The Agriculture sector continues to play a central role in Pakistan’s economy. It is the second largest sector, accounting for over 21 percent of GDP, and remains by far the largest employer, absorbing 45 percent of the country’s total labour force. Nearly 62 percent of the country’s population resides in rural areas, and is directly or indirectly linked with agriculture for their livelihood. The Agriculture sector’s strong linkages with the rest of the economy are not fully captured in the statistics. While on the one hand, the sector is a primary supplier of raw materials to downstream industry, contributing substantially to Pakistan’s exports, on the other, it is a large market for industrial products such as fertilizer, pesticides, tractors and agricultural implements. Despite its critical importance to growth, exports, Table 2.1: Historical growth performance incomes, and food security, the Agriculture sector Agriculture Growth has been suffering from secular decline (Table 2.1). Years Percent Growth in the sector, particularly in the crop sub‐ 1960's 5.1 1970's 2.4 sector, has been falling for the past three decades. 5.4 Productivity remains low, with yield gaps rising (Table 1980's 1990's 4.4 2.2). Critical investments in new seeds, farming 2000's 3.2 technology and techniques, and the water Source: Federal Bureau of Statistics infrastructure are not being made. Without major new investments in Agriculture, it is unclear how prepared Pakistan would be to tackle emerging challenges such as declining water availability, and climate change (for a fuller discussion, see Special Section at end of chapter).
Table 2.2: Yield Gap (Major Crops) Country World China India Pakistan USA Brazil Egypt Wheat 3086 4762 2802 2451 3018 ‐ ‐ Difference From Best* 65 100 ... [continues]
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