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An Empirical Assessment of the Dynamics of Agricultural Growth in Pakistan

An Empirical Assessment of the Dynamics of Agricultural Growth in Pakistan

Umar Hayat1*, Tariq Shah1, Muhammad Suleman Bacha2 and Muhammad

1Department of Economics and Development Studies, University of Swat, Khyber Pakhtunkhwa, Pakistan; 2Department of Environmental Sciences, University of Peshawar, Khyber Pakhtunkhwa, Pakistan; 3Department of Urban and Regional Planning, University of Peshawar, Khyber Pakhtunkhwa, Pakistan.  


Agriculture is one of the major sectors of the economy of Pakistan. It contributes 42.3 percent of the labour force and 18.9 percent to GDP of the country. Since its inception, Pakistan’s economy is planning to achieve agricultural-led growth to promote economic stability in the country. The present study is an attempt to examine and analyse the nexus of various sub-sectors of agriculture and their contribution to agricultural growth in the country. Data on key variables such as agricultural growth, institutional credit, agro-based industries, Livestock and mechanised inputs are taken from State Bank of Pakistan, World Development Indicators Databases and various issues of Economic Survey of Pakistan for the period 1980-2018. Ordinary least square technique is used to estimate the model. The result shows that Institutional credit is playing a significant role in achieving agricultural growth in the country. The other variables of the model like agro-based industries, livestock, mechanised inputs and agricultural exports have shown a positive impact on agricultural growth and ultimately on the overall GDP growth of the economy. The government needs to allocate more funds for institutional credit, encourage agro-based industries, use of updated technology in the agriculture sector, provide advanced techniques to livestock-related farmers and to promote agricultural exports for foreign exchange earnings to achieve the ultimate goal of agricultural growth in Pakistan.


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Sarhad Journal of Agriculture


Vol. 35, Iss. 4, Pages 1020-1356


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