Fertilizer Production and Import in Pakistan and Their Impact on Agricultural Sector: a Study from 1990 to 2010

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Fertilizer Production and Import in Pakistan and their Impact on Agricultural Sector: A study from 1990 to 2010.
Muhammad Bilal Tariq
NUML Islamabad
(Multan Campus)

Author’s Note Muhammad Bilal Tariq is a Student of MSBA Roll No.56 ,Department of Business Adminstration, NUML Islamabad, (Multan Campus) Abstract

This study is conducted to find out the impact of production and import of fertilizer on agriculture sector of Pakistan. Pakistan is an agricultural economy and majority of people live in the rural areas and associated with the agricultural activities. Some major fertilizer production units are playing an important role in fulfilling the demand of fertilizer. Some major kinds of inorganic fertilizers (DAP, CAN, NP, UREA) are being used in the production of major crops on a large scale. Inorganic fertilizer increases the growth of crops. Secondary data is used for this study. In this study it is found that some major inorganic fertilizers are used to import from international market. Production of inorganic fertilizer has a positive impact on the agriculture sector and import of inorganic fertilizers has an insignificant impact on agriculture sector of Pakistan. Government of Pakistan discourages the import of fertilizer and encourages installing the new production units of fertilizers. A large quantity of inorganic fertilizer is produced in Pakistan. Keywords: Inorganic Fertilizer, Production, Import, Agricultural.

Introduction
The article is about the impact of inorganic fertilizer production and import of inorganic fertilizer on agriculture sector of Pakistan. In this study it is observed that how much is the production and import of fertilizers and what the impacts are? The importance of agriculture is well established in the economy of Pakistan. Agriculture plays an important role for the development of economy. In Pakistan, agriculture is mostly dependent on the usage of fertilizers to meet the high demand of the food. In next few decades there will be a shortage of the food. The population of the World has been increasing from the ‘60’s at about 2% per annum while food production is increasing with 1.5% per annum in the world. According to this there will be a pressure on the Pakistan’s agriculture in next few years (Butt, 1996). The demand of inorganic fertilizer will also be increased. The production of inorganic fertilizer is increased by 3.8 million tones from 1990-2010. Fertilizer is a key component for the modern farm technology for achieving the large production of the crop. High yield varieties of fertilizers were introduced in 1966-67 and set the stage for green revolution. Application of commercial fertilizers in Pakistan began in 1952-53 (Quddus, Siddiqi, & Riaz, 2008). Farming is the very oldest profession in the Pakistan that is being practiced from a very long time. 60% of the population of Pakistan is living in the rural areas and related with the agricultural activity. Involvement of the majority of population in the agriculture activities shows the importance of agriculture in Pakistan. Pakistan is the agricultural country and agriculture sector will remain the back bone of the economy of Pakistan. Farming is very important for the lives of rural population (Ahmad & Muhammad, 1998). The use of chemical fertilizer provides a best method for improvement of agricultural production and decreasing the deficit between world’s food supply and demand. Chemical fertilizers alone are not enough to increase the productivity of land but there are some additional factors that can made the usage of fertilizers most effective. These factors are soil, seed, irrigation, government price support policy and market development policy (Butt, 1996). According to Butt (1996), “various major crops required Nitrogen (N) in the range of 60-180 lbs. Second element which is necessary for the plant growth is the...
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