Pakistan has an agricultural economy and the main contributor to the GDP is this sector. Industry has, therefore, perforce been based on agricultural products. Since the mineral base in Pakistan has yet to be exploited, industry is mainly dependent on agriculture. For Pakistan, an agro-based industry means that the country's production can be utilized in these industries. As changes occur in agriculture and economy, diversification of manufacturing, transport, chemicals, cement, steel, petrochemicals and pharmaceuticals are new areas of manufacturing. The agro-based industry, however, remains the largest contributor to the economy. For the last five decades the agriculture sector has been a major source of economic growth, fuelling growth in agro-based industry. Consequently, economic prosperity is inextricably linked to the performance of agriculture and any inefficiency in agriculture places the economy in a difficult situation. The major crops are cotton and wheat, grown in almost equal share (approximately 12% of major crops). The agricultural sector is dependent on major crops and livestock which together account for 75% of the sect oral output. In case of low production of any of the major crops, the economy is affected badly. If the cotton crop is below projection, it causes extreme imbalances in the balance of payments of cotton, as cotton based products. The almost complete reliance of the economy on agriculture means that, in case of a bad crop, or weather failure i.e. Drought, low rainfall, excessive heat or cold, or in case of natural catastrophes like floods, or in the case of pest attack, or in case world market prices drop, the economic perimeters are drastically altered.
