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Role of Agriculture in Economic Development of Pakistan, Negative…
Role of Agriculture in Economic Development of Pakistan
Challenges:
Climate Change:
A decrease of 14.7 and 20.5 percent of wheat and rice crop due to climate change has been observed in the past few years with their market price shooting up.
In coastal areas, rising sea levels may result in complete loss of agricultural land.
Warmer climates may also lead to more problems from pests and diseases.
Irrigation Problems:
Water logging and salinity, as a result of poor irrigation practices, affect 14 million hectares.
The Inefficiency of the irrigation systems causes water to be wasted, which can result in the over-irrigation of certain areas and the under-irrigation of others.
About 60% of farmers depend upon groundwater to meet the crop water requirements.
Groundwater quality in Pakistan is highly saline which results from waterlogging of salinised soils due to irrigation.
Land Degradation:
Deforestation and overgrazing affect 11 and 24 million hectares, respectively.
The productivity of some lands has decreased by 50% due to soil erosion and desertification.
Lower Agriculture Yeild
MacroEconomics:
Inflation:
When infaltion would increases the prices of basic agriculture resources would also increase as in 2022 inflation rate 12.15%
When inflation is low the price of argiculture and related resources would decrease allowing for more yeild to be grown, as in 2016 inflation rate 3.77%
National GDP:
Agriculture sector contributes 22.9 percent in GDP.
When better and optimum yeild more contribution of agriculture.
High infaltion people will buy less goods and services causes lower annual change of GDP as in 2022 4.7%.
Less inflation people will buy more goods and services allowing more annual change in GDP as in 2016 6.6%
Employment:
About 47% of the population is directly or indirectly related to agriculture.
More inflation less resources to buy, more unemployment as in 2022 unemployment rate 6.42%
Less Inflation less unemployment rate due to more resources buying and more product manufacturing and more GDP change as in 2016 unemployment rate 3.77%
Interest:
More Inflation increased interest rate, less agriculture yeild since less land cultivated and less equipment bought and lower qualtity seeds, as in 2022 interest rate 22%
less inflation less interest rate more agriculture yeild, better exports more GDP inccrease, more employment as in 2016 interest rate 5.75%
International Trade:
Forgein Exchange:
Pakistan has an estimated livestock population of 225 million with a value addition of PKR 5.5 trillion in 2023.
Due to a large livestock population, Pakistan also fetches USD 950 million in leather exports, making it the 4th largest leather apparel exporter.
Exports:
About 70 percent of Pakistan’s exports are directly or indirectly derived from agriculture.
According to the Pakistan Bureau of Statistics, the value of agricultural exports in 2023-24 was $5.2 billion, an increase of 13% from the previous year.
Higher Agriculture Yeild
Research & Development:
Development of Rural Areas:
Reduce Poverty and provide the people of these rural areas with better facilities and services.
Installment of effiencnt Irrigation system:
Through reseaech and installation of better irragation system in the rural areas, more crop could be waterd, while conserving water and resources.
HEIS and further research on it could potentially also solve the water storgae issuse in Pakistan.
Vertical Farming:
Investemnet in vertical farming of hydroponic and areoponic towers could help effecitvely produe more yeild in small space and conserve water aswell, allowing small farmers to earn livilyhood with high ROI.
Better Quality Seed:
Research on seed types and improving their quality could effiectly increase yeild.Pest resistend seed would contibute to less pesticide purchase.
Negative Influence
Positive Influence
Positive Macroeconomic Trends
Positive Macroeconomic Trends