Punjab’s economy relies heavily on agriculture and contributes significantly to the GDP of Pakistan.
Punjab is the largest contributor to Pakistan’s GDP. In addition to growing major crops, Punjab also contains a sizable manufacturing industry.
The economy of Punjab relies heavily on agriculture. In 2011, it was estimated that more than 53% of Punjab’s total area was sown at least once a year for the purpose of growing crops, fruits or vegetables. Wheat, gram, cotton, rice and sugarcane are the major crops grown in Punjab. At the end of 2010, Punjab contributed close to 76% of wheat, 86% of gram, 66% of cotton, 63% of sugarcane, and 53% of rice to the overall national crop production. It is estimated that in 2010, Punjab contributed 62% to the nation’s GDP.
Manufacturing also plays a role in Punjab’s economy, with 48,000 industrial units present in Punjab. Major manufactured items include cotton yarn, vegetable ghee, cotton cloth, paper and paper-board, cement, fertilizers and sugar. At the end of 2010, Punjab contributed approximately 38% of cotton yarn, 48% of cotton cloth, 56% of vegetable ghee, 63% of fertilizers, 54% of cement, and 95% of paper and paper-board production to the overall nation’s production.
Additionally, small and cottage industries have a sizable presence in Punjab with approximately 39,033 small and cottage industrial units. Carpet manufacturing, leather work, cotton textile, ceramics, embroidery and needle work, woodwork industry, and sports good industry are a few of the small industries in Punjab. A number of minerals are also mined in Punjab, including argillaceous clay, coal, limestone, gypsum, and iron ore.