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% of the country's gross domestic product, employs over 50% of the labor force, and sustains 75% of the population. While not denying the significance of factors such as pricing policies, subsidized inputs, farm size distribution and yields, and the impact of research and extension on crop yields, an analysis is presented that examines a relatively neglected area likely to be critical to the sector's long-run viability - infrastructural development. In particular, an attempt is made to determine what role infrastructure has played in the sector's growth. The results suggest that the source of capital may be critical in determining the manner in which the agricultural sector will grow over time. Specifically, the most effective way of increasing argicultural output in Pakistan is to encourage more private investment in the sector.