Pakistan has a rich and vast natural resource base, covering various ecological and climatic zones; hence the country has great potential for producing all types of food commodities. Agriculture has an important direct and indirect role in generating economic growth. The importance of agriculture to the economy is seen in three ways: first, it provides food to consumers and fibers for domestic industry; second, it is a source of scarce foreign exchange earnings; and third, it provides a market for industrial goods.

The total geographical area of Pakistan is 79.6 million hectares. About 27 percent of the area is currently under cultivation. Of this area, 80 percent is irrigated. In this regard, Pakistan has one of the highest proportions of irrigated cropped area in the world.
Rural population, directly or indirectly is linked to agriculture for its livelihood. And agricultural development is linked to rural development, water resources, industries,
poverty alleviation and environment. Its high growth rate helps in poverty alleviation through employment and development.

Improved farm output also helps in diversification of rural economy toward agro-based industries and non-farm activities such as livestock, fisheries and poultry. Thus, agricultural development is critically important for poverty alleviation since 65.9 per cent of the population live in rural areas.
According to official figures, in 2004-05 poverty was 28.10 per cent in rural areas, 14.90 per cent in urban areas and 23.90 on an overall basis. Despite efforts of the successive governments to mitigate poverty, it is still burgeoning and expanding.

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