Pakistan warned against low priority to agriculture sector

The United Nations on Tuesday warned Pakistan that its low priority to agriculture sector would not only make the country a net importer of food products but also undermine the chances for human development and poverty reduction.
Dr Hafiz Pasha, the United Nations Assistant Secretary General said at the launch of UNDP Asia-Pacific Human Development Report on "Trade on Human Terms" here that Pakistan's textile sector has failed to benefit from the post-quota regime after 2005 whereas neighbouring China and India took full advantage of the opportunity.
Out of total 18 billion dollar increase in textile exports by 12 textile exporting countries in the region, Pasha said that China grabbed 14 billion dollar, India 2 billion dollar while remaining two billion dollars were shared among the rest of 10 countries.
He said, it is evident from the past experiences that the trade liberalisation led to a phenomenal growth, it had not contributed to human development and poverty reduction because of less attention to agriculture and rural sector.
Referring to China and India, he said that much of the growth has been witnessed in manufacturing and services sector and not the agriculture sector, which aggravated inequality and led to a jobless growth. Chine who achieved 10 percent GDP growth could hardly reduced only one percent unemployment per annum and same was the case with the India, he said.
He said the Pakistan trade policies were more liberalised than the India's but less to Sri Lanka, however, private sector in Pakistan did not respond to the opportunities created by the trade liberalisation. He suggested increase in public investment in rural development and agriculture for development of human capital ensuring sustainable growth.
Pasha said Asia-Pacific holds 1.8 trillion dollar in foreign exchange reserves, with almost half in China. These underused reserves could help meet pressing human development needs such as ensuring access to clean water and sanitation for all, where an investment of less than 10 percent of that may be required.
Deputy Chairman Planning Commission, Dr Akram Sheikh speaking on the occasion said that without human development, participation in international trade and globalisation can neither be effective nor sustainable.
He said "since benefits from trade are not easily forthcoming, we must recognise the constraints and issues and work on them as highlighted in the Report".
Akram Sheikh said, even though trade liberalisation has led to decline in poverty, income inequalities have increased, contributing poor human and physical infrastructure, difficulties in diversification of products and markets, jobless growth, moving from labour-intensive to hi-tech industry, lower skills and non-competitiveness.
Low investment in agriculture and rural development, deteriorating terms of trade for agriculture, price fluctuation and poor access to market is posing serious threats to rural livelihoods and food security, he said.
Akram Sheikh said that in the new era of trade liberalisation in textile and clothing, with the dismantling of Multi-Fibre Agreement (MFA), some countries are the gainers who upgraded technology, quality and standards. Similarly, in the services sector, gainers are those who have developed higher skills, he added.
He said that the trade liberalisation can have a positive impact on growth and poverty reduction provided developed countries ensure greater access to their markets and eliminate dumping duties on textiles and subsidies on agricultural commodities.