Agribusiness and Economics in South Asia

Formerly a part of British India, the Islamic Republic of Pakistan is a mid-sized nation located in South Asia. Pakistan achieved its independence from the British Empire in 1947, when the Indian subcontinent was partitioned into a country for Hindus (India) and a country for Muslims (Pakistan). However, until 1971, Pakistan consisted of its present-day territory, formerly West Pakistan, and present-day Bangladesh, formerly East Pakistan. These two provinces were governed from the capital city of Islamabad in West Pakistan until 1971, when Bangladesh decided that it would fare better as an independent nation.

Agribusiness and Economics in South Asia

Today, Pakistan has a total territory of little over 796.000 square kilometers, which is almost twice the size of California. Highlands in the north, the Indus river plain in the center, and plateaus towards the south dominate the country. Likewise, Pakistan has 1.046 kilometers of coastline along its southwestern border and a territorial dispute with India along its northern border. Currently, the country has a total population of almost 210 million citizens, making it the sixth most populous country in the world. Similarly, approximately 40% of the Pakistani population lives in an urban setting, notably the cities of Karachi, Lahore, and Islamabad, amongst others. The annual gross domestic product (GDP) of Pakistan is about US$950 billion (PPP) and it has experienced positive economic growth upwards of 4.0% in recent years. The national economy is divided into 25% agriculture, 20% manufacturing, and 55% services. Likewise, it is estimated that the agricultural industry employs 42% of the national labor force, while manufacturing employs 23% and services employ another 35%. Meanwhile, the agriculture industry utilizes 35% of the national territory, while another 2% is forested.

In terms of natural resources, Pakistan has arable land, natural gas reserves, petroleum, coal, iron ore, copper, salt, and limestone. Within manufacturing, the national industry is focused on textiles, apparel, food processing, pharmaceuticals, surgical instruments, construction materials, paper products, fertilizer, and shrimp. Simultaneously, the country’s agricultural industry has as main products cotton, wheat, rice, sugarcane, fruits, vegetables, milk, beef, mutton, and eggs. During 2015, Pakistan imported US$45.5 billion worth of goods and exported US$26.2 billion, resulting in a trade deficit of US$19.3 billion. Furthermore, that same year, Pakistan’s main export, representing 11% or almost US$3 billion of the country’s total, were house linens. Similarly, the country’s main import, representing 12% or US$5.5 billion of all international purchases, was refined petroleum. In terms of trade, Pakistan’s main trade partners are the United States, China, the United Arab Emirates (UAE), Saudi Arabia, Afghanistan, and the European Union.

Lastly, land distribution in Pakistan has also evolved throughout the last half century. Back in 1961, permanent pastures and meadows in the country covered 5 million hectares, while arable land represented some 30.6 million hectares and permanent crops accounted for 150.000 hectares. More recently, by 2014, permanent pastures and meadows still accounted for 5 million hectares, while arable land represented little over 30 million hectares and permanent crops covered 812.000 hectares.

(Read more about Agriculture and Land Use in the Persian Gulf)