AGRICULTURAL AND INDUSTRIAL SECTOR BETTERMENT IS A KEY FOR THE DEVELOPMENT OF PAKISTAN, AND MANAGEMENT IS A KEY PROBLEM

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AGRICULTURAL AND INDUSTRIAL SECTOR
BETTERMENT IS A KEY FOR THE DEVELOPMENT OF
PAKISTAN, AND MANAGEMENT IS A KEY PROBLEM
Pakistan from its birth has faced so many problems infect every type of
problem those problem can be inequality, war, economic, terrorism
means we can say that Pakistan has never seen a constant peace in its
time. As already discussed that Pakistan has faced every problem but
the main problem that Pakistan is facing from its birth is economic
problem and this problem has occurred because of mismanagement
and lack of planning. Also we can say that the problem has occurred
because the main source of Pakistan’s income that is Agriculture is
backward or we can simply say that it is not fulfilling the demands of the
people because of lack of technology while when we talk about the
industry of Pakistan then it has also not made any good contribution for
the development of Pakistan. But this thing is true that if Pakistan wants
to get developed then it must have to develop first Agriculture and its
industry. So let’s have glance on Pakistan’s agriculture and Industrial
sectors.
Agricultural Sector in Pakistan
Background
Pakistan has a rich and vast natural resource base, covering various
ecological and climatic zones; due to which the country has great
potential for producing all types of food produce. Agriculture has an
important role in generating economic growth. Agriculture affects the
economy in three ways namely, first, it provides food to consumers and
fibers for domestic industry; second, it is a source of scarce foreign
exchange earnings; and third, it provides a market for industrial goods.
Land use, farming systems and institutions
The total geographical area of Pakistan is 79.6 million hectares. About 27
percent of the area is currently under cultivation. Of this area, 80 percent

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is irrigated and Pakistan has one of the highest proportions of irrigated
cropped area in the world. Most of Pakistan is classified as arid to semi-
arid because rainfall is not sufficient to grow agricultural crops, forest and
fruit plants and pastures. About 68 percent of the geographical area has
annual rainfall of 250 mm, whereas about 24 percent has annual rainfall of
251 to 500 mm. Only 8 percent of the geographical area has annual
rainfall exceeding 500 mm. Hence supplemental water is required for
profitable agricultural production, either from irrigation or through water
harvesting.
Agriculture is largely dependent on artificial means of irrigation. Of the
total cultivated area, about 82 percent or around 17.58 million hectares is
irrigated, while crop production in the remaining 3.96 million hectares
depends mainly upon rainfall. The Irrigation Canal Command Area (CCA)
has been grouped into classes on the basis of the nature and severity of
its limitations water logging, salinity, sodality and texture. At present about
one-fifth of the cultivated land in CCA is affected by water logging and
salinity to varying degrees. An additional area of 2.8 million hectares
suffers from sodality. Notwithstanding huge investments, the water table
was 0 to 1.5 m under 2.2 million hectares of irrigated land, 1.5 to 3 m under
6 million hectares and 0to 3 m under 8 million hectares. Thus Pakistan
needs to overhaul its entire drainage and reclamation strategy reduces its
cost and makes it efficient.
Significance of the agricultural sector in the economy
Agriculture is an important sector, providing food to the fast-growing
population of the country. According the 1998 census, the total
population of Pakistan is 130 million. With a population growth rate of 2.6
percent there is a net addition of 3.4 million people each year. In 1947 the
population of Pakistan was 32.5 million; in 50 years it has increased
fourfold. During this period the production of wheat, the major food crop,
has increased only 2.9 fold. During 1970/71 the amount of wheat imported
was 0.3 million tones; it has increased to 4.1 million tones in 1997.
Tremendous efforts have been carried out to narrow the gap between
population growth and food production.
Agriculture contributes about 24 percent of the gross domestic product
(GDP) and employs 47 percent of the national employed labor force. The
contribution of the agricultural sector to the GDP has declined gradually
since Pakistan came into existence, from over 50 percent in 1949-50 to
about 24 percent in 1996-97. Agriculture still remains the major sector of
the GDP composition. A major part of the economy depends on farming

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through production, processing and distribution of major agricultural
commodities.
In foreign trade agriculture again dominates, through exports of raw
products such as rice and cotton and semi-processed and processed
products such as cotton yarn, cloth, carpets and leather production
.Agriculture is essential for sustainable improvements in internal and
external balances. Of the total export earnings, the share of primary
commodities and processed and semi-processed products constituted
almost 60 percent of the total exports. There have been some structural
changes over time, but the contribution of agro-based products has more
or less sustained its position.
Overview of agricultural sector development
Significant progress has been made in development of the agricultural
sector in Pakistan since the time of independence in 1947. At that time,
the Indus Basin was irrigated with an extensive system of canal irrigation,
sown with low-yielding traditional seed varieties, fertilized mainly with
animal manure and cultivated by means of animal draught power and
by hand.
In the early 1960s, conditions that favored more rapid growth were put in
place: the Indus Water Agreement was signed under the chairing of the
World Bank; the Indus Basin Development Fund was established with
multicolor support; the government improved the terms of agricultural
trade; and tube wells were installed as a viable investment. That decade
witnessed a green revolution in Pakistan, and crop production
accelerated during the first part of the decade, primarily because of the
increased use of inputs.
During the past 50 years a significant increase in production of the major
crops has been achieved. Wheat production rose from 3.3 million tones in
1950/51 to 18.6 million tones in 1997/98. Similarly during this period rice
production rose from 0.86 million tones to 4.32 million tones. There was also
a records increase in cereal production. The production of cotton
reached 9.4 million bales during 1996/97.Sugarcane production reached
5.3 million tones during 1997/98.
Policy measures in the last four years, i.e. from 1993/94 to 1996/97, were
positive for the agricultural sector. Undue benefits provided to the
industrial sector over the years were reviewed and modified. The
agricultural sector as a result responded with new buoyancy. Export taxes
on agricultural commodities were reduced or eliminated, which benefited

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the agricultural sector. In the policy reforms package, better support
prices, better tillage and soil preparation practices and adequate and
timely availability of fertilizer and certified seed have added to the
positive response from the farming community. In 1996/97, production of
wheat reached a level of 16.7 million tonnes, and there was also a 13.7
percent increase in the production of Basmati rice. The overall production
of rice registered an increase of 8.5 percent - the total production of rice
during the year was 4.3 million tonnes, compared with 3.97 million tonnes
in the previous year.
There was, however, a decrease in the production of pulses, particularly
of gram, during 1996/97 to 832 000 tonnes from 918 000 tonnes during the
previous year (1995/96). Production of potatoes and onions in 1997/98 is
estimated at 1 205 000 and 1 160 000 tonnes respectively, as compared
with 963 000 and 1131 000 tonnes in 1996/97.
Over the past 20 years some important structural changes have taken
place in the sector. In particular, livestock has emerged as an important
sub sector, today contributing more than one-third of agricultural GDP,
compared with about 28 percent 20 years ago. Similarly, fisheries and
forestry, while still minor contributors to agricultural GDP, have grown
rapidly. Structural changes have also taken place within the crop sector.
Cotton is now as important as wheat in terms of value added with a one-
fifth share of total earnings. Rice and sugar have, however, fallen from a
20 percent share in the early 1970s to 15 percent today.
INDUSTRIAL SECTOR
The Industrial sector as a whole grew by 8.4 percent during FY 2007-08,
while the large scale Industrial (LSM) is estimated to grow by 8.8 percent
and small-Scale Industrial (SSM) by 8.1 percent. The data for 100 industrial
items for three Quarters of the year 2007-08 implied that LSM growth may
be higher during Jul-Mar of FY 2007-08 as compared with the
corresponding period of the last year, but Suggests that the 13.0 percent
growth target of LSM sector for the year 2007-08 may not be achieved.
Major industries supporting the recovery in LSM included textiles, Sugar,
cement and basic metals. The automobile industry, however, registered a
Slowdown in growth during July-March 2007-08 relative to the
corresponding period of the year 2005-07. However, industries such as
fertilizer, paper and board and Engineering showed a decline in
production during this period mainly due to Weakness in demand and

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temporary shut down for maintenance as well as Expansion. Infrastructure
bottlenecks and power shortage are major constraints in achieving the
Industrial targets of 13 percent for the year 2007-08.
An investment of Rs 3,285 million from PSDP was planned to be
undertaken during2007-08 in the industry sector. The major projects
initiated during the year under Review include Auk Hunan Auk Nagar,
five Advanced CAD/CAM Training Centers, Technical Up-gradation of
Garment Industry, Agro-food Processing Facilities at Multan, Sports
Industries Development Centre, Sialkot, Gujranwa1ala Business Centre,
Gujranwala Tools, Dies and Moulds and Water Desalination Project
Gowanda, Baluchistan.
Textile
In view of anticipated competition with countries like China and India in
the global Markets particularly in the backdrop of opening of Chinese
export of textile and Clothing in European Union and USA in 2008, efforts
are being made to make the Textile and clothing sector to be more
dynamic and competitive. To achieve this Objective, a separate Textile
Industry Ministry was created and a number of projects Including Lahore,
Faisalabad, Karachi Cities and Karachi Textile City projects have Been
planned in the public sector with an investment of over Rs 3.5 billions, of
which Two projects Lahore Garment and Faisalabad Garment Cities have
been initiated During 2007-08 with an investment of Rs 998 million.
Commerce
In order to accelerate export, an investment of around Rs 3 billion was
planned in the Commerce sector. A number of projects including Social
Accountability SA-8000, Expo Centre Lahore, Pakistan School of Fashion
Design, Lahore and Trade and Transport Facilitation projects were initiated
during the year under review.
Investment of Rs 1,987 million is estimated for these projects during FY
2007-08.Two major projects of Pakistan School of Fashion Design Lahore
and Expo Centre, Lahore is expected to be completed by June, 2008.shift
in the production paradigm to Technology and knowledge based
industrialization, with a focus on the quantitative and the qualitative
growth of an integrated and competitive industry in the private Sector.
The inefficiencies of import substitution must give way to an export led
Strategy. The share of knowledge and technology intensive engineering,

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electronics, Pharmaceutical, chemical and non-metallic mineral
products, would be strengthened And enabled through fiscal and tariff
means as well as building of alliances with International partners. Sectors
and products with comparative advantage such as Textiles, food and
agro-processing would similarly be fostered.
A focused policy thrust, supported by adequate resources, will be
adopted for raising the threshold levels of the technology and skills base
which will result in better Productivity and quality. However, this needs to
be accompanied by diversification, as well as physical and social
infrastructure, standardization, and certification to Match the growth
requirements. Pakistan will be made a business friendly Country
through lowering cost of doing business, facilitation mechanism, reduction
of Procedures, intrusive inspection laws, and co-ordination of policies at
the federal and provincial levels. The private sector is the key stakeholder
in the growth strategy, andWould receive its due emphasis, while the role
of public sector would be that of catalyst and an efficient regulator to
ensure competitive market structure. Private and Public sectors are
required to go side by side to solve problems and formulate the Tools and
mechanisms needed to overcome constraints and exploit opportunities.
Challenges and Constraints
The Industrial sector still revolves around the traditional low value added
Industries, whose share in world trade is continuously declining. The
investment in Upgrading technology is low and diversifying into emerging
markets, products and Processes are either slow or nearly constant. An
efficient, international quality supply Chain, which is so essential for local
industry to flourish, is missing, partly due to Insufficient scale of economies,
and partly due to bundling of raw material, parts and Modules by the
multinationals in their assembly oriented companies, which Discourage a
local vendor industry to flourish. Major constraints in achieving the goal Of
rapid industrialization, are given below:
Productivity Levels: A serious constraint in achieving global
Competitiveness has been the low productivity level. Without the
development of a widely embedded skills base, competence and
productivity, global trading Challenges cannot be achieved.
Skills: Pakistan is facing both a skills shortage, and skills gap in key modern

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technologies. This reduces optimum operation of plant and machinery.
inadequate and Unreliable Power Supplies: Inadequate and unreliable
Power supply, a major constraint, is getting worse and causing poor
Competitive rating.
Saturation of Capacity: Many key sub-sectors such as steel, automobiles,
Fertilizer, paper and paper board, chemicals etc. are facing saturation of
Capacity.
Transport and Communication Infrastructure: Current road and rail
Network is inadequate even for immediate demands, and even more
poorly Maintained. Port congestion and port charges are high, adding
cost and lowering competitiveness.
Certification and Standards: While some progress has been made, many
of manufactured products still lack proper certification for quality and
safety, which hinders their wider acceptance locally and globally?
Policies, Strategies and Measures
Achieving accelerated industrialization is the foremost goal by capitalizing
upon National strengths and mitigation of weaknesses. The challenge for
Pakistan is not to rediscover industrial policy, but to re-deploy it in a more
effective manner in the National, regional, and global context. The policy
framework will be based upon the Advance industrial economies, where
focus is on the entire value chain. The Provision of facilities for public
testing laboratories and public R&D, vocational and Technical training,
infrastructure and communications, are all necessary inputs which Are
regarded as a public good for the Industrial sector. Value addition in
Products and processes will be strengthened through backward and
forward Linkages, productivity levels will be increased through human
resource development, Technical and vocational training, and
strengthening research and development.
All sectors have been opened for private sector investment, and equal
treatment is Available to foreign and local investors. The basic thrust of the
Plan will remain Industrial and technology driven growth within a
framework, which encourages Economy of scale, value addition and
diversification of products and processes. Major policy measures planned
to be adopted for the year 2008-08 include the Following:

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Diversification and Pioneering Industries: One the foremost objectives are
to diversifies the Industrial mix and generates new areas of comparative
Advantage. Incentives will be available for new activities, whether they
are ‘New’ products, processes or technologies, so that the range of
activities is expanded. Enterprises especially those engaged in light
engineering, or those in sub-sectors declared as ‘pioneering’ industries, will
be encouraged to foster Joint ventures and productivity enhancement
Industrial Zones, Corridors, Clusters and Estates: Present urban/Industrial
centers cannot accommodate the expected increase in industrial And
Industrial activities. Industrial corridors, estates, and industrial parks are
therefore planned to be set up by Provincial Governments along the
Motorways, expressways, and railways with full support of the Federal
Government.
Growth and Investment Targets
In order to achieve the goal of sustained industrialization, a growth rate of
10.9 Percent has been targeted for the Industrial sector including 12.5
percent for Large scale Industrial and 8.5 percent for Small Scale Industrial.
An Allocation of Rs 18.85 billions has been earmarked for both the Industry,
Textile and Commerce sectors which the highest one is ever made in
these sectors. It consists of Rs 8.483 billions in the Industry sector, Rs 1.098
billions in Textile Sector and Rs1.589 million In the Commerce Sector. Major
projects to be carried out in Industry Sector during 2008-08 include: Agro-
food Processing Facilities at Multan (Rs 79.87Million), Auk Hunan Auk
Nagar (AHAN) (Rs 70.379 million), Gujranwala Business Centre,
Gujranwala, (Rs 13 million), Sports Industries Development Centre
Sialkot(Rs 178.84 million); Technical Up-gradation of Garment Industry all
over Pakistan(Rs 100 million), five advanced CAD/CAM Training Centers
(Rs 139.4 million),Gujranwala Tools, Dies and Moulds Centre (Rs 295.000
million), 2MGD Water Desalination Project GAWADAR Baluchistan (Rs
188.87 million). Major projects in the Textile sector include 03 Garment
Cities at Lahore, Faisalabad and Karachi, Implementation of Export Plan
and establishment of two Fiber Testing Laboratories. Major projects to be
carried out in Commerce Sector include SA-8000, Pakistan School of
Fashion Design, Lahore, Trade and Facilitation Project and Expo Centre,
Lahore.

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Now here every thing is clear,
we saw that Pakistan got developed in few times but suddenly due to
some reasons the development process got failed there are number of
reasons behind this but the number one reason is management, or we
can say not sincere management, because we know that if
management is sincere then it will work really heartily for the betterment
of that project and problems in any project can occur only at that time
when there management is not sincere and also not able to complete
that task, so management has remained a big problem in Pakistan.
We know that Pakistan highly
depend upon the agriculture and if the agriculture sector is not properly
given attention then Pakistan can never get developed.