Importance Of Agriculture In Economic Development

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Importance of agriculture in economic development Agrarian Economy Pakistan is an Agrarian economy. Agrarian economy is dependent on the agricultural economy of economic activity. The main production of this type of economy is agricultural. Fifty years ago agriculture was not considered important for economic development. In the last 50 years, agriculture is considered to be the main reason for Pakistan's economic development. More than 60% of Pakistan's population is dependent on agriculture for their livelihood. The importance of agriculture in economic development 1- The increase in per capita income Per capita income is the annual income of a country. Because many unemployed people find work…show more content…
No one can survive without food. Agriculture provides food for people. Farmers get wheat, and other food for a year. Agriculture fulfills food needs of a country. 5- Fuller source of remuneration The agricultural sector is a major source of foreign exchange. Income imports of capital goods. Pakistan's total forex is $ 17.1 out of which 3million is share of agriculture. Pakistan's main cash crops are cotton, rice, tobacco, etc. It is helpful to correct the balance of payments. 6- Surplus labor supply Almost 61% of the population of Pakistan living in more than, 50,000 villages. Agriculture give work to the people and these people also work in industries after the farming season. This increases people's incomes will improve living standards. 7- Sources of national income In the partition, the contribution of the agricultural sector to GDP was 60%, which decreased to 29.4%, 1980-81. Now, it accounts for GDP is 2010--11 years 20.9%. Thus, the agricultural sector is a major contributor to the national income of Pakistan. 8- Supply of raw materials The agricultural sector not only provides food but also offers a variety of agro-based cotton, sugar cane, tobacco, rice, oilseeds, meat and milk, small-scale and large-scale industry as raw materials. 9-Development of the industrial…show more content…
It would be helpful to improve the balance of payments. Pakistan currently is facing $ 8.3 billion in its balance of payments deficit. 11- Improvement of living standards Currently due to the development of the agricultural sector to increase farmer income. This will allow farmer to build better houses and require life of luxury television, computers, mobile phones, motorcycles and many other items to improve their standard of living. Thus, growth in the agricultural sector will lead to improvements in people's living standards. 12- Expansion of the market scale There is more output in the agricultural sector, due to the mechanization of agriculture. It expands the size of the market. If there is more production, then things can be exported to other countries in the world. Exporting help more foreign exchange in the country. Foreign exchange makes the economy of a country very strong. 13- Capital

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