Sector Strategies A. Agriculture 1. Agriculture and Rural Development 47.
Agriculture remains the most important sector for employment and income generation.
The sector, including forestry, livestock, and fisheries, accounts for about 26 percent of GDP and more than 45 percent of employment. It generates directly and indirectly about 70 percent of export earnings. Growth in the sector has declined from an annual average of 4.1 percent in the 1980s to 3.4 percent in the 1990s, and deteriorating productivity and increasing environmental damage threatens the sustainability of agricultural output. Pakistan's agriculture requires reforms to achieve sustainable production and marketing systems, modernization and diversification to improve competitiveness and higher value added, and a supportive policy and institutional environment for private investment. The ongoing ADB-financed sector strategy study will develop strategies and action plans to address these constraints 19 .