Economy of Pakistan-Agriculture Sector

2.  Vital sector of Pakistan's economy
 Accounts for 21.4 percent of GDP
 Directly supports three-quarters of the country's
population, employs 45% of the labor force, and
contributes a large share of foreign exchange earnings
 Main agricultural products are cotton, wheat, rice,
sugarcane, fruit and vegetables, in addition to milk,
beef, mutton, and poultry.
 Provider of raw material to industry, stimulates
domestic demand and major source of income for rural
population (80% of rural population directly or indirectly
depends upon agriculture for income and livelihood)
Agriculture Sector in Pakistan – An Overview

3. Agriculture in Pakistan
Pakistan's principal natural resources are arable land
and water.
About 25% of Pakistan's total land area is under
cultivation and is watered by one of the largest
irrigation systems in the world.
Pakistan irrigates three times more acres than Russia
Has shown growth of 3.3% in FY 2012-2013
Export of Mangoes increased by five times in 2013
Two seasons i-e Kharif and Rabi

5. 3rd
Largest
3rd
Largest
Producer
of Dates
Herd of
Livestock
5th
Largest
Producer
of Mango
5th
Largest
Producer
of Cotton
5th
Largest
Producer
of Milk
The
Largest
Producer
of Kinnow
Pakistan’s Agriculture is

6. Forms of Agriculture in Pakistan
Livestock
Fishing
Crops

7. Agricultural Sector – Key Statistics
• Contribution to GDP 21.4%
(more than US$37 billion to the national economy)
• Labor Force Employment 45.0%
• Average Growth past 6 years 3.7%
• Contribution of different Sub-Sectors in Agriculture
1. Crops (Wheat, Rice, Cotton, Sugarcane) 32.8%
2. Livestock 55.4%
3. Fisheries 4.0%
4. Forestry 2.0%
• Share in Export Earnings (Raw/Processed)
1. Cotton + Cotton Based Products 64.7%
2. Fruits, Rice, Fish, Leather 18.2%
3. Others 17.1%

8. Crops
The most important crops
are wheat, sugarcane, cotton,
and rice.
Pakistan's largest food crop is
wheat.
Pakistan exports rice, cotton,
fish, fruits (especially
Oranges and Mangoes), and
vegetables, wheat, cotton,
pulses and consumer foods.
US, EU, China are first 3
major export destinations

9. Wheat
Wheat being the staple diet of
most of the people of Pakistan it
dominates all crops in acreage
and production.
It accounts for over 70 % of the
gross cereals and over 36 % of the
country's acreage is devoted to
wheat cultivation.
Wheat is the most popular cash
crop of Pakistan.
Support price was increased to
1200 from 1050,
Growth of 3.2% than last year

10. Rice
Rice holds an important position
among the cash crops of Pakistan.
2nd
largest staple food
2.7% of Agriculture contribution
It fulfills the food requirements of our
country but we also earn a lot of
foreign exchange from its export.
Besides it is an important raw
material for manufacturing grain as
well as its husk is also used as fodder
for cattle.
Cultivation area decline by 10.1%
compare to last year
Reasons being monsoon rain, late
receding of water and prolonged
sowing

11. Cotton
Cotton is considered to be the most
important cash crop of Pakistan.
Pakistan ranks fifth in world cotton
production.
Cotton is also known as the "Silver
Fiber".
7% of GDP
Production declined by 4.2%
compared to last year

12. Sugarcane
3.2% of Agriculture
Area under cultivation increased by
6.2%
Due to increased economic return
Increased of 5.9(%

13. Other Crops
Oilseeds:

14. Other crops:

15. Fishing
Fishery and fishing industry plays an
important role in the national
economy of Pakistan.
 With a coastline of about 814 km, is
also a major source of export
earning.
15.3% export increased compared to
last year earning US $ 222.6 million
EU has lifted ban

16. Livestock
The livestock sector
contributes about half of the
value added in the
agriculture sector,
amounting to nearly 11 per
cent of Pakistan's GDP.
The world's fifth largest milk
producing country and Asia’s
largest camel market.

17. Livestock
contributes 55.1%
of Agriculture
Livestock
accounts for
11.5% of GDP.
2nd
Largest
3rd
Largest
Herd of
Livestock
Sector of
economy
4th
Largest
Exports
Products
5th
Largest
Producer of
Milk
1st
Largest
Segment of
rural economy
Pakistan’s Livestock

18. Livestock Sector – Key Statistics
• Contributed approximately 55.4% of agriculture value
added and 11.9% to national GDP in 2012‐13.
• Pakistan earned USD717 million from leather exports in
FY09 and a meager USD96 million from meat exports.
• The food industry attracted Foreign Direct Investment of
US$ 108.3 million in 2009‐10.

19. Livestock Sector – Key Statistics
• This sector generates employment (direct/indirect) and income for
about 1.5 million people.
• Population growth, increase in per capita income and export
revenue is fuelling the demand for livestock and livestock
products.
• Poultry sector is one of the organized and vibrant segments of
agriculture industry of Pakistan.
• Poultry meat contributes 26.8 percent of the total meat
production in the country.
• Annual growth of 7‐8%

20. 42.00%
51.00%
7.00%
ShareinRuralEconomy
Livestock
Agric
Others
Livestock’s Contribution
42.00%
55.10%
1.30% 1.60%
Contribu onofSubSectors
Crops
LiveStock
Fisheries
Forestry

21. Dairy Sub-sector
Total milk production (09-10) 36.299 m tons
Milk market:
Producers (self or direct selling) 68.0 %
Informal market (Gawala operated) 28.5 %
Formal dairy industry 3.5 %
Dairy industry:
Main products are UHT and Pasteurized milk, Milk powder, Yougurt,
Cream, Cheese, etc.
3.0 million litres per day being procurement
Rs 63 million daily going to rural economy
25 out of 49 dairy plants are operational
Main players are Nestle, Engro, Haleeb, Engro, Millac

23. Meat Sub-sector
Total meat production (09-10) 2.965 ml. tons
Beef Production 1.655 ml. tons
Mutton Production 0.603 ml. tons
Poultry Meat 0.707 ml. tons
Meat market
Butchers operated shops, many slaughter at shops
Main players at slaughter house are artees
Fresh meat sold, only a few chilled meat selling establishments
Meat industry
80 % slaughtering done outside out side slaughterhouses
11 private sector slaughter houses registered by Animal
Quarantine Deptt.
Total export is <0.6 percent of the production

24. Pakistan –Export of Meat & Meat
2009-102009-10 2010-112010-11
QuantityQuantity
(MT)(MT)
In millionIn million
US DollarUS Dollar
QuantityQuantity
(MT)(MT)
In million USIn million US
DollarDollar
20,08120,081 53.953.9 29,28129,281 82.382.3

25. EXPORT OF LIVE ANIMALS

26. Livestock Products
• Milk Production = 49 million tonnes annually.
• Beef Production = 16 million tonnes / anum
• Mutton Production = 6 million tonnes / anum
• Poultry Meat = 7 million tonnes/ anum
Exportable Commodities:
Meat = 60.2 million US $( year 2009-10 )
Animal Export = 13.9 million US $ ( 2009-10 )
( Total export is about 40 billion rupees 11% of the total
foreign exchange)

27. Problems of Agriculture
Water logging and salinity
Water shortage / Drought
Irrigation
Lack of funds
Monopoly Of Foreign Companies
Soil erosion
Hoarding and Smuggling
Outcome is Food Insecurity, Incompetitiveness, low
productivity

28. Waterlogging and salinity
It is caused when the water
table rises to 1.5 meter.
Water evaporation leave salt
on surface making land
unproductive.
Stagnant water then
adversely effect the growth of
plants.
Solution: Install tubewells
pump out extra and access
water from agricultural land.
Deploy drainage systems for
control of water in farms.

29. Water shortage / Drought
It is caused by poor irrigation
system and unpredictable
rainfall.
Solution: Government should
improve irrigation system.
Take legal notice on stealing
of water.
Improve canals, dams and
barrages.

30. Poor fertilizers and pesticides
The quality of pesticides and
fertilizers in Pakistan is poor.
Although the available
fertilizers and pesticides in
Pakistan are out of reach of
small farmers.
Solution: Pakistani
government should build
chemical fertilizer and
pesticide industries.
Control price of fertilizers.

31. Lack of funds
The farmers in Pakistan are
not financially strong to
manage their cultivation.
Improper loan system by
government.
Solution: Government should
improve system of providing
loan.
Also help farmers to
purchase machinery and
acquire latest technology.

32. Modernization and Green
Revolution
Corporate Farming:
Farm mechanization is one of the packages of
Green Revolution.
Farm mechanization means the use of
mechanical technology in the varied farming
operations.
This technology includes Chemical,
Hydrological and Mechanical Technology.
The policy has been framed to accelerate the
pace of agricultural mechanization in the
country.

33. Latest mechinery should be provided to the farmers
to increase the per acre yield on easy installments
If possible subsidy should be given by the
government of modern machinery
This includes drip irrigation and sprinkle irrigation
methods.
 By using this technique the farmers can save a huge
some of money which he pays for irrigation through
tubewells and tracktors.

34. Potential

35. • Productivity Enhancement
• Value Addition
• Milk Processing Plants
• Modern Abattoirs & Processing Units
• Building Supply Chains ~ market linkages
• Genetics, breed improvement
• Vaccine, Drugs, Semen & Embryo Production
& Marketing Units

36. • Global Halal market

37. World Muslim population of 1.83 billion in 2009 out of 6.5 billion
World population
With average annual growth rate of about 1.80% per annum.
approximately 117,000,000 per yr. increase which does not
include conversion which on the rise currently.
Global Halal products market is estimated at US$2.3 trillion
excluding Islamic banking.
If we include service sectors for the Halal market, the potential
size of total market is ASTRONOMICAL…
The trade in Halal food is enormous with est.
annual halal food value at US $347 billion globally
Global Market forfor Halal

38. Key Halal Market
 Algeria Bahrain Egypt Indonesia Iran
 Iraq Jordan Kuwait Lebanon Malaysia
 Morocco Oman Qatar Saudi Arabia Syria
 Tunisia Turkey UAE Yemen Pakistan
Key Halal Markets in Non-Muslim countries
 India 140million France 6 million
 China 40 million Germany 3 million
 USA 8 million UK 1.5 million
 Phillippines 6 million Canada 800,000
Global Halal Market

39.  Nestle – world’s largest food manufacturing corporation
 McDonalds – the world’s largest leading restaurant chain
 KFC – fully integrated poultry chain
 Tesco & Carrefour – world’s number one & two retail chain
 Port Rotterdam – Europe’s largest & the world’s 3rd
largest port
 Westports – one of SEA top 10 ports
 MISC – the world second biggest shipping company
 CIMB – SEA biggest investment bank
 Allanasons – India’s biggest meat exporter
 Al-Islami – UAE halal food produces
Some Notable Players

40. MILK PROCESSING PLANTS

41. • 49,512 million tonnes of milk provide a promising enterprise, where
only 3% is being processing.
• Small scale farming is not covering the full economic cost.
• Significant element of economies of scales exist resulting in cost
reduction by 30-50% between the small and large scale farms.
• Huge consumer market exists.

42. • Creation of milk collection network and transportation facilities in
the milk catchments ~ Nestle
• Establishment of milk processing plants leading to production of
value added exportable products like reconstitute able milk
powder, cheese, butter and yogurt.
• Establishment of mini pasteurization plants in Peri-Urban Areas.

43. ESTABLISHMENT OF MODERN
ABATTOIRS

44. • Establishment of Modern Abattoirs in big cities of Pakistan for
value addition of the meat.
• Creation of disease free zones for supply of quality meat.
• Organization of the environmentally controlled meat markets &
provision of cold chain facilities.
• Establishment of leather tanning units in Punjab.

45. POULTRY MEAT PROCESSING
PLANTS

46. • Establishment of Exotic Poultry Grand Parent, Breeding Services
in Pakistan.
• Introduction and Marketing of Modern Hatcheries for Grand
Parent and Breeder Poultry.
• Establishment of Poultry Meat Processing Plants in Pakistan.
• Establishment of Poultry Disease Diagnostic Laboratories in
Pakistan.