ASSIGNMENT NO.

ISSUES IN PAKISTAN ECONOMY

SUBMITTED TO
MAM MARYAM

SUBMITTED BY

FIZA IMAN

ROLL NO.

40902

DEPARTMENT

BS COMPUTER SCIENCE

GCUF-SAHIWAL CAMPUS
 AGRICULTURE VERSUS INDUSTRY
Industry is not the substitute of agriculture; similarly agriculture is also not the substitute
of industry. They are complementary to one another. Both these sectors are so attached with
each other that it is not possible to increase the growth of one sector without the improvement of
the other sector. If agriculture is considered as the ‘heart’ of the country, then obviously industry
must be consider as the ‘brain’.

The interdependence of these sectors is listed below:

A. Impact of Agriculture on Industry.

Agriculture has huge positive impacts on the industrial development, such as:
i. It regularly supplies raw materials like sugarcane, jute, tobacco, cotton, oilseeds, tea, spices,
wheat, paddy etc. to the consumer goods industries.
ii. It supplies fruits, vegetables and other food items to the industrial labourer and fodders for the
domestic animals in the dairy industries on a regular basis. Agriculture is very important to grow
the livestock industry.
iii. Farmer-households used to save their money in the bank and other financial institutions
which ultimately is used by the industry owners in the form of investment.
iv. Both for consumer and capital goods Industries agriculture sector gives a ready market for
the finished products.
v. It regularly supplies manpower to the seasonal industries like, ice factories, rice factories and
sugar mills etc.
vi. The most of the agricultural income is used to purchase industrial goods like mobiles, lap
tops, bikes, cars and other home appliances.
vii. Agriculture sector increases the demand for fertilizer, pesticides, tractors, harvesters and
tube well. So, it helps to develop the chemical, mechanical and hydro-logical industries.

B. Impact of Industry on Agriculture.

The impact of industry on agriculture is as follows:
i. It regularly supplies scientific tools and equipment’s like tractors, harvesters, pump-sets
chemical fertilizers etc. to agriculture increase the per hectare production.
ii. To increase the market for finished agricultural goods some infrastructural development like
roads, railway, storage, communication etc. are very essential. In this, connection industry plays
a vital role.
iii. Industries provide huge employment opportunities and therefore help to absorb all the
surplus labour in our agriculture. This leads to more industrial development.
iv. Industrial sector demands raw material from agriculture sector. Industrial sector increase the
value of agricultural raw material.
v. Industrial sector is providing modern facilities to agriculture sector and converting the
agriculture into agri-industry.

Thus in nutshell, we can say that both agricultural and industry are complementary to
each other. Both operate hand to hand. The development of one sector depends on the growth
and performance of the other sector. Both are important for the development of each other and
economy.
 WHICH IS MORE IMPORTANT?

The main point of dissimilarity between agriculture and manufacturing industries is that

though both are cooperative to large-scale production, the scope of such operations is very

much smaller in agriculture than in manufacture. Further can be discussed in following points:

1. The Law of Diminishing Returns operates much earlier in the case of agriculture. However, in
the case of manufacturing industries application of successive doses of labor and capital, with
increasing returns, may be pushed to and far greater extent.

2. As agricultural activities cannot be easily subjected to a fixed routine, supervision is very
complex. Hence, large-scale production cannot be carried to the same extent in agriculture as in
industries. In agriculture, so much of the task depends on individual skill and efficiency.

3. In comparison to industries, the scope of using machineries is also much smaller in
agriculture.

4. There is an element of uncertainty in agriculture, as agricultural production depends so much

on timely and adequate rainfall and other climatic factors over which man has no control.

5. Agriculturists are as a rule conservative, and hence the standard of intelligence and
education among them is low.

6. Because industrial operations can be concentrated in a small place, supervision is easier and
there is much scope for managerial skill and industrial leadership.

7. Industrial operations are dynamic in character. The industrial programs are also more
energetic.

8. Development of industries within a country provides a more balanced national economy by

absorbing the surplus population when it is not required for agricultural operations.

CONCLUSION

Agriculture is the backbone of the economy of Pakistan. Agriculture, no doubt, has always been
the most important factor for the economy of Pakistan. However, at the same time, the
importance of industries and manufacturing units in shaping the future economy of Pakistan
cannot be denied. Agriculture is a crucial part of country’s economy. More than that, it feeds the
population of the country. So, there is nothing to exaggerate that country cannot survive without
agriculture. But, neglecting the industrial sector is not a solution for country’s development. For
an all-round development, agriculture and industries both should flourish.