Role of Public Institutions to facilitate Agricultural

www.theinternationaljournal.org > RJEBS: Volume: 04, Number: 05, March-‐2015 Page 55

Role of Public Institutions to facilitate Agricultural productivity growth in

Pakistan

Muhammad Arshad Lecturer, Lahore Business School, University of Lahore, Lahore.

Pakistan &

Atif Mahmood HOD, Lahore Business School, University of Lahore, Lahore, Pakistan

& Omer Farooq

Assistant Professor, Lahore Business School, University of Lahore, Lahore, Pakistan Abstract What is the role of public institutions to facilitate agricultural growth in Pakistan; is the prime objective of the research. Agriculture sector of Pakistan is most important sector in the economy of Pakistan because huge population of Pakistan engages in agricultural activities. We got different finding during the research related to the role of the public institutions to facilitate agricultural productivity growth in Pakistan. The net result of our findings is that public institutions have no significant role in the development of agricultural growth. The agricultural growth is the short term solution for the economic development of Pakistan. The promotion of efficient and sustainable agricultural growth is a necessary condition for rural growth, employment generation, poverty reduction and social reforms in every society. Agricultural productivity growth can be achieve through good governance, proper management, mobilization, R & D, subsidizing, information technology, easy loan facility with proper check and balance, and most important through training and education. Introduction

Agriculture has been practicing in Pakistan since Neolithic times. Indus Civilization was purely based on agriculture. The agriculture always plays an important role in the development of every society. The promotion of efficient and sustainable agricultural growth is a necessary condition for rural growth, employment generation, poverty reduction, economic stability and social reforms in every society Agriculture continues to be the largest contributor to GNP, its relative share although has dropped in Pakistan. It decreased from 52 percent in 1950-51 to 25.1 percent in 1999-2000 and then to 22.5 percent in 2003-2004 and now in 2010-11 it is 22 percent. Agriculture is absorbing 45 percent of the country’s total labor force. Nearly 62 percent of the population of the Pakistan is still living in rural areas and they have direct or indirect link with agriculture for their livelihood. In between the 62 percent of the rural population more than two thirds of them are poor (World Bank, 2002). So, employment generation is the key issue for the people of rural area because employment growth and poverty reduction are two sides of the same coin (USAID, 2009). The earlier empirical studies suggest that agricultural growth had a large impact on poverty reduction and industrial growth had very little (Ahluwalia 1978, Mellor and Desai 1985, Timmer 1997, Ravaillon and Datt 2002). Agricultural growth was at the pick in 1960s at 5.1 percent growth during Ayub Khan Regime. So, in 1960s, agriculture in Pakistan grew rapidly and poverty also declined rapidly and it was due to the governmental positive role in the facilitation of this sector. Agricultural growth was lowest in 1970s at 2.4 percent during the period of Zulfikar Ali Bhutto. This was mostly because of the separation of the country in two different parts in the early 70s and also internal political condition of the country in mid 70s diverted the attention of the government towards other survival issues. Its mean agriculture grew slowly and data says that poverty also reduced slowly in 1970s. The highest growth with 5.4 percent was recorded in 1980s and because of this once again agriculture grew rapidly and poverty declined from 49 percent to 36 percent of the population. But again agricultural growth was at the lower end in


1990s as growth was at 4.4 percent. The agricultural growth was 3.2 percent in 2000s and again in 2000s both agricultural growth and poverty reduction were at wrong end (World Bank, 2007).The agricultural growth was 2.0 percent in 2009-2010 and the picture is not much different in 2011 also. So, our core objective is to find out the ways that will enhance the agricultural growth in Pakistan and find out the role of the government in this regard. A common assumption in Pakistan is that the labor force grows at about two million per year. The empirical data suggest that with the 5 percent agricultural growth rate (and 8 percent in the urban sector) jobs creation is about 50 percent larger than labor force growth (Mellor 1992). That extra job creation allows underemployed labor to be absorbed or real wages to rise – In practice it is a combination of both (USAID 2009). This growth will decrease the poverty rapidly but if Pakistan’s agriculture grow at the speed of 3 percent then this growth approximately match the labor force growth rate and hence no decline in poverty (USAID 2009). The role of public institutions is very important in this regard. The main purpose of this article is to find out the gap between the paper work (mostly done at the governmental level) and their implementation at the farmers or grass root level. This research is based on four districts of Pakistan. This research paper is divided into six chapters. We discussed introduction here, history and methodology will be discussed in their respective chapters. Chapter 4 presents analyses of the field work. Recommendations are presented in Chapter 5 and Conclusions are presented in Chapter 6. References will be available at the end of paper. History

The area which belongs to Pakistan has always been very rich as far as agricultural activities are concern. Rice, cotton and some other important crops have been growing in sub-continent since antiquity. They were grown as early as 3000 BC in the ancient river valley civilization of Mohenjo Daro. This highly advanced urban civilization of Mohenjo Daro and other centres of Indus civilization presuppose the creation and appropriation of a large agricultural surplus product in the hinterland which had settled agriculture for at least 2,000 years prior to the maturation of the Harrapan culture. As said earlier those societies were dominated by the urban societies but after the decline of those urban based societies, most of the societies were flourished on tribes’ bases. It was the period when whole sub-continent was ruled by different rulers. These rulers were mostly belonging to certain tribe. These rulers or tribes were collected revenue or taxes from the people. History also tells the stories that People of sub-continent were never be so poor because of agriculture. Megas Thinases (who wrote about alexander mission of sub- continent) writes that Sub continent had never been hit by any famine and shortage of eatable things had never been observed. During that period people mostly grow two crops, one in each season. Agriculture was also the major profession in the period of Muhammad bin Qasim regime on sub-continent in early 700s. As Muhammad Bin Qasim ordered the collection of Khiraj (tribute / land tax) from cultivators and other citizens and jaziya (a kind of penalty) from those who did not convert to Islam(Ibid, pp293 and pp297).

During the Mughal empire periods, agricultural activities were main activity of the majority of

people of sub-continent. There is comprehensive material available for land revenue system of Mughals. During Akbar’s reign a uniform Dastur-i-Amal, based on average crop rates and average price schedules, had been developed and revenue was assessed in cash (before that, this was done by the share in each crop). This Dastur was applied to area under cultivation, Jama, or assessment figures were obtained, and the process was called jamabandi. Remissions were allowed for crop failures (Habib, Irfan,”The agrarian system of Mughal India: 1556-1707”, p201-211). This system was also called zabt system. In the zabt system, lands were divided into two parts probably, first were “green” (flood irrigated) lands, and second were “white” (artificially irrigated) lands. Batai was the norm (Mazhar, op cit, p144). In the Batai method, the government’s share was assessed variedly at 1/2, 1/3, 1/4, 2/5, and 4/9 of the produce (Ibid, p146). The green lands were irrigated by the flooded water of the rivers, while on the other hand, white lands which were artificially irrigated and these artificial methods were left irrigation (which include dhenki or shaduf, The Charsa and the Persian Wheel), Karez (which were presented or practiced mostly in Baluchistan and up till now this is useful in some areas of Baluchistan), Canals (the first perennial canal in the Pakistan region was dug as early as


1639. The credit of that dug goes to Ali Mardan Khan. The canal took off the water from River Ravi to supply water to the Shalimar Garden, but was also irrigated fields. This was only canal dug by the Muslims rulers. After this, the upper Bari Doab canal with its head works at Madhopur (now in India) was laid out in 1859. Soon after a series of canals were laid).

The agricultural revolution was took place in Britain in mid 1700s. But the booming period was the 1800s. In the sub-continent, the British government began investing in diversion works and canals in the Indus plains regions following the annexation of the Punjab in 1842 (Lieberman Samuel, 1982). The British government was adopted the policy of colonization of newly irrigated areas in 1890s with the objectives of relieving congestion in the settled agricultural districts north of Lahore and of developing new sources of revenue, surplus, foodstuff, and exportable crops(Valuable treatments of the objectives of agricultural resettlement in the Indus region appear in M.L. Darling, The Punjab Peasant in Prosperity and Debt (London: oxford University press, 1947); S. Hirshima, The structure of Disparity in Developing Agriculture(Tokyo: institute of Developing Economics, 1978); and P.W. Paustian, Canal irrigation in the Punjab (New York: Columbia University press, 1930) ).The three major settlement schemes, the Lyallpur colony began in 1892, The Shahpur colony started in 1902, and The Montgomery colony began in 1913, and a number of smaller schemes were established in the same period together covered approximately six million acres of irrigated land. Further four millions acres were irrigated in the settlement areas that began to be colonized in the 1930s (C. Parbha, 1969). The canal colony districts quickly emerged as areas of improved yields and expending production of wheat, cotton, and other crops; which were exported overseas and to food deficit areas within the British India (Lieberman S. Samuel, 1982).

Agricultural growth was the priority for the British colonial government because they wanted

raw materials for their factories which were mostly located in England and they also wanted to fulfill the food requirements of the soldiers during the First and Second World Wars. The period of rapid agricultural growth and buoyant expectations in the canal colony districts proved short lived (M. Mukherjee, “Some aspects of agrarian structure of Punjab 1925-47 (1980)”). The depression years of the 1930s brought falling revenues and with inputs and tax assessments proving relatively inflexible, a general decline in the standard of living both in canal colony and long settled areas of the sub-continent and also their concern over agricultural yields, which remained far below for the potential of irrigated farming because of a continued reliance on traditional techniques and cultural practices (Lieberman S. Samuel, 1982).

Before and after independence in 1947, of all the provinces of Pakistan (mostly Sindh, Baluchistan, and South Punjab) had the most lopsided distribution of landownership, a most insecure tenurial status for the peasants and extremely oppressive landlord – tenant relationship. Soon after the independence, the land reforms were started in 1949. Following were the recommendations of those reforms. (1) Jagirdari (Landlord) system will be suspended and lands will be distributed between tenants and these reforms were also recommends, the lowering and the ceiling on landownership per individual at 150 acres of canal irrigated and 450 acres of Barani land. (2) No person will get more than 1.5 million rupees of his/ her holding. Due to the pressure of jagirdars, these reforms were not implemented.

Developing World has been practicing Five Year Plans from 1950s and 1096s and these Five

Year Plans have been showing intension and future planning of the governments. Pakistan First Five Year Plan was developed in 1955 and before that plan government of Pakistan had completed following agricultural based plans. (1) Central Cotton Committee was established in 1948, which had the motto of improvement in cotton production and cotton products. (2) Council for food and agriculture was established in 1949. (3) Agricultural seller department was established by government. (4) Agricultural Development Revenue Corporation was established in 1952. (5) Village Aid department was established in 1953. As said earlier that the First Five Year Plan was implemented in 1955 and in that plan government planned to increase the food production at 9% but it was just 4%. It was the period when agriculture dominated the economy, providing nearly 60 % of the national


economy and the livelihood of nearly 90 percent of the population. But the role of the agriculture was declined with the rise in the importance of mining and manufacturing, which during the period under review almost doubled their share in aggregate national income whereas the share of agriculture was declined from 60 percent in 1950 to 1956 and in 1957(Monthly Bulletin of Statistics, United Nation, January, 1959). During the First Five Year Plan, the government did some of these incentives or initiatives for agricultural development. (1) Through discovery or import new varieties of seeds were delivered to the farmers. (2) Different types of incentives were provided for increasing the usage of fertilizers and modern instruments for cultivation. (3) Different types of veterinary hospitals and sub units were developed. (4) Agricultural Bank was established in 1957. (5) Tractors import was started for increasing machinery cultivation. (6) The program of village development was extended to 176 developmental areas. In October 1958, the chief of the Pakistan Army; General Ayub Khan took over the reins of power. His rule, which lasted ten years were characterized by high rates of economic growth – particularly in the manufacturing and service sectors. To spur growth in the agricultural sector, Ayub Khan introduced his land reforms in 1959 and launched the so-called Green Revolution in 1960s and the second Five Year Plan was also implemented during that period. The construction of large irrigated related works was started during that period especially in Dams. The policy of promoting capitalist development in agriculture – particularly through investments in farm machinery, irrigation pumps (tube wells), Chemical fertilizers, pesticides and new High Yield varieties (HYV) of seeds by farmers, supported by more readily available credit and agricultural extension work – has been continued by the succeeding regimes. After the merger of Agricultural Development Revenue Corporation and Agricultural Bank; Agricultural Development Bank was established in 1961. The period of 1960s was also the period of Green Revolution throughout the world especially in Pakistan, India, and Philippians, Sri Lanka etc. and most of the countries took initiatives and gradually they have been developing their agriculture into the most modern ways and in Pakistan, agricultural development was also took place during the Green Revolution period. In Second Five Year Plan, agricultural development was more than 3.4 percent annually. Third Five Year Plan (1965-70) was also implemented by the government of Ayub Khan. The speed of agricultural development during that period was 4.5% in each year. That was the period, when Pakistan was self-dependent on food. Following are some important incentives or initiatives by the government for agriculture in the Second Five Year Plan.(1) Through new varieties of wheat, rice and corn; the production had been increased.(2) Subsidies were available on chemical fertilizers.(3) Agricultural loans were readily available for farmers through the channel of agricultural Development bank. (4) Machine farm Committee was established in 1968. (5) The facilities were increased for agricultural education and agricultural research in both part of the country. (6) For the development of agricultural productivity; the research and discovery was continued. (7) Fact Finding Committee on Agricultural Taxation was also established in 1963. Due to the internal wrong conditions (Political and Military) of the country; Fourth Five Year Plan (1970-75) was totally failed.

The Government of Prime Minister Zulfikar Ali Bhutto (1971-77) introduced land reforms of

its own in 1972 and again in1977, lowering the ceiling on landownership per individual from 500 irrigated acres to initially 150 acres and then 100 acres. But these land reforms were not fully implemented like earlier reforms. National Taxation Reforms Commission was established in 1972. Zulfikar Ali Bhutto also started Agro Ville Development Programme, Integrated Rural Development Programme (IRDO), People’s Work Programme (PWP) and Agricultural Price Commission was established during 1970s by the Zulfikar Ali Bhutto government. This was decided in 1970s that Agricultural Price Support Policy will be used as incentives for agricultural sector. These policies were also continued in Fifth Five Year Plan (1978-83) and in Sixth Five Year Plan (1983-88) with some enhancement. Prime Minister Junego took over the charge on December 31, 1985 and Junego’s Government announced Four Year Plan (1986-1990) for the rural development. Benazir Bhutto’s government again started People Works Programme (PWP) and Social Action Programme (SAP) for rural development. Agro based industry was established mostly during the period of Nawaz Sharif through Social Action Programme. Import duty was reduced for agricultural based machinery.


Tameer-e-Watan programme was introduced by Nawaz Sharif for the rural development. Pervez Musharraf Regime was started in October 1999 and Musharraf government also took different initiatives for the development of agriculture especially in the field of water curses, Crop Maximization Program (CMP), agricultural loans and somehow in the field of research and development. Pakistan Peoples Party again took over the reins of power in 2008 and due to different issues especially law and order, energy and good governance consistently creating problem for agriculture. Flood related losses particularly in the cotton and rice crops (both crops account for more than 1/3rd of the total value addition by major crops) also the root cause of the failure in the agricultural development during regime of the Pakistan Peoples Party government. According to the State Bank of Pakistan’s annual report 2010-2011, the agriculture sector recorded a growth of 1.2 percent during the year and this growth exceeded the previous year level. Methodology

The main purpose of this research work is to find out role of the public institutions to facilities productivity growth in Pakistan. The data is collected from one period farmers based survey in Pakistan’s four agricultural districts in 2012. The field work for this paper was conducted in May –June 2012. The farmers were randomly selected from each district. For the purposes of research, we selected 499 people from four districts of Pakistan. Those districts were Kasur, Okara, Pakpattan and Sahiwal. First of all, we developed a questionnaire in Urdu (National Language) because most of the people belong to this profession are illiterate or they are not well educated (approximately 79% of the whole farmers population). We used two means for conducting the survey. These included direct interviews and telephone calls interviews to the concern farmers. For direct interviews, we visited different villages in all four districts and met with the concern farmers. We asked them to give the answer of the questions related to the role of the government in agriculture. The people gave us different answers and with the help of these answers, we fulfilled the questionnaire. We randomly selected 75 farmers from each district for direct interviews. After this we made a call to the farmers on their cell phone number (where we could not be able to reached due to time constrain). We get their cell phone numbers from one private pesticide firm. We randomly selected approximately 50 people from each district for telephone interview. So, we interviewed 499 farmers from four districts of the Pakistan and after this we put whole the collected data in SPSS software for analyses. Our findings related to the agriculture will be discussed in the next analyses section. We also consulted with different governmental officials although they are not included in our prime objective of the research. We met with managers of different banks (especially Zarari Tarqiyati Bank and The bank of Punjab) and get their views regarding the role of the government in agriculture particularly related agricultural loan. We met with the tehsils and local officers of Food and Agriculture department and put the questions in front of them related to the agriculture. They provided much needed information to us in this regard. We met with Irrigation department officers at district and local level specifically for irrigation’s issues. We also met with different officers of private pesticides firms and get their views regarding the role of the government in agriculture. We categorize our questionnaire into different questions and each question have specific objective attached with it. The objective of each question is to check the role of different institutions of the government. These questions are related to different institutions and farmers gave their response respectively. We divided our research work in three subsections and these are (1) Agricultural assistance section; (2) Irrigation Section; (3) Agricultural Loan section. We constructed questions keeping in view of these sections. These sections involve major governmental institutions related to the agriculture. Analyses The agricultural growth in Pakistan has been well below potential over the past several years despite an unusually favorable set of physical resources, including vast irrigated land areas. Because of these consequences, rural incomes are growing not so much and because of little growth poverty reduction has virtually halted. The sections discussed in this paper concentrate on key agricultural subsector that comprises the bulk of the overall agricultural economy.


The agricultural GDP growth rate in Pakistan was only 1.5 percent in 2007, significantly lower than the population growth rate (Pakistan National Income Statistics 2008). The 1989-90 to 2004-05 average growth rates was 2.3 percent (Pakistan National Income Statistics 2007). The picture is also very alarming when we see the data after 2007. But on the other end, agricultural GDP growth rates in fast-growth-middle-income countries average 4 to 6 percent (Mellor 1992). Pakistan has unusually favorable climate and irrigation assets, which compare favorably with those found in the best endowed areas in India. However, current yields in Pakistan are well below yields achieved in those areas (World Bank 2007). Different researchers proposed 5 percent agricultural growth rate target for Pakistan and this target seems a reasonable target by international comparisons as well as from the viewpoint of Pakistan’s own resource base and demand structure (USAID 2009). Our research work has also the objective to find out the gap between policies and implementation at the farmers level. Now we are going to explore the filled questionnaires for analyzing the role of the public institutions for agricultural growth. First of all, let’s spend some time on the education background of the participant. Table1 is helpful in this regard.

The above figures tell us the story about the education level of the participant farmers. That most of the participant’s farmers were up to the matric, about 70%. Total number of participant farmers up to the matric was 350. Intermediate, Graduation and Masters level participant farmers were 85, 56 and 8 respectively. The percentage of Intermediate, Graduation and Masters’ participants are 17, 11 and 2 percent respectively. These figures show the basic problem of ill-literate farmers in Pakistan. These farmers are not fully aware of the advancement in the field of agriculture. They mostly use traditional method of cultivation. But educated farmers are well aware of the modern methods of cultivation. They have information regarding new varieties of seeds. They have information regarding fertilizers and weather. On the other hand, this story is almost totally opposite as far as ill-literate farmers are concern. Now we are going to draw another table with the name of Table 2. Table 2 has the information regarding the participant’s perception about the role of education in the agriculture sector. So, this table has the following information in it:

Through above table, we get interesting figures. Our 44 percent participants think that education has its role in the agricultural development but on the other hand 54 percent participants think that education does not have its role in the agricultural development. Only 2 percent participants think that the education has a role but at a limited sense in the agricultural development. Those participants who think that education has its role in agricultural development are mostly educated people, whether they are matric or above. But interestingly, those participants who think that education does not have its role in agricultural development are mostly uneducated people. These uneducated people do not have much needed knowledge regarding agriculture and they mostly fallow the traditional ways of agriculture. Agricultural sector needs educated people for its growth. Government

Table 1: Education Frequency Percent Up to Matric 350 70 Intermediate 85 17 Graduation 56 11 Masters 8 2 Total 499 100

Table 2: Role of Education in Agriculture Frequency Percent Yes 222 44 No 271 54 Little 6 2 Total 499 100


and people must work on educating the people or children and without education agricultural growth cannot be possible. We also considered land holding as an important tool because majority of the farmers in Pakistan are small holders and uneducated. In Pakistan, 80 percent farmers have just 28 percent of land while on the other hand 0.23 percent of farmers have land holding equivalent to 67 percent of poor farmers (Federal Bureau of Statistics, 2010). So, we also tried to conduct interviews with their percentage share as per person. Our participants have following types of land holding.

Our 79 percent participants have land holding up to 12 acres. Our 12 percent participants have land holding up to 25 acres of land, 5 percent participants have land holding up to 50 acres of land and 4 percent participants have land holding more than 50 acres of land. Agricultural Assistance Section:

Now we are moving towards the first section of our research work, we say it as agricultural assistance section. Agricultural assistance section includes assistance of the governmental institutions for agricultural productivity growth, which starts from sowing and ends at providing information related to price of the product. We asked very simple question of assistant field officers’ name. We put the question in front of farmers, that do they know the name of the assistant field officers name? Assistant field officer is an officer at each union council level. Next graph give us the finding related to this question.

The 14 percent participants replied that they know the name of the assistant field officer name. Our 86 percent participants replied that they do not know the name of the assistant field officer. The core job description of the assistant field officer is to meet with the farmers and guide them regarding their agricultural problems. The participant farmers even did not know that assistant field officers are appointed by the government in their respective union councils. As we said earlier that, our most of the farmers are ill-literate and have less information regarding their cultivation. Pakistani farmers have

Table 3: Land Holding of the participant Farmers Frequency Percent Up to 12 acres 393 79 Up to 25 acres 61 12 Up to 50 acres 23 5 More than 50 acres 22 4 Total 499 100


mostly small holding with small resources for agriculture. They have no information regarding new advancement in the field of agriculture and even they have no information of the market trend. Pakistani farmers are not diversifying their land holding into different crops because they have no information about different cash crops except major crops of the Pakistan. The knowledge of the cultivation of the major crops is inherently planted in the farmers. As far as this section of the public institutions is concern, their intention towards agricultural growth is very alarming. The finding of this section added negative effect on the perception about the public institutions specifically related to agriculture. Now we are moving towards, that what type of assistances they provide to the farmers. We are going to illustrate this thing through table. Only 14 percent participants get help from assistant field officers and following table tells us help type from these officers.

These are two fields, where participant farmers said they get help from assistant field officers of their respective union council. Government should adopt a good governance based policies for mobilizing this department. The effectiveness in this department/section can change the whole picture or scenario for agricultural growth of Pakistan. Assistant field officers must assist the farmers regarding seeds, fertilizers and pesticides. Private firms are performing their duties effectively. But government institutions are not as effective as par the requirements. Resistance against change is a major issue for every organization and good or strong organizations are those organizations, which have less or minimum resistance against change. The less or minimum resistance against change is only possible when people within the organization are adoptive people. They (organizations) have the environment of learning and they have the ability to change itself according to the present change or need. This learning is possible when organizations think and proactive about the concern world. This theory is applicable everywhere and every discipline of life. The same is true with the agriculture. Those farmers or institutions are adoptive; they get well and consistent progress. But in Pakistan, the story is different from others. Pakistani institutions related to the agriculture are claiming that they are adoptive. Public institutions are using modern ways of communication (at some extent) for communicating farmers. They are using Television Channels, Radios etc. for communicating farmers about different issues. We asked a simple question to the farmers, do they listen carefully the marketing or important news specifically related to the agriculture from ministry of food and agriculture telecast/broadcast on important television or radio channels. Following results were obtained from field survey.

Table 4: Assistant Field Officer's Help Type Frequency Percent Sow 62 91 Watering 6 9 Total 68 100


Our 26 percent participant farmers said that they listen carefully the important news and information related to the agriculture. While on the other hand, 74 participant farmers said that they do not listen carefully the important news and information on the television and radios channel. Fertility of the land is important issue for cultivation. But Pakistani public institutions are not giving attention towards this. We put the question in front of the farmers that: Have any public institution ever check the fertility of their land? Following results were obtained from this survey. Table 5: The fertility of land check by any public institution Frequency Percent Yes 10 2 No 489 98 Total 499 100 Our 2 percent participant farmers said that their fertility of the land was checked by the government institution. But 98 percent participant farmers answered this question negatively. This is important issue as far as agricultural productivity is concern; government of Pakistan must give due attention towards that issue. The price support policy has been implementing in Pakistan since 1970s. We put the question in front of the farmers about the government role for delivering market price information to the farmers and farmers gave us this type of response. Table 6: Market Price information for farmers Frequency Percent Yes 16 3 No 483 97 Total 499 100 Our only 3 percent participant farmers said that market information regarding prices of the different crops was provided to them by public institutions. While on the other hand 97 percent participant farmers said in opposite way. The concern public intuitions must work effectively for enhancing the agricultural growth in Pakistan. Irrigation Section: Agricultural development is largely dependent on irrigation especially in Pakistan. More than 80 percent of the total cropped area is under irrigation. Water is scarce; irrigation has become a necessity in Pakistan. In Pakistan, both groundwater and surface water is used for irrigation. Wells, Tube wells and Karez tap the groundwater. Canals, diversion canals and sailaba (irrigation through flood water) are used to re-channel the surface water flowing into streams. Canals alone account for


about 81 percent of irrigation, followed by tube wells at 17 percent. Only 2 percent of the irrigated area is watered through wells, karez, diversion canals, sailaba etc. In our questionnaire, we also have questions related to the irrigation, because irrigation is also one of the important sources for cultivation in every time and also everywhere. Irrigation department is the concern public institution for irrigation. We put different questions in front of the farmers and they gave us following types of responses. In our first question, we asked the farmers about their water sources for irrigation. They gave us following type of responses.

Our 12 percent participant farmers said that, they have only canal water source for irrigation. Our 36 percent participant farmers said that, they have only tube well source for irrigation. The areas under study (Kasur, Okara, Pakpattan, and Sahiwal) were very rich in underground useable water. This is the main reason behind good number of tube well in these areas. Our 52 percent participant farmers said that they have both sources canal and tube well for irrigation. Water sources are scarce especially in Pakistan due to several reasons and we are not going to discuss all those reasons. But we asked a question to farmers, that water sources you have are sufficient for yours requirements. Their answers against this question are available in tabulation form below Table 7: Water Sources According to Requirements Frequency Percent Yes 15 3 No 356 71 Few 113 23 Very Few 15 3 Total 499 100 Our 3 percent participant farmers said that they have water sources sufficient for their usage of irrigation. Our 71 percent participant farmers said that they do not have sufficient water sources for their usage of irrigation. Our 23 percent participant farmers said that their water sources are limited against of usage of irrigation. Our 3 percent participant farmers said that they have very limited sources for irrigation. Agricultural Loan Section: Agricultural Bank firstly was established in 1957 by the government of Pakistan. The basic objective of that bank was to facilitate the farmers through agricultural loans. After the merger of agricultural development corporation and Agricultural Bank; Agricultural Development Bank was established in 1961. This was the starting point of the agricultural loan facilities’ journey. From that period, the agricultural loans have been readily available for farmers since 1960s. Agricultural Development Bank (now Zarari Taraqiyati Bank Limited (ZTBL)) and other commercial banks are frequently giving loans to the farmers of Pakistan. This section will be helpful in finding the role of the


agricultural loan in the development of agriculture. We found different type of finding during our field research related to the agricultural loans. We saw most of the people satisfied from the loan facility of the government and they have been enjoying this facility since 1960s. Before moving forward, look at the below graph.

Our 22 percent participant farmers said that they have taken the agricultural loans from the bank; while on the other hand, we have 78 percent farmers, who said that they never used the facilities available for them. Agricultural Loans have different types. Farmers can get loan according to their requirements. We asked the farmers to highlight the loan purposes in the dependent question of earlier. The farmers replied accordingly with their purposes.

Our 83 percent participant farmers got the loan on seed & fertilizer which is called seasonal loan from banks. Our 13 percent participant farmers got the loan for tractor and our 4 percent participant farmers got the loan for tube well. Often people get the loans from bank for agricultural purposes but people do not used it for those purposes. They have other social and economic problems associated with them. They often used loan on those other than agricultural purposes. We put a question in front of our participant farmers regarding this and their reply is available in the next table.

Our 20 percent participant farmers said that agricultural loans have their usage in the agriculture. While on the other hand, 80 farmers said that agricultural loan has no usage specifically on agriculture. They said that farmers mostly use it other than agriculture means. In the end of the

Table 8: Loan Purposes for Those of Got the Loan Frequency Percent Seed& Fertilizer 93 83 Tractor 14 13 Tube well 5 4 Total 112 100

Table 9: Agricultural Loan Usage Frequency Percent Yes 101 20 No 398 80 Total 499 100


questionnaire, we asked a question; does the government have any role in the agricultural overall development? Participant farmers replied in this way.

Our 20 percent participant farmers said that government has a role in agricultural development. While 80 percent participant farmers said that government has no role in the development of agriculture growth in Pakistan. Then we asked, in which section you think government has a role. Farmers replied like that.

Our 14 percent participant farmers said that seed and fertilizer is a thing where government has a role. Our 68 percent participant farmers said that agricultural loan is a thing where government has a role and 18 percent farmers said that government has a role in irrigation. RECOMMENDATIONS In Pakistan most of the people live in rural areas and they have direct or indirect link with the agriculture sector. Those people who live in the villages mostly are poor. The agricultural productivity growths can up lift not only the people of the rural areas but also up lift the people of the urban areas. One of the accepted poverty alleviation method is that; no country has been able to sustain a rapid transition out of poverty without raising productivity in its agriculture sector (Timmer (2005)). Although Pakistan is an agricultural country but Pakistan is facing different types of problems related to agricultural productivity growth. We analyzed the role of the government in the agricultural productivity growth through field survey from farmers. We analyzed that role of the government is very negative and alarming. Pakistan needs a consistent policies implementation and this thing is only possible with good governance. After analyzing and assessing the role of government in agricultural productivity growth, we recommend these types of recommendations.

1. Effectively mobilize the assistant field officers in union council and other agriculture officers in tehsil and district level. Managerial issues should be discussed under the heading of ministry of food and agriculture. The competent and experience person must be the head of the department. Without the mobilization of this section of the agriculture; Pakistan will not be effective as far agricultural productivity is concern.

Table 10: Participant Farmers Thinking About Section which has role in the development of agriculture Frequency Percent Seed& Fertilizer 14 14 Agricultural Loan 68 68 Irrigation 18 18 Total 100 100


2. This department must do proper work on the training of the farmers; previously these trainings are just at the paper and physically these trainings are almost absent.

3. Government should be proactive in every crisis especially in floods and uncertain weather conditions rather than act when the crisis already happened.

4. Government should create synergy between the agriculture related departments. 5. Government should work on the improvement in the education level of Pakistan; although now

the situation is different and people have a desire to educate their children but the speed is not up to the mark. The education improvement is important because our 54 % participant think that education has no role in agriculture and they are ill-literate people, which is really very alarming. Breaking up of the traditional system can not be possible with out the modern education especially related to the agriculture.

6. Before Green revolution of 1960s and 1970s, agricultural scenario to pose several challenges for agricultural productivity in developing countries and same was the condition with Pakistan. It is high time that agricultural Research and Development (R & D) plans prioritize in planning but in the case of Pakistan, this story is very different because Pakistan is a country which is at lower stage in a region as far as investment in R & D is concern. R & D is only the way that can be supplement of the traditional techniques with new techniques such as biotechnology.

7. Government first is to invest in agricultural productivity from a longer term, resource based, farmer centered perspective. Pakistan has been facing these problems since the creation in 1947.

8. Government must invest in building up farm communities and also build, rebuild rural institutions especially related to health, education, and welfare.

9. Public institutions must focus on the intensification of agriculture because agricultural productivity growth will not increase without intensification.

10. Government must adopt the policies for subsidizing agricultural input things. 11. Agricultural loan facility is easily and readily available for farmers of Pakistan, but without

proper check and balance of its usage. So, government must give attention on proper usage of the agricultural loan.

12. Price Support Policy should be physically implemented. 13. Government takes initiative to appoint young people in agriculture department with higher

salaries like National Highway and Motorway Police. This thing will reduce the laziness and corruption in this department.

14. Pluralistic advisory services (involving both public and private institutions) have been recommended but these types of services must be headed by public institutions.

15. Insurance of the agricultural crops are also essential because this thing is very helpful in eliminating the future risk factor.

16. Government must take initiatives for using information technology in agriculture like e-Choupal in India, T2M (http://t2m.manobi.sn/) in Senegal, Project Title Esoko (formerly Tradenet) (http://www.esoko.com) in Benin; Burkina Faso; Ghana; Madagascar; Mali; Mozam bique; Nigeria; Tanzania; Uganda; Cameroon; Afghanistan, Agricultural Marketing Systems Development Programme (AMSDP) in Tanzania, ICT for Shea Butter Producers (http://www.licd.irg/prohects/mali-shea-butter-and-ict) in Mali.

17. Government should give incentives for productive farming system that use soil, water, and energy-based inputs less intensively and knowledge, labor and managerial skills more intensively because Pakistan has a problem of water and energy scarcity and this is also reflected in our survey where more then 71% participants said that they have less water sources according to the requirements. While on the second hand, energy crises affecting almost every sector of Pakistan economy including agricultural.

18. Government must work for strengthening of public institutions to develop an appropriate blend of policies, regulatory frameworks, and investments in agricultural sector and reduce the risk of access to resources.

19. Government must work on the rehabilitation of the canal system of irrigation in Pakistan.


CONCLUSION We can conclude that promoting efficient and sustainable agricultural growth is a necessary condition for rural growth, poverty reduction and social stability in Pakistan. The agriculture is the short term solution of the economic problems of Pakistan. Pakistan has huge fertile land, all type of weather and good irrigation resources. But Pakistan is not good as far as agricultural production is concern. The main purpose of this paper is to find out the role of public institutions to facilitate the agricultural productivity growth in Pakistan. We found that the role of public institutions in agricultural productivity growth is very alarming and it is at negative end. Most of the public institutions are not working properly although they have huge structure and system. This paper outlined that much of the failure of agriculture to reach its productivity growth in Pakistan is institutional. Pakistan needs highly structural, well integrated and motivated interventions at the governmental level. Governmental level interventions must have been designed to uplift the agriculture of Pakistan. Pakistan is a low income developing country and agriculture is its most important sector due to different reasons. Agriculture is important because we want to feed the nation but Pakistan has the total cultivated area has increased by just 40 % during the past 60 years, while on the other hand population increased by 4 times higher. Research and development is important for future feeding and other requirements. Pakistan has climate, land, water and potential for agriculture productivity growth but Pakistan only need one thing, which is effective intervention at the governmental level, which is lacking in the agriculture of Pakistan. We also give our recommendations above in the recommendation section. REFERENCES Ahmed, F. (1984). Agrarian Change and Class Formation in Sindh. Economic and Political Weekly,

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Role of Public Institutions to facilitate Agricultural