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Growth of Output and Productivity in Pakistan’s Agriculture: Trends, Sources, and Policy Implications

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  • M. Ghaffar Chaudhry

    (Pakistan Institute of Development Economics, Islamabad.)

  • Ghulam Mustafa Chaudhry

    (Pakistan Institute of Development Economics, Islamabad.)

  • Muhammad Ali Qasim

    (Pakistan Institute of Development Economics, Islamabad.)

Abstract

The paper aims to review the growth performance of Pakistan’s agriculture from 1950 to 1995. The long-term growth rate of agriculture, although respectable, has exhibited considerable yearly fluctuations even between decades. The period of the fifties and early seventies lacked any growth. Accelerating and high growth rates marked the decade of the sixties but the performance has not been satisfactory since 1979-80 and average growth rates have barely exceeded the population growth rate, with widespread implications for growth of national economy, food security, and social welfare of the masses. Area, modern inputs, and technology have been the major determinants of growth but prices were equally important because of their incentive and disincentive effects. The agriculture price policies adopted during the 1980s are known to have had a negative effect on the development and use of technology in agriculture. In order to boost agricultural productivity, a change in price policy is needed to ensure incentive prices. This could be done by setting agricultural commodity prices at par with corresponding import and export parity prices. A higher investment in research and development can hardly be overemphasised. There is an urgent need to remove the bottlenecks in agricultural input markets since these markets represent the typical monopoly position. To break up the monopoly of registered dealers and to promote competition, free sales in the open market by interested parties and individuals may be allowed.

Suggested Citation

  • M. Ghaffar Chaudhry & Ghulam Mustafa Chaudhry & Muhammad Ali Qasim, 1996. "Growth of Output and Productivity in Pakistan’s Agriculture: Trends, Sources, and Policy Implications," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 35(4), pages 527-536.
  • Handle: RePEc:pid:journl:v:35:y:1996:i:4:p:527-536
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    References listed on IDEAS

    as
    1. Bashir Ahmad & Ali Muhammad Chaudhry, 1987. "Profitability of Pakistan's Agriculture," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 26(4), pages 457-469.
    2. M. Ghaffar Chaudhry, 1995. "Recent Input-Output Price Policy in Pakistan's Agriculture: Effects on Producers and Consumers," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 34(1), pages 1-23.
    3. Johnston, Bruce F & Cownie, John, 1969. "The Seed-Fertilizer Revolution and Labor Force Absorption," American Economic Review, American Economic Association, vol. 59(4), pages 569-582, Part I Se.
    4. Malcolm D. Bale & Ernst Lutz, 1981. "Price Distortions in Agriculture and Their Effects: An International Comparison," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 63(1), pages 8-22.
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    Cited by:

    1. Zaman, Khalid & Khan, Muhammad Mushtaq & Ahmad, Mehboob & Rustam, Rabiah, 2012. "The relationship between agricultural technology and energy demand in Pakistan," Energy Policy, Elsevier, vol. 44(C), pages 268-279.
    2. Ahmad, Munir & Iqbal, Muhammad, 2004. "Science and Technology Based Agriculture Vision of Pakistan and Prospects of Growth," MPRA Paper 57441, University Library of Munich, Germany, revised 2004.

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