Pakistan is an agricultural country where 60 to 70 per cent of the people are associated with the agriculture sector and according to the official statistics in the last two years the agri-produce contributed 30 per cent of the gross domestic product and now this has reduced to 22 per cent. Whereas, in the 70s the contribution of the agriculture sector used to be more than 50 per cent. In spite of having an agri-based economy Pakistan for the last one-decade Pakistan is forced to import food items. According to a World Bank report Pakistan Infrastructure Implementation Capacity Assessment, Pakistan is including in those countries of the world where there is a dearth of water resources. There was never a more serious dearth of water resource than it is today. The changing weather is another threat to the agriculture sector. There is a serious need of improving the system of water distribution and brining more and more investment in the sector. The report underlines measures to better develop the water system in the country.
It highlights: that proper fields leveling techniques be employed to improve the agri-produce; water losses be reduced from 40 per cent to 30 per cent that goes waste between the mouths of the canals and the farm gates; use of drip water irrigation system and preparing high yield seeds that are valuable during drought.
According to the World Bank report Pakistan suffers from a dearth of infrastructure in the water, irrigation, power, andtransport sectors; infrastructure which is essential for sustained growth and competitiveness both in the local and international markets. The gaps between demand and supply in these sectors are alarming. Unless plans are put in place urgently, these critical shortages will continue to undermine the efforts to improve socio-economic indicators and to reduce poverty. Without adequate irrigation resources, power, and transport infrastructure, the very sustainability of Pakistan as an independent nation may be at stake as shortages could lead to increased social discontent and disharmony amongst the federation and the provinces. Pakistan is on the list of the most water stressed countries in the world, and forecasts indicate that available resources are depleting rapidly, possibly leading to a state of water scarcity in the next two decades. Much of the water infrastructure is in poor repair and Pakistan has to invest almost Rs60 billion (US$1 billion) per year in new large dams and related infrastructure over the next five years. In the energy sector, Pakistan will face severe power shortages of approximately 6,000 megawatts by the year 2010 (equivalent to about three Tarbela dams) and 30,700 megawatts by the year 2020. The per capita energy consumption in Pakistan is amongst the lowest in the world and a lack of adequate energy resources precludes industrial growth affecting all sectors of the economy. Similarly, the transport sector inefficiencies are costing the economy between 4-5 percent of GDP each year indicating the need for massive investment in roads, rail, air and ports.

Similarly with an increased investment on developing farm to market roads and on small factories the economy can be strengthened and the agri sector can be developed to give desired produce. In this regard the storage of dairy products by the dairy farmers is a relevant example. This has led to growth in the sector and the performance of the dairy sector has improved. There are strong indications of an increased investment in the dairy sector as well.
Most of the population of the country lives in the rural areas and they are engaged in the agriculture sector for their source of income. In spite of this we are facing numerous challenges. Last year too Pakistan had to import wheat whereas the government is considering importing 25 million tons of wheat this year. Same is the situation as regards rice.
But due to flawed policies and poor planning the price of rice has increased to an unprecedented level. In the past six months the price of Basmati and Arisex have increased by a 100 per cent.
According to experts our policy in this regard is not strong. In Pakistan water supply system is the biggest problem for the agriculture sector.
The livestock sector being an important part of the agriculture sector contributes 10.4 per cent of the GDP. Milk is the most important produce of the livestock sector. It forms 52 per cent of the sector’s produce. Pakistan imports milk and powdered milk products to the tune of 65.5 million dollars.