Economy of Punjab, Pakistan
Encyclopedia
The economy of Punjab, Pakistan is one that is largely based on agriculture
and industry. Punjab is the largest province of Pakistan
in terms of population, and also has the largest economy in the country compared to other provinces and administrative units. Punjab's economy has quadrupled since 1972. Its share of Pakistan's GDP was 54.7% in 2000 and 59% as of 2010. It is especially dominant in the Service & Agriculture sectors of the Pakistan Economy. With its contribution ranging from 52.1% to 64.5% in the Service Sector and 56.1% to 61.5% in the Agriculture Sector. It is also major manpower contributor because it has largest pool of professionals and highly skilled (Technically trained) manpower in Pakistan. It is also dominant in the Manufacturing sector, though the dominance is not as huge, with historical contributions raging from a low of 44% to a high of 52.6%. In 2007, Punjab achieved a growth rate of 7.8% and during the period 2002-03 to 2007-08, its economy grew at a rate of between 7% to 8% per year. and during 2008-09 grew at 6% against the total GDP growth of Pakistan at 4%.
Despite lack of a coastline, Punjab is the most industrialized province of Pakistan; its manufacturing industries produce textiles, sports goods, Heavy machinery, electrical appliances, surgical instruments, Cement, Vehicles, Auto Parts, I.T, metals, Sugar mill plants, Cement Plants, Agriculture Machinery, bicycles and rickshaws, floor coverings, and processed foods. In 2003, the province manufactured 90% of the paper and paper boards, 71% of the fertilizers, 69% of the sugar and 40% of the cement of Pakistan.
Despite its a tropical wet and dry climate, extensive irrigation makes it a rich agricultural region. Its canal-irrigation system established by the British is the largest in the world. Wheat
and cotton
are the largest crops. Other crops include rice
, sugarcane
, millet
, corn
, oilseeds, pulses, vegetables, and fruits such as kinoo. Livestock
and poultry
production are also important. Despite past animosities, the rural masses in Punjab's farms continue to use the Hindu calendar for planting and harvesting.
Punjab contributes about 76% to annual food grain production in the country. Cotton and rice are important crops. They are the cash crops that contribute substantially to the national exchequer. Attaining self-sufficiency in agriculture has shifted the focus of the strategies towards small and medium farming, stress on barani areas, farms-to-market roads, electrification for tube-wells and control of water logging and salinity.
Punjab has also more than 68 thousand industrial units. The small and cottage industries are in abundance. There are 39,033 small and cottage industrial units. The number of textile units is 14,820. The ginning industries are 6,778. There are 7,355 units for processing of agricultural raw materials including food and feed industries.
Lahore and Gujranwala Divisions have the largest concentration of small light engineering units. The district of Sialkot excels in sports goods, surgical instruments and cutlery goods.
Punjab is also a mineral rich province with extensive mineral deposits of Coal
, Gas
, Petrol, Rock salt (with the second largest salt mine in the world), Dolomite
, gypsum
, and silica-sand. The Punjab Mineral Development Corporation is running over a hundreds economically viable projects. Manufacturing includes machine products, cement, plastics, and various other goods.
Agriculture
Agriculture is the cultivation of animals, plants, fungi and other life forms for food, fiber, and other products used to sustain life. Agriculture was the key implement in the rise of sedentary human civilization, whereby farming of domesticated species created food surpluses that nurtured the...
and industry. Punjab is the largest province of Pakistan
Pakistan
Pakistan , officially the Islamic Republic of Pakistan is a sovereign state in South Asia. It has a coastline along the Arabian Sea and the Gulf of Oman in the south and is bordered by Afghanistan and Iran in the west, India in the east and China in the far northeast. In the north, Tajikistan...
in terms of population, and also has the largest economy in the country compared to other provinces and administrative units. Punjab's economy has quadrupled since 1972. Its share of Pakistan's GDP was 54.7% in 2000 and 59% as of 2010. It is especially dominant in the Service & Agriculture sectors of the Pakistan Economy. With its contribution ranging from 52.1% to 64.5% in the Service Sector and 56.1% to 61.5% in the Agriculture Sector. It is also major manpower contributor because it has largest pool of professionals and highly skilled (Technically trained) manpower in Pakistan. It is also dominant in the Manufacturing sector, though the dominance is not as huge, with historical contributions raging from a low of 44% to a high of 52.6%. In 2007, Punjab achieved a growth rate of 7.8% and during the period 2002-03 to 2007-08, its economy grew at a rate of between 7% to 8% per year. and during 2008-09 grew at 6% against the total GDP growth of Pakistan at 4%.
Despite its a tropical wet and dry climate, extensive irrigation makes it a rich agricultural region. Its canal-irrigation system established by the British is the largest in the world. Wheat
Wheat
Wheat is a cereal grain, originally from the Levant region of the Near East, but now cultivated worldwide. In 2007 world production of wheat was 607 million tons, making it the third most-produced cereal after maize and rice...
and cotton
Cotton
Cotton is a soft, fluffy staple fiber that grows in a boll, or protective capsule, around the seeds of cotton plants of the genus Gossypium. The fiber is almost pure cellulose. The botanical purpose of cotton fiber is to aid in seed dispersal....
are the largest crops. Other crops include rice
Rice
Rice is the seed of the monocot plants Oryza sativa or Oryza glaberrima . As a cereal grain, it is the most important staple food for a large part of the world's human population, especially in East Asia, Southeast Asia, South Asia, the Middle East, and the West Indies...
, sugarcane
Sugarcane
Sugarcane refers to any of six to 37 species of tall perennial grasses of the genus Saccharum . Native to the warm temperate to tropical regions of South Asia, they have stout, jointed, fibrous stalks that are rich in sugar, and measure two to six metres tall...
, millet
Millet
The millets are a group of small-seeded species of cereal crops or grains, widely grown around the world for food and fodder. They do not form a taxonomic group, but rather a functional or agronomic one. Their essential similarities are that they are small-seeded grasses grown in difficult...
, corn
Maize
Maize known in many English-speaking countries as corn or mielie/mealie, is a grain domesticated by indigenous peoples in Mesoamerica in prehistoric times. The leafy stalk produces ears which contain seeds called kernels. Though technically a grain, maize kernels are used in cooking as a vegetable...
, oilseeds, pulses, vegetables, and fruits such as kinoo. Livestock
Livestock
Livestock refers to one or more domesticated animals raised in an agricultural setting to produce commodities such as food, fiber and labor. The term "livestock" as used in this article does not include poultry or farmed fish; however the inclusion of these, especially poultry, within the meaning...
and poultry
Poultry
Poultry are domesticated birds kept by humans for the purpose of producing eggs, meat, and/or feathers. These most typically are members of the superorder Galloanserae , especially the order Galliformes and the family Anatidae , commonly known as "waterfowl"...
production are also important. Despite past animosities, the rural masses in Punjab's farms continue to use the Hindu calendar for planting and harvesting.
Punjab contributes about 76% to annual food grain production in the country. Cotton and rice are important crops. They are the cash crops that contribute substantially to the national exchequer. Attaining self-sufficiency in agriculture has shifted the focus of the strategies towards small and medium farming, stress on barani areas, farms-to-market roads, electrification for tube-wells and control of water logging and salinity.
Punjab has also more than 68 thousand industrial units. The small and cottage industries are in abundance. There are 39,033 small and cottage industrial units. The number of textile units is 14,820. The ginning industries are 6,778. There are 7,355 units for processing of agricultural raw materials including food and feed industries.
Lahore and Gujranwala Divisions have the largest concentration of small light engineering units. The district of Sialkot excels in sports goods, surgical instruments and cutlery goods.
Punjab is also a mineral rich province with extensive mineral deposits of Coal
Coal
Coal is a combustible black or brownish-black sedimentary rock usually occurring in rock strata in layers or veins called coal beds or coal seams. The harder forms, such as anthracite coal, can be regarded as metamorphic rock because of later exposure to elevated temperature and pressure...
, Gas
Gas
Gas is one of the three classical states of matter . Near absolute zero, a substance exists as a solid. As heat is added to this substance it melts into a liquid at its melting point , boils into a gas at its boiling point, and if heated high enough would enter a plasma state in which the electrons...
, Petrol, Rock salt (with the second largest salt mine in the world), Dolomite
Dolomite
Dolomite is a carbonate mineral composed of calcium magnesium carbonate CaMg2. The term is also used to describe the sedimentary carbonate rock dolostone....
, gypsum
Gypsum
Gypsum is a very soft sulfate mineral composed of calcium sulfate dihydrate, with the chemical formula CaSO4·2H2O. It is found in alabaster, a decorative stone used in Ancient Egypt. It is the second softest mineral on the Mohs Hardness Scale...
, and silica-sand. The Punjab Mineral Development Corporation is running over a hundreds economically viable projects. Manufacturing includes machine products, cement, plastics, and various other goods.