Role Of Agriculture And Industrial Development Of Pakistan
The agriculture sector is not only important at national
level but also at international level. About fifty years back, the agriculture
sector was neglected both in the developed and underdeveloped countries of the
world. It was regarded as residual reservoir particularly of labour for
employment in industries. In 1960’s the importance of agriculture was realized
and adequate attention was given to this sector. The importance of balanced
growth of agriculture and industrial sectors was stressed by the development
economists. In 1970’s and since the beginning of 1980’s, agriculture in the
process of development, has gained increased significance.
Importance of Agriculture in Economic Development:
Pakistan is basically a farming community. About 70% of its
population is living in rural areas and nearly 50% of them engaged in farming,
livestock and agro-based industries. However, Agriculture sector plays a vital
role in the economic development of a country. It is confirmed and supported by
the following facts.
1. Determination of GDP growth rate: The GDP growth rate in
Pakistan is mainly dependent upon the growth rate in agriculture sector. For
example, the GDP growth rate increased from 4.5% in 1993-94 to 5.2% in 1995-96
mainly due to increase in the production of cotton, rice and wheat in the year
1995-96. It came down to 3.1% in 1996-7 due to fail in the production of
cotton, wheat and sugarcane.
2. Agricultural Development essential to curtail inflation:
If the rate of growth in agriculture sector is low, it brings shortage of food,
vegetable, and other essential raw materials in the country. The prices of the
essential goods go up. The slow rate or fall in the production of agriculture
sector generates inflationary pressure and creates bottlenecks in the economic
development of the country.
3. Major component of GDP: Agriculture sector is the single
largest component of GDP in Pakistan. Its contribution is 25% to Pakistan’s
GDP. The progress of agriculture sector provides a sound base for economic
development and is considered one of the preconditions for take off or self
sustained growth.
4. Providing labour force to industry: In most of the
developing countries (including Pakistan) agriculture is the main source of
providing manpower of various sectors of economy. In Pakistan, 50% of labour
force is employed in agriculture sector. With the improved growth in the
agriculture sector due to mechanization, the surplus labour force can be easily
absorbed in the small and large scale industries. The provision of new
employment both in the agriculture industrial and other sectors can increase
the income of the workers and help them to get out of low income equilibrium.
5. Foreign exchange earner: The agriculture sector is the
main source of foreign exchange earnings in Pakistan. The export of cotton,
cotton based products, rice etc fetch about 65% of our total export earnings.
This helps in the import of capital machinery, equipment, technical know how
etc which are essential inputs for development. The availability for foreign
exchange not only helps in the industrialization programme but also improves
the balance of payments.
6. Meets food requirements: Pakistan’s population is growing
at an alarming rate of 2.77% annually. The agriculture sector is successfully
meeting the food requirements of over 13 crore persons in Pakistan. Had there
been no green revolution in agriculture sector during sixties and seventies, we
would have spent the major portion of foreign exchange earned on the food
import. The economic development would have also been retarded due to low
capital formation.
7. Support of industries: The improved growth in the
agriculture sector provides raw material to manufacturing industries. The
production of cotton, jute, sugarcane, fruits etc enable the cotton, jute,
sugarcane fruit processing and other agro based industries to get material from
within the country and expand production. The industries not only meet the
domestic requirements of cloth, sugar, jute bags etc but also earn foreign
exchange by exporting them.
8. Expanded industrial market: The expanding and progressive
sector brings prosperity to the agriculturists. The increase in the income of
formers is spent on the purchase of industrial output such as clothes,
motorcycles, cars, fans etc. The improvement in the agriculture sector thus
provides on outlet for the products of the expanding industries.
9. Marketable surplus: When the agriculture sector is
expanded on scientific lines, it yields handsome marketable surplus. The
surplus which may be cotton, jute, wheat, sugar, silk, fish, timber etc can
help to pay the import of industrial raw materials, capital equipments and
technology. This helps in bringing about rapid economic development.
No comments
Post a Comment