Pakistan Agricultural Economy Robust
----- Original Message -----From: WVNSTo:Sent: Sunday, November 22, 2009 7:22 PMSubject: Pakistan Agricultural Economy RobustAgricultural sector fared well in fiscal year 2009
RECORDER REPORT
KARACHI: Agricultural sector has performed well in FY09 and achieved a growth of 4.7 percent against the target of 3.5 percent mainly due to higher support price. "A robust agriculture sector performance has provided a major impetus to GDP growth in last fiscal year, with both, the crops and the livestock sub-sectors exhibiting above-target growth," said the State Bank annual report on economy.
The particularly impressive contribution by crops was a result of clearer incentives to farmers in terms of higher prices, which motivated them to increase area under cultivation, it added. The most prominent feature of the FY09 agri growth profile is the record harvest of three major crops including wheat, rice and maize, that together generally account for around 59 percent of value addition by major crops and in FY09 this share reached 62.7 percent, the SBP said.
Consequently, despite a massive decline of 21.7 percent in sugarcane output, major crops, in aggregate, recorded an impressive growth of 7.7 percent in FY09 against the target of 4.5 percent. The growth in minor crops was also impressive despite production declines in few crops including canola, onions, mangoes and some pulses; the 3.6 percent growth seen in FY09 was higher than the target of 2.0 percent.
Similarly, the 3.7 percent growth in the livestock sub-sector is also above 3.2 percent annual target. This year, there were no major incidences of virus attack in poultry or livestock animals in the country, and the sub-sector also benefited from better availability of fodder in non-irrigated fields following extended monsoon and winter rains.
The report said the livestock growth prospects look bright as domestic demand for dairy and meat products are projected to remain strong, driven by changing lifestyles on the back of increased nominal incomes. Moreover, rising external demand, particularly from Middle Eastern countries, also offers opportunities for significant growth in this sector.
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