Agricultural sector is the economic base of the country.
Upland watersheds of 102 dams and reservoirs were identified to be given for environmental restoration either by protecting natural vegetation, establishing plantations, or by both means. In this respect, special watershed protection plantations, designed for maintaining and restoring the upland ecosystems of the selected dams, have been established over an area of about 17,000 ha. These mangroves are the primary source of biofuels, sawn timber, posts and poles for local people. They also serve as essential breeding and feeding grounds for diverse species. However, due to over exploitation of mangrove forests for firewood and subsistence farming, deforestation and degradation of mangroves have been taking place, particularly in the Ayeyawady Delta and Rakhine.