Agricultural growth and poverty in Pakistan
Faruqee, Rashid | Carey, Kevin
The paper examines the contribution of agricultural growth to poverty reduction in Pakistan. Total growth in agriculture in Pakistan has been impressive. However, growth was held back by policy distortions, and the benefits of this growth would have been more widely distributed in a less distorted policy environment. In particular, rural employment, which has proved a key conduit from growth to poverty reduction in other countries, was severely affected by policies favoring mechanization. The policy distortions also adversely affected the income earning opportunities of small holders. So, a structural reform program in agriculture will not only enhance the sector's efficiency and growth rate, but also increase the contribution of agricultural growth to poverty reduction.
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