Agri backbone

Agriculture is the backbone of our economy. It contributes over 21 percent to the country’s GDP, employs 45 percent of the national labour force and makes around 60 percent of our exports. However, despite highly improved macroeconomic stability, growth in Pakistan is much below expectation due to under performance of the agriculture sector. According to the Food & Agriculture Organisation (FAO), agricultural commodities rates are at their lowest since 2009. But the rates of agricultural commodities are very high in the country. These commodities are produced in sufficient or surplus quantities, but people pay about 40 percent more for wheat, 20 percent more for rice and 30 percent more for milk as compared to international markets.

If the government pays a little attention to the agriculture sector, this can increase our GDP growth from the projected 4.5 percent to 5.5 percent. According to the World Bank, the majority of poor people lives in rural areas. In Pakistan, the incidence of poverty is accordingly much higher in rural areas where the majority of our farmers live. By increasing the growth rate of agriculture we can reduce much of the rural poverty.

Khan Faraz

Peshawar