REPORT BY HAMMAD MIRZA (58186)

Acknowledgement
I am very thankful to my Parents who worked hard through out
there life to make my future, more over I am very thankful to
the management sciences department of Paf-Kiet who
provided us an opportunity to enlighten are visons our
knowledge, abilities and skills through the renowned and
experienced faculty. Warm thanks goes to my Teacher Miss
Quratulain Kazmi who is working hard day and night to broad
our vision and our abilities. I am very grateful to you to teach
this course in very friendly and easiest way, that is why you are
not only good but the perfect teacher. In the end I am grateful
to my university mates who guided to me till the
accomplishment of this course.

Executive summary
Pakistan is one of the potential agricultural country around the
world with a population of around 8 billion. It mainly grows all
the important crops like Wheat, Rice , Barley ,Cotton ,
Suggarcane and rice. The average yield of Pakistan is less than
the potential yield which is why this country faces various food
shortages and many people are forced to die due to hunger.
There is a need to realize the drawbacks and factors which are
responsible for this ciaos. Much of the Pakistans economy is
dependent on agriculture. This report highlights the drawbacks
and failures which are responsible for such shortages.
Agricultural shortage is one of the leading factor towards
depression in Pakistans economy. Though government of
Pakistan is trying had to overcome such shortages but
comparable output is not improved yet. Agriculture is practiced
in rural areas of Pakistan and around 70 percent of the
population living in rural areas are involved in farming. I have
high lighted various problems in this report by searching
economical survey of Pakistan on Ministry of finance and
economic survey.

TABLE OF CONTENT
Contents
INTRODUCTION ............................................................................................................................................ 5
HISTORICAL BACKGROUND .......................................................................................................................... 6
LITERATURE REVIEW .................................................................................................................................... 8
PROBLEM STATEMENT ............................................................................................................................... 11
DATE COLLECTION METHOD ...................................................................................................................... 11
ANALYSIS .................................................................................................................................................... 11
SCOPE OF REPORT ...................................................................................................................................... 12
CONCLUTION .............................................................................................................................................. 12

INTRODUCTION
Agriculture is one of the important sector of Pakistans
economy. It provide raw material for different industries which
are angro based. More over it also fulfills food consumption
demand with in the country. Agriculture plays a vital role in
improving countries foreign exchange thorough exports of
agriculture output. 30 percent of the Gross domestic product of
Pakistan is contributed by Agriculture. More over it also
employees 47 percent of the total working group of the
country. So it is also playing an important role in generating
employement. Agricultural shortage is one of the leading factor
towards depression in Pakistans economy. Though government
of Pakistan is trying had to overcome such shortages but
comparable output is not improved yet. Agriculture is practiced
in rural areas of Pakistan and around 70 percent of the
population living in rural areas are involved in farming. I have
high lighted various problems in this report by searching
economical survey of Pakistan on Ministry of finance and
economic survey. If we talk about natural merits of Pakistans
Agriculture, Firstly there are Four seasons in Pakistan and

tropical weathers. Crop production is almost trough out the

year. Largest canal irrigation system is in Pakistan. Vast tracts of
land along Indus Basin - comprising 5 rivers. On the other hand
we have cost effective and potential agricultural labour
available for farming. Land is available on reasonable cost.
A systematic and scientific inquiry or investigation into a
specific problem undertaken with the purpose of finding
answers or solutions to it.
Pakistan is an agricultural country and agriculture sector
contributes 48% of total GDP of Pakistan. In spite the fact
that agriculture sector is the backbone of Pakistans
economy but it faces flour shortage every year. That is
why we select this topic to investigate the root causes of
this shortage.As the study analysis includes the qualitative
data analyses so our research will also base on the
qualitative data that includes interviews, questionnaire and
market survey and analysis the existing variables.

Objectives
The main objective of our research will be to find out the:
Reasons for the shortage of wheat.
What is Government role?
To study the agricultural environment
To solve the shortage problems.
To see the problems faced by different researchers
attached to wheat.

HISTORICAL BACKGROUND

1 History
1953 Apr 11, 1953 - KARACHI, Pakistan, April 10Following his
announcement yesterday that the nation had to get 1500000
tons of wheat immediately to prevent starvation, Khwaja
Nazimuddin, Prime Minister

1974 Oct 19, 1974 - Moslem sect; border troubles with the
neighboring Afghans, some potential wheat shortages and an
annual inflation rate of 25 Per cent.
1997 Apr 19, 1997 - KARACHI, Pakistan - A national wheat
shortage has caused people to line up for hours to buy flour,
and yesterday a mob looted a truck carrying flour to market.
The shortage has caused food riots around the country in
recent weeks.

2001 Apr 21, 2001 - Fishing has been decimated, farmland is

parched, and rioters have smashed windows and overturned
cars to protest water shortages in Karachi, ... "The wheat
production in Sindh has fallen by almost 40 percent," said
Qamaruzzaman Shah, chairman of Pakistan Chamber of
Agriculture.
2004 Jan 11, 2004 - By Rizwan Malik - Pakistan Times Staff
Correspondent. ISLAMABAD: There is no shortage of wheat in
any part of the country,

2005Mar 11, 2005 - Members of opposition, Pakistan Peoples

Party Parliamentarian (PPPP) Syed Naveed Qamar, Barrister Ch.
Aitizaz Ahsan and Raja Pervez Ashraf and ... The minister
reiterated that there is no shortage of wheat in the country as
sufficient stocks are available to meet the requirements.
2007 Sep 26, 2007 - It is most regrettable that in this wheat
shortage scandal the government is behaving in exactly the
same manner: refusing to take action against the hoarders,
whose identity it must surely be in knowledge of.
2008 Jan 9, 2008 - Wheat flour is a staple foodstuff in Pakistan,
where rotes or unleavened bread are eaten with almost every
meal.
2009 Mar 14, 2009 - LAHORE: the Pakistan Agricultural Storage
and Services Corporation (PASSCO) on Tuesday opened tenders
for the import of 150000 metric tons of wheat scheduled to be
shipped into the country by mid February to avert any wheat
shortage.

LITERATURE REVIEW
The average yield of Pakistan is less than the potential yield
which is why this country faces various food shortages and
many people are forced to die due to hunger. There is a need to
realize the drawbacks and factors which are responsible for this
ciaos. Much of the Pakistans economy is dependent on
agriculture. This report highlights the drawbacks and failures
which are responsible for such shortages. Agricultural shortage

is one of the leading factor towards depression in Pakistans

economy. Though government of Pakistan is trying hard to
overcome such shortages but comparable output is not
improved yet. Agriculture is practiced in rural areas of Pakistan
and around 70 percent of the population living in rural areas
are involved in farming.
This research has been assigned to us an academic activity with
the view to throw us into the practical world. This report will
complement our educational and learning process from
practical side; certainly this report will extend and enhance our
abilities to cope with the actual situations, while we were
preparing the research proposal, developing and designing the
questionnaire filled in analyzing the results and presenting the
findings and recommendations.
The results of this research report can be used to explore the
hidden reasons behind the shortage of Agricultural crops in
Pakistan.

Agricultural Shortage up till now (Wheat)

Wheat shortage in Pakistan has taken place four times Causes
of the shortage have been the same that is smuggling to
neighboring countries. But none of those shortages were as
acute as now.
3.2.1 1st Time

First time acute food shortage hit the country it happened in

1953 during Khawaja Nazimuddins Prime Minister Ship. We
borrowed $ 10 million from the World Bank and purchased
wheat from Canada on loan. The total cost of wheat imported
from Canada was $ 35 million.
3.2.2 2nd Time
Second time wheat shortage took place in 1967 during Ayub
Khans days, when we purchased wheat worth Rs 110 million
(in those days, one crore Rupees used to be equal to $ two
million, whereas now one million dollar is equal to Pak Rupees
three million).
3.2.3 3rd Time
Third time it hit Pakistan in Ziaul Haqs Presidency. Smuggling
out of our wheat to India, Afghanistan, Iran and Central Asia
was the cause of this wheat shortage.

3.2.4 4th Time

Fourth time wheat shortage took place during Musharrafs
presidency. A government decision in early 2007 to export a
half-million tones of Pakistani wheat, after it over-projected the
national harvest, has contributed to the shortfall.

PROBLEM STATEMENT
I have stated my research problem that Why the shortage of
Agriculture is happening. In order to have a clear
understanding of the topic, I have define some terms used in
our research problem statement.

DATE COLLECTION METHOD

Primary data collection

Apart from the individuals who provide information when

interviewed, administered questionnaires or observed
discussed at length under data collection method.
4.6 Secondary data collection

Secondary data is collected through Internet, journals,

newspapers and scholarly research articles.

ANALYSIS
It is analyzed that the production of crops is enhance by the
hoarding.

At very initial stages the farmer after cultivation hoards some of

its crops for future sale. After that the commission agents do
this activity and take part in the shortage. For example
flourmills also hoard the crop.
High rate of inputs also causing the shortage . Farmer has
limited resources to meet the increasing the rate of input like
fertilizers seeds, pesticides.
Relationship is also influenced by the export which is Moderate
variable it enhance the relationship in both the senses.
The survey teams give the wrong reports to the Government
and made the policies on basis of false reports, due to which
they give the permission to export , which becomes another
reason of the shortage.
The farmers are not satisfied with the irrigation system in their
region.

SCOPE OF REPORT
This report is prepared to highlight the factors which are
responsible for the shortage of agriculture in Pakistan, and this
report highlights most of the reason which could be considered
and improved for the agricultural and economical development
of Pakistan and its GDP. This report at the same time explains
problem as well the solution to that problem, so that the
current shortage could be resolved.

CONCLUTION

The production of major crops like wheat , sugarcane is

enhancing by the hoarding.
At very initial stages the farmer after cultivation hoards
some of its crop for future sale. After that the commission
agents do this activity and take part in the shortag.
Flourmills also hoard the crop.
Rate of inputs also causing the shortage. Farmer has
limited resources to meat the increasing the rate of input.
Crops are also influenced by the export which is Moderate
variable it enhance the relationship in both the senses.
Wrong reports given by the survey teams to the
Government and made the policies on basis of false
reports, due to which they give the permission to export
the agricultural output, which becomes an other reason of
the shortage.