Escolar Documentos
Profissional Documentos
Cultura Documentos
Cultivated area
22 MH
Irrigated
18 MH
Rainfed (Barani)
4 MH
Contribution to economy
26% to GDP
Natural Merits
Crops production
Wheat
21 Mn tons
Cotton
11 Mn bales
Rice
5 Mn tons
Sugarcane
50 Mn tons
Fruits/Vegetables
10 Mn tons
7.5 Mn tons
Buffaloes (Number)
23 Mn
Cattle (Number)
22 Mn
75 Mn
Poultry (Number)
530 Mn
Country side
Inspiring music
Lively folk
Strategic location
Low transportation cost, and developed routes to Middle East, Iran, Afghanistan and
CARs
International Quality inputs available in country
Market driven polices. Least Government interventions
Investment Policy, Incentives & Opportunities:
Most Liberal Investment Policy:
CAF declared as an industry
100% foreign equity allowed
No minimum foreign investment
Remittance of capital, profits, dividends allowed
CAF will enjoy credit & other facilities
Local or foreign, private or public limited companies to invest in corporate farming
No ceiling on land holding
State land can be purchased, or leased for 50 years, and extendable for another 49
years
All banks and financial institutions will earmark separate credit share.
Land development/reclamation of barren, desert and hilly land for agriculture purpose
and crops farming
Reclamation of water front areas or creeks
Crops, fruits, vegetables, flowers farming/integrated agriculture (cultivation and
processing of crops)
Modernization and development of irrigation facilities and water management
Plantation
Forestry
Horticulture
Dairy farming
Livestock farming, breeding and small ruminants (sheep, goat)
Production of quality seeds
Fruits, Vegetables & flowers grading, processing, packaging, preservation
Seafood (farming/fishing, processing and preservation of fish, shrimps and other
marine products)
Agri-produce storage facilities (separate package)
Marketing/Export of Agri-produce (separate package)
Cool Chains (separate package)
Fertilizer manufacturers have played a key role in promoting farming in the country.
Pakistans cultivable land suffers from acute shortage of nutrient contents, particularly
nitrogenous materials. The first urea unit in the country was established by Esso with an
installed capacity of 178,000 tons per annum that commenced operation in 1967. The special
focus of all the successive governments helped in expanding capacity that has grown to the
current 7 million tons per annum.
Farmers as well as the country are facing loss due to huge post-harvest losses. Farmers dont
get the right proceed of their produce and country is deprived of foreign exchange it can earn
by exporting the quantities that go stale.
Despite being fully aware, successive governments have failed in containing these losses as
they were not able to facilitate construction of required infrastructure, i.e. farm to market
roads, efficient transport and storage facilities.
The gravity of situation can be best understood by the fact that at an average, the country
produces 40 million tons of food grains but the storage capacity is a mere 6 million tons.
Since the produce is kept in the open, a large quantity goes stale during monsoon, whereas a
substantial quantity is eaten away by pests like rats.
Keeping in mind some of the reasons for post-harvest losses stated earlier, it may also be said
with full conviction that most of the factors contributing to these losses are controllable. Due
to inadequate availability of finances, lack of farm to market roads, poor transportation,
obsolete warehouses and above all heavy dependence on middleman, often the farmers are
helpless.
Though, State Bank of Pakistan fixed Rs500 billion lending target for the farmers, the amount
is still paltry keeping in view the requirements of farmers. They are still forced to borrow
from informal lenders charging as high as 36 percent per annum interest rate.
In Pakistan, farmers can be divided into two distinct categories: feudal lords and harees
(landless farmers). Feudal lords are the key beneficiaries of all the government policies.
Feudal lords not only get loans on top priority but their produce is also bought first.
The ultimate losers are small farmers, who have no voice or representation at any forum.
Though, the amount of loans disbursed among the farmers has increased manifold, bulk of it
still goes to feudal lords because small farmers have no ownership of land, they are just the
workers. Despite various land reforms papers of ownership of land are in the custody of
feudal lords.
For ages the government has remained the biggest buyer of wheat, current production is
around 25 million tons. Therefore, the private sector never thought about construction of
warehouses. Though, the export of rice is in the hands of private sector and all the flour mills
operate in the private sector these commodities are packed in jute/polypropylene bags and
stored in conventional hut type warehouses. Very few modern silos have been constructed.
And those too were built by individuals. Farmers are reluctant in keeping their produce at
warehouses operated by the private sector. Entrepreneurs are shy because they fear that some
bandits would pilfer the commodities stored in the warehouses. To sum-up the situation in a
few words, there hardly exists collateral management companies.
Despite the best efforts by the central bank and support by the multilateral institutions, little
success has been achieved as yet. Experts apprehend that it will take another five years to
make this dream come true.
Farmer advisory service is not available. Some commercial programs are broadcasted on
radio and television channels. The ultimate purpose of these programs is to promote the
goods marketed/manufactured by the specific entities.
Experts are of the opinion that more of these programs should be aired by the government,
which is the ultimate beneficiary. In case there is a shortfall of any commodity the
government has to spend huge amounts in foreign exchange on import and also bear the
incidental charges (transportation and distribution).
It is encouraging that the amount being disbursed among the farmers has increased
substantially over the years, and Rs500 billion target was fixed for 2014-15 financial year. In
absolute terms the growth may look significant but keeping in view the size and importance
of the agriculture sector, it is still a minuscule amount.
The amount must be doubled over the next five years and specific allocations needs to be
made for infrastructure projects. The time has come for the government to go for another land
reform for the consolidation of smaller holdings. One of the proposals is to allow corporate
farming that will facilitate higher borrowing for undertaking mechanized farming. There is
no doubt that yield of small farms is low because growers cant afford to use quality seeds
and apply balanced doze of nutrients and pesticides.
It is encouraging that SBP has embarked upon Warehouse Receipt Financing program.
However, it must be kept in mind that it is a long drawn process. First, warehouses on
international standards have to be constructed. Second, farmers have to be convinced to store
their produce at these warehouses.
Thirdly, proper collateral management companies have to be established and made fully
functional. The only concern is that unless quality warehouses and collateral management
companies are established achieving the dream of Warehouse Receipt Financing will remain a
far cry.