I would like to welcome Trade and Agriculture Ministers from the 19 Cairns Group countries to the historic city of Lahore and the country of Pakistan. it is indeed appropriate that we are holding these discussions in Pakistan. The outcome of the agricultural negotiations will have a major impact on the Pakistan economy and its people.
Agriculture represents the largest sector of Pakistan's economy accounting for 22 percent of GDP. It provides more than 45 percent of jobs and over half of the new job entrants. Almost 70 percent of our exports are agro-based products.
The agriculture sector's most important products are cotton, wheat, rice, sugar, livestock and dairy. In addition, Pakistan produces a wide variety of fruits and vegetables, given its varied climatic regions.
Pakistan's agriculture output has been growing at an impressive rate averaging almost 4 percent per year in the past four years. Nevertheless, its share of world agriculture trade has been declining. This decline has occurred as a result of two main factors. Pakistan is now exporting its cotton in the form of textile products, rather than raw cotton.
As well, our domestic food market is rapidly expanding. Our population of 160 million makes us the 6th most populous country in the world. Our population growth rate of 1.9 percent adds 3 million new mouths to feed, each year. Consumer expenditures (adjusted for inflation) grew by 13 and 8 percent, respectively, in the past two years.
The government of Pakistan is making a series of investments to improve the international competitiveness of its agriculture and food sector. It is improving its infrastructure through a major irrigation program of lining of watercourses to improve water delivery.
Another infrastructure program is 'farm-to-village' road construction to improve the distribution of inputs and the marketability of outputs, especially high-value agricultural products. We are expanding our agriculture research and extension services and making them more responsive to client needs. We are introducing international standards for export commodities. We are encouraging private sector investment in livestock production and food processing facilities.
Pakistan agriculture and its more than 100 million rural residents are expected to be significant beneficiaries from a successful outcome of the Doha Round. The expected higher and more stable global commodity market prices will greatly reduce rural poverty. At the same time, higher prices will encourage our producers to expand their output creating additional employment in agriculture and in the rural economy.
Producers will be encouraged to purchase high quality seeds, fertilisers and chemicals, and maintain strict quality controls. Our producers will be encouraged to make new investments if they recognise that their products will be sold in a market-driven economy, not one determined by which government has the largest treasury.
Pakistan joined the Cairns Group in 2005. Pakistan felt that its new policy direction for agriculture and its objectives for the outcome of the Doha Round were reflected in the vision of the Cairns Group of Fair Agriculture Traders-to achieve a fair and market oriented agriculture trading system. Pakistan has actively participated within the Cairns Group to advance negotiating positions to achieve that vision. We will continue to add a strong voice to the chorus of the Cairns Group members.