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Potential of the Agricultural Value Chain Improvement in Pakistan

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  • Ali, M.

Abstract

This paper analyzes the status of Pakistan’s agriculture in the world and quantifies the potential of improving productivity and quality of value chain at its different nodes. A great potential of expansion in the value chain of large number of agricultural commodities produced in Pakistan are observed. Just bringing the average crop yield levels at par to the world average yield can generate over US$11 billion additional revenues to the producers. Despite lower yield, majority of commodities have lower prices compared to the world average prices at the farmgate. However, the country lost its comparative advantage as its export-output ratios (EOR) and export prices are lower than the world average for a large number of commodities. Similarly the quality of the produce in domestic market is observed to be low. If Pakistan can improve its EOR and export prices to the world average levels and enhance the quality of 10% its agriculture output in domestic market to the average export quality, it can generate US$8.8 to various stakeholders in the value chain. Cluster-based development approach is suggested to harness the potential in agricultural value chain. Various measures are suggested to improve productivity and quality of agricultural value chain in Pakistan.

Suggested Citation

  • Ali, M., 2018. "Potential of the Agricultural Value Chain Improvement in Pakistan," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 275951, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae18:275951
    DOI: 10.22004/ag.econ.275951
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    1. Parakrama Samaratunga & Kamal Marunagoda & Manoj Thibbotuwawa, 2007. "Mapping and analaysis of the South Asian agricultural trade liberalization efforts," STUDIES IN TRADE AND INVESTMENT, in: Studies in Trade and Investment - AGRICULTURAL TRADE - PLANTING THE SEEDS OF REGIONAL LIBERALIZATION IN ASIA, volume 60, pages 33-74, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
    2. Braun, Joachim von & Diaz-Bonilla, Eugenio (ed.), 2008. "Globalization of Food and Agriculture and the Poor," OUP Catalogue, Oxford University Press, number 9780195695281.
    3. Xiaobo Zhang, 2013. "Clusters as an Instrument for Industrial Policy: The Case of China," International Economic Association Series, in: Joseph E. Stiglitz & Justin Yifu Lin (ed.), The Industrial Policy Revolution I, chapter 4, pages 227-243, Palgrave Macmillan.
    4. von Braun, Joachim & Díaz-Bonilla, Eugenio, 2008. "Globalization of food and agriculture and the poor:," Issue briefs 52, International Food Policy Research Institute (IFPRI).
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    Cited by:

    1. Ali Sher & Saman Mazhar & Azhar Abbas & Muhammad Amjed Iqbal & Xiangmei Li, 2019. "Linking Entrepreneurial Skills and Opportunity Recognition with Improved Food Distribution in the Context of the CPEC: A Case of Pakistan," Sustainability, MDPI, vol. 11(7), pages 1-22, March.

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    Keywords

    Agricultural and Food Policy; International Development;

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