Presentation Of Economy Of Pakistan

Submitted By : Hamza zafar

Submitted to: Dr Pervez Tahir

Topic: Analysis of agriculture growth in Pakistan 2020-21

Assalam O Alaikum,

So today the topic which i am going to present is the analysis of agriculture growth in Pakistan in 2020-
21 as we all know that Pakistan’s agriculture sector plays a central role in the economy as it contributes
18.9 percent to GDP and absorbs 42.3 percent of labour force. 

Now Coming to the analysis on the agriculture in 2020-21 Pakistan has recorded a provisional growth
rate of 3.94pc in the fiscal year 2020-21 The agriculture sector grew around 2.8pc against a target of
2.8pc despite the overall negative growth, the agriculture sector grew by 2.67% in the current fiscal
year. For the next year, the government has set the growth rate target of 3.5% for the agriculture sector
The agriculture sector has been hit hard due to locust attack in several districts of Pakistan causing crop
losses for the farmers. Around 37% area is vulnerable to Locust attack which includes 15% area of
Punjab, 25% area of Sindh and 60% area of Balochistan. Rs.10 billion are allocated in the recent budget
to deal with locust swarm. Growth rate of livestock decreased from 3.82% to 2.58% which is a
worrisome sign considering that the share of livestock in the agriculture sector is 60.56% and it
contributes 11.69% towards GDP.

2020 was one of the worst years in Pakistan’s history vis-a-vis cotton crops. According to the State Bank
of Pakistan report, FY20’s cotton output fell to 9.1 million bales against 9.8 million bales in FY19 despite
a 6.5 percent increase in the area under cultivation. Wheat is one of the primary crops in Pakistan. It
accounts for 8.9 percent value addition in agriculture and 1.6 percent of the total GDP of Pakistan.
Although our government officials claim to be self-reliant when it comes to wheat, however, we still had
to face wheat shortages in 2020. In the last five months, we have imported over 2 million tons of wheat
out of a target of 3 million tons. In 2020, one other challenge faced by the Pakistani agriculture
community was locust attacks. In Pakistan, insects first affected the crops in rural Sindh, where
malnutrition is already common, and farmers are in debt. The irony is that instead of taking any steps to
control the locust swarms, the local government and federal government kept arguing who was
responsible for controlling the spread. Last but not least, every agent across the agricultural value chain
was the victim of the devastating impact of COVID-19. The main problem was the movement of the food
from food basket markets to where it was needed. The pandemic disturbed the food market equilibrium
by disrupting the supply chain. It affected both the supply side and the demand side. On the supply side,
transportations restrictions, shortage of labour, and farmers’ limited access to the market to either get
inputs or sell their produce shifted paradigms in agricultural production..
Thank You