Agriculture Development And Trade Policy Implications And Limitations

This research based on agriculture development and trade policy. In this research the studied variable for the research are agriculture subsidies as a independent variable and agriculture exports and percentage of GDP in agriculture as a dependent variables. The Islamic Republic of Pakistan (hereafter, "Pakistan") is highly dependent on the Agricultural sector, which is the main income- and employment-generating sector of the Economy. In 2005, the agricultural area has 22% of (GDP) and employed 45 percent of the labor force; while agro-industries accounted for about two-thirds of total industrial output (Ministry of Finance 2006).Increasing of GDP is the main target of about every economy. Promoting exports of the country is one of the ways of achieving economic increase. Pakistan is among the developing countries emphasizing to improve its exports since inspection. The major share of Pakistan 'exports have strong backward linkage with the agriculture sector. Some countries are proposing the "down payment". Others are prepared to discuss more drops with no complete removal, and without any "down payment" Exchange rate is overvalued which is creating problems for the exporters. Moreover, it is one of the main reasons is that huge trade deficits this year. The exchange rate is allowed to move freely with the changes in exports and imports of the country so that there is no need to make such policies where government needs to subsidize from their own funds. Agricultural subsidy is provided to the farmers and agribusinesses by the government. There are various reasons because of which such subsidies are provided like to supplement the income of the farmers, for managing the supply of agricultural products and to affect the cost of the commodities. For providing the developments in the agricultural sector, these subsidies are offered. By providing self-sufficiency, guarantees of quality standards and fulfilling the demand of increasing population agricultural subsidies can play a very important role in an economy.