The Impact of Infrastructure on Pakistan's Agricultural Sector

Agriculture is the largest of the sectors contributing to economic activity in Pakistan it provides over 25 percent of the countrys Gross Domestic Product GOP, employs over 50 percent of the labor force, and sustains 75 percent of the population. The sector directly accounts for over 25 percent of total exports, with cotton textiles and other agro-based manufactured exports accounting for an additional 35 to 40 percent of total exports. In FY 198990 the sector accounted for over 15.3 percent of the public sector development plan including the fertilizer subsidy, 18.5 percent of private fixed investment, and 11 percent of total fixed investment. Because of its importance, Pakistans agricultural sector has been examined at length While not denying the significance of factors such as pricing policies, subsidized inputs, the Green Revolution, farm size distribution and yields, land reform efforts, and the impact of research and extension on crop yields, the purpose of this paper is to examine a relatively neglected area likely to be critical to the sectors long-run viability-infrastructural development In particular, it seeks to determine what role infrastructure has played in the sectors growth. Has infrastructure initiated growth, or passively responded in order to alleviate bottlenecks created by growth Have deficiencies in infrastructure been a major constraint on the sectors expansion If so, what areas of infrastructure appear most productive for expanding future agricultural output.