Agriculture and industry

Saima Ashraf
Agriculture Sector as an Industry
• Agriculture and industry are interlinked.

• Agriculture and its subsectors e.g dairy, poultry, livestock, fishery,

orchards have become a full fledge industry. It draws some raw materials,
like chemical fertilizers, pesticides, electric power, agricultural machinery
and implements, etc., from the industry.

• Agriculture is also dependent on industry for the supply of materials for

building up social and economic overheads in the agricultural sector.

• Agriculture accounts for about 18.9% of Pakistan's GDP and employs

about 42.3% of the labor force.
Value addition opportunities in Agriculture
• Value-added agriculture may also refer to increasing the
economic value of a commodity through production process, eg.,
organic produce, or through regionally branded, graded and packaged
products that increase consumer appeal and willingness to pay a
premium over similar but differentiated products.
• The key benefits to a business of adding value include:
• Charging a higher price.
• Creating a point of difference from the competition.
• Protecting from competitors trying to steal customers by charging lower
prices.
• Focusing a business more closely on its target market segment.
 How to improve Agriculture sector in
Pakistan
• Increase the use of fertilizers
• Improve market access, regulations, and governance
• Reform land ownership with productivity and inclusiveness in mind
• Boost irrigation
• Develop high-yield crops
• Extension in Cultivation
The agriculture product can be increased by increasing the cultivable
area. It can be increased by using the barren lands and including the
water logging.
Modernization in Agriculture Sector
• Modernization of agriculture is a process of
transforming agriculture from traditional labor-based agriculture to
technology-based agriculture .
• It is one of the fundamental issues in agricultural policies, particularly
in countries, where agriculture is less developed.
• Agricultural modernization is the important foundation of
national modernization, the power source of sustained and healthy
development of the country and the long period of stability, which is
the fundamental way to change the backwardness in rural areas and
improve the farmers' poor life.
Industry Manufacturing Sector
• The industrial manufacturing industry is responsible for the fabrication
of products intended for industrial use from raw materials; it is the
output of this industry which has made further
mass manufacturing possible in most other industries.
• The manufacturing sector is part of the goods-
producing industries super sector group.
• The Manufacturing sector comprises establishments engaged in the
mechanical, physical, or chemical transformation of materials,
substances, or components into new products.
 Relationship between Industrial and
Agriculture

Agriculture Industrial
Provide food Fertilizer and Pesticide
Provide raw material Machinery
taxes for industry Consumer durables
Services Sector
• The service sector is the third of the three economic sectors of the three-sector
theory. The others are the secondary sector, and the primary sector. The
service sector consists of the production of services instead of end products.
Services include attention, advice, access, experience, and affective labor.
• The service sector makes an important contribution to GDP in most countries,
providing jobs, inputs and public services for the economy. Trade in services
can improve economic performance and provide a range of traditional and
new export opportunities.
• The services sector of Pakistan accounts for more than 54 percent of the
country's GDP and also employs a major portion of the labor force and it
includes Banking, Financial Sectors, Media, Medical care, education,
Communication, Aviation, Tourism, Retail etc
Tourism Industry
• In its broadest sense, the tourism industry is the total of all businesses
that directly provide goods or services to facilitate business, pleasure
and leisure activities away from the home environment.
• Tourism industry is important for the benefits it brings and due to its
role as a commercial activity that creates demand and growth for many
more industries.
• Tourism not only contributes towards more economic activities but
also generates more employment, revenues and play a significant role
in development.
Tourism Industry in Pakistan
• According to the World Travel and Tourism Council, the direct
contribution of travel and tourism to Pakistan's GDP in 2016 was
US$7.6 billion (PKR 793.0 billion), constituting 2.7% of the total GDP.
By 2025, the government predicts tourism will contribute ₨1 trillion
(US$6.0 billion) to the Pakistani economy.
Exports of Labours
• Pakistan has one of the largest labor and manpower resources in the
world, due to its large population, which is the sixth largest in the world.
• According to data produced by the CIA World Factbook, the total
number of Pakistan's labour force is 57.2 million, making it the ninth
largest country by available human workforce. About 43% of this labour
is involved in agriculture, 20.3% in industry and the remaining 36.6% in
other services.
• Along with other countries in the South Asia, Pakistan extensively
exports much of its labour to nearby Persian Gulf countries of
the Middle East.
Remittances
Remittances are an important and growing source of foreign exchange
for Pakistan. Remittances have multiplied in the last eight years to more
than $22 billion in 2019 .The recent increase in the flow
of remittances to Pakistan originates mainly from host countries in the
Gulf.
 Remittances
Statsistics
Remittances flowing
into Pakistan jumped 6 percent
to an all-time high of $23.120
billion in the full 2019/20 fiscal
year as overseas workers were
able to send money home after
countries started easing
COVID-19 lockdowns around
the world, central bank data
Medical Tourism
Medical tourism refers to people traveling abroad to
obtain medical treatment. In the past, this usually referred to those who
traveled from less-developed countries to major medical centers in
developed countries. Now developing countries are offering medical
facilities at affordable rates