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Topic: Country Case Studies

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Pakistan - Priority areas for investment in the agricultural sector

Pakistan has great potential in agriculture. About 27 percent of the total 79.6 million hectares of the country is under cultivation. Agriculture contributes about 24 percent of the GDP and employs 47 percent of the labour force. Most subsectors of agriculture have either remained static or have declined during the last three decades, with the exception of livestock. Therefore, there is considerable scope for improvement in production and in the processing of primary output. The World Bank, working in partnership with local and international collaborators, including the Investment Centre of FAO, has identified key areas that require priority interventions if the agricultural sector is to address the challenges of rural poverty, and maximize its contribution to export growth and national development. These areas are:

• Agricultural research and extension

• The seed sector

• Water resources

• Rural finance

This document outlines in detail the rationale for an intervention as well as the possible investment areas to support the Government of Pakistan in each subsector. Potential interventions that the Bank could champion are summarized below for each of these areas. The Bank appreciates that it is important that it work closely with all relevant stakeholders, and in particular, the National Agriculture Forum, in addressing the bottlenecks that are impairing the growth prospects of Pakistan’s agricultural sector.

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Trends and impacts of foreign investment in developing country agriculture - Evidence from case studies

Large-scale international investments in developing country agriculture, especially acquisitions of agricultural land, continue to raise international concern. Certainly, complex and controversial issues – economic, political, institutional, legal and ethical – are raised in relation to food security, poverty reduction, rural development, technology and access to land and water resources. Yet at the same time, some developing countries are making strenuous efforts to attract foreign investment into their agricultural sectors. They see an important role for such investments in filling the gap left by dwindling official development assistance and the limitations of their own domestic budgetary resources, creating employment and incomes and promoting technology transfer. More investment is certainly needed – more than US$80 billion per year according to FAO analysis. But can foreign direct investment be compatible with the needs of local stakeholders as well as those of the international investor? And can these investments yield more general development benefits?

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Public agricultural R&D in South Asia - Greater government commitment, yet underinvestment persists

This report analyzes input indicators of public agricultural R&D for five South Asian countries: Bangladesh, India, Nepal, Pakistan, and Sri Lanka. It presents trends and challenges with regard to agricultural R&D investments and human resource capacity throughout the subregion, and provides recommendations for ways to address some of these challenges.

The analysis in this report draws largely from a set of country notes prepared by IFPRI’s Agricultural Science and Technology Indicators (ASTI) initiative using comprehensive datasets derived from primary surveys covering 2002–09. These new datasets have been linked with historical ASTI datasets for the subregion, allowing a more long-term analysis of public agricultural R&D investment and capacity trends.