Industrial & Agriculture Development in Pakistan

We know how agriculture contributes to economic development and then how industry
contributes towards development. However, the issue of choice of one sector over the other
remains unresolved as far as economic policy is concerned.Industry which is, no doubt,
important, will not progress unless agriculture is sound, stable, and progressive. Because of this
interdependence these sectors are complementary, and not competitive. In the development of
an underdeveloped economy, there is as such no conflict between agricultural and industrial
development.Further, many raw materials and inputs used in industrial production, e.g., cotton,
jute, sugarcane, tobacco, etc., is supplied by the agricultural sector. Such production linkages
demonstrate that a 10 p.c increase in agricultural output results in an increase in indu5.trial
output by as much as 5 p.c.

n the urban areas, we see some sort of demand saturation of some of these products of
consumer goods industries. The impact of rising urban incomes and industrialisation has a
favourable impact on the demand for food, vegetables, fruits, various raw materials produced in
the agricultural sector. It has been an article of faith in Pakistan that the demand stimulus for
industrial expansion would likely come mainly from agriculture with low social and economic
costs.

In the end, we must say a few words about the problem of inter-sectoral resource allocation. To
begin with, it is almost impossible to make an optimum balance between these two sectors. In
many of the developing countries, agriculture no longer enjoys a pride of place, for some
obvious reasons. Neo-liberal era has seen the over-emphasis on the urban, industrial sector.