ABSTRACT

The performance of agricultural exports since 1970 has depended crucially upon a number of internal factors. In the policy arena the government’s overall attitude towards agricultural development is important because it affects the capacity of the sector to generate exports. The importance of agriculture in the economy has made it imperative that the government play an active role in shaping the determinants of agricultural performance; pricing, production, and export policies guide the fate of the sector. The tax system of Pakistan plays a limited role in the shaping of economic behavior and in redistribution of income across groups, especially in the agricultural sector. The President Z. A. Bhutto government designed the Integrated Rural Works Program to help the agricultural sector. The Bhutto government followed agricultural pricing policies that reflected the weights of political groups at various times during its stay in office.