Importance of Agriculture in Pakistan – Contribution to Economy

The agricultural sector of Pakistan has made a significant contribution to its GDP. When the GDP of the country grows, economic development takes place. In the beginning, the agricultural sector had the highest share in the GDP but then the service sector became the chief provider with the passage of time.

Livestock accounts for 9% of the total GDP and 4% of the agricultural sector.

Importance of Agriculture in Pakistan

Foreign Exchange Earner

The agricultural area is the major source of foreign exchange incomes in Pakistan. The exports of rice, wool, Cotton textile and more. bring about 65% of our total earnings. The imports help in vital inputs for development i.e. import of equipment, capital machinery, technical know-how etc.

Sustaining the Population

According to the food and Agriculture Organization of the United States, Pakistan is the 2^nd most populated country in the Muslim world while the 6^th most populated country of the world. Agriculture is playing a crucial role in order to withstand such an enormous population. Wheat is the largest produced & eaten in Pakistan and it is the largest cultivated crop of Pakistan. Luckily, Pakistani is an agriculture country, in the case; if it was not – Pakistani govt may need to import all food items from different countries.

Thus agriculture performs a double role in development by giving food and assisting economic growth by decreasing imports

Source of Employment

Agriculture is the main cause of employment in Pakistan. More than half of the population of Pakistan lives in rural areas. According to the economic survey of Pakistan, 46.61% of the entire employment is delivered by agriculture. Higher per capita income of people and increased GDP of Pakistan is because of employment.

Increasing the Tax Revenue of the Government

Economic development is one of the major duties of any government. The greater the government gathers tax revenue, more the money it will have for spending on development related projects. Agriculture engages 20% contribution in GDP and 43.61% of Pakistan labour force, it also enhances per capita income and reduces unemployment in Pakistan.

Government collection of various taxes revenue increases as per capita income increases. In this way, agriculture has an important part in raising tax revenue.

Support for Industries

The enhanced growth in the agricultural area delivers raw materials to manufacturing productions. The manufacture of fruits, jute, cotton, sugarcane etc. assists other agro-based industries to get material from within the country and enlarge manufacture.

Raw Material for Industrial Sector

In the economic development of any country, industries are of great importance. As long as agriculture is providing a huge amount of raw materials to the industries, Pakistan’s soil is fertile & helping many industries in Pakistan. Cotton which is also a significant export of Pakistan and raw material of the textile industry is a major crop of Pakistan. As sugarcane is also amongst one of the vital crops of Pakistan and likewise sugar industry uses sugarcane as raw materials. Pakistan’s sports goods are well known worldwide and are also major exports of Pakistan.

Marketable Surplus

When on systematic lines the agriculture sector is extended, it produces an attractive marketable surplus. The surplus i.e. sugar, fish, cotton, silk, timber, jute, wheat etc. can help to pay the capital tools, import of raw materials and technology. This helps in bringing about fast economic development.

Infrastructure Development

The energy of economic development is infrastructure, for ensuring fast transportation of goods and services. Govt of Pakistan must announce policies for agriculture sector because it has increased the infrastructure in many ways. For examples, it developed the need for roads to bring crops from villages to cities.

Example

A government should familiarize modern ways of production through the introduction of technology in the area of agriculture. The government should also study land reforms as the large lands are more productive than the small ones and should also increase the ownership of land to remove feudalism. Effective and operative ways for agricultural sector will definitely enhance the development of the weak economy of Pakistan