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Agriculture sector is a vital component of Pakistan’s economy as it provides the raw materials to down the line industries and helps in poverty alleviation. This sector contributed 19.8 percent in GDP and it remains by far the largest employer absorbing 42.3 percent of the country’s total labor force. The agriculture sector growth is contingent on favorable weather conditions. There is a strong relationship between agriculture and climate—temperature, precipitation, floods and other aspects of weather that finally affect economic performance including agriculture production, commodity prices and finally economic growth. The emerging challenges of national food security and climate change have shifted the policy focus globally towards the development of agriculture sector during past few years.

The Future Plans include Inter-Provincial Coordination for development of livestock sector, Coordination with private sector to promote value addition livestock industry and diversification of livestock products, Controlling Trans-boundary Animal Diseases (FMD, PPR, Zoonotic diseases) of trade and economic importance through provincial participation & exploring new markets for export of beef & mutton and poultry meat with focus Global Halal Food Trade Market.

Of the total 16.5 million hectares of cultivable land in Punjab, a vast 1.7 million hectares is still available for corporate farming. Likewise, as much as 30% (3.4 MT) of horticultural produce that goes to waste every year, can be converted into economic gain by investing agribusiness value chain industries

  • The agriculture mix of Pakistan is heavily based on important crops (wheat, rice, sugarcane maize and cotton) which account for 23.55 percent of the value added in overall agriculture and 4.67 percent of GDP
  • The other crops account for 11.36 percent of the value added in overall agriculture and 2.25 percent of GDP
  • Forestry contributes 2.06 percent to agricultural value addition and 0.41 percent to GDP.
  • Fishing contributes 2.17 percent to agricultural value addition and 0.43 percent to GDP.

The first Investment Policy by Board of Investment (BOI) was given in 1997 which opened services, social, infrastructure and agriculture sectors for foreign and local investors. It was a major step forward for integration of Pakistan’s economy into international markets as prior to this policy; foreign investment was restricted to manufacturing sector only. The 1997 Policy laid a solid foundation for the gains in FDI inflows experienced over the subsequent decade.

Foreign Direct Investment in Pakistan increased by 2761.10 USD Million in 2016. Foreign Direct Investment in Pakistan averaged 2651.26 USD Million from 2010 until 2016, reaching an all time high of 3184.30 USD Million in 2010 and a record low of 2099.10 USD Million in 2012.

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