SHARE OF SINDH IN THE ECONOMY

S.KAMAL HAYDER KAZMI,
Research Analyst
, PAGE
Apr 13 - 19, 2009

Sindh is a major centre of economic activity in Pakistan and has a highly diversified economy ranging from heavy industry and finance centred in and around Karachi to a substantial agricultural base along the Indus. Pakistan's rapidly growing information technology sector (IT) is also centred in Karachi. Manufacturing includes machine products, cement, plastics, and various other goods. Sindh wants tax collection, poverty level, and size of land to be a part of multiple criteria of the revenue distribution in NFC.

Most business is done through Karachi which is a major sea port and major revenue collection and banking centre. Karachi is a business hub and actual Sindh tax revenue is much higher than its official tax revenue.

SINDH DEMOGRAPHIC INDICATORS
INDICATORS STATISTICS
Urban population 49.00%
Rural population 51.00%
Population growth rate 2.80%
Gender ratio (male per 100 female) 112.24
Economically active population 22.75%
Various sources

AGRICULTURE

Agriculture is very important for Sindh. It has cotton, rice, wheat, sugar cane, bananas, and mangoes as the most important crops. Sindh is the richest province in terms of natural resources of gas, petrol, and coal. In addition, the cotton accounts for 7.5 % of the value added in agriculture and about 1.6 % to national GDP. The crop was sown on the area of 3054 thousand hectares, 0.6% less than last year (3072 thousand hectares). This year, the cotton sown in Sindh was 6 % higher than the last year.

EDUCATION

According to Pakistan Social and Living Measurement (PSLM) Survey data 2006-07, the overall literacy rate (age 10 years and above) is 55% (67% for male and 42% for female) compared to 54% (65% for male and 42% for female) in 2005-06. Literacy remains higher in urban areas (72%) than in rural areas (45%) and more in men (67%) compared to women (42%). When analyzed provincially, literacy rate in Sindh stood by 55%.

According to the PSLM Survey data 2006-07, the overall school attendance (age 10 years and above) is 57% (69% for male and 44% for female) compared to 55% (68% for male and 42% for female) in 2004-05. School attendance (age 10 years and above) remained higher in urban areas (73%) than in rural areas (48%) and more in men (69%) compared to women (44%). Sindh province has reported the largest share of non-functional institutions (58%). About 37.8% schools in public sector are without boundary wall, 32.3% without drinking water, 56.4% without electricity, and 6.8% without building. It is to be noted that majority of the institutions are located in rural areas.

LAND AREA IN SINDH
(AREA IN MN HECTARES)
YEARS GEOG AREA TOT. AREA REPORTED COL.
(4+5+6+7)
FOREST AREA NOT AVAIL FOR CULTIV-ATION CULTUR-ABLE WASTE CULTIV-ATED AREA COL.(8+9) CURRENT FALLOW N. AREA SOWN AREA SOWN MORE THAN ONCE TOT. CROPPED AREA COL.(9+10) AGRI-.LAND
(13+4)
ARABLE LAND (6+7)
1 2 3 4 5 6 7 8 9 10 11 12 13
2004-05 14.09 14.1 0.84 6.16 1.35 5.75 3.3 2.45 0.84 3.29 7.94 7.1
2005-06 14.09 14.1 0.84 6.17 1.37 5.72 3.08 2.64 0.87 3.51 7.93 7.09
2006-07 14.09 14.08 1.03 5.96 1.49 5.6 2.86 2.74 0.98 3.72 8.12 7.09
Source: FBS

MANUFACTURING AND MINING

Pakistan has a widely varied geological frame work that includes a number of zones hosting several metallic minerals, industrial minerals, precious and semi-precious stones. As a result of various efforts devoted for the development of mineral sector, resources of several minerals have been discovered over the last many decades, including world class resources of lignite coal deposits at Thar Sindh.

Sindh and Balochistan are primarily the two provinces of the country where most of the country's mineral deposits are located. In order to step up the mineral extraction and development process in the above specified provinces, Mines and Minerals Development Departments have been constituted in both Sindh and Balochistan.

DEVELOPMENT PROGRAMS

Government will implement the Sindh Cities Improvement Investment Program (the Investment Program) as an integral part of Sindh's Medium Term Urban Sector Revitalization Plan and Vision 2030. The total cost of Sindh's urban sector development plan and sector strategy up to year 2030 in the water supply, wastewater management and solid waste management is estimated at $2.3 bn. The total cost of the Investment Program, from 2008 through 2018, is expected to be equivalent to $400 mn, of which this facility would cover up to $300 mn.

LITERACY RATE 10+, GER & NER TRENDS IN SINDH & GENDER PARITY INDEX (GPI)

GENDER

LITERACY RATES
(10 YRS & ABOVE) 2006-07
GER PRIMARY
(AGE 5-9) 2006-07
NER PRIMARY
(AGE 5-9) 2006-07
Male 67 88 56
Female 42 68 43
Both 55 79 50
GPI 0.63 0.77 0.77
Source: Ministry of Finance

CONCLUSION

Sindh is the backbone of Pakistan's economy. It generates almost 80% of the total national tax revenue (86.8% in the last two years). The federal government, however, spends just 23% of the financial divisible pool in the province. Therefore there is a need for proper investment in Sindh by the Government in order to utilize maximum resources available in Sindh.