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Geography, agriculture and the economy of Pakistan

Geography

Pakistan is situated in the western part of the Indian subcontinent. It is bounded by India to the east, Iran and Afghanistan to the west and China to the north. The country’s territory stretches from the Arabian Sea and the flat Indus River plains across the eastern desert and the Baluchistan Plateau to the mountain ranges of the north, home to some of the world's highest peaks. The climate is mainly hot and dry, varying from temperate in the northwest to arctic in the north. The population is about 159 million and it is growing at an average annual rate of 2.4 per cent (2006).

Agriculture

Agriculture is the backbone of the country's economy. It employs 43 per cent of the labour force and accounts for 60 per cent of export earnings. Cotton, wheat and rice are among the main export crops. About 28 per cent of the land is arable. Nearly 80 per cent of the cultivated area is irrigated, and agriculture is by far the largest user of water, consuming on average about 95 per cent of Pakistan’s water resources.

In recent decades investment in agriculture has contributed to the country’s average annual growth rate of 4 per cent. Yet the amount of productive farmland is declining. The continuing demand for more food crops has driven the expansion of dryland farming on fragile marginal lands. Growth in human and livestock populations has led to deforestation and heavy grazing of rangelands, putting pressure on natural resources and ecosystems. Pest attacks and and disease affect crop and livestock production.

Economy

Pakistan became an independent country in 1947 and has made significant progress in development. In the 1990s sustained economic growth was followed by a period of economic stagnation. In 2000 the Government of Pakistan initiated a vigorous reform programme, and the economy recovered as a result of sound macroeconomic policies and structural reforms.

In 2006 the gross domestic product (GDP) grew by over 7 per cent, but in 2008 the economy took a turn for the worse, as the perception of a looming global economic crisis spread. The rise in international food prices that began in 2008 has had a significant impact on the economy, and increases the risk of poverty.
 

Source: IFAD