Chapter 02

Agriculture

Agriculture is the lifeline of Pakistans and -22.12 percent respectively. Other sub
economy accounting for 19.5 percent of the sectors of Agriculture like Livestock, Forestry
gross domestic product, employing 42.3 percent and Fishing posted growth of 3.43 percent,
of the labour force and providing raw material 14.49 percent and 1.23 percent, respectively.
for several value-added sectors. It thus plays a The upturn in crop yields by significant margins
central role in national development, food occurred both on account of increase in
security and poverty reduction. The rapid production and improved yields. Maize
growth of Pakistans urban areas indicate that production increased 16.30 percent against 6.77
demand for high-value perishable products such percent last year, Sugarcane 12.41 percent
as fruits, vegetables, dairy, and meat is rising. against 4.23 percent, Cotton 7.59 percent
Government is focusing to increase the yield for against -28.96 and Rice 0.71 percent against
rural growers through major infrastructure -2.88 percent last year. Only wheat production
investments including reliable transport growth remained slightly low at 0.46 percent
networks and other building blocks for modern compared to 2.18 percent last year. Other crops
supply chains. CPEC will go a long way in the accounted for 11.03 percent in value addition of
enhancement of agribusiness benefits by agriculture grew by 0.21 percent during 2016-
tapping value-added product innovation and 17 against 0.59 percent during the same period
supply chain. last year due to decline in the production of
vegetables and oilseeds by posting negative
Performance during 2016-17 growth of 0.73 percent and 5.93 percent,
During 2016-17, performance of the agriculture respectively.
sector remained up to the mark and achieved
growth of 3.46 percent against the target of 3.5 Livestock accounts 58.33 percent share in the
percent and last years meager growth of 0.27 agriculture. It witnessed a growth of 3.43
percent. This was possible by better harvesting percent compared to 3.36 percent during
of major crops through greater availability of corresponding period last year. The Fishing
agriculture inputs like water, agriculture credit sector contribution stands at 2.12 percent in
and intensive fertilizers offtake. The growth in agriculture value addition and recorded a
crops was registered at 3.02 percent against the growth of 1.23 percent compared to 3.25
negative growth of 4.97 percent during the percent growth of same period last year.
same period last year. The growth of sub sector Forestry sector having contribution of 2.33
of important crops, other crops and cotton percent in the agriculture value addition
ginning posted growths of 4.12 percent, 0.21 witnessed a significant growth of 14.49 percent
percent and 5.59 percent, respectively against during 2016-17 due to higher timber production
last year growths of -5.47 percent, 0.59 percent reported by Khyber Pakhtunkhwa. (Table 2.1)
Pakistan Economic Survey 2016-17

Table 2.1: Agriculture Growth Percentages (Base=2005-06)

Sector 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
(P)
Agriculture 1.96 3.62 2.68 2.50 2.13 0.27 3.46
Crops 0.99 3.22 1.53 2.64 0.16 -4.97 3.02
i) Important Crops 1.50 7.87 0.17 7.22 -1.62 -5.47 4.12
ii) Other Crops 2.27 -7.52 5.58 -5.71 2.51 0.59 0.21
iii) Cotton Ginning -8.48 13.83 -2.90 -1.33 7.24 -22.12 5.59
Livestock 3.39 3.99 3.45 2.48 3.99 3.36 3.43
Forestry 4.76 1.79 6.58 1.88 -12.45 14.31 14.49
Fishing -15.20 3.77 0.65 0.98 5.75 3.25 1.23
Source: Pakistan Bureau of Statistics
P: Provisional

Pakistan has two crop seasons, "Kharif" being linked with the availability of irrigation water.
the first sowing season starting from April-June During 2016-17, the availability of water for
and is harvested during October-December. Kharif 2016 stood at 71.4 million acre feet
Rice, sugarcane, cotton, maize, moong, mash, (MAF) showing an increase of 9.0 percent over
bajra and jowar are Kharif" crops. "Rabi", the Kharif 2015 and 6.4 percent more than the
second sowing season, begins in October- normal supplies of 67.1 MAF. During Rabi
December and is harvested in April-May. season 2016-17, the water availability remained
Wheat, gram, lentil (masoor), tobacco, at 29.7 MAF, which is 9.7 percent less than
rapeseed, barley and mustard are "Rabi" crops. Rabi 2015-16 and 18.4 percent less than the
Pakistans agricultural production is closely normal availability of 36.4 MAF. (Table 2.2).
Table 2.2: Actual Surface Water Availability (Million Acre Feet)
Period Kharif Rabi Total % age
increase/decrease.
over the Avg.
Average system usage 67.1 36.4 103.5 -
2008-09 66.9 24.9 91.8 -11.3
2009-10 67.3 25.0 92.3 -10.8
2010-11 53.4 34.6 88.0 -15.0
2011-12 60.4 29.4 89.8 -13.2
2012-13 57.7 31.9 89.6 -13.4
2013-14 65.5 32.5 98.0 -5.3
2014-15 69.3 33.1 102.4 -1.1
2015-16 65.5 32.9 98.4 -4.9
2016-17 71.4 29.7 101.1 -2.3
Source: Indus River System Authority

I. Crop Situation addition and 11.39 percent to GDP. Forestry

contributes 2.33 percent to agricultural value
The important crops (wheat, rice, sugarcane
addition and 0.46 percent to GDP. Fishing
maize and cotton) account for 23.85 percent of
contributes 2.12 percent to agricultural value
the value added in overall agriculture and 4.66
addition and 0.41 percent to GDP. The
percent of GDP. The other crops account for
production performance of important crops is
11.03 percent of the value added in overall
given in Table 2.3
agriculture and 2.15 percent of GDP. Livestock
contributes 58.33 percent to agricultural value

20
 Agriculture

Table 2.3: Production

ction of Important Crops (Thousand Tonnes)
Year Cotton Sugarcane Rice Maize Wheat
(000 bales)
2010-11 11,460 55,309 4,823 3,707 25,214
(-11.3)
11.3) (12.0) (-29.9) (13.7) (8.2)
2011-12 13,595 58,397 6,160 4,338 23,473
(18.6) (5.6) (27.7) (17.0) (-6.9)
2012-13 13,031 63,750 5,536 4,220 24,211
(-4.1)
4.1) (9.2) (-10.1) (-2.7) (3.1)
2013-14 12,769 67,460 6,798 4,944 25,979
(-2.0)
2.0) (5.8) (22.8) (17.2) (7.3)
2014-15 13,960 62,826 7,003 4,937 25,086
(9.3) (-6.9) (3.0) (-0.1) (-3.4)
2015-16 9,917 65,482 6,801 5,271 25,633
(-29.0)
29.0) (4.2) (-2.9) (6.8) (2.2)
2016-17(P) 10,671 73,607 6,849 6,130 25,750
Growth percent (7.6) (12.4) (0.7) (16.3) (0.5)
Source: Pakistan Bureau of Statistics
P: Provisional (July-March),
March), Figures in parentheses are growth/decline rates

a) Important Crops cotton to other competitive crops (sugarcane

and maize). The area, production and yield of
i) Cotton
cotton for the last five years are shown in Table
During 2016-17, 17, Cotton production was 2.4 and Figure 2.1.
estimated at 10.671 million bales registering 7.6
percent increase over the production of 9.917 Figure 2.1: Cotton Production (000 bales)
million bales during 2015-16 16 but was lower 14000
than the target of 14.1 million bales by a
considerable margin. Cotton crop has 1.0 13000
percent share in GDP and contributes 5.2
12000
percent in agriculture value addition. The
weaker than expected recovery in cotton 11000
production is mainly due to a sharp decline of
14.2 percent
ercent in the sowing area which stood at 10000
2489 thousand hectares during 2016-17 2016
compared to 2902 thousand hectares during the 9000
corresponding period of last year due to 2012-13 2013-14 2014
2014-15 2015-16 2016-17
(P)
exceptional losses from previous years pest Source: PBS
infestation and low domestic prices at the
sowing
wing time that pushed growers away from

Table 2.4: Area, Production and Yield of Cotton

Year Area Production Yield
(000 Hectare) % Change (000 Bales) % Change (Kgs/Hec) % Change
2012-13 2,879 - 13,031 - 769 -
2013-14 2,806 -2.5 12,769 -2.0 774 0.6
2014-15 2,961 5.5 13,960 9.3 802 3.6
2015-16 2,902 -2.0 9,917 -29.0 582 -27.4
2016-17(P) 2,489 -14.2 10,671 7.6 730 25.4
Source: Pakistan Bureau of Statistics P: Provisional (July-March)

21
Pakistan Economic Survey 2016-17
2016
World Cotton Outlook
The production and consumption of major cotton growing countries are given in Table 2.5.
Table 2.5: Production and Consumption of Major Cotton Growing Countries (Million Tonnes)
2014-15 E 2015-16 P 2016-17 P
Production
India 6.56 5.75 5.80
China 6.50 4.75 4.74
USA 3.55 2.81 3.75
Pakistan 2.30 1.51 1.68
Brazil 1.56 1.29 1.44
Uzbekistan 0.88 0.83 0.79
Others 4.82 4.10 4.58
World Total 26.19 21.04 22.78
Consumption
China 7.48 7.44 7.59
India 5.26 5.27 5.12
Pakistan 2.49 2.26 2.23
Europe & Turkey 1.69 1.69 1.63
Vietnam 0.87 1.01 1.14
Bangladesh 1.20 1.32 1.40
USA 0.78 0.75 0.72
Brazil 0.80 0.73 0.72
Others 3.86 3.65 3.54
World Total 24.44 24.13 24.10
Source: Pakistan Central Cotton Committee, Ministry of Textile Industry (April ,2017) E: Estimated,
P: Projected

ii) Sugarcane and yield of sugarcane for the last five years are
During 2016-17,
17, the production of sugarcane given in Table 2.6 and Figure 2.2.
portrayed a very promising picture and reached
to historical high of 73.6 million tonnes
showing an increase of 12.4 percent over the Fig 2.2: Sugarcane Production (000 Tonnes)
production of 65.5 million tonnes during 2015-
2015
16 and comfortably exceeded the target of 67.5 74000
million tonnes by a considerable
able margin of 9.0 72000
percent. Its production accounted for 3.4 70000
percent in agricultures value addition and 0.7 68000
percent in overall GDP. The area cultivated for 66000
sugarcane crop reached 1217 thousand hectares
64000
compared to last years area of 1131 thousand
62000
hectaress showing an increase of 7.6 percent.
60000
The production increased due to increase in
2012-13 2013-14 2014-15 2015-16 2016-17
area cultivated as it shifted from other (P)
competitive crops facing frequent distress, as Source: PBS
for example from cotton crop which suffered on
account of pest attacks. The area, production
pro

22
 Agriculture

Table 2.6: Area, Production and Yield of Sugarcane

Year Area Production Yield
(000 Hectare) % Change (000 Tonnes) % Change (Kgs/Hec.) % Change
2012-13 1,129 - 63,750 - 56,466 -
2013-14 1,173 3.9 67,460 5.8 57,511 1.8
2014-15 1,141 -2.7 62,826 -6.9 55,062 -4.3
2015-16 1,131 -0.9 65,482 4.2 57,897 5.1
2016-17(P) 1,217 7.6 73,607 12.4 60,428 4.4
Source: Pakistan Bureau of Statistics
P: Provisional (July-March)

iii) Rice
Rice accounts for 3.0 percent in the value added Fig 2.3: Rice Production (000 Tonnes)
in agriculture and 0.6 percent of GDP. During
2016-17, rice crop was sown on area of 2724 7000
thousand hectares showing a decrease of 0.6
percent over the last years area of 2793 thousand 6500
hectares. Rice production stood at 6849 thousand
tonnes achieving its targeted production of 6838 6000
thousand tonnes and showing an increase of 0.7
percent over corresponding period of last years 5500
production of 6801 thousand tonnes. Rice area
decreased due to decline in domestic prices of rice 5000
which reduced the area under the crop and 2012-13 2013-14 2014
2014-15 2015-16 2016-17
growers shifted to sugarcane and maize crop. Th The (P)
Source: PBS
area, production and yield of rice for the last five
years are shown in Table 2.7 and Figure 2.3.
Table 2.7: Area, Production and Yield of Rice
Year Area Production Yield
(000 Hectare) % Change (000 Tonnes) % Change (Kgs/Hec.) % Change
2012-13 2,309 - 5,536 - 2,398 -
2013-14 2,789 20.8 6,798 22.8 2,437 1.6
2014-15 2,891 3.7 7,003 3.0 2,422 -0.6
2015-16 2,739 -5.3 6,801 -2.9 2,483 2.5
2016-17(P) 2,724 -0.6 6,849 0.7 2,514 1.2
Source: Pakistan Bureau of Statistics
P: Provisional (July-March)

iv) Wheat and Figure 2.4.

Wheat accounts for 9.6 percent of the value
added in agriculture and 1.9 percent of GDP of Fig 2.4: Wheat Production (000 Tonnes)
Pakistan. During 2016-17, wheat crop was 26000
sown on an area of 9052 thousand hectares
witnessing a decrease of 1.9 percent compared 25000
to 9224 thousand hectares during same period
last year. Wheat production was estimated at
25.750 million tonnes during 2016-17, 2016 24000
witnessing an increase off 0.5 percent over the
last years production of 25.633 million tonnes. 23000
The production increased due to better supply
2012-13 2013-14 2014
2014-15 2015-16 2016-17
of inputs which contributed in enhancing per (P)
Source: PBS
hectare yield. The position is given in Table 2.8

23
Pakistan Economic Survey 2016-17
2016

Table 2.8: Area, Production and Yield of Wheat

Year Area Production Yield
(000 Hectares) % Change (000 Tonnes) % Change (Kgs /Hec.) % Changes
2012-13 8,660 - 24,211 - 2796 -
2013-14 9,199 6.2 25,979 7.3 2824 1.0
2014-15 9,204 0.1 25,086 -3.4 2726 -3.5
2015-16 9,224 0.2 25,633 2.2 2779 1.9
2016-17(P) 9,052 -1.9 25,750 0.5 2845 2.4
Source: Pakistan Bureau of Statistics
P: Provisional (July-March)

v) Maize
Fig 2.5: Maize Production (000 Tonnes)
Maize contributes 2.7 percent to the value
6500
added in agriculture and 0.5 percent to GDP.
During 2016-17, area
rea sown under maize crop
5500
has increased to 1334 thousand hectares,
showing a significant increase of 12.0 percent
over last years sown area of 1191 thousand
thousan 4500
hectares. Maize crop production stood at record
high of 6.130 million tonnes during 2016-17,
2016 3500
showing a major increase of 16.3 percent over
the last years production of 5.271 million 2500
tonnes.. The record production has been 2012-13 2013-14 2014
2014-15 2015-16 2016-17
achieved on the back of intensive
intensi use of critical Source: PBS
(P)
agricultural inputs (fertilizers) coupled with
increase in area sown. The position is presented
in Table 2.9 and Figure 2.5.
Table 2.9: Area, Production and Yield of Maize
Year Area Production Yield
(000 Hectares) % Change (000 % Change (Kgs /Hec.) % Changes
Tonnes)
2012-13 1,060 - 4,220 - 3,981 -
2013-14 1,168 10.2 4,944 17.2 4,233 6.3
2014-15 1,142 -2.2 4,937 -0.1 4,323 2.1
2015-16 1,191 4.3 5,271 6.8 4,426 2.4
2016-17(P) 1,334 12.0 6,130 16.3 4,595 3.8
Source: Pakistan Bureau of Statistics
P:Provisional(July-March)

b) Other Crops compared to the same period last year. The

production of Barley, Jowar, Rapeseed &
Gram is the largest Rabi pulse crop, accounting
Mastard and Tobacco has witnessed decrease
d
for 76 percent of total production of pulses in
in production during 20162016-17 by posting
the country It registered an increase of 25.5
negative growth of 9.8 percent, 7.5 percent, 3.2
percent in production during 2016-17.
2016 The
percent and 2.6 percent, respectively over the
production of Bajra also posted an increase in
same period last year due to decrease in area
its production by 1.7 percent during 2016-17
2016 as

24
 Agriculture
sown. The area and production of other crops are given in Table 2.10.
Table 2.10: Area and Production of other Kharif and Rabi Crops
Crops 2015-16 2016-17 (P) % Change in
Area Production Area Production production
(000 (000 Tonnes) (000 (000 Tonnes) over Last year
Hectares) Hectares)
Bajra 486 300 469 305 1.7
Jowar 274 161 257 149 -7.5
Gram 940 286 931 359 25.5
Barley 66 61 59 55 -9.8
Rapeseed & Mustard 201 185 193 179 -3.2
Tobacco 53 116 51 113 -2.6
Source: Pakistan Bureau of Statistics
P: Provisional (July-March)

During 2016-17, the production of Moong, cultivated. However, the production of pulses
Onion and Chillies recorded positive growth of Masoor (Lentil), Mash and Potato decreased by
27.4 percent, 2.7 percent and 0.2 percent, 17.9 percent 15.3 percent and 3.2 percent,
respectively, comparing to production of respectively. The area and production of other
corresponding period last year. The reason for crops are given in Table 2.11.
increase in production is increase in area

Table 2.11: Area and Production of Other Crops

Crops 2015-16 2016-17(P) % Change in
Area Production Area Production production
(000 Hectares) (000 Tonnes) (000 Hectares) (000 Tonnes) over Last year
Masoor 17.9 7.8 14.2 6.4 -17.9
Moong 146.3 102.1 178.8 130.1 27.4
Mash 19.2 8.5 17.1 7.2 -15.3
Potato 177.3 3,977.6 179.3 3,849.5 -3.2
Onion 135.9 1,736.4 138.4 1,783.5 2.7
Chillies 64.8 142.2 64.2 143.1 0.6
Source: Pakistan Bureau of Statistics
P: Provisional (July-March)

i) Oilseeds During 2016-17 (July-March), 1.98 million

tonnes edible oil of value Rs.152.514 billion
The major oilseed crops in the country include
(US$ 1.457 billion) was imported which
Sunflower, Canola, Rapeseed/Mustard and
remained lower by 4.0 percent during the same
Cotton. Total availability of edible oils during
period of last year. Local production of edible
2015-16 remained at 3.726 million tonnes of
oil during 2016-17 (July-March) is
which local production contributed 0.462
provisionally estimated at 0.446 million tonnes.
million tonnes (14 percent) and the import share
Total availability of edible oil from all sources
of edible oil/oilseeds was 3.264 million tonnes
is provisionally estimated at 2.426 million
(86 percent). The import bill of edible oil
tonnes during 2016-17 (July-March).The area
during 2015-16 was Rs.284.546 billion (US$
and production of oilseed crops during 2015-16
2.710 billion).
and 2016-17 is given in Table 2.12.

25
Pakistan Economic Survey 2016-17

Table 2.12: Area and Production of Major Oilseed Crops

Crops 2015-16 (Jul-Mar) 2016-17 (Jul-Mar) (P)
Area Production Area Production
(000 Seed Oil (000 Acres) Seed Oil
Acres) (000 (000 (000 (000
Tonnes) Tonnes) Tonnes) Tonnes)
Cottonseed 7,685 2,966 356 5,931 2,816 338
Rapeseed/ Mustard 543 202 65 494 190 61
Sunflower 215 95 35 216 109 41
Canola 35 15 6 33 15 6
Total 8,478 3,278 462 6,674 3,130 446
Source: Pakistan Oilseed Development Board (PODB), Pakistan Bureau of Statistics
P: Provisional

II. Farm Inputs February 2017 by Government of Punjab in

order to promote the use of Potash.
i) Fertilizers
Better market prices of agriculture produce
Fertilizer is the most important and expensive
especially rice, cotton and sugarcane also had
agricultural input. Its contribution in increase in
positive effect on fertilizer use.
crop yield is from 30 to 50 percent. Almost all
of our soils are deficient in nitrogen, 90 percent Total availability of urea during Kharif 2016
soils have deficiency of phosphorus while 40 was 4278 thousand tonnes comprising of 1200
percent are deficient in potash. thousand tonnes of opening inventory and 3078
thousand tonnes of domestic production (Table
The domestic production of fertilizers during
2.13). Urea offtake was about 2704 thousand
2016-17 (July-March) decreased slightly by 0.3
tonnes, leaving inventory of 1565 thousand
percent over the same period of last fiscal
tonnes for Rabi 2016-17. Availability of DAP
year.The imported fertilizer also decreased by
was 1151 thousand tonnes comprising of 253
5.8 percent. Therefore, total availability of
thousand tonnes of opening inventory, 482
fertilizer also decreased marginally by 1.5
thousand tonnes of imported supplies and 416
percent during current fiscal year.Total offtake
thousand tonnes of local production. DAP
of fertilizer nutrients witnessed increase by 30.5
offtake was 697 thousand tonnes leaving an
percent. Nitrogen offtake increased by 33
inventory of 458 thousand tonnes for upcoming
percent while phosphate increased by 23.2
Rabi 2016-17.
percent. Potash offtake recorded a significant
boost of 82.5 percent during 2016-17 (July- Rabi 2016-17 started with an opening balance
March). Increase in offtake of fertilizer is due to of 1565 thousand tonnes of urea (Table 2.13).
substantial reduction in prices of all fertilizer Domestic production during Rabi 2016-17 was
products as a result of subsidy announcement estimated around 2840 thousand tonnes. Urea
by the government in June,2016 as detailed offtake during current Rabi 2016-17 was
below: around 3085 thousand tonnes, against 4405
thousand tonnes of total availability, leaving a
Cash subsidy on phosphate fertilizer
closing balance of 1318 thousand tonnes for
equivalent to Rs. 300 per 50 kg bag of
next season. DAP availability for Rabi 2016-17
DAP.
was around 1673 thousand tonnes, which
Reduction in GST on urea from 17 to 5 included 458 thousand tonnes of opening
percent. inventory, 843 thousand tonnes of imported
Cash subsidy on nitrogenous fertilizer supplies and domestic production of 372
equivalent to Rs. 156 per 50 kg bag of urea. thousand tonnes. Offtake of DAP during Rabi
Subsidy of Rs. 800 and Rs. 500 per bag of season was around 1503 thousand tonnes,
SOP and MOP respectively, from 1st

26
 Agriculture
leaving a balance of 177 thousand tonnes for expected to be around 3000 thousand tonnes,
next season. reflecting a closing balance of 1018 thousand
tonnes. Total availability of DAP will be 639
Total availability of urea during Kharif 2017 thousand tonnes against expected offtake of 900
will be about 4018 thousand tonnes comprising thousand tonnes. Thus, there is gap of 261
of 1318 thousand tonnes of opening balance thousand tonnes of DAP which should be met
and 2700 thousand tonnes of domestic through imports by private sector.
production (Table 2.13). Urea offtake is

Table 2.13: Fertilizer Supply Demand Situation (000 Tonnes)

Description Kharif (Apr-Sep) 2016 Rabi (Oct-Mar) 2016-17 Kharif (Apr-Sep) 2017*
Urea DAP Urea DAP Urea DAP
Opening stock 1200 253 1565 458 1318 177
Imported supplies 0 482 0 843 0 40
Domestic Production 3078 416 2840 372 2700 422
Total Availability 4278 1151 4405 1673 4018 639
Offtake/Demand 2704 697 3085 1503 3000 900
Write on/off -9 4 -2 7 0 0
Closing stock 1565 458 1318 177 1018 -261
Source: National Fertilizer Development Center
*: Outlook

ii) Improved Seed b) Field Crop Inspection: A total of

199819.54 acres of different crops (wheat,
Federal Seed Certification & Registration
cotton, paddy, maize, pulses, oilseeds,
Department (FSC&RD) is an attached
vegetables, fodders, barley and potato) offered
department of Ministry of National Food
by the public and private seed agencies were
Security & Research, with the mandate to
inspected for certification purposes.
regulate quality of seeds of various crops. Seed
quality being a key input in crop production c) Seed Sampling &Testing: A total quantity
plays a vital role for sustainable agricultural of 428112 m.tons locally produced seed of
production and national food security. Brief major and minor crops was sampled and tested
activities performed by department are as for purity, germination and seed health
followed: purposes.
1. Achievements d) Seed Quality Monitoring in the Markets:
Under the Seed Act Enforcement, 91 cases
a) Registration of Seed Companies
were filed in different Courts of Law against
i. As per decision of the Working Group (for the seed dealers found selling substandard seeds
registration of new seed companies) in its and 24.69 m.tons seeds of different crops were
55th meeting, the registration of Seed seized.
Companies and other related issues were
e) Imported Seed Consignments: A total
withheld till notification of Seed (Business
quantity of 39.784 thousand m.tons of imported
Regulation) Rules, 2016.
seed of various crops/hybrids (maize, paddy,
ii. The Gazette Notification of Seed (Business sunflower, canola, fodders, potato, vegetables
Regulation) Rules, 2016 took place on 28th etc.) were tested under Seed (Truth in Labeling)
September, 2016. The Registration to do Rules, 1991 at the port of entries i.e. Lahore
seed business comes under Section 22B and Karachi.
with prescribed amount of fee for Seed
Certification and Registration Services that f) Central Seed Testing Laboratory,
will generate a sustainable amount to the Islamabad: Central Seed Testing Laboratory
government exchequer. (CSTL) Islamabad received approximately

27
Pakistan Economic Survey 2016-17
1126 seed samples from FSC&RD field stations Organization (WTO) is obliged to provide
through Quality Manager/Director. One rights to the breeders of new plant varieties
thousand and thirty seven (1037) seed samples under Article 27.3(b) of Trade Related Aspects
of different crops i.e. Wheat, Paddy, Cotton, for Intellectual Property Rights (TRIPs)
Pulses and vegetables were tested for seed Agreement. This protection to the breeders of
purity, seed moisture and other components. new plant varieties in various countries is
CSTL being International Seed Testing provided in the shape of Plant Breeders Rights
Association (ISTA) member laboratory Law.
participated in ISTA proficiency tests and
The Plant Breeders Rights Bill, 2016 was
CSTL received one sample (B. brizantha) from
passed by the National Assembly on 5th
ISTA for seed purity, moisture determination
September, 2016 and transferred to the Senate.
and Other Seed Determination (OSD).
The Senate Standing Committee on National
CSTL applied to ISTA through electronic Food Security and Research approved the Plant
communication for getting Accreditation status. Breeders Rights Bill, 2016 on 26th October,
Quality documents i.e. Standard Operating 2016. On 23rd November, 2016, the Senate
Procedures (SOP), quality forms and technical passed the Plant Breeders Bill, 2016. The Plant
procedures were prepared in compliance with Breeders Rights Bill, 2016 after being
ISTA accreditation procedures. Formal approved by both the houses of the Parliament,
application and quality documents have already was signed by the President of Islamic Republic
been submitted to ISTA secretariat for pre- of Pakistan on 5th December, 2016.
evaluation. CSTL has qualified this pre-
b) Importance of the Plant Breeders Rights
evaluation and final evaluation would be done
Act, 2016
by ISTA audit team tentatively in April, 2017.
CSTL has also submitted quality and technical In Seed Act, 1976, only the public sector was
manuals to Pakistan National Accreditation given the dominant role in seed development
Council (PNAC) for final audit for getting and registration processes and no role in this
national accreditation. regard was assigned to the private sector.
g) Seed Health Testing: Seed Health Testing
Laboratory, FSC&RD has made headway The promulgation of PBR law in the
towards laboratory accreditation by starting country will not only complement the
Inter Laboratory Comparison (ILC). recently passed Seed (Amendment) Act,
Proficiency Testing (PT) or ILC with world 2015 but would also assist the seed industry
renowned accredited laboratories is to usher in a new era of research based
indispensable for laboratory accreditation. innovations and technology led
Subsequent upon the guidelines of ISTA, Seed developments;
Health Testing Committee, Department of DUS At present the Plant Breeders Rights law is
Testing and Seed Inspection, Centre for Seeds enforced in more than 74 countries of the
and Seedlings, NARO (NCSS), Japan has world;
acceded to commence Inter Laboratory
Comparison studies with Seed Health Testing Many foreign companies are reluctant to
Laboratory. In this connection, Seed Health invest in our seed sector due to lack of
Laboratory has received paddy seed samples protection for their products because of the
infected with various diseases from Japan absence of an effective variety protection
Laboratory. Results of the said analyses will be system;
sent to Japan for ILC studies. We are hopeful that after the promulgation
2. Up-dation of Seed Regulatory of PBR law our seed industry would
Framework experience a quantum jump in terms of
investment and transfer of modern
a) Plant Breeders Rights Act, 2016
technologies to harness the potential of
Pakistan being a member of World Trade

28
 Agriculture
hybrid plant varieties and other emerging Detailed botanical description of the
technologies. variety along with comparable variety
closely resembling to candidate variety.
c) Formulation of Plant Breeders Rights
It also includes parentage and brief
Rules, 2017
breeding history;
An inter-ministerial and inter-departmental Data regarding Value for Cultivation
committee constituted by the Ministry of and Use (VCU);
National Food Security and Research has
True specimens of plants of the variety
finalized Draft Rules under the PBR Act,
and plant parts.
2016,which have been circulated to concerned
stakeholders to seek their viewpoints.
On receiving seed samples, crop variety
d) Passage and Implementation of Seed registration trials are carried out for two years
(Amendment) Act, 2015 at suitable locations, to determine DUS
characteristics of the variety according to the
After the passage of Seed (Amendment) Act, stabilized descriptors.
2015 by the Parliament, Seed Rules, 2016 have
been approved and circulated. Implementation A total of about 57 new candidate lines have
of activities as a result of amendments in the been studied for DUS trials.
Seed Act, are being expedited.
4. Fruit Plant Certification
e) Impact of Seed (Amendment) Act, 2015 FSC&RD has registered one new fruit plant
Rules nursery established at Quetta to promote
production and dissemination of disease
Private sector has been given larger free and true-to-type nursery fruit plants;
role in all areas of seed testing, Registration cases of ten fruit plant
production, multiplication and nurseries are in-process;
processing; Minimum Fruit Plant Certification
Accredited seed testing laboratories Standards for citrus, mango and guava have
allowed to be established by public and been drafted and submitted to National
private seed sectors to enhance internal Seed Council for approval;
seed quality assurance and to link with Minimum Fruit Plant Certification
national and international seed markets Standards for olive have been drafted and
for export; are ready for submission to National Seed
Effective deterrence is expected to be Council.
created by enhancement of penalties
against sale of fake and substandard 5. FSC&RD Development Initiatives
seed;
To bring discipline in the seed industry, Following two developmental projects have
mandatory registration of seed business been drafted by FSC&RD and submitted to
has been introduced. Ministry of National Food Security & Research
for approval:
3. Distinctness, Uniformity & Stability (DUS) Up-gradation and Accreditation of Seed
Examination Testing Laboratory, FSC&RD,
Karachi;
The DUS trials are performed by the FSC&RD. Up-gradation of seed certification
The Breeders have to submit seed sample of services in Balochistan.
candidate variety along with the following to 6. International Collaboration
the FSC&RD of DUS testing: For seed sector development in Pakistan,
Application for registration of the new FSC&RD International Cooperation section
variety; was in the process of deliberations during the
period FY 2016-17 (July-March) through

29
Pakistan Economic Survey 2016-17
different cooperation proposals with the Germany, Bahrain, Qatar, Italy, FAO,
following countries and international Tajikistan, Japan, Thailand, Turkey, SAARC,
organizations; ECO, Jordan, Senegal, China, Brazil, D-8 and Papua New Guinea.
Uzbekistan, Turkmenistan, Middle East,
The detail is given in Table 2.14.
Table 2.14: Area ,Seed Requirements and Seed Availability*
Crop Sowing Total Seed Targeted Seed Seed Availability(Metric Tonnes)
Area Requirement Requirement Public Private Imported Total
000 Ha MT MT (Loc+Imp)
Wheat 9,045 1,085,400 217,080 86,200 335,415 - 421,615
Cotton 3,200 40,000 40,000 687 28,677 - 29,364
Paddy 2,830 44,800 12,744 3,322 43,097 619 47,038
Maize 1,109 33,270 9,981 656 17,078 9,302 27,036
Pulses 1,337 47,496 9,499 704 2,436 0 3,140
Oilseeds 830 10,582 2116 3 529 99 631
Vegetables 254 5,570 5,070 96 874 6,872 7,841
Fodders 1,942 40,138 40,138 5 7 16,054 16,065
Potato 149 372,725 74,545 - - 6,839 6,839
Total 20,696 1,679,981 411,173 91,673 428,112 39,784 559,569
Source: Federal Seed Certification & Registration Department * : Provisional 2016-17 (July-March)

iii) Mechanization note the import of agriculture machinery has

witnessed a significant growth of 25.6 percent
During 2016-17 (July-March), a total number of
during FY 2016-17(July-March) compared to
37,634 tractors were locally manufactured
the corresponding period of last year as customs
compared to the production of 21,229 during
duty on import of harvesters and planters was
same period last year witnessing a significant
reduced to zero to promote mechanized
increase of 77.3 percent as the GST on locally
harvesting and planting operations in the
manufactured/imported tractors have been
country. The production and price of locally
reduced from 10 percent to 5 percent that has
manufactured tractors are given in Table 2.15.
increased the demand of tractors. On positive

Table 2.15: Prices and Production of Locally Manufactured Tractors 2016-17 (July-March)
Tractors Model HorsePower Price/Unit Price/Unit Production Actual Sale
(HP) Excluding Including (in Nos.) (in Nos.)
GST (Rs) GST (Rs)
M/s Al-Ghazi Tractors
NH 480-S (55 HP) 684,000 718,200 3,989 4,116
NH 480-S-W.P (55 HP) 690,000 724,000 1,692 1,720
NH-Ghazi (65 HP) 775,000 813,750 5,295 5,331
NH-Ghazi WDB(65 HP) 782,000 821,100 306 362
NH- 640 (75 HP) 984,000 1,033,200 1,669 1,669
NH -640 WDB (75 HP) 990,000 1,039,500 126 131
NH -640-S (85 HP) 1,027,000 1,078,350 77 77
NH -640-S WDB (85 HP) 1,041,000 1,093,050 27 28
NH-70-56 (85 HP) 1,540,000 1,617,000 5 5
Dabung- (85-HP) 1,041,000 1,617,000 489 487
M/s Millat Tractors
MF-240 (50 HP) 682,500 716,625 8,837 8,697

30
 Agriculture
Table 2.15: Prices and Production of Locally Manufactured Tractors 2016-17 (July-March)
Tractors Model HorsePower Price/Unit Price/Unit Production Actual Sale
(HP) Excluding Including (in Nos.) (in Nos.)
GST (Rs) GST (Rs)
MF-350 Plus (50 HP) 699,500 734,475 28 33
MF-260 (60 HP) 782,300 821,415 5,819 5,894
MF-360 (60 HP) 798,500 838,425 324 458
MF-375-S (75 HP) 1,014,500 1,065,225 1,792 1,808
MF-385 (85 HP) 1,073,200 1,126,860 6,840 6,951
MF-385 4WD (85 HP) 1,613,500 1,694,175 319 318
Grand Total 37,634 38,085
Source: Tractor Manufacturer Association, Federal Water Management Cell
Note: GST @ 5 percent

iv) Irrigation received was 3.0 mm, which was 88.6 percent
below the normal rainfall. During winter season
During the monsoon season (July-September)
(January-March) 2017, normal average rainfall
2016, the normal average rainfall is 140.9 mm,
is 74.3 mm and the actual rainfall received was
while the actual rainfall received was 176.2
75.5 mm, which was 1.6 percent above the
mm, which is 25.1 percent above normal
normal average rainfall. Rainfall recorded
rainfall. During the post-monsoon season
during the monsoon, post monsoon and winter
(October-December) 2016, the normal average
season is given in Table 2.16.
rainfall is 26.4 mm, while the actual rainfall

Table 2.16: Rainfall* Recorded During 2016-17 (in Millimeters)

Monsoon Rainfall Post Monsoon Rainfall Winter Rainfall
(Jul-Sep) 2016 (Oct-Dec) 2016 (Jan-Mar) 2017
Normal** 140.9 26.4 74.3
Actual 176.2 3.0 75.5
Shortage (-)/excess (+) + 35.3 -23.4 +1.2
% Shortage (-)/excess (+) +25.1 % - 88.6 % + 1.6 %
Source: Pakistan Meteorological Department
*: Area Weighted **: Long Period Average (1961-2010)

During Kharif (April-September) 2016, canal 17, the canal head withdrawals decreased by 10
head withdrawals stood at 71.35 million acre percent and stood at 29.66 MAF, compared to
feet (MAF) showing an increase of 9 percent as 32.90 MAF during same period last year. The
compared to 65.47 MAF during same period province-wise detail is shown in Table 2.17.
last year. During Rabi (October-March) 2016-

Table 2.17: Canal Head Withdrawals (Below Rim Station) Million Acre Feet(MAF)
Province Kharif Kharif % Change in Rabi Rabi % Change in
(Apr-Sep) (Apr-Sep) Kharif 2016 (Oct-Mar) (Oct-Mar) Rabi 2016-17
2015 2016 Over 2015 2015-16 2016-17 Over 2015-16
Punjab 32.53 36.39 12 16.87 15.93 -6
Sindh 30.55 32.13 5 14.57 12.04 -17
Balochistan 1.62 1.93 19 0.98 1.10 12
Khyber Pakhtunkhwa 0.76 0.92 20 0.48 0.59 23
Total 65.47 71.35 9 32.90 29.66 -10
Source: Indus River System Authority

31
Pakistan Economic Survey 2016-17

Water Sectors present and future Water Resources Management (IWRM)

strategies/policies are aimed at meeting the approach.
widening gap between demand and supply. It
centers around two dimensional strategies; a) An amount of Rs.31.716 billion was allocated
demand management and b) enhancing the for water sectors development projects/
water availability. The important mechanisms programmes during the FY 2016-17, out of
are to initiate market forces to convert water which more than Rs.24.00 billion (76 percent)
from social good to socio-economic good. The are expected to be utilized by the end of June,
technical solution will be based on Integrated 2017. The major water sector projects under
implementation are shown in Table 2.18.
Table 2.18: Major Water Sector Projects under Implementation
Project Location App. cost Live Storage Irrigated Status
(Rs. in million) Area
(Acres)
Gomal Zam Dam Khyber 20,626 0.892 191,139
Substantially completed
Pakhtunkhwa MAF (17.4 MW Power Gen.)
Rainee Canal Sindh 17,643 - 412,400
Physically completed.(Phase-I)
( Phases-I)
Kachhi Canal Balochistan 80,352 - 55,000upto (August 2017)
(Phase-I) & it increased upto 72,000 About 94% Physically completed
(upto December ,2017)
Darawat Dam Sindh 9,300 89,192 25,000
Physically completed
(Ac.Ft) (0.30 MW Power Gen.)
NaiGaj Dam Sindh 26,236 160,000 28,800
(Ac.Ft) (4.2 MW 48 % Physical work completed
Power Gen.)
KurramTangi Dam Khyber 12,662 0.90 84,380 New
Works of Phase-I at initial stage
Pakhtunkhwa MAF 277,500 Existing
Naulong Dam Balochistan 18,027 0.20 47,000
MAF (4.4 MW Work at initial stage.
Power Gen.)
Mohmand Dam Khyber 937.00 0.676 16,737
Detailed Engg. Design in progress
(Detailed Design) Pakhtunkhwa MAF
Right Bank Outfall ROBD-II will help to
Drain (RBOD) dispose 3,520 cusecs of
RBOD-I Sindh 17,505 - drainage effluent into Sea Substantially completed
RBOD-II Sindh 61,985 - received from RBOD-I & Substantially completed
RBOD-III Balochistan 10,804 - III Substantially completed
Source: Ministry of Planning, Development and Reform

Box-1: Landmark for FY 2016-17

Substantial completion (phase-I) of Kachhi Canal in Balochistan & Rainee Canal Sindh for irrigating
0.168 million acres (Phase-I).
Completion of Gomal Zam Dam in FATA/Khyber Pakhtunkhwa and Darwat Dam (Sindh).
A sum of Rs 1,000 million will be expended for on-going works of Nai Gaj dam (Dadu, Sindh) to irrigate
28,800 acres of land and Power Generation of 4.20 MW.
Initiation physical works on Kurram Tangi Dam (Phase-I) in North Waziristan Agency and Mohmand
Dam in Mohmand Agency FATA.
To save the water losses of existing irrigation system, about Rs 900 million will be utilized for lining of
small canals & minors in Punjab and Sindh during the FY 2016-17.
For the rehabilitation and improvement of existing irrigation canals in Punjab, Sindh & Khyber
Pakhtunkhwa an amount of Rs 1,100 million are expected to be utilized during FY 2016-17.
In Balochistan, Sindh, Punjab and Khyber Pakhtunkhwa about Rs 7.436 billion are expected to be utilized
during FY 2016-17 on construction of new small/delay action dams and recharge dams. Province-wise

32
 Agriculture
detail is as under:
a) Punjab Rs. 550 million (Ghabir & Papin dam)
b) Sindh Rs. 500 million (Kohistan & Nagarparkar areas of Sindh)
c) Khyber Pakhtunkhwa Rs. 1,450 million (Kundal/Sanam dam, Baran dam & 20 small
dams in districts Nowshera,Karak,Swabi,Haripur&Kohat)
d) Balochistan Rs. 4,936.37 million (Shadi Kaur, Bathozai, Construction of 100
small dams (Package-II & III), Basol dam, Mangi dam & others)
Due to above mentioned water sectors development programme it is expected that water availability at
farm gate will remain about 132.70 MAF.
In drainage sector a sum of Rs. 4.80 billion are expected to be utilized for the implementation of RBOD-I,
II & III Projects to protect & reclaim waterlogged & salt effected irrigated land and Manchar Lake for
water pollution.
Source: Ministry of Planning, Development and Reform

iv) Agricultural Credit agriculture loans has also been increased by

In backdrop of the governments priority for Rs.45.3 billion i.e. from Rs.333.8 billion to
agriculture sector, Agriculture Credit Advisory Rs.379.1 billion with 13.6 percent growth at
Committee (ACAC) has set the indicative end March 2017 as compared to same period
agricultural credit disbursement targets of last year. Despite having various real sector
Rs700 billion for FY 2016-17 to 52 challenges, the overall performance of banks
participating institutions including 20 remained encouraging and witnessed 22.7
Commercial banks, 2 Specialized Banks, 4 percent growth in disbursement during the
Islamic Banks and 10 Microfinance Banks and period under review.
16 Microfinance Institutions/Rural Support Five major banks as a group have disbursed Rs
Programmes (MFIs/RSPs) 236.6 billion or 69.6 percent of its annual
This indicative agriculture target is 17 percent target, ZTBL disbursed Rs.57.5 billion or 56.1
higher than the last years disbursement of Rs percent of its target of Rs.102.5 billion while
598.3 billion. Out of the total target, Rs 340.0 PPCBL disbursed Rs.6.9 billion i.e. 55.1
billion have been allocated to five major banks, percent against its target of Rs.12.5 billion
Rs 102.5 billion to ZTBL, Rs 139.6 billion to during the period under review.
15 Domestic Private banks, Rs 12.5 billion to Fifteen Domestic Private Banks collectively
Punjab Provincial Cooperative Bank Limited disbursed Rs 90.2 billion or 64.6 against their
(PPBCL), Rs 60.1 billion to 10 Microfinance target of Rs.139.6 billion. Ten Microfinance
banks, Rs 11.0 billion to four Islamic banks and banks have disbursed Rs.61.3 billion and as a
Rs 34.3 billion to 16 newly inducted group has already surpassed their annual targets
MFIs/RSPs for FY 2016-17. while under Islamic mode of financing, Islamic
Agricultural Credit Disbursements Recent Banks collectively disbursed Rs.8.4 billion or
Trends 76 percent against their targets of Rs.11.0
billion to agriculture borrowers. Further, under
During FY 2016-17 (July-March), the banks
MFIs/RSPs category Rs12.2 billion has been
disbursed Rs.473.1 billion which is 67.6 percent
disbursed to small and marginalized farmers.
of the overall annual target of Rs 700 billion
The group wise performance of banks during
and 22.7 percent higher than disbursement of
FY 2016-17 (July-March) is summarized below
Rs.385.5 billion made during the corresponding
in Table 2.19.
period last year. The outstanding portfolio of

33
Pakistan Economic Survey 2016-17

Table 2.19: Supply of Agricultural Credit by Institutions (Rs in billion)

Banks Target 2015-16 (July-March) Target 2016-17 (July-March) % Change over
2015-16 Disbursement Achieved (%) 2016-17 Disbursement Achieved (%) the Period
5 Major Commercial 305.7 198.8 65.0 340.0 236.6 69.6 19.0
Banks
ZTBL 102.0 55.3 54.2 102.5 57.5 56.1 3.9
PPCBL 12.5 6.1 48.8 12.5 6.9 55.1 12.8
DPBs (15) 131.8 84.8 64.4 139.6 90.2 64.6 6.4
Islamic Banks (5) 7.9 6.0 76.4 11.0 8.4 76.0 39.3
MFBs (10) 40.1 34.5 86.0 60.1 61.3 102.1 77.7
MFIs/RSPs - - - 34.3 12.2 35.6 -
Total 600.0 385.5 64.3 700.0 473.1 67.6 22.7
Source: State Bank of Pakistan

Box-2: Credit Disbursement to Farm and Non-Farm Sector

The sector wise breakup of disbursements witnessed that the farm sector has received Rs.232.0 billion or 49
percent while non-farm sector absorbed Rs.241.1 billion or 51 percent during FY 2016-17 (July-March). Under
farm credit sector disbursement, Rs.102.6 billion or 21.7 percent were disbursed to subsistence land holding,
Rs.46.1 billion or 9.7 percent to economic holding, Rs.83.3 billion or 17.6 percent to above economic holding
category. However, in non-farm credit sector disbursement, Rs.155.6 billion or 32.9 percent were disbursed to
large farm while Rs. 85.5 billion or 18.1 percent to small farms category. The increasing trend of non-farm
sector is mainly due to more opportunities for Agricultural Value Chain Financing (AVCF) especially in
Livestock/Dairy and Poultry sectors. The sector-wise comparative details of credit disbursements are provided
in Table 2.20.

Table 2.20 : Credit Disbursement to Farm & Non-Farm Sectors (Rs. in billion)
Sector 2015-16 (July-March) 2016-17 (July-March)
Disbursement % Share in Disbursement % Share in
Total Total
A Farm Credit 188.1 48.8 232.0 49.0
1 Subsistence Holding 99.5 25.8 102.6 21.7
2 Economic Holding 41.2 10.7 46.1 9.7
3 Above Economic 47.4 12.3 83.3 17.6
Holding
B Non-Farm Credit 197.4 51.2 241.1 51.0
1 Small Farms 69.7 18.1 85.5 18.1
2 Large Farms 127.7 33.1 155.6 32.9
Total (A+B) 385.5 100 473.1 100
Source: State Bank of Pakistan

SBPs Initiatives for the Promotion of 1. Framework for Warehouse Receipt

Agriculture Financing Financing (WHRF): In accordance with
the objective of improving the performance
SBP, in collaboration with banks, federal &
of the agriculture sector and to develop
provincial governments, farming community
commodities physical trade and marketing
and other stakeholders has been encouraging
system, SBP issued draft framework for
banks to adopt agricultural lending as a viable
Warehouse Receipt Financing. The
business line. Recently a number of policy and
framework facilitates banks in development
regulatory initiatives have been taken to remove
of specialized products for providing
the bottlenecks and enhance access to financial
financing to farmers, traders, processors,
services for the farmers, especially smaller
and other players in the value chain. SECP
ones. Some of the major initiatives are as under;
in consultation with banks and other

34
 Agriculture
stakeholders has developed Collateral (LLIS) was launched in November 2013
Management & Warehousing Rules for which covers all livestock loans up to Rs 5
WHRF system in Pakistan. The regulatory million for purchase of animals. Under
framework for collateral management LLIS, the borrowers are covered against
companies and warehouse operators are death of animals due to disease/natural
being finalized by SECP. death due to flood, heavy rains, wind storm
and accidental death. Under this scheme,
2. Credit Guarantee Scheme for Small and
the GoP is bearing cost of premium (up to 4
Marginalized Farmers (CGSMF): SBP
percent annum) of small farmers obtaining
implemented the Credit Guarantee Scheme
loan from banks for up to 10 animals.
for Small & Marginalized Farmers, in line
with the budgetary announcement 2014- III. Livestock and Poultry
15.The CGSMF, with funding support of
a) Livestock
federal government, with objective to
sensitize financial institutions to lend to Livestock contributed approximately 58.3
small farmers who do not have adequate percent to the agriculture value added and 11.4
collateral (acceptable to banks) in order to percent to the overall GDP during 2016-17
meet their working capital requirements. compared to 58.3 percent and 11.6 percent
The scheme is providing 50 percent credit during the corresponding period last year,
risk coverage to Participating Financial respectively. Gross value addition of livestock
Institutions (PFIs) on loans up to Rs at constant cost factor of 2005-06 has increased
100,000 extended to small farmers having from Rs. 1288 billion (2015-16) to Rs. 1333
upto 5 acres canal-fed or 10 acres rain-fed billion (2016-17), showing an increase of 3.4
land. percent over the same period last year.
3. Crop Loan Insurance Scheme (CLIS): Livestock has an important and crucial role in
To reduce vulnerability of small farmers, rural economy and rural socio economic
SBP in collaboration with GoP introduced development. Nearly 8 million families are
CLIS in 2008 for five major crops i.e. involved in livestock raising deriving more than
wheat, rice, sugarcane, cotton and maize for 35 percent income from livestock production
mitigating the default risk due to natural activities. It is central to the livelihood of the
calamities and provide repayment assurance rural poor in the country. It is a source of cash
to banks. The scope of CLIS covers income, providing a vital and often the only
payment of insurance premium of the source of income for the rural and most
farmers with landholding up to 25 acres. marginal people. It can play an important role
Under the mandatory scheme, the in poverty alleviation and foreign exchange
government is bearing the cost of premium earnings for the country.
up to 2 percent per crop per season. The livestock population for the last three years
4. Livestock Loan Insurance Scheme is given in Table 2.21.

Table 2.21: Estimated Livestock Population (Million Nos.)

Species 2014-151 2015-161 2016-171
Cattle 41.2 42.8 44.4
Buffalo 35.6 36.6 37.7
Sheep 29.4 29.8 30.1
Goat 68.4 70.3 72.2
Camels 1.0 1.0 1.1
Horses 0.4 0.4 0.4
Asses 5.0 5.1 5.2
Mules 0.2 0.2 0.2
Source: Ministry of National Food Security & Research
1
: Estimated figure based on inter census growth rate of Livestock Census 1996 & 2006

35
Pakistan Economic Survey 2016-17
The major products of livestock are milk and meat for the last three years is given in Table 2.22.
Table:2.22 Estimated Milk and Meat Production (000 Tonnes)
Species 2014-151 2015-161 2016-171
Milk (Gross Production) 52,632 54,328 56,080
Cow 18,706 19,412 20,143
Buffalo 32,180 33,137 34,122
Sheep2 38 39 39
Goat 845 867 891
Camel2 862 873 885
Milk (Human 42,454 43,818 45,227
Consumption)3
Cow 14,965 15,529 16,115
Buffalo 25,744 26,510 27,298
Sheep 38 39 39
Goat 845 867 891
Camel 862 873 885
Meat4 3,696 3,873 4,061
Beef 1,951 2,017 2,085
Mutton 671 686 701
Poultry meat 1,074 1,170 1,276
Source: Ministry of National Food Security & Research
1: The figures for milk and meat production for the indicated years are calculated by applying milk production
parameters to the projected population of respective years based on the inter census growth rate of
Livestock Census 1996 & 2006.
2: The figures for the milk production for the indicated years are calculated after adding the production of
milk from camel and sheep to the figures reported in the Livestock Census 2006.
3: Milk for human consumption is derived by subtracting 20% (15% wastage in transportation and 5% in
calving) of the gross milk production of cows and buffalo.
4: The figures for meat production are of red meat and do not include the edible offals.

The estimated production of other livestock products for the last three years is given in Table 2.23.

Table: 2.23 Estimated Livestock Products Production

Species Units 2014-151 2015-161 2016-171
Eggs Million Nos. 15,346 16,188 17,083
Hides 000 Nos. 15,368 15,886 16,421
Cattle 000 Nos. 7,816 8,111 8,416
Buffalo 000 Nos. 7,447 7,669 7,897
Camels 000 Nos. 105 106 108
Skins 000 Nos. 53,060 54,278 55,526
Sheep Skin 000 Nos. 11,132 11,264 11,397
Goat Skin 000 Nos. 26,359 27,073 27,807
Fancy Skin 000 Nos. 15,569 15,941 16,322
Lamb skin 000 Nos. 3,306 3,345 3,385
Kid skin 000 Nos. 12,263 12,595 12,937
Wool 000 Tonnes 44.6 45.1 45.7
Hair 000 Tonnes 25.8 26.5 27.2
Edible Offals 000 Tonnes 383 394 405
Blood 000 Tonnes 64.4 66.1 67.8
Guts 000 Nos. 53,603 54,833 56,094
Casings 000 Nos. 16,347 16,895 17,461
Horns & Hooves 000 Tonnes 55.5 57.2 58.9
Bones 000 Tonnes 827.2 852.3 878.2

36
 Agriculture
Table: 2.23 Estimated Livestock Products Production
Species Units 2014-151 2015-161 2016-171
Fats 000 Tonnes 263.3 271.0 279.0
Dung 000 Tonnes 1,171 1,207 1,244
Urine 000 Tonnes 358 368 379
Head & Trotters 000 Tonnes 238.8 245.6 252.5
Ducks, Drakes & Million Nos. 0.5 0.5 0.5
Ducklings
Source: Ministry of National Food Security & Research
1
: The figures for livestock product for the indicated years were calculated by applying production parameters
to the projected population of respective years.

The population growth, increases in per capita Poultry Industry is more than Rs. 700 billion.
income and export opportunities are fueling the Poultry has not only been a balancing force to
demand of livestock and livestock products in keep check on the prices of mutton and beef,
the country. The overall livestock development but also serving as backbone of agriculture
strategy aims to foster "private sector-led sector, as it consumes over 7 million metric
development with public sector providing tons of agro residues. Poultry meat contributes
enabling environment through policy 31 percent of the total meat production in the
interventions. The regulatory measures are country. The commercial layer, breeders and
aimed at improving per unit animal productivity broiler stocks showed estimated growth of 7.0
by improving health coverage, management percent, 5.0 percent and 10 percent respectively
practices, animal breeding practices, artificial while rural poultry developed @ 1.5 percent
insemination services, use of balanced ration when compared to 2015-16. The poultry has
for animal feeding, and controlling livestock contributed 1.4 percent in GDP during 2016-17
diseases of trade and economic importance. The while its contribution in agriculture and
objective is to exploit the livestock sector and livestock value added stood at 7.1 percent and
its potential for economic growth, food security 12.2 percent respectively. The poultry value
and rural socioeconomic uplift. added at current factor cost has increased from
Rs. 151.1 billion (2015-16) to Rs.162.8 billion
b) Poultry (2016-17) showing an increase of 7.7 percent
Poultry sector is one of the vibrant segments of compared to the same period last year. The
livestock sector in Pakistan. This sector estimated production of commercial and rural
provides employment (direct /indirect) to over poultry and poultry products for the last three
1.5 million people. The current investment in years is given in Table 2.24.

Table 2.24: Estimated Domestic/Rural & Commercial Poultry

Type Units 2014-151 2015-161 2016-171
Domestic Poultry Million Nos. 83.32 84.58 85.86
Cocks Million Nos. 10.95 11.24 11.55
Hens Million Nos. 40.18 40.90 41.64
Chicken Million Nos. 32.19 32.43 32.67
Eggs2 Million Nos. 4,018 4,090 4,164
Meat 000 Tonnes 112.99 115.24 117.54
Duck, Drake & Duckling Million Nos. 0.48 0.46 0.44
Eggs2 Million Nos. 21.25 20.36 19.52
Meat 000 Tonnes 0.65 0.62 0.59
Commercial Poultry Million Nos. 53.4 56.9 60.6
Layers Million Nos. 42.65 45.64 48.83
Broilers Million Nos. 794.63 874.09 961.50
Breeding Stock Million Nos. 10.70 11.24 11.80
Day Old Chicks Million Nos. 829.99 912.99 1,004.29

37
Pakistan Economic Survey 2016-17
Eggs2 Million Nos. 11,307 12,077 12,900
Meat 000 Tonnes 960.65 1,054.46 1,157.51
Total Poultry
Day Old Chicks Million Nos. 862 945 1,037
Poultry Birds Million Nos. 932 1,016 1,108
Eggs Million Nos. 15,346 16,188 17,083
Poultry Meat 000 Tonnes 1,074 1,170 1,276
Source: Ministry of National Food Security & Research
1 : The figures for the indicated years are statistically calculated using the figures of 2005-06.
2 : The figures for Eggs (Farming) and Eggs (Desi) are calculated using the poultry parameters for egg
production.

Government Policy Measures animals. During 2016-17 (July-March), 556,565

thousand doses of semen and 9,123 exotic dairy
Livestock Wing of Ministry of NFS&R with its
cows were imported. The exotic dairy cows
redefined role under 18th Constitutional
added approximately 70 million tons of milk
amendment continued regulatory measures that
per annum in the commercial milk
included allowing import of high yielding
chain/system.
animals, semen and embryos for the genetic
improvement of indigenous dairy animals, In order to facilitate dairy farmer, duty free
allowing import of high quality feed stuff/micro import of calf milk replacer & cattle feed
ingredients for improving the nutritional quality premix was allowed. During 2016-17 (July-
of animal & poultry feed and allowing import March), 310.2 metric tons of calf milk replacer
of veterinary, dairy and livestock machinery / & 298.9 metric tons of cattle feed premix was
equipment at reduced duty rates in order to imported. Similarly, to promote and encourage
encourage establishment of value added value added livestock processing industry in the
industry in the country. Livestock insurance country, duty free import of machinery for
scheme for farmers having 10 animals or more, milk, beef, mutton & poultry processing was
introduced during 2014-15 promoted allowed.
cooperative dairy farming in the country. Zero
rating on processed valued added chicken During 2016-17 (July-March), the Animal
products has been withdrawn. Quarantine Department (AQD) provided
quarantine services and issued 28,217 Health
Livestock Wing also provided facilitation for Certificates for the export of live animals,
export of red meat. A total of 41.286 thousand mutton, beef, eggs and other livestock products
tons of red meat was exported during 2016-17 having value of US$ 294.414 million. The
(July-Mar). The export of meat fetched US $ AQD generated non-tax revenue of Rs. 103.232
135.036 million. This meat was exported from million during 2016-17 (July-March) as
private sector slaughterhouses. During same certificate / laboratory examination fee of
period export facilitation was also provided for animal and animal products exported during the
livestock by-products like animal casing, bones, year.
horns & hooves and gelatin. The effort
continued for market access with the concerned The National Veterinary Laboratory (NVL),
authorities of Russia, China, South Africa, Islamabad is a national institution for service
Egypt, Hong Kong and Indonesia through and regulatory support to national livestock
diplomatic channel for export of our meat and wealth with mission to promote greater
meat products. productivity and profitability from the livestock
industries in Pakistan. The NVL conducted
Livestock Wing regulated import of superior surveillance and diagnostics on highly
quality semen and high yielding exotic dairy contagious diseases of animals. It also carried
cattle of Holstein-Friesian & Jersey breeds for out activities on National and Regional Projects
genetic improvement of indigenous dairy regarding prevention and control of

38
 Agriculture
Transboundary Animal Diseases in Pakistan. sanitary/hygiene etc., at these places. On receipt
During 2016-17 (July-March), 10,264 samples of inspection report from UAE technical team,
were analyzed for disease diagnosis Government of UAE has lifted ban on import of
surveillance, veterinary vaccines and residue poultry and poultry products from Pakistan.
testing. These samples were submitted from This would go a long way in promoting export
provincial livestock departments, development of poultry and poultry products from the
projects, ICT, AJK and FATA besides animal country.
product exporters.
In December, 2016, Royal Friesland Company
Livestock Wing also collaborated with acquired 51 percent of Engro Food Pakistan.
international (Office International des This is one of the largest private sector Foreign
Epizooties OIE, Food and Agriculture Direct Investment in dairy sector of Pakistan
Organization FAO) and regional organizations amounting to investment of US $ 450 Million.
(South Asian Association for Regional Under new deal and 2020 strategy
Cooperation (SAARC), Economic Cooperation arrangements, Engro food will go for higher
Organization (ECO), Animal Production & milk quality, variety of milk packages and
Health Commission for Asia (APHCA) and products and farmers capacity building leading
European Union (EU) for human resource to reduction in poverty. This has given, a
development (HRD) and capacity building of positive signal and more investments in dairy
national and provincial livestock institutions for sector are expected during the coming years.
diagnosis and control of animal diseases. Inter
Provincial Coordination is being done by the Moreover, to attract further investment in dairy
Livestock Wing to implement the National sector, protect the small dairy farmers and the
Programme to Control Foot & Mouth Disease corporate dairy sector, beside discouraging
(FMD) and Peste des Petitis Ruminants (PPR) import and mitigate use of synthetic milk and
disease in Pakistan. Pakistan has been recipe products, regulatory duties to the tune of
progressing on OIE FMD freedom pathway and 25 percent have been imposed on import of
moved to stage 02 of the 06 stage pathway. A Skimmed Milk Powder (SMP) and Whey
National FMD Control Programme at a cost of Powder (WP).
Rs.764 million for the period of six years has Future Plans
been through from competent forums to sustain
and continue project activities during the The Future Plans will continue to focus on i)
subsequent years. This will help in improving Inter-Provincial Coordination for development
animal health status of the country regarding of livestock sector, ii) Coordination with private
transboundary animal diseases. sector to promote value addition livestock
industry and diversification of livestock
On account of concerted efforts, two members products, iii) Controlling Trans-boundary
of UAE technical team visited Pakistan from Animal Diseases (FMD, PPR, Zoonotic
16th-20th January, 2017. The delegation visited diseases) of trade and economic importance
National Reference Laboratory for Poultry through provincial participation, iv)Bringing
Diseases (NRLPD), NARC, National more investments in livestock sectors and v)
Veterinary Laboratories, Islamabad; Poultry Exploring new markets for export of meat and
Research Institute, Rawalpindi, Diagnostic dairy products with focus on Global Halal Food
Laboratory of University of Veterinary and Trade Market.
Animal sciences (UVAS), Lahore; Quarantine
facilities, poultry farms/hatcheries and poultry IV. Fisheries
processing plants, in order to witness/examine Fishery plays an important role in Pakistans
the diagnostic facilities, test protocols, economy and is considered to be a source of
inspection services, bio security/ bio safety livelihood for the coastal inhabitants. Apart
measures, standard operating procedure, (SOP), from marine fisheries, inland fisheries (based in
good management practices (GMP) and rivers, lakes, ponds, dams etc.) is also very

39
Pakistan Economic Survey 2016-17
important activity throughout the country. ii) Quality Control Services
Fisheriesshare in GDP is 0.41 percent but has a
Marine Fisheries Department (MFD) is
value addition in export earnings.
responsible to regulate quality and promote
During 2016-17 (July-March), total marine and export of fish and fishery products and to
inland fish production was estimated at 520,000 prevent export of substandard quality of
m. tons out of which 375,000 m. tons was seafood products. In this connection, during
marine production and the remaining catch 2016-17 (July-March), the Quality Control
came from inland waters. Whereas the Section of MFD has issued 14,174 certificates
production for the period 2015-16 (July- of Health and Quality & Origin for seafood
March), was estimated to be 501,000 m. tons commodities exported from Pakistan.
in which 368,000 m. tons was marine and the
iii) Turtle Excluder Device (TED) and Trials
remaining was produced by inland fishery
of TED by Local Fishermen
sector.
A training course on construction, installation
A total of 103,277 m. tons of fish and fish and use of TED was also conducted for the
preparations was exported during 2016-17 fishermen of shrimp trawlers. Fifty Five
(July-March). Pakistans major buyers are fishermen including representatives of the other
China, Thailand, Malaysia, Middle East, Sri organizations participated in this meeting. The
Lanka, Japan, etc. Pakistan earned US $ primary purpose of introduction of TED is to
276.269 million. Whereas the export of fish and reduce the mortality of sea turtles in fishing
fish preparations for 2015-16 (July-March) was nets and to fulfill the obligatory requirement of
92,046 m. tons amounting to US $ 240.038 United States regulation for the export of
million. The exports of fish and fish shrimp to USA.
preparations have increased by 12.20 percent in
quantity and 15.09 percent in value during Pakistan is also a signatory to the FAOs Code
2016-17 (July-March). of Conduct for responsible fishing. The federal
and provincial governments have assigned the
Government of Pakistan is taking a number of task to the Maritime Security Agency for
steps to improve fisheries sector. A number of ensuring compliance with the TED on all the
initiative are being taken by federal and fishing boats in the sea.
provincial fisheries departments which includes
inter alia strengthening of extension services, v) Modernized Fishing Fleets
introduction of new fishing methodologies, To meet the requirement of EU and other
development of value added products, importing countries, technical assistance in
enhancement of per capita consumption of fish, respect of modification of fishing boats was
and up-gradation of socio-economic conditions rendered to provincial governments and
of the fishermens community. relevant stakeholders, as a result a total number
i) Biological and Hydrological Research of 1300 fishing boats have been modified.
Monitoring of modification is carried out by
During 2016-17 (July-March), samples of MFD.
seawater collected from coastal areas were
analyzed to determine parameters which affect vi) Deep Sea Fishing
fish distribution. Fish samples of different
species were examined for study of length- During the period under report no deep sea
weight relationship, sex ratio, maturity, food fishing vessel was not in operation. As per
and feeding habit and fecundity etc. Monitoring direction Prime Ministers Deep Sea Fishing
for fish landing to determine stock position was Policy is being revised in consultation with all
also carried out at Karachi Fish Harbour. relevant stakeholders.

40