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Pakistan Agriculture boost by CPEC

Pakistan Agriculture

Pakistan's principal natural agriculture country .GDP and employs about 43% of the labor force. The most agricultural province is Punjab where wheat and cotton are the most grown. Mango orchards are mostly found in Sindh and Punjab provinces that make Pakistan the world's 4th largest producer of mangoes.

Pakistan is one of the world's largest producers and suppliers of food and crops according to the different sources Chickpea (3rd),Apricot (6th),Cotton (4th),Milk (8th),Date Palm (5th),Sugarcane (5th),Onion (7th),Kinnow, mandarin oranges, clementine (6th),Mango (4th),Wheat (7th),Rice (11th) .Pakistan ranks eighth worldwide in farm output, according to the List of countries by GDP sector composition.

According to the Economic Survey of Pakistan, the livestock sector contributes about half of the value added in the agriculture sector, amounting to nearly 11 per cent of Pakistan's GDP, which is more than the crop sector. Fishery and fishing industry plays an important role in the national economy of Pakistan. With a coastline of about 1046 km, Pakistan has enough fishery resources that remain to be fully developed.

It is generally the primary source of income and employment in rural areas. Agriculture sector of Pakistan has continuously been facing downfall during the last one decade. Worst energy crisis during the recent years might be one of the major reasons behind such down turn.

CPEC includes provisions for cooperation in management of water resources, livestock, and other fields of agriculture. Under the plan, agricultural information project, storage and distribution of agricultural equipment and construction project, agricultural mechanization, demonstration and machinery leasing project and fertilizer production project for producing 800,000 tons of fertilizer and 100,000 tons of bio-organic fertilizer will be implemented.

Economic benefits that can be gauged from various initiatives of CPEC particularly the infrastructural development. The literature affirms strong relationship between development of infrastructure and agricultural output. This shows that projects in CPEC would play an important role in uplift of agriculture sector in Pakistan.

It is fact that development of infrastructure will bring a positive change in agriculture output which would increase the supply of agriculture commodities but the question is, has government taken steps to export that stock as Pakistan has already increasing stock of rice and wheat every year.

China Pakistan Economic Corridor (CPEC) is one of the best examples of such partnerships. The overall launching time span of CPEC spreads from 2014 to 2030. The short term, midterm-term and long-term projects are estimated to be completed by 2017, 2025 and 2030 respectively. The estimated construction cost for these projects is $46 billion. It is the network of highways, railways, pipelines, transport, oil, gas and energy. Agriculture sector would be a direct as well as indirect beneficiary of CPEC via development in backward and forward linkages

 National Development and Reform Commission and China Development Bank, emphasize that the agricultural sector is a major part of CPEC. China Pakistan Economic Corridor would deliver massive networks of transportation that will connect Khunjerab in the north to Gwadar in the south-west. This would boost the economic conditions of several remote rural towns, especially the ones relying on primary industry, as the transportation and delivery times to urban centers and markets would be reduced considerably.

China is the world’s largest importer of agricultural products. Population of 1.3 billion people, China consumes almost $1 trillion worth of food every year. Chinese consumption patterns are also changing, and demand for high quality imported food items is growing at a pace much faster than population growth.

China, the world’s largest importer of vegetables, gets 50 of these imports from the US and Brazil. Pakistan, being China’s neighbor, therefore enjoys a unique advantage and CPEC provides an unprecedented opportunity to capitalize on that.

 CPEC’s long-term plan, a study by the National Development and Reform Commission and China Development Bank, emphasize that the agricultural sector is a major beneficiary of CPEC.

 Export raw material and agricultural products to China and other countries as CPEC promises to improve Pakistan’s trade integration with the Global economy. It is very important to determine the growing influence of CPEC and its impact on the sector as rural employment and agro-based industrial output are directly related with the agricultural sector.

Thousands of acres of land will be leased to Chinese firms to set up “demonstration projects” focusing on areas such as seed varieties and irrigation technology. World Bank said agriculture sector and Chinese-led infrastructure development would lead to 5.5 percent growth in Pakistan’s economy during the fiscal year 2017-18.

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