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Economy of Pakistan Notes

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D e fin it i on of E con o mic D e v e lo pment

Ec o nomic deve lop m e n t is a pr o cess of ec o nom ic

tra n sition in v o lv ing structu ral tra n sfo r matio n of an

ec o no m y thr o u g h industria liz a tio n, ra is in g gr o ss n a tio nal

pr o d uct a n d p e r ca p ital income.

A c cordin g to Lewis,

Ec o n o m ic d e v e lo pm e nt m ea ns in cr e ase in o utp ut

p erh e a d.

A c cordin g to Miche a l T o daro,

Ec o n o m ic d e v e lo pm e nt must be co n c e iv e d o f as a

multi-d im e ns io nal p r oc e ss in v o lv ing major c h a ng e s in

s o cialstructur e s p e o p le !s attitudes n a tio n a l institu t io nsacc e ler a tio n o f ec o n om ic g r o w th a n d r e d u ctio n o f

in e " u a lit y .

A c cordin g to K in d l eb e rge r ,

Ec o n o m ic d e v e lo pm e nt m ea ns a n in c r e a s e in o u tp ut

ofg o o ds a n d s e r vic e s in the e c o n o m y .

#t is more im p orta nt than ec o n om ic g r o w t h b ec a u s e

ec o n om ic d e v e lo pm e nt is m ore c om p r e hens ive pr o c ess

th a n e c onom ic gr o w th. E c onom ic g r o w th is a "ua n titativ e

term as it r e p re s e n ts "ua n titative inc r e a se in the

pr o d uction of g o o ds serv ic e s and factors of prod u ctio n
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Economy of Pakistan Notes

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w h e r e a s economic d e velo p m e nt is a " u alitative terms as

it
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in d ic a tes c o ntin u o us in cr e a s e in real n a tio n a l inc o me an d

structur a l cha n g e s in th e e cono m y of a co u n tr y .

D e fin it i on of E con o mic G r o w t h

Ec o n o m ic gro w t h m e a n s m ore prod u ctio n of g o o d s

and serv ices gr o w t h is m e as u r e d in terms of a n

in c r e a se inre a l gr o ss n a tio n a l p r oduct $ %NP or %&P' or

a n incr e a s ein p e r c a p ita l incom e .

A c cordin g to Miche a l T o daro,

Ec o n o m ic gro w t h is a ste a d y pr o cess by w h ich t he

pr o d uctive c ap ac it y of an econ o m y inc r e a s e s ov e rtime to

br in g ris in g le v e ls of n a tio n a l o u tp u t a nd in c om e .

O bje c t i v e s of E c o n omic D e v e lo pment

1. #ncr e ase of su p ply of fo o d clo th in g hea lth

a n de d u c ation facilities.

2. #ncr e ase in sta n d a r d o f liv in g o f the p e o ple .

3. #ncr e ase in le isu r e p o litic al fre e d o m a nd

e " u a lo p p ortu n itie s o f life.

4. #ncr e ase in ca p ita l formation that is n e w b u ild in gs

a n din d ustrie s.

Me a su r ement of E c o n omic D e v elo p m e nt
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Prev io usly fo ur meth o d s in c lu d in g n a tio n a l inc o m e

meth o d p er c a p ita l in c ome meth o d w e lfa r e meth o d

a nd
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soc ia l indic a to r s meth o d w e re used for the

me a su r em e nt of e c onom ic d ev e lo p m e nt of a countr y

b u t n o n of th e mpr o v id e d an a c ce p table a n s w er.

A c cordin g to P r of. T o daro,

( he )um a n &eve lo pm e nt #nde* m eth o d w hich is

pr e p ar e d b y + n ited N ations & e v e lo p m e n t Pro g ram is the

b e st meth o d w h ich sho u ld b e a d o pte d by th e n a tio n s and

or g a n i,atio n s.

( h is meth o d inclu d es the op p ortu n ities for e d u catio n

h e a lth in co m e em p lo y m e n t e n vir o n m e nt a nd econ o m ic

fre e d o m.

Me a su r ement of E c o n omic Gr o w t h

1. #ncr e ase in the re a l gr o ss n atio n al p r o d uc t .

2. #ncr e ase in the re a l p e r c ap ital in c o m e.

3. #ncr e ase in the gen e r al w e lfare of the ma s ses.

4. #ncr e ase in s o cial ec o n omic a n d hum a n dev e lo p m e nt.

Fa c tors Needed F or Eco no mic G r o w t h

b ilit y of an e c o n o m y t o p r oduce more goo d s a n d s e rvic es

d e p ends on th e fo llo w in g factors:

1.n in cr e ase in s t ock and " u a lit y of its ca p it al goo d s.
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2.n in cr e ase in "ua n tit y and " ualit y of its lab o r f orc e .
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3.n in cr e ase in "ua n tit y and " ualit y of its

natur a lres o ur c es.

4. n efficient use of factor inp u ts so as to ma* imi,e theirco n trib ution to the e * p a n s ion of o u tp u t thr o u g h

im pr o v edpr o d uctiv it y .

5. & e velo p m ent a n d in tr o d u ction of inn o vativ e

tec h ni"uesa n d n e w p r od u cts i.e. tec h n o lo g ic al

pr o gr e s s iv e n ess.

6.n in cr e ase in le v el of d e m a n d to e ns u re f u ll

utili,ationof the increased productive c a p a b ilities o f th e

ec o n o m y .

c h ie v ement o f a high r ate o f ec o n om ic g ro w t h is o ne of

the main objectiv e s of m acro e c o n o mic p o lic y . ( he

sig n ific a n c e of econ o mic gro w t h lies in its co n trib ution to

the gen e r al pr o s p er it y of the communit y . %r o w t h is

d e sir a b le b ecause it ena b les the com m u n it y to co n s ume

more g oods a n d serv ic es. #t a lso c o n tr ib ute s to the

pr o vision of a g r e a ter "ua n tit y of s ocial g o o ds and

serv ices s uch as h e a lth a nd e d u c ation th e r eby im pr o v in g

re a l stand a r d of living of the p e ople . %ovt. can stimu late

gr o w th pr o c e s s b y increas ing c urr e nt s p e n d in g in theec o n o m y th ro u g h ta * cuts b y iscal p o lic y a nd b y

in cr e as in g m o ney supply an d re d u c ing in t er e st rate s b y

a d o pting mon e ta r y p o lic y .
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E c o n omic F a c tors N e ed e d F o r E c o n omic

D e v elo p m e nt
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1. N a tur a l e s o u rces

N a tur a l reso u rces are one o f the thr e e m a in factors of

pr o d uction the o th e r t w o a r e la b or a nd c a p it a l. N a tur a lres o ur c es in c lu de ar e a o f la nd for e sts rivers clim a te

a n dmin es. #f a c o u ntr y is rich in better " u alit y of a ll

n atu ralres o ur c es it w ill d e v e lo p e c on om ic a lly at a fast

sp e e d .

2. 0 a p ita l ormatio n

#t is t he pr o ce s s of a d ding n e t ph y sical capital s tock o fanec o n o m y . 0 ap ital form a tion c r e a tes productiv e

p otentia lfor f utu re p roductio n. 0ap ita l formatio n has

thr e e stagesn a m ely

sav in gs

fin a n c ia l institutio n s an d c a p ital marketformo b ili,ation of sav in gs

act of inv e stm e nt in mac h in e r y a n d bu ild in gs.

3. 1p e ciali, ation

2utp u t is gr e a t er a s a res u lt o f sp e cia li, a tion.

1 p eciali, ation e n a b les an e co n o m y to u se its scarce

res o ur c es m o r e e ff ic ie n tly th er e b y p r oduc in g la r g er

vo lu m e o f g o o ds a nd s erv ic e s. #t in cre a ses t he rate

ofec o n om ic d evelo p m e n t of a co u ntr y .

4. ( ec h n o logy
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#nv e ntions and in n ov a tio ns r e d uce ma n ufa ctu rin g

andd istrib utio n c o s ts. ( ec h n o logic al pr o gr e ss se r ves

to
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ch a n ge cost c o n d itio n s in th e lo n g r u n3 th u s t ec h n o lo g ic al

ch a n g e s p lay a n im p orta nt ro le in t he e c o n o mic

d e v e lo p m e n t.5. ( ra n sp o rt and 0 o mm u n ication

Eff ic ie n t com m u n ic atio n fa c ilities in cr e ase t he pr o d u ction

ca p a c it y of a ll secto rs of the ec o n o m y . #t re d uc e s cost of

pr o d uction in c re a ses m o b ilit y of g o o d s w it hin a n d o u tsid e

the countr y .

6. Entre p r e n e u rsh ip

#f an e n tre p r en e u rs h ip is c a pab le skillful a nd train ed th en

o u t p u t of h is o rg a n i, a tio n w ill be gr e a t er.

E n tre p r e neur s h ip r e s u lts in th e in tro d uction of n e w t y p e s

of o u tp u t n e w tec h ni"ues a n d n e w so u r c es of su p ply of

in p uts for b us in ess a nd industr y .

Non-E c o n om ic Fa c tors Ne e ded F o r E con omic

D e v elo p m e nt

1. 1oc ial 4 a lue s a n d ttitu d es

#t inc lu d es c u lt ur e re lig io n a n d life s t y le of a soc ie t y . 1 o me

soc ieties a re o r th o do* a n d do n o t like m a te r ia l a p p r o a c h o f

life. e lig ion d o e s n o t a llo w t h e m t o k e e p th e mse lv es b u s y

day in and da y o u t for mater ial pr o sp e r it y . 5 o st soc ietie s

b e lie ve in festiva ls and d iffer e nt cu ltur a l ce re mo n ies. ( h e y

do n o t p r efe r t o s a ve m o ne y 3 h e n ce s a v ings rate re d u c es

too mu c h. #n s u ch s o c ietie s mate rial g a ins are n o t
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a p p r ec ia t e d .
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2. Po litical 1 ta b ilit y

1tro n g and s ta b le %ov e r nments can pr e p a r e fiv e- y e a r

d e v e lo p m e n t pla n s they c an e nfo rce moneta r y a nd f isc a lp o lic ies and c h a n g e s o c ial attitu d es and instit utio ns

w h ichm a y be progressive one. ( he fre " uent chan g es in

% ovt.setu p r e s u lts in the lack o f concrete ec o n om ic p o lic y

d e cis io ns.

3.dm in istrative Effic ie n c y

E d uc a te d tra in e d skillfu l and h a r d w o rk ing % ovt. offic e rscan p u s h d e v elo p m e nt of a co u ntr y at a ve r y fast sp e e d

w h e r e a s u ntr a in e d administr a tion of a c o u ntry reta r ds the

ec o n om ic d evelo p m e n t.

4. Eco n om ic r e e d om

Priv a te o w n er s h ip o f resources a n d m a * imu m f re e d o m

t od e p loy t h e s e r e so u r c es in lin e w it h p rofit sig n a lscr e atestro n g in c e n tiv es to w o rk h a r d. #f ev e r y bo d y is

a llo w e d top a rtic ip a te in eco n o m ic activ it y th e n due t o

com p etitionthe rate of ec o n o mic d ev e lopme n t w ill

increas e .

5. ig ht of Priv ate Proper t y

Priv a te o w n er s h ip o f the m ea ns o f pr o d uction res u lts in

the increase in s u pp ly of g o od s a n d s e rvic es. #n or d er

too w n and ac cu mu late p r ofit a nd pr o p e r t y peo p le w ork

h a rd t h u s t rade a n d b u s in e ss activit y f louris h e s.
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E c o n omic D e v e lo pment
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Ec o n o m ic d e v e lo pm e nt is a " u a litative te r m as it

in d ic ates co n tin uous in cre a se in the real n ation a l

in c ome and structur a l c h a n g e s in th e e co n o m y of ac ountr y . #t means in cr e ase in o utp ut of g o o ds a nd

ser v ic e s in an e c ono m y .Ec o n o m ic d e v e lo pm e nt is m ore

im p o rta nt th a n econ o m ic gr o w th b e c a u s e econ o m ic

de ve lo pm e nt is w id er and more com p r e h e n sive pr o cess

than ec o n om ic gr o wth. Ec o n o mic d e v e lo p m e n t is a

pr o c ess of ec o n om ic tr an sitio n in v o lv ing structur a l

tr a nsfo rmation of an e c ono m y t hr o u gh in d ustria li, a tio nra ising %NP a nd p er c a p ital in com e .

E c o n omicGr o w t h

Ec o n o m ic gro w t h is a "ua n t itative term as it re p resents

" u a ntita tive in c r e a se in production of goo d s a n dserv ic es in a n econ o m y. Ec o n o mic g r o w t h is a stea d y

pr o c ess b yw h ic h th e p ro d u ctive c a p a c it y of a n e c ono m y

incr e a s eov e rtime to bring a b o ut ris ing le ve ls of n a tio n a l

o u tp u t a ndin co m e. Ec o nomic gr o w th is the n a m e of more

pr o d uction.%r o w t h is measur e d in terms of an in cr e a s e

in real gr o ssn a tio n a l p r od u ct $%NP/% &P' ov e r time oran in cr e ase inp e r ca p ital income.

Imp o rt a nce o fA ricu l ture
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g riculture is b a c k b o n e a nd th e lar g e st secto r of

P a kistan!s e co n o m y w h ich p la y s a ve r y im p o rta n t r o le

in its d e v e lo pment. #t pr o vides fo o d i.e. w h e a t ric e

p u lses ve g etables fruit a n d other ite ms for gr o w ingp o p u lation of
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the c o u n tr y . N e a r ly 667 of to tal o u tp ut $%&P' a nd 8 8 .9 7

of total emp lo y m e n t is g e n e r ate d in a g ric u ltur e . #t

co n trib ute s s u bsta ntially t o P a kistan!s e * p orts.gr icu ltu r e

a lso c o ntribute s to gr o w th as a supp lier of r a w m ate rials to

in d ustr y as w ell as m a rket f or in d ustria l p r oducts.

P e rform a n c e o f a g ric u lture d ur in g the y e ar 6 ; - .< p e rce n t.

g riculture e m p lo y s ? 7 of w o rk forc e . 0 o u ntr y !s


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h a s b e e n suff er in g off and o n from se v e r e s h orta ge of

irr ig a tion w a t er in r e ce n t y e a r s.

Main Fe a tures ofA ricu l tu r e

1. 5a in s o ur c e of fo o d

s u pp ly .

2. Prov id e s em p lo y m e n t

opportu n itie s.

3. 5a jor s o ur c e o f n a tio n a l

in com e .

4. Pr o vid es r a w ma t er ia l for

in d u str ies.

5. %o o d m a rk e t for a g ric u ltural mac h in e r y an d

e "uip m e n t.

6. 5ark e t for fertili, e rs p e stic id e s and

in s ecticid es.

7.

5a in s o ur of for e ig n e * c han g eearnin gs.

8. E * p ands in d ustria l g oods

mark e t.
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Major A ricu l tural!rops

( h e re are t w o pr incipal crop se a s o ns in Pa kista n n a m ely

A h ar if s o w ing se a s o n beg ins in p ril- @ une a nd

h a r v estin g d u r ing 2c t o b er -& e cember a nd abi w hich

beg ins in 2c t o b e r -& e c e mb e r a nd e n ds in p ril-5 a y .

ic e su g ar c ane c o tto n ma i,e b ajra and jo w a r are

A h a rifcro p s w h ere a s w h e a t g ra m to b acc o r a p e s e e d

b arle y a n d musta r d are a b i cr op s. 5a jor crops w h e a t

ric e cotton a nd s u g a rc a ne accou n t for B .> p e rc e nt of th eva lu e a d d e d in the majo r cr o p s.
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1. 0 o tt on

0 o tt on is n ot o n ly an e *p o r t - e ar n ing crop b u t also

p ro v idesr a w m ate r ial t o the loc a l te * tile in d ustrie s.P ak istan is o neof the largest cotton pr o d u c in g a nd

c o n su ming countrie s inthe w orld. + n d er the C ( 2 p o st

" u ota scen a rio theco u ntr y appea r s t o h ave t he p ote ntial

of becomin g ale a d in g force in the w o rld w id e cotton and

te * tile marketp la c e. ( h e re is a lso gr o w in g r e a li, a tio n in

th e c o u n tr y t h a tfuture g a ins in va lu e a d d e d fr om c o tton

are o n ly p oss ib lethr o ugh "ualit a tive im p ro v ement in r a w

cotton. 0ottonacc o u nts for 9 .< p e rc e nt of t he value added

in a gr ic u ltu r ea n d about >.B p e rc e nt in % &P.

actors res p onsib le for the declin e in cotton pr o d uction

in c lu d e:

E * c e ssive r a in at the t ime of s o w in g .

) ig h tem p e r atu re a t flo w e r ing sta g e.

D a te w h e a t h a r vestin g r e s u ltin g in d e c lin e o f

ar e au n d er the cro p .

P e st attack in some cotto n s g r o w ing ar e as o f

P u njaba n d 1 indh.

2. ice

ice is an importa n t fo o d c a s h cr o p. #t is a lso o ne of the

ma in e*p o rt ite ms of co u ntr y . #t acc o u n ts for ;.= p e rc e nt of

the t ota l value a d d ed in a gr ic u lture a nd >.6 p e rc e nt to
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%&P. rea a n d pro d uction t a r g e t of rice for the y e a r 6 < -

= w e r e s e t at 6 ; = ; th o u s and h e ctar e s .6 p e rc e nt h ig h e r

th a n the target a n d 87 h igher th a n la st y e ar. ( he si,e o fthe crop estim ate d a t ;8?9 th o u s a nd t o n s 6 . p e rce n t

lo w er th an t he last y e ar a n d 8 .; p e rc e nt lo w e r t h a n the

or iginal tar g et.

3. 1u g ar c a n e

1 u g a r c ane cr o p s e rves as a major r a w m ate ria l for

pr o d uction of w h ite sugar a n d g ur. 1ugarcane crop ish ig hly w ate r - in t e n siv e a n d a n imp o rta n t cro p . 1 u g a r

pr o d uction in t he countr y m o stly d e p e n d s o n th is cro p

th ou g h a sma ll " u a ntit y of sugar is also p r oduc e d

fromsu g ar b e e t. #ts s h are in v a lue a d d ed of

a g r ic u lture a nd%&P are ?.; p erc e nt and .= p e rc e nt

res p e c tively .

( he h igher s u g a rc a ne pr o du ction is th e re s u lt of in c r e a s e

in a r e a tim ely ra ins and jud icio us app lic ation of fertili, er

im p ro v em e nt in c u ltur a l p r actic e b etter m a n a g ement and

attractive prices offer e d by th e mille rs.

4. C h e at

Chat is the main s t a p le d iet of cou n tr y !s population andla r g est gr a in cr o p o f the coun t r y . #t co n trib u te s > 8 .8

p e rc e nt to the va lu e a d d e d in a g ric u lture a n d ?. p e rc e nt

to %&P. rea a n d p r o d u ction t ar g et of w h e a t for the y e ar

6 < - = w ere set at 98 ; B tho us a n d h ecta r e s a n d 66.;

million to n s re s p e ctiv ely . Ch e at w a s cultiv a t ed on an ar e a
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of 9 8 B 8 th o u sa nd h e c t ar e s sh o w ing > . p e r ce n t in cr e ase

ov e r last y e a r a n d . 8 p erce n t in cre a se o v er the t ar g et.

( he si,e o f w h e a t crop is ho w e ver p r ov is io n a lly estim a te dat 6 ? .;6 million to n s h ighest w he at pr o d uction in th e

co u ntr y !s h isto r y w h ic h is > . ; p ercent h igh er th a t la st

y e ar a n d 8 .; p erce n t higher th a n th e tar g et. ) ig h e r

pr o d uction is d ue t o fo llo w ing re a s o ns.

( he certifie d w h e at s e ed availabilit y w a s ;

to nsmore t h a n last y e ar to 6> = to n s. ( he ur e a fertili,er av a ilabilit y for a bi c r op w a s 8.=>8

to n s w h ich w a s more th an th e area r e "uir e me n ts

of

6.B million to ns for abi. 5or e o v er subsidy w a s

e * t e n d ed to p h o s p h a tic a nd p o tassic fertili,ers.

( he pr ice of ; kg. b a g of th e se fertili,ers w e rere d ucedb y s. 6; an d furth e r to s. 8 p e r bag to

pr o m oteb a la n c e d u se o f fertili,ers.

( he w a t er availab ilit y f or a bi w a s ? > .6 m illion

acre fe e t. ( h is w a s an im p ro v ement of ?.= p ercent

ov e r thela st y e a r a bi w a t er u se o f ? .> million ac r e

f e e t. D a st y e a r t he a g ric u ltur a l cre d it d is b ur s em e nt to

farmers w a s s. > ? billio n. ( h is ye a r c r e d it

av a ila b ilit y h as b e en in cr e ased to s. > < billion.

( heb a nks w e r e also ins tructe d to foc u s on s ma ll and
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me d ium sc a le gr o w e rs for cre d it disburs e m e nt.
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Min or A ricu l t ural ! r o p s

1. 2ilse e ds

( he majo r oils e e d cr o ps in c lude cotto n s e e d

ra p e s eed/mustar d su n f lo w e r a n d canola etc. the tota l

av a ila b ilit y of e d ib le o ils in 6 ; - < w as 6 .B ; million to n s.

D o c a l prod u ctio n sto o d a t .= B ? million to n s w h ic h

acc o u nts for 6 = p ercent of tot a l availab ilit y w h ile the

rem a in in g = ? perc e nt w as m a de availa ble thr o ugh

impo r ts.& u ring 6 < - = lo c a l prod u ction of edib le o il ispr o visio n a lly e stimated at .9;; million to n s. &ur in g th is

p e r io d 6.6 > million to n s e dible o il w as imp orte d a n d

.? 8B m illion to ns e dible o il w as r e cov e r ed from im p orte d

o ils e e ds. ( he t ota l availabilit y of e d ible oil f r o m all so u r c es

am o u nte d to ? . 8 ; m illion t ons d u ring 6 < - =.

2. 2th e r 5in o r 0ro p s( he pr o d u ctio n of t w o p u ls e s n a m ely m ung a n d m a s o o r

w e re h ig h er b y 6 > .; p e r c e n t a nd > = . B p erce n t

res p ectiv e lyd u r ing 6 < - =. ) o w e ver p r oductio n o f ma s h

d e cr e asedb y ?.< p e r c e n t. ( he main re a s on for d eclin e in

p roductionof mash as c o mp a r e d to la st y e ar h as been

the s h ortfa ll ofar e a dedic a te d to the cro p w h ich dec linedb y 8.< p ercent.( he pr o d u ctio n of p o tato w as sig n ific a ntly

h ig h e r b y < = . 6p e rc e nt a n d s t o o d a t 6 < 6 6 . ? th o u s and tons

w h ile it w as> ; < 9 th o u s and to n s last y e ar. ) o w e ver the

p r o d uction ofo n ion d ecr e a s ed b y > 8.? p e r ce n t ma inly

due to > < .;
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p e rc e nt re d uction in c o r p a r ea . ( he pr o d u ctio n o f ch ilies is

d e cr e ased b y 8 B .< p erc e nt a s ? 6 .8 p e r c e n t ar e a of the

crop d e c r e a s e d d ue to e * c e s sive ra ins in 1 in d h.

"rob l e m s of A ricu l ture

1. 2ld 5eth o ds of 0 u ltiv a tio n

Prim itive m e th o d s of cu ltiv ation i.e. use of w oo d e n ) u l

P h a o r a 1o h ag a a nd a il $ 2 *e n ' ca n n o t in c r e a se outp ut.

#tis th e refo re th e n e ed of the d a y t h a t o u r f ar m ers s h oulduse t racto rs thr e sh e rs bulldo,ers a n d tu be - w e lls.

2. 1h o rta g e o f in a n c e

2ur f arm e r is po o r. #n or d er to me e t h is d e m a n d he

b o rr o w s m o n e y f rom relativ e s frie n ds a n d m o ney lend e rs

at a ve r y h igh inte rest rate. &ue to s h orta ge of fin a n c e h e

ca n n ot a d o pt n e w m eth o ds o f cu ltivatio n .

3. D a ck of #rrig a tion acilitie s

& e v e lo p m e n t a nd pr o gr e ss of a g ric u lture is b as e d on

re g u la r su p ply of sufficie nt "uantit y of w a ter. a ins in

P a kistan a r e unc e rta in a n d un p r e d icta b le w h e r e as

irr ig a tion s y ste m is u n satisfa c to r y . #n a d e"u a t e w a ter

su p ply t h r ough irr ig a tion s y ste m i.e. from w e lls pon d sa n d canals are ca u sing lo w a gr icu lt ure pr od uctiv it y .

4. + n d e r +tili, atio n o f 0 u ltiv a tion Dand

( he t ota l ar e a o f P a kistan is 9 million hecta r es o ut of

w h ic h 6 6 million h e ctar e s of la nd i.e. 6 ;7 la nd is being
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cu ltivated. & u e to v a rio us r ea so n s a greater p o tio n o f la n d

is n o t used for cultiv a tion p urpos e th a t!s w h y o u r

a g ric u lture o u t p u t is lo w . Ce sh o u ld br ing a gr e ate r p ortionof la nd u n d er the use of a g ric u ltur e .

5. + n econ o m ic )o ld in gs

#t me a ns sm a ll ar e a o f lan d w h ich is un e c onom ical t o

cu ltivate . &ue to in h er ita nce s y stem land is d iv id e d and

su b d iv id ed into small p iec e s mak in g it u n e c o n o m ic a l to

cu ltivate . 1mall a n d sc a tt ered h o ld in gs p r o duce le sso u tp ut.

6. 0 o ncentration of D a n d 2 w n ers h ip

#n Paks ita n @ a g ir d ars a nd Fa min d ars w ho o ne ma jor it y of

la n d a r e a live in b ig cities a n d do n o t take m uch inte r est in

the d e v e lo pment of a g ric u lt u r e. ( hey g ive th e ir la n d s t o

la n d less people for cu ltivation on t he b as is of h e a v y D u g a na n d a t ai $so m e a greed p r op o rtion of o u tp ut'. 1in ce a

gr e ate r p ortion of outp ut goes to the ,amindars a n d v e r y

le ss is left to sma ll a nd p o o r p e a s a n ts they g e t frustrated

a n d do n ot ta k e in ter e st to ra ise p roductiv it y .

7. #n a de" u a te 1 u p ply of #n p u t s

2ur f arm e rs us e s p o or " ualit y se e ds. &ue to lack o ffin a n c e a n d ig n or a n c e h e do not use f ertili, e r s

in sectic id es p estic id es im p r ov e d high y ie ld in g see d s a nd

mo d e r n m a chin e r y th er e fo r e h is o u tp ut ke e p s on

d e cr e as in g.
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255379109 economy of pakistan notes

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