour force remains static i respecs Silom omsaive workers, wales workers and agricoltural workers. Table, 3 Shes the comparative sition of labour force by major occupartonal groups in 1980-8} and 1981-82. TABLE 3 srimoted Labour Force by Major Occupational Groups and Level of Education jor the years 1980-81 ond 1981-82 (lo thowse nd Less ry Matic ‘Degree Desree than butlessbutless and and Major Occupations ‘Foto! Primary than than (General) Post Punding Metre Degree Educa graduate itera ion Diploms et othe: than Genera Profesioval Workers ‘adiministrative Workers ‘Clerical Workers A 3 Seles Work 5 ‘Seivice Workers an 5 9 - rial Workers 5 Prosi Gpanp Toral ere reer eee ree 4 PAKISTAN ECONOMIC SURVEY 1981-82 Employment Level by Sectors 9, The employment leva is estimated to increase from 23.8 million in 1980-81 to 245 million during the year 1981-82, showing an anmual growth rate of 29 per Cot By sectors, the employment growth in 1981-82 over the previous year Varies from 25 per cent in agriculture and electricity, gas and water to 3.9 per Sent in wholesale and retail trade scctors, Employment pattern by sectors is given in table 4, TABLE 4 Estimaied Sectoral Employmeni for the year 1980-81 and Projected Employment for 1981-82 ee 198081 1981.82 Estimmed Perventage Projected Percentage Growth in Employment of the Employment of the —1981-82 (Thousand) — total (Thousand) total over 1930-81 1, Agrieuiture, Forestry ‘Hunting & Fishing Bad 5.91 6B 55.8. 25 Manufactusing_{includ- ing Mining end Quar- ning) sme SEBS. a5 3. Bieticity, Ges and Water : ng 0.30 i 0.50 2S 4, Construction .. : 992 41s 1025 438 33 5, Wholesele and Retat “Frade, Hotels and Re- waurants + ‘ 2860-84 BL 10.94 39 Transport, Storage and Commonicaions Lag 478 AAT 48 33 7 Service ténance, insur ‘ance reel estate, business ceommunils, social and personal ervce5) 2aT 19.2 3810 10.25 0 Tot 23805 100.00 300.00 ‘Source Manpower Division 10, Tn agriculture sector, the percentag: share of employent shows a declin- ing trend as compared to other sectors, The percentage shares of other sectors show a very nominal increase, except in electricity. gas, water and Construction where the sbare in employment remains unchanged. This is mainly due to the low rate of employment growth ie, 2.5 per cent in agriculture sector as compared to other sectors and also as compared to overall growth “ rate of 2.9 per cent per annum, Employment by Major Occupational Groups and Educational Levels 11. The estimated employment level for the year 1980-81 and the projected employment level for the year 1981-82 by major occupational groups and level ff education are given in table 5. Tt will be seen that the increase in the employ ment level by major occupational groups varies from 24 por cent of service workers to 48 per cent of professional workers. It is also interesting to note that at PREECE EE eee Cee Heer cece HUMAN RESOURCES 5 degree level (general education) there is no increase m agricultural workers whereas the employment level of clerical, agricultural and production workers having degree and post-eraduate diploma other than general education remits unchanged during the year 1681-82, TABLE 5 Employment Distrihuion by Major Occupational Groups and Level of Education (1980-81) in thousas mi thous Leis Pritary — Mlaric Degree ‘Degree than but ess but less Generali and Major Occupational Total Primary than than Educa Post groups including Matric Degree tion’ graduate ierae Diploma ws other than Geneiat lucas Professiona} Technical and weed Workers S97 136 Aninsuative and Mane rl Workers m 6 4 Chal and Related Worke es wae Slee Worker ee ee ‘ Service Workers mnt gg Agscwcal, animals Sd and — forestry Workers, ther men and unter ; woo s Production and _ related Workers transport equip- iment operators. and. Tee ‘ourers 7 3 Grand Tota! 4 190 1981-82 Professional Techaical and welted Workers... 1.22907 tsa Administrative and Manage- nial Workers ey 198 3 i9 Cerial and related Workers 1,059 3 im Sales Workers. 21851360 S68 » 5 Service Workers .. 1903 1s 359 " 0 - 184i S08 27a "1 5 Proguetion #4 related Wor Kerstransport squprient ope- ‘ators and labourers 94 8 3 Gran Torat 34231958 8D 18 Souce Manpower aivilon ee ee errr ee eae ere 6 PAKISTAN ECONOMIC SURVEY 1ge1-82 Unemployment 12, The measurement of woemploss9eT igioult and complex because of the seasonat variation in agsicleure WHE The largest single sector of the economy. seseeetoping_ economics Hike Pekistan Uemproyment & of oO WSBESS | OBE! unemployment in urban 2° ana under-emsployment, mostly 18 rural areas. Open, unemployment as be RE mated at around 20 por cent | various Cherie surveys. and decennial nse of 1951 and 1961. The latest Tabane force survey of 197475 es pat neueenplcyment ate at L7L per cone This Vmemploymess, © 2 large ext, 6 canal, Higher rales of unetploymett uorpand among, the egucaied Persons: ‘ately schoo! leavers, seeking white collar jabs. 43, The Housing, Economie anemapioyment rate of 130 pet coat cmmoeiiference is meioly due t© variation epieige, ceiitin of foo seckers Uns fr eurvey and the coverage of the fage group 10-19 years especially for females, where severe unemployment 1S reported. nd Demographic Survey of 1973 elves higher 14, Underemployment of isguisec! unemployment in agriculture has been estimated at over two. milion, workers "Tue may represcet an appsoximatio? eatinetonal variation in the desond fo thous im the agricole sector. though here is evidence that at th peak of harvesting and sowing seasons, atts! shortage of maapower is # Fertare sector. The informal sectors SF tne economy’ also abound with C2565 © persons working evtermely Tong, Rows of TR Soeome reas, THe ange atscraber 1981 anc beter past of Sarva weather he gelayed runs acted Whe er ing and germination specially 65 arand areas. However. the wide spread vains during Febroary and March 1982 brightened tabi oP, DYosBee Pirmrthcless the ight attack on Sat and brig and rains atthe te of WAG rain ripening and harvest bad ® telling aay the overall performance of the abi. crops. ‘Wheat 5, The measares adopted by the Government have encouraged the farmers to bring more area. ‘onder wheat during ‘the last few years: ‘The area under Wngat recorded a rst, of 3.36 Ber ‘cent (0 6912 million hectares in 1979-80 whee he last year and forther by iy per cent to 6961 milion beers jn 1980-81 SNer the preceding year. Howes, espite sbortage of imigntion Wa and Grovebt at the time of sowing the area is estinnated Shring 1981-82, which i hlghes by 0d per cent over te lst Sat f compared uring erage of last ve years the ave8 hnigher by 42 bu 779-80 and 1980-81, the duction target of 12 vn tonnes for the 1981-82 Crop. Firm prosuetion estimales TEM available, However, various eBOr SeGkeate that the production 25 * ovconaltyestnsated for the CUE Se ‘would eer than the lest Years evel inspite of adverse {actors encountered. BY te are ‘The per hectare vild of | asp hoen sng since 1979.80, Ht ro wy $0 per cent to, 1563 es ce Meo over the preceding, year and further by $4 por ceat 10 1648 kes in nai i is estimated to be bieber by 2A per 5k PE fous kes curing 1981-82. ‘ompared wih the average of the Bt year, it recorded am increase 30 per cent in 1981-80, Table | shows {he recor peaduction and yield por hectare of wheat during the last few MAJOR CROPS YIELD PER HECTARE IN KILOGRAMS WHEAT ~ RICE 2.000 : 000 1500 ig 1,000) —~ = 11,000 | 500 ——-}s00 0 1 Jo corToN SUGARCANE | 400] 89000 30,000 106/--+ — 1-4 20,000 Q 10,000 19576 778 SED wh 759778 —«SBD «BTA Provisional AGRICULTURE 9 TABLE 1 Area, Production and Yield Per Hectare of Wheat ‘Area Production Yield per Perea Year (000 Hee- (000 Tonnes) Hectare Change in fares) (Kes) Prod ction W161 HAL - IB 6360 83TH 8D R19 6 6T_ 8880 1488 $18.91 1979-80 me mm 9IZ_—_—1,808 1563-8159 WOH 68K TS 16% +620 ‘Average (1976-17 to 1980-81) . 6/5529. 948 1489 = 1981-82 @) eee 69 YB 2.39 P;—Provisionsl. ‘Source :~Ministry of Foot, Agriculture and Cooperctives 7. The food situation remained satisfactory in the county during 138: as there were sufficient wheat stocks available with the Government, even higher than the corresponding period last year. ‘The country reaped two bumper wheat crops of 1980 and 1981 which greatly helped in building wheat reserves on the ‘one hand and also has brought the country to a threshold for exports on the other, Total wheat stocks available with the Government at end March 1982 wwas 1,571,571 tonnes, 51,2 per cent higher than the corresponding period last year. This means that after mecting rationing requirements of April, 1982 suficient wheat stocks will be carried Over as reserves for the next vear when the 1982 crop would also become available for consumption during 1982-83. The total procurement of wheat from the 1981 crop by the vasious Government agencies was 3,988,763 tonnes, exceeding the target of 3,125 millfon tonnes as well as 2,954,882 tonnes procured from the previous crop. Wheat was procured at Rs, 58.00 per 40 kgs fixed in 1980-81. Pakistan Aericultural Storage and Services Corporation alongwith Provincia! Departments were the main agencies involved in its procurement. 8, To contain wheat prices in the open market within reasonable limits the Government released more wheat in the market as well as to the ration depots. A quantity of 2.79 million tonnes of wheat was released during April March 1981-82 compared to 2.77 million tonnes released in the corresponding period last year, The procurement price of wheat was raised to Rs. $800 per 40 kes for the 1980-81 crop from Rs. 5000 per 40 kgs. Table 2 insicates the position of despatches of wheat by the Federal Government 0 the provinces Import, procurement, releases to flour mills and stocks at the end of March 1982. *This is not adjusted for the losses due to rainfall at harvest as their magnitude has not been determined 2s yet. rrr eee ee » yaxustan voosomic suevey 1981-82 ‘TABLE 2 Despatcles of Wheat to Provinces, Procurement, Releases 10 Flour Mills, Import ‘and Stocks During April 1981 10 ‘March 1982 estes ‘pats, Procurement Releases Stags, 0 by lative etal ‘Cumulative to Flout 31-3198? Federal Govt Provinces Govt, 10 fromthe ils April Provinees 1981 Crop 1981 t0 Ape 1981 te ‘Mare’ ‘March 1982 198 _ uninbeeeee nance Peetnaceeeees cceeeeeetaa FeentGot - - ee = Pani - - 1335851 L178 Sind . 000 - roses, 147,242 RIWEP. 4000 sen, 282,429 e 3.000 - - e0,096 34,058 Aree Kashmir - - Defence - - - - = othe Los ois Tipo «BRR TES. 2785828 1871571 _ 2 “Source: Nisisiyof Food, Agriculture and Conperath=s 6, The area snd production of rice which suffered in 1980-81 because of 2 ocaher, showed an improvement ducing the FE year. The area atimated to have risen by 1.9 per cent fo 1.972 million hectares: attributed s faly fo an upward revision im er6 and pasmati prices as well as favourable main tbe time of soning of the crop, compared with the average of Feast five years (Le, 1976-77 to 198081) the ares during 1981-82 is higher by 22. per cent 0. The ouiput recorded an estimated nse of 70 per cent in 1981-82 and ig put ot 2.358 anilionfonnes a8 against ‘million tonnes in the previous year, The ris has resulted from the combined effect ‘of increase in area and Jmprovement in yield per hectare belle uitural practices and favourable weathet imperyons lad a safiary eflect on the yield ME fompered with the average of ive. years (i, 1976-77 10 1980-81) the production is higher by 9.12 pet Yast Bre Veg? The vild pes hectare recorded & rise of 502 por cent (0 a3 Egs during the current year, over fhe a8 "Table 3 gives the trends 18 nb cetietiay and yield per kecare of Fee dhuring the last few years, Be eeeeeeeeee eee CEE AGRICULTURE al TABLE 3 Area, Production and Yield Per Hectare of Rice Area Production Yield per Percent Year Hectare — Change in {000 Hee- (000 Tonnes) (Kes) Produ- ares) ction 1979.80 1980-81 Average (1976-77 to 198081) 1981-82 () P:—Provisional. Ministry of Food, Agriculture and Cooperatives, 11, The procurement/support prices of rice and paddy were revised up- ward for the 1981-82 crop for ensuiing better retums to the growers, The price ‘of basmati paddy wes raed from Rs. 7502 10 Rs, 85.00 and that of irri-6 from Rs, 38.58 fo 45.00 per 40 kgs. Similarly the price of basmati rice was raised from Rs. 137.00 to Rs, 15000 and izieG rice from Rs. 7253 to Rs. 83.00 per 40 kgs Procurement and Export of Rice 12, The procurement of rice from the 1981-82 erop started in October 1981 and a target of 1.250 million tonnes of rice was fixed by the Government for the 1981-82 crop. Of this 1024696 tonnes had been procured upto April 17, 1982. ‘This included 320,093 tomnes of basmati und 704,603 tonnes of other varieties, A quantity of 1,136,803 tonnes of rice was procured from the 1980-81 crop. 13. The Government has fixed an export target of 1.2 million tormes for 1981-89, of wich 684,000 tonnes valuing Rs. 3034.4 million was exported upto March, 1982. A quantity of $80,000 tonnes of rice valuing Rs. 3845.1. million had been exported during the corresponding period last year. The average export price of basmati rive ia the international market was 3.8 per cent higher curing 1981-82 (July—March) white the other varietics was 3.4 per cent higher compaced with the corresponding period last year. The Rice Export Corporation cof Pakistan hed a physical stxck of 774,618 tonnes of rice cn 17th April, 1982 of which 290,102 tonnes had been committed for export Cotton : 14, The area under cotton lias consecutively risen over the four years 2. Tt recorded an increase of 2.6 per cent to 1.891 million hectares in 100 per cent t0 2,081 million hectares in 1979-89 and 1.3 per cent to 2 PAKISTAN ECONOMIC SURVEY 1981-82 2108 millon hectares in_ 1980-81 over the respective ‘preceding years. It is provisionally estimated at 2.167 milion bectares Curing the curent year indicating py improvement of 2.8 per cent over the last year, This continucas sise in ret is attributed to etibancement of phutii prices before sowing. providing jucentives to the growers coupled with favourable weather. The area is i by 107 per cent in 1981-82 compared with the average of last five years (le 1916-77 to 1980-81). 15, The cotton production is also maintaining a fairly high level since 1979.86, It has secorded a sharp increase of $3.86 per cent to 4.282 million bales {G45 Lbs bale) in 1979-80 over the preceding year. This appreciable se. in production reflects a corresponding increase in area conpled with favourable Prather conditions, a significant improvement in yield per hectare, expanded plant protection coverage and judicious use of various inputs. In the following Year the output recorded a decline of 1.88 per eent 19 4201 million bales mainly Hecunse of a silght decline in yield per hectare caused by pest attack in some parts of Sind and Punjab. During the current year the conntry is expected to Feap a. bumper. crop of 4400 million bales indicating ise of 47 per, cent Dice 1980-81, This significant improvement is attributed to favourable weather Tht from sowing to picking of the crop on the one hand and healthy elect of judicious use of inputs on the other. The crop also renuained free om pest rack and other diseases, Tf compared with the average of last five yeaus (ie. 1976-77 to 1980-81) the output is higher by 27.9 por cent in 1981-82. The yielt per hectare went up by 206 per cent 10 346 kgs during 1981-82 over the last fear, Table 4 gives the treads of area, production and yield per hectare of ‘eotion during the last few years. ‘TABLE 4 ‘Area, Production and Yield Per Heetare of Cotton : ee i fers rear en Proguction Yigl¢ por Change in (000 Hee- (900 "Beles Hectare “Prods are) d tio 1978. 7 2 188 3.380 323217 i779 7 . ESS 2 410.66 79.80 7 - 2081 4,282 BBG 1980-81 BMS 20 2 Les Average (1876-77 to 1980-81) 4887 30 21 - 198182 (P) a ~ Ue 4400 HG Sorrce'--Ministry of Food, Agrioutare and Cooper P:—Provisional. * Tale=373 Lbs, PRODUCTION INDEX OF MAJOR AGRICULTURAL CROPS 280- 240- 220- 200- 180- 160- 140- 8 Provisional AGRICULTURAL B 16. The cotton policy for 1981-82 was anounced about a month before the commencement of sowing seasow. The poticy brought forth fairly a hand- some upward revision in the support prices of phuttt and lint eotten. ‘The prices fixed by the Government for 1981-82 are given in table 5, TABLE 5 Prices of Seed Cotton (Phutti) and Cotton Lint {Rs. per 40 Kgs.) Seed Cotton Lint Cotto Varieties = (Phuttiy Dest 166,00 419.00 ACA34, NT & BSI 170,00 449.00 1, WOE ‘| eta 178.00 473.00 17. Total mill consumption of raw cotton is estimated at 2.7 million bales uring the current season as against 2.54 million bales in 1980-81. ‘The slackened jtiternational demand for cotton has adversely affected its export which is esti. mated at 1.546 million bales during 1981-82 compared to 1.838 million bales ast year, The average annual export price of raw cotton staple fell from ‘per tonne in 1980-81 (July—February) to Rs. 13679.69 per tonne ebruary 1981+ Rs._ 15826.04 during July Sugarcane 18. Both area and production of sugarcane has been rising since 1979-80. ‘The atea reconled an appreciable rise of 149 per cent to 825 thousand hectares jn 1980-81 over 1979-80. It has further gone up by 10.9 por cent to 91S thousand hectares during the current year, ‘The area is higher by 17.2 per cent than the average of the last five years (ke. 1976-77 10 1980-81). The factors responsible for the improvement include ier lia enhanced sugarcane prices by the Government and favourable weather conditions prevailing at the sowing time 19, The output which registered a sharp rise of 17.7 por cemt 10 32,359 million tonnes in 1980-81 over the last year, further recorded an increase of 6.7 per cent and reached a new peak of 34,$40 million tonnes during the current year ths surpassing oll previous records. “The production has beep 17.7 per cent Isher in 1981-82 over the average of the last five years (i.e, 1976-77 to 1980-81). This improvement owes much to an additioval incentive of upward revision of cane prices, good weather conditions and better cultural practices adopted by the farmers. The yidi per hectare went up by 23 per cent to 39.2 tonnes in 1980-81 cnet the preceding year. However. it declined by 3.8 per cent to 37.7 tonnes in JORL-82, Table 6 indicates the area, production and yield per hectare of suger- cane during the last few years. a4 PAKISTAN BCONOMIC SURVEY 1981-82 TABLE 6 ‘Area, Production and Yield Per Hectare of Sugarcane ‘Area Production Yield per —_Perosot (000 Hee. (000 Tonnes) Heciare Change in tare) Tonnes Produ. ction 788 29,528 an5 sw 30077 36.6 $1.88 27,327 3630 8S me 27498 83 40.63 980-81 32,389 2 +1768 Average (1976-77 to 198081) 29,386 76 1981-82 (P) ‘Provisional. Source -~Minisiry of Food, Agriculture and Cooperatives. 20, The Goverament raised the minimum prices of sugarcane by Rs. 2.14 per 4) Kes in all the four provinces for the 1980-81 crop. The same prices Mere maintained for 1981-82. In NWP. however, the growers have been allowed another Rs, 2.14 to Rs. 241 per 40 kgs over and above the fixed price. Table 7 indicates the prices of sugarcane in diflerent provinces from 1978-79 1981-82. TABLE 7 Minimum Prices of Sugarcane at Factorygaie (Rs, peor 40 Ke) Year Sind NWEP. Paajab 1976-79 a cette 62 59-66 1979.80 BPE SPEC eee Haseeeee Ho ee 7.80 1960.81 eee 5h 9889.64 198182 a : 9819.89.64 Source Ministry of Food, Agrisltoreand Cooperatives. Other Major Crops DL, Besides wheat, rice, cotton and sugarcane, Jowar, bajra, barley, maize, gram, Sesamum tapestad and amustard and tobacco are the other major crops The wend in area, production and yield per hectare of these ccops relating to sarier years can be seen from the relevact table in the staisticl section of the Feonomic Survey. For the current year the first estimates of bajra, jower, msize fand sesamim show that While the area under bajta and jowar has recorded an inorease of 36.6 per cent and 5.5 per cent respectively over the last year, the ten under anaize registered a fall of 4.0 per cent in 1981-82 over the preceding year and the area under sesemum remained at last year’s level lll MAJOR CROPS AREA « PRODUCTION w_ae= AREA IN QOOHECTARES PROD. IN'000" TONNES WHEAT | RICE 16,000 : “44000 12000 ee —— 3000 2000 1000 Production in'000" Bales COTTON os 4800) 40000 36005 © 30,000 20,000 \ Q | L i wists 1778 75-00 ~wr82 757 TPT 740 ae? (Prox) (Prow) | 1,200}! AGRICULTURE Agricultural inputs 22, The use of various ingwis wongwith modlera technology and weatticr sunditions determine ihe tends iy ugsicuiacal production, The Goverment Policy aims to make availubi aij essential inputs in adequate quantity to fan and (o induce him to use them in optimal doses. To ensure timely availabiliy the input distribution system has been streamlined. Tha prices of essential inputs are being maintained at a reasonable Ievel so that sufficient reiamn is guaranteed to the growers, Arrangements have been made to augment the supplies of fertilizers, seeds, pesticides and credit for a wider coverage of the farmers Irrigation Water 23, Irrigation water is the mosi critical imput for agricultural development jn the country. If used optimally with fertilizer and good quality seed it c raise yield per hectare substantially. Pukistan has got the largest cane! inize- tion system in the world but neither water resources are fully exploited nor aie exploited resources are ficiently utilized, Much water is wasted in tansins sion, In over to overcome this problem proper mainteaance of cans distribution water courses have been given special importance. 7 Government has introduced a crash progtamme for improvement of + courses in farmer's fields and 12.000 water courses were cleaned in Punjab and Pucca Nakles were provided ducing 1980-81, In addition 10 th water courses—389 in Punjab, 74 in Sind, 34 in NWEP and 8 in Baiuc were improved during 1980-81, Another $94 water vourses are being improved during the current year, 24, Water availability at farm gare went up by 3.9 per cent to 97 Acre Feet (MAF) in 1980-81 over the preceding year. Surface wat contributed 65.21-MAF and ground! water sources 22.58 MAF during 1680. It was originally estimated that water availability ‘would be 98.86 MAF 1981-82 however, water availability’ was less throughout the rabi season by of low river and canal flows. and as such the total water availability would be around last year’s level. Releases from Tarbela ave estimated at 4.74 MAF suring 1981-82 compared with 6.1 MAF in 1980-81. Tubewells mumbering 9,478 were installed during 1980-81 compared to 8783 in 1979-80. Another 9523 tubewelis are expected to be installed during the current year. The ra subsidy for instalation of diesel twhewclls revised in 1980-81 were also resin tained daring 1981-82. The revised rates are Rs. 24.000 for barani arcas Rs, 20,000 for salabia aveas and Rs. 16.000 for canal commanded areas, Th Government has provided Rs. 240 saiilion as howell subsidy for 18 against Rs, 48,0 million in the preceding year. Fertilizers 25. The fertilizer offtake showed a steep rise in the mid and late seventies ranging between 14.3 cent and 28.4 per cent between 1975-76 to 1979-80, How ever, this trend had slowed down in 1980-81 and the off-iake recorded a rise of 3.38 por cent to 1979.33 thovsand nu‘viont sonnes in 180-81 over the preceda year. The off-take is estimated to be at fst vear’s level during 1981 Mow growth in fertilizer of-teke has resulted in the wake of eradual with subsidy on fertilizer leading to 2 : ilizer prices. The actual on tion of ferdlizer during the first # months of the cuseeat year is est $80.81 thousand nutrient tonnes indicating ac af LOT per cont compared rece eee 6 PAKISTAN ECONOMIC SURVEY 1981-82 The pplication of fertilizer per 1981-82 as in the swith the corresponding period Tast 58 wabped noc is estimated 10 be $5 notessl © eft preceding year. a ‘The sale price of Series is being subsiizeg by the government, How: ver fa Tine with the over al stategy of ihe Government to remove market Gjatortion and optimal resource allocator and theveby to augment | domestic Gipy, the policy of the Government st ‘Riihdvaw the element of subsidy Seehuny. Wit this end. im ww Ne Government raised the pecies of dlferent ea of feviizer we, Torn March, 1982 hough fill the price caries @ substantial amount ‘of subsidy. AD amount of Rs. 1950 inition is estimated 10 ‘be spent during 1981-82 as subsidy Of fertitizer ce 1 to Rs. 2448 million i new ars old prices of ciferent varies of fertilizer are given TABLE 8 Fertilizer Prices rea 103.00 DAP. 100.00 105.0 cu Aun Nite ; soo 55.00 A. Sulhate am 4700 7300 4.00 Nivo-Phos, 28273 Source Plant Protection ay, plant Protection Programme covers Bh preventive and curative measures in the country. Under plant protection programme. crops ate being mt both by curve and preventive Wee ‘An area of 1.77 million spray hectares Was covered under aerial and grouikd operations during 1980-81 Spuitat the target of 3.56 zillion spray frectares, The targetted area was not oefayed duc 1 low pest infestation Gwe 1580.31. complete withdrawal of sub- va Gestiendes for ground operations in, Panjab and Sind and abolition vf eee aerial operation services excePy '* ‘Paluchisian, Daring the cusrent yea! ee cea an ater of 346 milion SPR Reser ikely to be covered vier plant protecion programme in. the cot ‘An area of 2.90 million coray Hectares is expected to be covet cmujer ground oparations and 0:56 sorts eprayectares under aerial operations, 1981-82 compared to. 1.52 nition pray hectares and 0.25 milion S258 Thectoess in }SEDBL respectively. able 9 indicates the detalis of area covered under aerial and ground operati ducing the last few years sidy HEeeeeeeeeeeeeeeeeeeegeegsett OSCE AGRICULTURE 2 TABLE 9 Area Covered under Plemt Protection (Millon Spray Heccrares) Year \ctial Opera- Ground Op- Total ans erations 197-18, feet 7 Le 1978-79 : 7 eee eH O189. 1979.80 fee Pest 0.38 1980-81 foie : 0.35 1981-82 (Estimeted) 0.56 Source Plan ing and Development Division 28. In order to cover 2.90 million spray hectares by ground operations uring the current year, spraying equipment at subsidized rales is being supplied to the farmers beside imparting training to the farmers in ground plant protec- tion operations. In addition to this, arrangements have been made to provide adequate credit facilities to the farmers for the purchase of pesticides and other materials. Pest forecasting system is also being streamlined and strengtiene’ Improved Seeds 29. Every effort is being made to bring more area under certified and improved seeds in the country to boost sgricultural productivity in shortest possible time. The quantity of improved seed distribuied rose by 16.2 per cont to 60,504 tonnes in 1880-81 over the last year. Of these 31,305 tonnes, were distributed in the Punjab, 6,333 tonnes in Sind, 2,120 tonnes in the NWP and 746 tonnes in Baluchistan, Duving 1981-82. | 95.899 tonnes of impreved seeds are estimated to be distributed : 76882 tonnes in the Prnjab. 1187) tonnes in Sind, 5.289 tonnes in NWEP and 1,866 tonnes in Baluchistan. Wheat, paddy, cotton. maize and gram are the important crops whose seeds are distributed. 30, The policy of subsidy on sale and premium on purchase of good quality and certified seeds of various crops is being continued during 1981-82. The rates of subsidy and premium for different crops in the four provinces are given in table 10. TABLE 10 Rates of subsidy and Premium on Purchase of Improved Seeds (Rssper 40 Kes.) Baluchistan Crops —— Pr Sub Pre sidy)—mium sidy mim» Cotton 4. 10.2 10.72 LM 4.29 BST Paddys 6.974.290.0987 7a Mie... 6.97 4D AS. See Wheat 2 802 4.29 0.9857 857 11.90 Gam. a iy Eee Others 67 4B Rn ind Development Division, rere ae 8 paistan ecosomic suavey 198182 31. One project cach of seve indus the Puja and Sind hay bees cetnblsie? with ‘he, assisonee of IRD? The Poajad Project started tial Sroduction in 196081 and is likely 1, ome into full production by 1982-83 . Peary sind project would stat fall prediction ‘within three years. Tb projects Produce 128,507 tonnes of higher qual seeds annually ‘Mechanization 4, Teacosztion is becoming quite popyar SE the agricultarists fang gs suck there has been & erage in the number of tractors and 38 Sony, The aim of the ith Pisa import about 13,000 to 15,000. tractors annually inthe ous hig was excecied in 1979-00 an 1980-81 as the number of t in these two years stood at 19,313 ve TEAG7 respectively, Anotber O78) wars iH) be imported. during the and ant year, However, upio March, 198° 14,638 tractors were imported. | An seof 112,000 hectares of land was VJeveloped in the countsy, during 1980-8) wre Ge help of heavy earth moving Zoscbnctt find another 126,100 hectares tre estimaica t0 be developed during 1981-82, ing of ifort Kinds of Sanplements such 6s chreshens. Pe ae gpl ane sorazers have been Ren 9P the private sector 5» (rector and impiement pools hay een established at jehsil levels Fre pools are distibuting and hing out wactrt ‘and otlier imple- se pools find to porchase ‘het ow machines and imple ments To Zoiies for malniining, aiming and, SES of various. machines Remijso being expanded J all the proviness luring the current year Agricultural Credit 34, The credit advanced to the ast! aylture sector Nas substantially iner2as ad crete years. While formulating credit plant priority is attached provision to agriculture sicko Fou, fnstitutional agencies viz. A opment Bank of Pakitan, Comment Banks, Taccavi and Gpottives advanced Re 4019.34 mon Saving. 1980-81 giving a nse of 333 tee cont over 1979-80, Ts estimated 0 “8 Tes, 5427 million in 1981-82, thus Midicating a rise of 35 per cent 36, Agecutural Development Bank of RAKES Commercin! Banks and Co operative Societies are the main & edit providing institutions in the coumtey. ‘Com SaereAT banks provided credit facies 19 the OE Rs, 1816.13 mllion during MSL as compared to Rs. 1587.40 milion 179-80. During 1981-82 a sun OP Re, 26940 million is estimated (© isbursed. However, during the Srst Fonts of 1081-82 banks disbursed loa ‘orth Rs. 8012 onillion among the farmers, ‘The Federal Bark for Coopers! anctioned Rs, 1219 million for Freiyeton ¢nd developmest loans GWA fhe current year as against actual dis Pres Hee Ses, 12825 malin in 1984-82. Hower ‘plo March 1982 credit esided by the Bank stood at RS. 84 29 million 36. The Aericultural ‘Development Bank of Pakistan (ADBP) provided cam of Rs, 1066.60 million as credit durine 1980-8) compared 10 Rs. TIL5S sao in ine preceding year, Credit worth Re 31649 milion was provided srg the fest half of the coment yess a8 Rs, 351.21 million im the cor- curing Me period last year. The details regarding dlisbarsement of foans £0 the ere py warious iasituional exe agencies ATFs 1979-80, 1980-81 and st: caer WSLS? are indicated in tle TT OO AGRICULTURE 2% TABLE 11 Agricultural Credit Disbursement by Agencies (Milo Rs) Agricultural Agricultural Commercial Development Coopers: Taccevi Danks Total Year neo wee akistan Tal Goopect- tive Bane 1979-80, T1135 708.64 $.20 0 1,587.40 3,015.79 196081 1,066.60 41,128.25 8.36 1816.13 4019.34 198-82 (Esimates) 5,500.00 1,219.00 14.00 2,694.00 $427.00 Source —— () Planting and Deviopment Division, (il) Ministry of Food, Agrisuture 2d Cooperatives, Aut) Staie Bank of Pakistan, 37. OF Rs, 516.49 million disbursed by ADBP during the first half of 1981-82, 149 per cent ate. shoxt term-loans, 109° per cent are mediumeterm loans and 742 per cent are long-term Joans a5 against 12.9, 9.3 and 77.8 per cent res- peciively during the corresponding period last year. The reasons for rise in ciedit disbursement include; amass contact of farmers particularly small ones through Mobile Credit Officers. extension of the loaning operation to agro-based projects, liberalization of eredit policy, and rise in the prices of loanable ites. The Bank charges a uniform rate of interest of 11 per cent on loans advanced for fixed agricultural investments as well as input loans. However, a rebate of 1 per cent is allowed on input Joan upto Rs. 5,000 if repaid within 2 months of harvesting. The rete of interest charged on all other loans remained at 12 per cent, 38. The Commercial banks are providing interestfree loans to the small farmers owning $.06 hectares (122 acres) or less. The limit of fe interest Toans which was raised from Rs. 5,000 to Rs. 6,000 in 1980-81 is being continued in 198}-82, OTHER FACILITIES Government Storage Capacity 39. The Government storage capacity has been continuously _ rising even then it does not meet the entire requirements, In view of a substantial increase in cfop production specially of food crops there is a need to further expand storage capacity in the country. The total storage capacity available with the Government increased from 2.744 million tonnes in 1979-80 fo 2.900 million tonnes in 1880-81, It is estimated at 3.723 million tonnes by the end of 1981-82. Of 3.723 million tonnes of total storage capacity, 2.90 million tonnes would be available for wheat, 860,000 tonnes for rice and 23,000 toanes.for.cotton by the end of the year. 30 PAKISTAN ECONOMIC SURVEY 1981-82 ‘Agronitural Marketing and Grading 40, The ey agricultural marketing sytem operates and diseetly_affects the producers and the consumers, Bfost Bate ‘been miade by the Government wocmprowe the eystem, The, Government bas iceetiy entered the market by ave, Pakistan Agienitural Storage and Servlees Organizt ot (PASSCO) MoTR, PASSCO makes purchases diset from “he producers and sells various i odities to fhe Uiity Stores Corporation, Tal Departments, Cooperative Siuletes, Defence Services and also in the ope market. PASSCO procured SESE tonnes of wheat, in the Punjab, 31506 comme Mt Baluchistan. 60.28) ons ot T,paddy in Sind and Baluchistan, 100 tonnes of basmati paddy in the Punjab, 1727 tonnes, 1422 tones and S41 Sones of gram, mash and moong epecuvely during 1980-81. During 1962 PASSCO ‘proposed to purchase 950.000 respecte heat, 1375 tBousand tonnes of paddy 10.000 nas, of moong and tonnes Org sizeable. quantity of surplus niasoo! and, fram Besides procure mash anG imports policy play & major role is this field 41, The Department of Agricultural and Livestock, Produ Marketing and Grading is responsible for gracing of agricultee! commodities of export, research Gimtgreltural commodities and marketing ineligenc ‘The Department has on parrreauced the grading of 13 items which incite ‘wool, animal ‘air, a mcg, hides end sins, lamb skins, fish meat, Gy fish and shell fish aege chilis. ofl cakes, potatoes, citrus fruits, ime ‘and lemon under the Agri cess, cMpreduce gracing and marketing act 1937.” Tab 12 indicates comme. Girec‘graded and tested during the fist 9 months of 1981-82 and 1980-81 TABLE 12 Commodities Greded and Tested during 1880-81 nd 1981-82 (Quly—March) _——_—____—- eee —_—_——- ‘Nome of Commodity Unit nity Graded X 1981-82 lly. ‘March Weel. + ‘ Ks 3685994 4250.87 Anitoal Hae. Ke 1385001 1.120914 Animal Casings 7 7 Hanks 383889 947,701 Pieoss gsr 610,470 LambSkins ss Pieces 40.000 129,780 Dry figh'shell ish Ke 46ans8s 613.029 Fishel Tonnes 1980 1.06" Oilcakes Tonnes 25087 11,089 Citrus feuiss Crates 74s 786,000 chillies eee . Ke 2amners 1,031,000 Potaoss NM. tonnss y765 24019 . Nos. 705,600 oe Tare roAgrontaraland Lives Products Merseting 22d Grading Department AGRICULTURE uM 42, Jn the field of marketing research a number of studies are in progress Ywo reports. one on marketing of * Sheep and Goats’ in Pakistan and the other on‘ Meat Production’ and Marketing in Rewalpin-ti/Isiamabad, have been com- pleted and issued. Jn addition to this, the spade work for laying down national erade standards for mangoes has also been compicied, a Agricultural Education, Research and Extension Services 45. The progiammes of agriculiural education, research and exizasion services nade sat'sfectory progress during 1980-81 and 1981-82, The existing facilities at University of Agriculture, Faisalabad) anc) Agriculture University, Tandojam tne being expanded and strengthened. The Agriculture College at Peshawar as been upgraded 10 the Ievel of university, At the Barani Agriculture College Rawalpndl, fiservice taining facilites were provided io 150 persons during 080-81 and the same number of facilities are being provided during the current year, The inservice training and pre-service facilities at other agricultural insti Tutions such as Agriculture Training Institute Sargodha, Rabimvar-Khen and Sakrand are being expanded during the cuprent year 44, Jn research field, a number of research programmes on wheat. rice maize, batley, sugarcane, millets, oilseeds, forage triticale and fodder crops were neried out an 1980-81 in various research institutions. These programmes are Slee continuing during 1981-82, Efforts seve also made 10 evolve high-viciding Tesieer “esponsive and disease resistant varieties of all major crops évring 'SBOLBL, Some of the high yielding vericties evolved/released ox selected for general cultnation are as under :—Panjab «| Wheat V-1287 and verry. Cotten HINH 93 and MNH 79, Rice : basmati type 42664001, 4010, Gram: C-4# CM, BC-AD; Sind: Wheat: Z-A 77, Rico Sind basmati, NWEP : | Wheat Khyber 79, veery § and C 3, Rapeszed Mustard candle and tower, Baluchistan Wheat sarghoon 79 and Zamindar 80. 45, Main cmaphesis is being placed on strengthening ané reorganization of sgvicltural extersion servioes on scienifc Tines through training and visit sister! apicyiaine proet cach in Sind and Panjab based on T&V system is cise implementation with the assistance of World Bank, In Punjab the prey wae as been taken up in 5 districts covering @ total area of 65 miliog frees, In Sind the T &'V system programme covers 12 hectares. In NWFP TAY programme covers 0.611 million hectares and training ‘of farmers und staf is going on in the province Water Logging and Salinity thy confronted with the twin menace of waist logging ieee 46, The country is present ‘Huge tracts of kinds howe been affected by water | ves have been teken to check this problem.” The most sietTqme inthis connection isthe Accelerate! Programme which is bong imp RTP WADA. The profes under, his programme suainly conosin WS fastallation of tubewells and construction of surface ‘drains to check water logging aa An area ofS milion estas had been, roiered from wakes ene Se upto Tine 981 and another 0.174 milion bectares is estimated 10 2 PAKISTAN ECONOMIC SURVEY 1981-82 be protected during th current year. Uades, SCARPS prose 318 tubewells oe oie ied cine 1980-81 and 323 mbewells are estimated 10 BS instaltee. py the ond of June 1982. Surface drains measuring 101 MCFT were constructed Minne (580-81 and 245 MCFT. of sucace drains are Fels 0 toe constructed Suring the current year Animal Husbandry 47, The livestock sub-sector of agriculture plays an important role in_ the eoney a it provides milk, ment, bute, eggs and fh for Human consumption ceoneny ABs, wool und anil air for domestic conor well as foe axports beside being a source of #5 per cant male BPE, and farm yard a eaeetar crop sector. T's contribution to GNP is arownd 8.05 per cent, The Tivestock population is given in table 13. TABLE 13 Livestock Population in Pakistan (atition Xe) species 1979.80 198081" (sims) Bataloes EEEEEGEEeSEeeeeeeeazetstatea” feed JC 2eecee seestente cae : pws 80S Gane -rH FEES eee Poe eeH 16 302 Shee EEE Eee eee eee ree EEE Poty cee ns 79 OF camels. SEEPS eer oer Eee Donkess ais Perea a Peete eeeeeeve eee pesieet fetece eect cence dapeet gett ee Aleem CECetE Muks : ee ee ‘Sonsee + Livestock Divison. 48, The livestock products also went Up &s @ result of an increase in animat population which is evident from table 14 Beer eeeeeesee eae AGRICULTURE 33 TABLE 14 Livestock Products Products Unit 1971-12 1975-76 1979-80 1980-81 (Estimates) Milk production + Million tonnes 7.8 8.3 9.09.2. Milk available for coasumption.. 63 68S Beef 000 tonnes 688M ‘Mutton se 208 RR 88983 Poultry Meat ee 4 25 4s 2 Bees Million Nos. 5831159 2088287 Hides Million Nos. 4300 4S 4 48d Skins 7 eee eet 164 22.8 3170 4D Woot . 7 000 roses 22 0.7 a6 46.2 Hair 7 +000 tonnes 29 4a 57 6A Guts Catdle/Buffaloes + Million Nos. 43 45 48 48 GutsSheep/Goas we 29 304 29 Bones =m 000 tonnes 1B M208 Fat ae B 7 o Blood eh 169 20.39 2,73 Estimajes based on growth rates of agriuitiral livestock censuses of 197 Source : Livestock Division. 49. The per capita availability of major livestock producis from loca sources is given in table 5. ‘Tante 15 Per Capita Availability of Major Livestock Products Local Sources Producis Unit 197-72 1975-76 197980 _ 1950 (estimates) Milk... wo Ke 0 88 Meat Excluding Fish) kg 9.3 1110s ais Nos. 9 16 6 a 2 Livestock2pDivision, rrr cere cer cera eee eae eee uM PAKISTAN ECONOMIC SURVEY 1981-82 Livestock Production 4p, Livestock Production Research 9 Behadumagar and 33 livestock farms 7 experiment stations located in carck concentraticn azeas ofall Me Eauy provinces conducted research on A ‘rails of economic importance Hpeludang browding, feedmg, managerneh “Mg marketing, Main attention, howe races foouse on cross breeding programe involving exotic, breeds. Bre ever, Weg proven. sires and atc! peemimation for increased productivity dacal, ctl, goat and sheep The rasureh was also concentrated at devising image and gneans to merease Pogue safeoe calving interval and éty period mals induce cary maturity and faster growth rate, 5, Artal Tnsemination Propeerame ‘continuing successfully. A chain cof 102 centres and 142 sub-cemties mamfered. over livestock concentration, 868% provided serve facies mainy settine and buflloes, At these cents provieefeom Tooal and, exotic bulls Were Sized, More than 106 thousand Senet exotic semen have 89 far Dest Teapored i the country for uperadaton soseal serub ania. Apert from MY npomen production unit at Quadirabad « eeang 48 bulls also proguced sregard doses of exotic, semen and malniieand ses of semet of local SUPT ‘pulls and buifaloes bulls. Most 1 Meemen have been sued 10 Bele Ot Nes for utilization. In such cas cere. artficial insemination facies 8 td act be provided, supetior breeding where fore eistibuced for uperading uid Teak population More than 5 Tgeding balls, 2600 breeding Fam ne Hsp pucks vere issued ftom livestock farms for breeding, Spiny-zignt hatcheries produce 1S niltion day old commercial chicks eats for ineeased producthity ‘Move. than, 3000 commercial, poultry of exer progucing eggs and meat it ite Mommy, Thirty feed mils with capacity 10 produce 450 itdcand tonnes of compounded feed Hive produced eae thousand toanes of fend Shin of 94 veterinary hospitals, $88 stout 3 dapensaies and 2173, velennary aim es provided veterinary care and vette and vacemation facies ferent concentration points. These Hospitals also acted as cet of es i procacton eal extension oot" iso tion feels were provided. by St Diagnostic Laboratories qualified stall Fisheries 53, This subseetor 15 not only Simp the national economy because it provides the cheapest sours rote but aso contributes |b) earning Ploy exchange, throush fish sxPore The share io GDP at constant factor Cost foveiseLed is 0.3 por cent and tn OCT emning, 337 per cent. Fish, expott in Mae amounted 10 Rs 3905 mllen oe G79.80, went Up 10 Rs $822 milion earl ang a ise of 5.4 per coal iB vaotay ove the last year aad i estimated ve SOLS mallion during the Grst 9 months of 1981-82. ‘ sy, Efforts ane being made, 10 rie, Beh proguoion both. of sesh and sales fisheries by exploitation of all p te revoures. In view of the implemese tation of prosranumes Ask production fg expected to increase (0 301 ‘oan We Mrmmpared © 297,000 tonnes in fhe preceding year, A number projets are under, various S1A8e Gp execution for increasing both matin fi rogueton uneely inland fish production in Sind, Baluchistan, Punjab aad NWI Sere eae eeeeeadaeeeCeeeedtt Cesc cece AGRICULTURE 35 $5. In NWEP. 08 million of fish seed was produced in 198081 and it is estimated that 1 million of fish seed would be produced during 1981 The fish seed production in large scale is likely to raise fish © production specially at private farms. In Sind, Second Marine Fisheries Development fect is under way with the assistance of Asian Development Benk end EEC costing Rs, 564 million, In the Punjab 12,800 tonnes fish and 5.9 million fich seed were produced during 1980-81 and during the current year 15,500 tonnes of fish and 10 million fish seed is estimated to be produced. Ta Baluchistan, about 70,000 tonnes of marine fish was produced in 1980-81 w famother 71,000 tonnes marine fish is being produced in 1981-82, Forestry 6. Pakisten including Azad Kashmir and Northem Areas spreads over about 817 million hectares, out of which only 9.8 million hectares are undr the control of Forest Departments. This include 3.7 million hectares of forest area, 6.1 milion hectares of range lands and 0.032 million hectares of lincor laniation. Produstive forests extend over only 1.3 million hectares which is nly 35 per cent of the total forest and 1.5 per cent of country’s area 57. The Government controlled forests produced 242 thousand ‘cubic metres (au3) of timber and 483 thousand of firewood during 1980-81 and are estimated to prose, about 280 Thousand m3 of timbor and 450 thousand m3 of firewood luring 1981-82 as against the retail requirement of 1.96 million m3 of timber nd 164 million m3 of firewood, The gap is to be met by-the production from farm lands and imports. Pakistan has to spend an amount of about Rs, 1000 million on the import of wood and wood products each year. 58, To fil in the gap between supply and demand of timber and fire ‘yood, efforts are being made to motivate the people for tree plantation through tree plantation compaigis which are launched twice a year. During the tu Tentetion compaign in 1981-82, 79 million planis have been planted by boi fovermment agencies and general public, Punjab have specifically launched scheme entitled Farm Forestry at a total cost of Rs. 14.00 mailtion to motivate the masees for tree plantation in farm lands. Similar efforts are also being made sind. Provinefal forest departments raised compact plantation over an arca UF 8368 hectares and liner plantation over 3021 avenue kilometres during 1981-82 on government lands. 59, To provide planting material for raising tree plantations, provincial forest departments Have raised fresh nurseries over an arca of 423 heciar's Table 1€ compares the compact liner plantation and nurseries raised by the forest departments during past 4 years. TABLE 16 Plantation Raised by the Provincial Forest Departments rn Plantation 197%79 1979-80 1980. nee ‘Compact Plantation (Hectares) me aSIT GAG 8 8268 Linear Plantation (Avenue Kilometres) we TABS 29962 SASS RE Nureerios(Hectares) 2 wees RR 5S 483 Source 1Ministry of Food, Agrivult wre and Cooperatives: (®) Prov screl ——— ats 6 [PAKISTAN ECONOMIC SURVEY 1981-82 0, Tasbela andl Mangla dams arevol 4 Bret importance to the economy. ‘The life span of these dams depend.upoe the vegetative status of their cate. gents. For the proper management of the Vital catchments, 11 development meres with ral cost of Rs. 213 ‘million remained .under operation SOE Departments uader watershed Tanagement programme during 1981-82 Under these schemes 18282 hectares 3% estimated to be afforested, 0-716 million Of fruit piants distributed 0 the people for the plantation in the private land fd land improvermeat work extended over 57,256 hectares. 1, Various development sthemes are, unter operation in dry tracts of Pond and Sind, ‘These somes 8 Mt the improvement of potential of Tange lands which can be increased, Mant fold with proper range manage- rane About 2910 bectares ate 10 he My geded and 91 water points will be spemt ped for better grazing managernent uring current year. 2, Seeuture % an, important subsector, of forestry, It provides an additional income fo the farming commun’, ‘A quantity of 200 Ke, of silk sted aodiomrbated in 1980-81 which produced ‘91 tonnes of green cocoon, About SH) Ke. sik seed is to be distributed aman the farmers during 1981-82 whieh 2 SE ed to produce about 350 tonnes of green cocoon. 63, Pokaan Forest Tnstitte 1S the pM A! {nstitution responsible for cond eting research and imparting, taining (t evelopmest and management conde, esoutes the coon Which Cons Of forests, rangelands, waler orp and wife babies, These eteas cOVeT HE than two-tbird of-the total ieee rea of Pakistan. The, Insitute bas no nly toained. all the professions! tang cppeproesesiona Tevel forestry officers presently working in diffrent pips a Meat departments ut aso ofa, om everal friendly countries i Ree and. Africa since its inception in 1947. 64. Work on research projee's jag development of ausery techniques, aftorectaion of dry zone ares, genetic imprO‘emer Of local tree species, ceter= i silty netic immer, local comitons, feasbiliy of mechanization y eefontro} of insects and fungal disease os mechanized and extend. 10, dill! pats of ‘he. country during 198182. were comtrices were provided to the field offces cf provincial forest depart: aiete, woodesing Goverament departaees aod private indusiies regarding mentation and ullization of wood. Seed and. planting stock was also sup: fled to the field ofters for planting Fs Fh October, 1981, 15 students pled “Guy completed their MLS. and 13 Seniene heir BSc. Forestry Course. ‘ACpresent Al students in MLS. and. 29 ‘uadents in BSc Forestry Course are At preseting respetively. ‘ia adifon & since ‘mnder tsaining in MSc Forestry. (vith Specialization in Fores Producis Engineering), Current M.S. Forest as students from Bangle Desh, Sudan ‘and Nepal. QUANTUM INDEX OF LARGE-SCALE | | MANUFACTURING (Base: 1869-70) 490 - 180 - 170 - 160 ~ 150 - 440 ~ 130 - 400 ion 4 INDUSTRY MANUFACTURING is the second largest sector of the national economy Tt accounts for 17.0 per cent of GDP. The industrial gains made in the recent past are largely due fo the present industrial poficy pursued since 1977 which marks a reversal from the previous one. It aims at reviving the private sec:or’s confidence, hitherto been shakea, and assigns a greater role to the private sector in industrial development. Apart from providing e suitable institutioncl freme-work, the government bas ensured to the private sector a wide spectrum of incentives covering fiscal and monetary concessions, liberal import of raw material and machinery, streamlining of investment procedures and legal protection. The policy bas received a positive response from the entrepreneurs. The stagnation experienced in the early and mid 70s bas been replaced by sustained recovery. The rising trend of all industrial performance indicators registered during 1977-82 provide a stark contrast with the earlier period when most cf them were persistently sliding down. The menufacturing velue added with an initial rebound marked by a growth of 92 per cent in 1977-78 continued its rising trend since then and bas recorded a peak growth of 121 per cent in 1981-82, 2. Besides these trends, remarkable achievement has been made in fields like self-sufficiency in sugar, diversification of industrial base bath in ‘erms ef region and commodity, and import substitut’on in such items as steel, ferilizer, cement etc. The situation has had all along the sunport of the continously rising tedency of capital formation ie. investment in the private sector where investment sanctions by March 1982 have exceeded the Five Year Plan (1978-83) target by 165 per cent. nen rere errr rere rere 38 pakistan economic SURVEY 19882 MBASURES TO ENCOURAGE INDUSTRY 4, Principal measures and incentives provided by the Government are indicated below. Policy(institaitomal Measares (i) Many fundamental policy, end institutional measures bave been taken £9 rests the confidence of the private 22808 ‘yell as to attract industries to estore aratively Tess developed regions of Shr Sounty. ‘The agro-based industries hs cop rationalized in September, 1977, Fam subsequently in December, 1977, 8 were ego formula deineaing the SBberes af private and public sectors it deareal Hebd was announced. AccOrene ‘hs, the heavy and basic chemi= ind cement industries were opened oe development by the private secior cae a case of fher beasy and bask ‘fastries, the extent of fabrication yetwween public and private sectors were stead Procedure for the sanctioning pettrojedts was simplified and time (@k=0 7p their processing reduced. i) Indosiries involving investment of Bs 20 suillion with foreign exchange comprnent of RS, 10 millon ate exer ean obtaining prior sanction except Tee ich involved substamial recur Fmport Liability, and those based om thos en the import of which is banned unéer ‘import policy. (iy The Tax, Holiday sobeme was tunched in March 1978 and since then coverage extended 19 more areas and inet ‘The Fifth Five-Year Plan which Faye dava a Tongtenm framework. for Wasstral development and provides for tage down faphasis to the pete sector bas Pete Tauncbed in 1978. Industrial a st nea Sebedule was announced APE 1979 for guiding and assisting prrate and public sector til in pat toward channels which would Fae a Mjectives and strategy of indus ‘eotor as indicated in the Fifth Plan. ‘the Government has promulgated “ Trane cof Managed Establish; nent Orser, 1978" and "Protection of Rigs of Industrial Property Order, 1979.” The form dhe Federal Government 10 offer 0 the former owners Te Hnalsd industries the sbares OF RODE jerest in acquired establish- ments, As a result, the Now g Co, Ld, and Labore Engineer” ihe & Foundry Listed, were retured © ir former 0 ‘According. 1 ime aur Order, indvstil units cannot be aequired arbitrarily by the Governy Meat, es was done under the “ Economic Reforms Order, 1972" Monetary kncentives “The credit poly places 2 greet emphasis © adequate provision of credits to intustry in the private setor, Mandatory target jg set for small scale industry ide edit plan, Yn Joly 1978, the interest Be Toans for fixed investment ip Ghdusty and agriculture was seduced fom (24 per ceat to 11 per cent "Tuas is Yess than the interest of 14 per cent ‘charged on, commvercisl loans, On upee Toons for purchase of locally fabricated miachinery, ID.BP. chat Jnrerest at the rate of 8} per cent. ‘BICICNDEC also provide loans for purcha: mes fy fabricated machines at concesiondrs A Bankers Equity Limited teas been estblished to make up rupee cauiy gap being froed by private inves, has bestaegn,requiremests for establishing LCS (or importing some industrial tos, Mare nave iso een reduced, The sCOPS Oh ‘the Export Finance Schem: ra been expanded and the rate, of ‘nlerest o9 ‘pank advances for items covered by the scherae Bas been reduced, in Sages, from 10 to 3 per cent. In the cas> by the Sfports of locally magulactured machinery the interest rate on bank lavances has been reduoed to 2 per cent i INDUSTRY 39 Fiscal Incentives (j) With effect from September 4, 1978, compensatory rebates ranging fr ‘Ty per cemt to 124 per cent on F.O.B, value of the xports. of inany “toton textile products have been allowed. This incentive has been subsequently extended to manufacture of engineeting goods including electrical appliances and ‘machinery and trausportation equipments, canvas footwears, acetate yam, tyre ‘code at the rate of 10 per cent of FO.B, value, cutlery, sports goods and surgical instrurnents (ii) The Budget for 1978-79 provided further incentives to the cotton texiil2 industry, central exeise duties on cotton cloth and other cotton producis such as hosiery and towels, and import duly on textile machinery for balancing and modemisation and new wachinery imported for manufacture of garments were abolished, (ii) Import duy on raw materialsjcomponents used for capital goods was redueed from 40 to 30 per cent in 1977-78. Te 1979-80, tax credit was increased from 10 to 15 per cent of the cost of machinery and equipment meant for balancing and modernization Tax on issue of bonus shares was abolished. The other incentives include tax rebate of income from exports, the tax relief to cooperative societies, super tax rebate, tax ctedit on investment by companies in shares and debentures and sakes tax exemption on machinery. (js) The fiscal incentives were further increased in the 1980-81 Some of principal incentives include: income tax exemption to indust Expoa Processing zone Karachi, setting off current years’ Josses of a wholly owaed subsidiary against current year’s income of listed holding company, initial Gepreciation allowance to industrial machinery, extension of tax holiday scheme to ess developed arcas, duty free concession on machinery imported | for industries in certain less developed areas, reduction in duty on ships for breaking ‘and abolition of import duty on machinery not manufactured Jocally for BMR of the tanning, cullery, surgical goods, sports goods and leather garments and gloves industries, (v) Some additional fiscal measures to encourage private industrial inves: ment were announced in the budget 1981.82: major among them are (a) txiting of initia! depreciation allowance admissible to plant ané machinery hes been raised from 25 per cent to 40 per cent, (b) monetary Timit of investment for the purpose of tax rebate was increased from Rs. 40,000 to Rs, 45.000. (©) the standard rate of sales tax on all locally produced goods has been reduced from 20 per cent to 124 per cent, (d) tax concession has been granted to domestic carpet exporting companies ani engineering goods on account of publicity, and free sampling abroad at the rate of 1-1|3 times of the actucl Expenditure, (e) chip-board and parlicle-board having thickness of more than 7mm, have been declared exempt from levy of sales tas, (B) to encourage the manufac~ ture of machinery and consumer durables, the duty on dies and moulds has been reduced from 40 to 20 per cent and sales tax has been entirely withdran, (@ duty on the import of hydrogen peroxide, an important ‘raw mateial for textile industry, has been reduced from 85 to 40 per cent, (h) in order to reduce the burden of surcharge on companies with a view to creating better climate for invesiment it has been decided to reduce it from 10 per cent to 5 per c=tt, (3) compensatory rebate at the rate of 124 per cent has been granted on the export of hand-knotted woollen carpets and leather goods, (f) encourage the ‘marble industry, duty free concession has been allowed on the BMR import Of machinery for this industry and to the Gemstone Corporation for the impoct ‘of machinery required for cutting and polishing of gemstone, and (k) as a measdee St protection to focal industry the duty on the import of natural yeast, geste Sie carbon black, sulphur bleck, cement coloured, white and grey, plastic rrr err eee eee eee 40 PAKISTAN ECONOMIC SURVEY 1981-82 sjoulding compound, manmade SO: sanivary-wares, Kitchen-wares and tes tras enfaanced substantilly- Giher Measures (i) Tcentves for Overseas Pabisani-Machinesy plo, value of Re, rio ip allowed to bs imported 480 vnon-repatriable investment, without May peice sanction, [FOr any ASePeY, provided the industry proposed {0 Be 20 ap does not involve substantia ng import Lnbiity and the machinery se ot ortable une the émport poliy *A'Sponsor can apply for import Hoescs is moprchinery dinetly to the Chie Ssoutller of Taxpor's & Exports (and eso for masta! counselor, Embass} of Pakistan in UK) if woasepatiable to eam is proposed to De made it inst Yor which no sanction is required. aereat Suty is payable oo the impor a gchinery, ‘The NRL (NowRepate Nie tnvestment) projets are enciled Je per cent concession in, normal ion duly applicable. signin fBatave. of the policy i that after, the capery ofthe unit has been installed. te sold within Pakistan. Earlier, machinery imported under NRT Scheme cud not be sold for at least three years i) Enport Procesing Zones (Karachi and Lahore) An Export Proves ing Zone has beet St UP at esracht near Landhi initially overt an Sst of 4 hectares (0 attract foreign ‘Rhesiment, acquire modern echnology and boost veri. production and export of ntrfectured goods, Import of machinery, omponents and raw materials cr Mesiral underakngs in the Zone and xpartizeexport of goods ste oly allowed and aze exempt from all taxes and duties, incuding municipal taxes y aectment in Zone have been allowed into tar cremption for a petiod of 5 Yeats ry capital gens on sale of ases|hares will be exempt from t@X. a ne faalities Tike water, electricity and telephone connections Fav development of phase-T Of the scheme has been fully com sea. Tt includes construction of roads, Shuerage system, electric supply ot So far 62 applications for setting up of Fndustrial units in the Zone have been received. ‘Out of these, 19 project spplications envisaging foreigm ve estment of US § 61 million in the fi Seucturat foam, ceramic th i z fximum extrusion, a Somnputer forms. printing and packaging 20d ball bearings ta Shrew projects are likely 10 comment production by 1982 ond will provide Employment opportunities to 3.000 Paki vorkers, besides increasing export Docent by enother US $ "sere milion per annum. Ths is ju & ‘beginning. povemoped that exemplions and cOzeessOns, allowed to foreign investors in the Zone at Lahore will be set up lel Of ‘The Siate Bonk of Pakistan hive ‘ilowed 6 Pakistani and. foreign Tasks to open their branches im the zone and fequest of three more benks 1s being processed. TREND OF INDUSTRIAL PRODUCTION 44, The manufacturing sector, as recorded a growth of 121 per cent uring 1981-82 with @ component Pes aap of 140 per cent grow large Saree yanufactaring and 73, pel Oo jgrowth in small seale manufacturing Saoowding to the provisional figures, out of 16 selected fincipal jndustrial items, 15 have cegistered substantial jmprovement during Taly-March, 1981-82, over, the I of July-March 1980-81, while one recorded p gectine, ‘The substantial in MM itnesced in the out-pat of Suet’ (35.0%) followed by Phosphate, fertilizer (19.3%), MS. produets (+17.0%), Geropenous erties (+15.3%). Sods re CETL 3%), Cree tyres, and (Uo NetZ0%), Cotton yarn (E832) fate goods (--106%),, Vegetable ghee (488%), Sulphuric a0id (47.3%, Ggpreies (455%). Bieveles (+63%). Cotton cloth (+5.2%), ‘Caustic soda (+ 45%), and Cement (42.9%). While production of Ekcsic fans Tegistered a decine during the same ‘period. ‘The Premd of principal industrial ites 1 shown in table 1. € EEE EEHTTE-eEEEe-eLEs Tey CCCLCese LCC COTTON YARN COTTON CLOTH Wien Ks [~ tonnion seers | 400 {800 ulieHt | | 300 ! 400 PCH Er 200 0 NITROGENOUS FERTILIZER PHATIC FERTILIZER a (000°H] Foanes} j | 1500 NT Teanes) 0 | | 400 + 40 Ty t i 0 0 1200 SUGAR "000° Tens VEGETABLE GHEE 600 al tT 600 th 4 | fas | I ry 6 LLti 200 6.00 MILD STEEL PRODUCTS aye" ronmes CEMENT anon 400 Len 3000 Lo T + 200 2000 eee: BEES “apnea INDUSTRY RDA) 18-0861 1s-0861 OS-6L61 —6L8LOT uoponpoug JUIsnpuy jo puasy, Lata, 2 PAKISTAN ECONOMIC SURVEY 1981-82 Cotton Textile (a) Cotten Yarn srodvetion of cotton yarn increased by 83 per cent during Suly— March, 1581-82 over the corresponding period of lest. year. The quantity of vam gxporsd, however, declined by 84 per cent from 62.4 million kg on July-March 1980-81 to 63.6 milion kg during the same period of 1981-82. Whe tbo export unit value slightly rose by 1.3 per cent, the value, of yams exported c2ciined by 72 per cont from Rs, 1465-1 million during July-Mareh, TOBOR! ro Rs. 1,359.0 million in July-March, 1981-82, (b) Corton Cloth 6 The production of cotton cloth: (millage) recorded an improvement of from 2287 million sq metres during Tuly~Merch, 1980-81. 10 fo, metres in Suly—March, 1981-82, Stif competion in ths tonite market, coupled with’ tarif and non-tarif! barriers imposed Tes, ate stil having adverse effect on this industry. To problems goverament continued to provide con: Fons ain! ike institutional policy measure for boosting up its export Asa Th the quantity of cotton cloth exported (inchiding non-mill sector) has Sputanty inereased by 22.3 por cent so 4420 milion sq. metees during Tuly-= Mock, 1981-82, from 361.7 miltion sq. metres during the same, period: of last fear, ‘The value of exporcd coxion cleth substantially rose_by 28.2 per cent 10 Re sy03 million during Jsiy—-Marel, 1981-82 from Rs, 1711.2 million during Corresponding period last year. Similerly the unit value also registered a rise of 48 per ceat dating the same period Jute Goods 1. The output of Jute goods recorded a rise of 10.6 per cent from 36.9 susan tonne in July-—March, 1980-81. t0 40.8 thousand tonnes in -Tuly-— ran 1981-92, This merease i atribwanble ¢0 better availabilty of raw jute dot instattaticn of additionsi capecity. There is an expanding domestic market jute goocs, Thirteen jue millezch with « eapacity of $4 looms have Bees sanctioned. Vegetable Ghee 8 The output of vegeiable ghee has registered an increase of 88 per cent to 4161 thousand tonnes curing July—Mareh, 1981-82 from 382.5 thousand tonnes durin the same poviod Inet year. This increase wes largely due _ te dhe adequate imports of e¢ivle ofls for the mils to suppleraent domestic supplics Saviog July--Merch, 1981-°2 an adequat> quantity of 375.23 thousand fonnes of edible oil was impor tion of Pakistan (TCP) and 07.38 thousand tonnes 2d of] as procured, \ new ghee in the private sector fas 2iso gone into production Sugar 9, Phe ontput of refived sugar has registered a substantial improvement of 35 per cent 10 10200 thousand tonnes during Suly-—Merch, 1981-82 from a evel of 7554 thousand tonaes during he corresponding period of last year. This improvement was attributable to the larger availability of sugeseare to the rill sector, longer crushing period, and incentives given to the mill owmers jn the form of rebate in excise duty over a certain portion of production, and the free sale quota allowed tothe mills. Its production for the whole year is expected to cxcted 1.2 million tonnes, thus showing an increase of 41 per cent over that last year, an all time production record. ST INDUSTRY 4B Fertilizers 10, During July—March, 1981-82, the production of nitrogenous arid: phos- phatic fertilizers increased by 153 per cent and 19.3 per cent respectively over the levels of the same period just year. This improvement was due to better capacity utilization of the installed capacity. Besides, Pak-Saudi Mirpur Mathelo, siarted commercial production from September, 1580. Hazara Urea project (44,022 N/tonnes) started trial production in March, 1982. The Fauji Fertilizer Company (250,000 N/tonnes urea) -also started production Guring the period under review, wile expansion of Dastood Hercules urea proiort (158,000 Nitonnes) is expected to be completed by 1984-85. Cement LL. During: July—March, 1981-82, the output of cement increased by 29 per ent to 26687 thousand tonnes from 25933 thousand tonnes. during thy corresponding period iast year. This was due mainly. to expansion oi the jnstalled capacity and upward revision of its sale prices, - With the completion cof the Thatta Cement. Kohat Cement and Dandot Cement projects the total jnstalled capacity of cement industry will increase substantially. In June, 1981 the price of cement was incteased by Rs 100 per ton-or Rs. 5 per bag to Bs, 1,000 per ton or Rs, $0 per bag. As a measure of protection to domestic cement industry. duty had been imposed on the import of coloured and white cement upto 20 per cent and on grey cement upto 10 per cent, Again om 6th January, 1982, the price was roised by Rs. 2.50 per bag as its production cost hhas risen due to increase jn gas charges and partly to meet the effect of a increased electricity charges which were not added subsequently towards its cos! ML S. Products 12, The output of this item has substantially increased in the recent years It recorded a rise of 17.0 per cent to 412.6 thousand tonies during Fuly—Merch, 1981-82 over the level of 3528 thousand tonnes during the corresponding per'os of 1980-81. The increase in production was due mainly to the adequate avaii- ability of iron scrap to re-rolling mulls from the ship breaking industry, The ship-breakers were allowed to import unservicéable ships ata level 50 per cent higher than the value licensed during the preceding vear and the L/C marg requirements was also lowered from 30 percent to 25 per cent, The im duty on such ships was also reduced from 50 to 30 per cent and the sales te of 8 per cent was abolished. Bieydes 13, Production of bieycles increased by 6.3 per cemt from 257.8 thousa uring July—March, 1980-8} to 2740 thousand in ulyMareh, 1981-82. T: increase is due to its rising demand in the rural areas and also on account of higher transportation cost resulting from: increase in POL prices. PUBLIC SECTOR State Industrial Enterprises 14. In 1972, the Federal Goverment took over the management of 22 large industrial units falling under 10 categories of industries under the Economic Reforms Order, 1972. These units alongwith the units managed by the Pakistan Industrial Development Corporation PIDC), were subsequently regrouped Yndustry-wise into 10 Corporations under the overall supervision oft now defunct Board of Indusivial Management (BIM), These Corporations were Gy Federal Chemical ond Ceramics Corporation (FCCCL), (i) Federal Lich’ 44 PAKISTAN ECONOMIC SURVEY 1981-82 Engineering Conporation (FLEC) (i) National Festiner, Corporation (FO, {ivy Pakistan Automobile Corporation (PACO), (x) Pakistan Industrial Develop- Oe) Peeemoraton (PIDC), (W) State Cement Corporation of Pakisan, (SCCP, aw ate Heavy Engineering and Machine Tool Corporation (SHE&MTO), (uit) Siete Petroleum Refining and Petrochemical ‘Corporation (PERAC). WA) National Design ané Industal Services Corporation (NDIO), and (x) Pakistan {) National Urperation (PASMIC. While Nos. @ to (vil) were contotie Stet Nigming ants, NDISC was a por-manufacturing, organisation and the BASMIC was responsible for setting up the Pakistan Stel. 15, The Board of Industrial Management (BIM) which was controling hess Corporations was dsglved in May, 1979, an the Corporations a fo, ‘directly Corporation, wie Sabmistry of Production. To, tanage the affairs ofeach company unit satisfactory, Boards of Directors have been constituted for each sora any. To rationalise the working and achieve efficiency, thes Corpore- ons, namely, SHE & MTC, FLEC and State Electrica Corporation of Pakistan Mons, pam erged to form Slate Engineering Corporation, while NDISC has been abolished. Performance during 1981-82 16, The public sector industries ander the Ministy of Production have shown sobstniat iorovement and have maintained its upward wend in production, sales, pretax, profits diving 1981-82 in comparison fo the coo petiod last year, The ret Nnifcant feature is that all the corporations have shown profits for the Meond year in. suocession over previous year. ‘The operate results of the seeomises for the sear 1981-82 88 2 whole are summarised below : (Rs, in Mion i Tacrease/ Gneludiog Decrease projetion —————— ‘ot Aon. Amount Percent Tune, 198). oaio4s F1N61.68 313.8 Sales at 1779727 #257108 416.89 4308.04 441.32 +aigt FLT Ministry of Production Production 17, It will be observed from the above table that production index at cons- sont prices of 1977.78 indicates an improvernint of 13.43 per cent over last year. The mnost significant improvement is in Pakistan Industrial Development Coz- ouaion which shows increase in production Inds ¢org 1981-82 by 40 per ceut, Pug Ggnean inoease in production is atrbutvble to bevy capacity. uiliza- Tes eana Sugar and Bann Sagar Mills due to beter avalabt of sugas~ ton of Ktjonal Ferilizer Corporation has also shown, significant improvement ag por een over the previous year whic is attributable (0 Pak-Saudi Fertilizers Thich operaed for 9 months during 1980-81 and for ‘whole year during 1981-82. sphieh Spertorporaions which showed increase ia producti Ging the current fear are Pakistan Automobile Corporation (18.1%), Sale Engineering Corpo! EE Udy, State Petroleum Refining and Pevo-chemical CofPore oa (7.1°5). sete Cement Corporatin (5.7%) and Federal Chemical and Ceramics Corpora tion (5.6%). SF LL ill INDUSTRY 5 Sales 18. The total sales of ibe public sector corporations during 1981-82 including estimates for April—June, 1982, work out to Rs. 1797.27 million as compared to Rs, $5226.19 million dvsing Jest year, showing an increase of, Rs. 2371.08 million (16.89%). The highest sales increase of Rs. 654.94'million is by National Fenllizer Corporation which is attributable to increase in the volume of sales. Siate Petroleum Refining and Petrockeraieal Corporation is showing an increase of Rs. 631.28 million which is attributable to higher production and increase in. ex- refinery prices, State Cement Corporation is showing an inerease of Rs.482.70 million ‘which is mainly due to increase in the prices. Pakistan Industiai Development Corporation is showing an incveas of Rs. 119.32 rnillion which is attributable to increase in the production of sugar. State Engincering Corporation has shown an incjeese of Rs. 66.20 million followed by Federal Chemical and Ceramics Corporation Rs, $9.14 million Pretax Profits 19, The total pre-tax profit of the public sector corporatious during 1981-82 works out to Rs. 1053 milli as compared to Rs. 748.52 million during Tast year, showing an increase of Rs. 30804 million (41.325), National Fertilizer Corporation is showing the highest profit of Rs. 369.87 million as compared to Rs. 41643 million during last year recording an increase of Rs. 153.44 million (3689), This marked improvement is attributable to better” capacity utilisation sind reduction in manufacturing cost, Pakistan Automobile Corporaticn has sown profit cf Ks. 17680 milion, followed by State Cement Corporaiion Rs. 126.20 inion, Sicie Engineering Corporation Rs, 63.41 million, Pakistar: Indnstrial Jopment Corporation Rs. $5.14 million, State Petroleum Refining. and Potro- chemies) Corporation Rs, 39.55 million ang Federal Chemical and Ceramics Corporation Rs, 22.49 milion, ‘Taxes aud Duties 30, The amount of taxes and dutizs paidipayable to the Government works oat to Rs, 3923.72 nillion as against Rs. 351235 million during last year, show: ‘in increase of RS, 41137 million (11.71%). Except PERAC which has mated 2 nominal decrease of Rs. 2.79 milion, all other corporations. wilt caumibute favourably. The main increase will be due to SCCP (Rs. 13222 wuillion), NEC (Rs, 16028 million) and PACO (Rs. 46.18 million) Employment 4], The total number of employees in all public sector corporations as, Stat March’ 1981 were 76843, which increased to 80599 as on 31st March, 1982 providing new job opportunities to 3756 persons, The main increases are in PDC textile units 1778 persons and other units 679, persons ; Pakistan Steel Mills Corporation 914 persons : NFC 311 persons ; SCCP 239 persons and FOCCL 186 persons. PROIECTS COMPLETED OR UNDER IMPLEMENTATION BY FEDERAT. PUBLIC SECTOR CORPORATIONS A brief description of samme of the major projects being complet oy under implementation by the sectoral corporations under the contrat of the Ministry of Production is given below -— National Fertilizer Corporation 23, Pukedrab Fertlizer Lid, Multen-—The project which is & joint venture etme ike National Festtizer Corporation and Abu Dhabi National Oil Com avn at tbe modernization and expansion of the existing product facil. at National Gas Factory, Multan. Tt has an ‘annual production capacity of 46 PAKISTAN ECONOMIC SURVEY 1981-82 284324 Nutrient tonnes (NP=140,000N'Tomnes, CAN=117,000 | Nitonnes Unee=27404 Nitonnes). It is operating at around 70--75 per cent capacity 24, PakeSoudi Fenilicer- PokeSaudi Festitiase project Tocated at Mirpat Mathelo is csdmated to cost Rs. 2088.38 million including a foreign exchange Cumponent of Rs. 1222.26 million. ‘The project is ia_comasercial production and 's capabie of producing 1740 tonnes of urea per day, 557,000 tonnes annually ihe been financed through equity by the Goverment of Pakistan and losns from local fnaneie] institutions, Asian Development Bank and Government of Saudi Arabia, Guarentee tests of the plant were successfully completed 25, Hazara Ureo Fertilizer Project. Hazara. Urea Fertilizet projeet locate! st Haripur has been established with the financial and texhmical asistance of the Progle’s Repubiie of China. The project is estimated to cost of Rs. 735 million ireleding the foreign exchange component of Rs. 338 millon. The production capacity of the plant is 290 tonnes of Urea/day ie 96.700 tonnes annually. The project started trial production in March, 1982. PAKISTAN INDUSTRIAL DEVELOPMENT CORPORATION Specialised Refractory Project 26-The project aims at setting up a Refractory plant of | 9000 tons of snagnesite bricks per annum, On the recommendations of the Chinese experts, PIDC is undertaking supplementary geological survey of magnesite mines and iso conducting a0 engineering and hydrological survey for factory sit. A feast bility report for setting up 2 Refractory piant based on survey and investigations presendy boing underteken by PIDC in cossultation with Japan Consulting Insti Fate will be prepared for submission to the Government by December, 1982 Aron Ore Exploration 27, PIDC. has undertaken schemes for izon_ore_ exploration ia Baluchistan, ‘The chemical composition of Pachinkoh and Chigendic iron ore Geposts indicat that these could be used by Pakistan Stee. A feasbilty report for setting up a pelletizaion plant based on jen exe deposits of Nokundi would row be prepared by PIDC. STATE CEMENT CORPORATION OF PAKISTAN Mastehkam Cement Expansion Project 2 The project envisages the expansion of the existing plant at Farvogia, Hazara by adding one kiin of 1,000 tonnes per day capacity to produce an addi onal 360,000 tonnes of cement per annum. ‘The project has been completed at te cost of Rs, 301.48 milion (FEC Rs, 198 million). ‘The kin was fired on Tune 22pé, 198) and production has started. Thatta Cement Project 29, The project located at Makli, district Thatta is estimated to cast Rs 660 million with foreign exchenge cost of Rs, 240 million, On onipletion, the factory will produce 300.000 tonnes of cement per annum 32 tonnes hous capacity stag cement mill will be manufactured by Heavy Mechanical Complex THM for this project. Project is exnerted to go ino trial production in October, 1982 SFI eal > INDUSTRY 47 Dandot Cement 30. The project located at Dandont, district Jhelum aims at producing 390.000 tonnes of c:ment per annum. The scheme is estimated to cost Rs. 577.00 initlion with a foreign exchange component of Rs, 235 million. The project is expected to go into trial operation in December, 1982, Kohat Cement Factory 31, The project aims at setting up a plant with a production capacity of 300,000 tonnes of cement per anaum by installing one klin of 1,000 tonnes per vay capacity at Babri Banda, district Kohat. The project is estimated to cost Re 628 million with a foreign exchange cost of Rs. 23] million. Romania has provided credit for the import of cement plant and machinery from Romania. RDFC has also provided a loan of US$ 4.63 million to the project for machinery ail paris fom third country, The project is expected to be completed in December, 1982 Dera Ghazi Khan Cement Project 22, The project, estimated 10 cost Rs. 1100 million including a foreign exchange component of Rs. 52042 millon is being set up at Dera Ghazi Khen ith @ production of 600,000 tonnes of cement per annum. The project will have one kiln with a capacity of 2000 tonnes per day, The foreign exchange reuiements of the project are being met through a loan provided by the Asian Development Bank. The project is expected to be completed in 1985. White Cement Expansion Project 433, The existing capacity of White Cement plant located at Iskandarabad. Daudkhel is 15,000 tonnes per annum. The expansion scheme with an addiional capacity of 50 tonnes per day is estimated to cost Rs, 123.17 milion with EEC. of Rs. 3225 million. The foreign exchange component of the project is belng financed through a Danish Credit. The project is expected to go into ‘rial production in December, 1982, FEDERAL CHEMICAL AND CERAMICS CORPORATION qh Soda Ash (Expansion) at Sind Alkalis x 44. The expansion project of the existing Soda Ash plant of Sind Alkalis Jocaied in Karachi, is estimated to cost Rs. 91.42 million with a foreign exchange component of Rs, 37.50 million, I will use mainly the indigenous raw materials iike limestone, selt and natural ges for the production of Soda Ash. On com- pletion of the expansion scheme, it will produce an additional 15,000 tonnes of Soda ash per annum, The project is expected to 20 into trial production in December, 1982 DSA Ittehad Chembcals 45, The project envisages modernization of process by changing graphite awodes with dimensionally stable anodes (DSA) resulting in increased preduction. The project is estimated to cost Rs, 132.15 million including a foreign exchange commenent of Rs. 41.43 million and expected to go into tral production in Merch, 1983, ‘The scheme envisages to increasing the capacity of caustic sods: from 90 tomnesiday 10 150 tonnesiday. 48 pakistan HoONOMIC SURVEY 1961-82 ‘Natlonal Fibres Limited 4g. The project loented at Korangi industrial, Karachi is estimated to coxt Ro. $51 million including a foreign exchange component of Rs. 264.7 million. cost RS fon exchange requsements of the Broke Sr being met throveh Islamic Development Bank and Sardi loan, | Y project envisages seting up of 15,000 Peresepolyster staple fibre and 3.000 (ie taxturised ‘lament yara_ and is seing implemented with the echnical ‘ollaboration of Lurgi of West Germany and eet mented Mand. The project stared tial production from September. 1 Rakers Yeast 4a The project lua at Ravi Rayon Kel Shoh Kaku has capacity to produce 900 fonnes of active 2 franulaced yeast per oumum and st) oP with Prospective to cater to the aeeds of oli plans, bakeries, botls and bisculs Me reer ye project is estimated. 0 6%) Rs, $858 million with a forcign tachange component of Rs. 1647 MINERALS ‘The mineral sector has grown at a rate of 5.0 per cent during 1981-82 Mineral industry is still in its early stages of development. The country has signi- ficant mineral potential, specially industrial minerals, that can make substantial contribution to its economic and social development. It’s mineral wealth, how. ever, is under-exploited due to many problems such as inadequate geological mapping, inadequate infrastructure, lack of credit facility, non-existence of risk capital, and shortage of skilled workers and high quality mineral engineers 2. To overcome the above bottlenecks with a view to stimulate the pro- duction of mineral sector, necessary steps, to prepare and develop viable and dynamic mineral development policy, are being taken. According to the avail- able estimates, the position of mineral resources in Pakistan is given in table 1 TABLE 1 Reserves of Principal Minerals SEE EES ete ee ‘Reserves Minerals CC 3 1. Marble (Aragonitefonyx) +

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