Sector Wise Contribution of Agriculture to the Economic Growth of Pakistan

Abstract

The current study empirically examines the involvement of agriculture sector to the economic growth in Pakistan. For this purpose, the current study has used a time series data for the period 1976-2017. The results suggest that although, agriculture sector as a whole has no significant effect on economic growth of Pakistan. But the sub sector of agriculture that is major crops (Wheat, Rice, Sugarcane etc) has a significant positive effect on national income (economic growth) in Pakistan. The current study also suggests some policy recommendations that the cultivation of major crops should be treated on a priority basis. Sophisticated modes of farming should be introduced in major crops sector of agriculture. Since, this sub sector (major crops) has major contribution to the total agriculture output; hence the efficiency of this sub sector will enhance the efficiency of the aggregate agriculture sector and the economy as a whole.