Agriculture and the Rural Economy in Pakistan


Book Description

Historically, agriculture has been crucial to Pakistan's economic growth and development and remains so even today. The sector employs almost half of the country's labor force, supplies key inputs to the country's manufacturing sector, generates a significant share of export earnings, and nourishes a rapidly growing population. Further, beyond agriculture is the wider rural economy, including nonfarm economic activities such as small enterprises, transport services, village retail shops, local schools, and clinics, all of which account for an estimated 40 to 57 percent of total rural household income. Given the importance of these rural activities, the slow growth of agriculture in recent years—averaging just 2.8 percent during the period 2010-2014—should be a source of concern for Pakistan. Can the country's agricultural sector and rural economy once again play a significant role in growth and development? Can it contribute to poverty reduction? Agriculture and the Rural Economy in Pakistan: Issues, Outlooks, and Policy Priorities seeks to answer these questions by examining the performance of both agriculture and the rural economy. The authors identify several measures that can promote agricultural productivity growth as well as wider economic and social development. These include increasing the efficiency of water use in the Indus river basin irrigation system, especially in the face of climate change; reforming policies and regulations that govern markets for agricultural inputs and commodities; and improving the provision of rural public services for health, education, women's empowerment, and community development. The analyses and conclusions in Agriculture and the Rural Economy in Pakistan will be of use to policy makers, development specialists, and others concerned with Pakistan's development. Contributors: Madiha Afzal, Nuzhat Ahmad, Faryal Ahmed, Mubarik Ali, Shujat Ali, Elena Briones Alonso, Hira Channa, Stephen Davies, Paul Dorosh, Gisselle Gajate Garrido, Arthur Gueneau, Madeeha Hameed, Brian Holtemeyer, Huma Khan, Katrina Kosec, Mehrab Malek, Sohail J. Malik, Shuaib Malik, Amina Mehmood, Dawit Mekonnen, Hina Nazli, Sara Rafi, Muhammad Ahsan Rana, Abdul Wajid Rana, Danielle Resnick, Khalid Riaz, Abdul Salam, Emily Schmidt, Asma Shahzad, David J. Spielman, James Thurlow, Ahmad Waqas, Edward Whitney, Fatima Zaidi.




Pakistan’s fertilizer sector


Book Description

The fertilizer industry in Pakistan, with US$3.74 billion per year in sales, now stands at a crossroads where, after an initial substantial contribution in boosting crop productivity, its future potential is being challenged. Fertilizer-responsive crop varieties, supplementary irrigation water, and a favorable policy environment in Pakistan have induced fast growth in fertilizer demand. On the supply side, the availability of gas at low prices along with a favorable investment environment resulted in the buildup of excessive manufacturing capacity. But recently, a shortage of gas and monopolistic behavior has led to underutilization and greater imports. Restrictive laws put fertilizer processing and marketing in a few hands, which has also affected its efficiency. Moreover, the yield response of fertilizer has tapered off and per hectare use is fast reaching its optimal level. The existing policy environment leads to higher costs, inefficient use, and a heavy burden on the government as it charges one-fourth of the market price for feedstock gas used in fertilizer manufacturing. In addition, the government imports urea and absorbs the difference in international and domestic prices.



















Agrindex


Book Description