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An efficient use of available resources for the production and distribution of goods and services in a particular geographical region. The economy is the way in which people use their environment to meet their material needs.

Pakistans Economy

The economy of Pakistan is 27th largest economy in the world. Pakistans average economy growth rate since independence has been higher than the average growth rate of the world economy during the period. Pakistan economy mainly relies on agriculture textiles, chemicals, food processing, and other industries. Pakistan is predominantly an agriculture country. Agriculture was the dominant sector of the economy at the time of independence in 1947 contributing over 53 percent to the GDP.

Gross domestic product (GDP)?

The market value of all final goods and services made within the borders of a country in a year. GDP is measured consistently and frequently on an international basis and is a basic measure of country over all economic performance. GDP is a measure of whats produced within a country rather than what is received by a country.

Growth in Agriculture (%)

Period 1960s 1970s 1980s 1990s 20012001-02 20022002-03 20032003-04 20042004-05 20052005-06 20062006-07 20072007-08 20082008-09 Growth 5.1 2.4 5.4 4.4 0.1 4.3 2.3 6.5 1.6 5.0 1.5 4.7


Composition of Agriculture Sector

Livestock Sector Crops Sector (Major Crops: 34% Minor Crops: 12%) Crops: 34% Crops: 12%

52% 52% 46% 46%

Fisheries Forestry

1.0% 1.0%

Importance of Agriculture Sector: Contribution

Gross Domestic Product (GDP): Employment/ Labour absorption: Population Dependency: Share in export: Share of value addition:


44 % 66% 66% 51%

Where We Stand; World DataPercentage %






Wheat Seed Cotton Rice Paddy Sugarcane

2.9 2 1.3 1.0

13.1 8.2 5.9 4.2

3.87 9.2 1.4 4.7

3.4 9.6 1.2 3.8

9TH 11TH 10TH 5TH

Food Security: Availability of Food Items (Million Tons)

Food Item Wheat Rice Maize Sugar Pulses Edible Oil Production 24.000 6.952 4.040 3.200 0.95 0.833 Consumption 23.500 2.500 3.300 4.300 0.50 3.056 Difference +0.50 +4.452 +0.740 -1.10 +0.45 -2.223

Area and Production of Other Major Kharif and Rabi Crops

Challenges to our Agriculture

Ensuring food security for 170 million population growing @1.8% per anum Producing raw materials for agro based as well as allied industries of an economy growing @ 6% pa. pa. Producing competitive exportable surplus in a rapidly globalizing world Alleviating rural poverty by increasing farmers profitability and maintaining sector sustainability Complying with sanitary and phyto-sanitary requirements of phytonew WTO regime Coping with water scarcity, environmental degradation and climatic change

Issues in Agricultural Inputs

1. 2. 3. 4. 5. 6. 7.

Agricultural credit Farm mechanization Irrigation water Fertilizers Seeds and planting material Plant protection measures Transfer of technology

Issues in Agricultural Outputs

1. Post harvest losses 2. Storage capacities 3. Marketing problems 4. Processing and grading 5. Standard/Quality of produce 6. Import and export 7. Compliance to WTO rules

Challenges to Pakistan economy


We consume more and save less We import more and export less Our share in the world trade is shrinking We face energy and water shortage Cost of doing business is high Uncertainty and unpredictability due to lack of continuity Political stability, law & order/security Governance, devolution and decentralization Change in national psyche and mindset