Importance of Agricultural sector in Pakistan

Importance of Agricultural sector in Pakistan

1. Contribution towards GDP


In Pakistan economy agriculture sector plays a very important role by making a greater share to the GDP of the country. Agriculture sector contribution to Pakistan GDP is about 21%. Accordingly, agricultural sector is the major contributor to Pakistan’s national income.

2. Major Source of Employment

Agriculture sector provides employment to major portion of our labor force. More than 43.0% of our labor force is directly involved in agriculture sector, while more than 65.0% of our rural population is dependent on agriculture. This is the major sector, which provides employment to a large portion of our population. Agriculture sector is helpful to reduce the unemployment.

3. Food Availability

Food is the first in basic necessities of the life. The agriculture sector is the sole provider of all type of food like wheat, rice, corn, sugarcane vegetables and fruits etc., to the population engaged in various sectors of the economy. Agricultural sector also provides food to those animals that provide milk, cheese, butter and meat to population to maintain the efficiency. If country 6th largest in population like Pakistan, the importing of food goods will have negative impact on BOP of the country. Agricultural sector provides not only food but also provides cotton, sugarcane, tobacco, rice, oil-seed, meat and milk to various agro-based, small scale and large-scale industries as a raw material.

4. Sources of Foreign Exchange Earnings

In a country like Pakistan the promotion of agriculture sector will provide surplus production for exports and our foreign exchange reserves will be increased. Such foreign exchange can be used to import the necessary machineries and plants etc. which can be helpful in accelerating the pace of economic development.

5. Supply of Raw Materials to Industries

It is the agriculture sector which provides the necessary raw materials to industrial sector of the economy. Most of the industries are established on the basis of the locally produced raw material like textile industries and sugar industries depends upon the availability of local raw materials.

6. Extended Markets

The existence of agriculture sector becomes helpful in the extension of markets. The expending and progressing agriculture sector means the more incomes of the farmers and such incomes can be spent on the goods other than agriculture.

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