The Northern Areas of Pakistan lie at the extreme north of Pakistan with a population of well over 800,000, living in more than 600 villages scattered over an area of 72,496 sq.km, with a population density of 12 persons per sq.km.
These areas border with China in the north, Kohistan and Kaghan in the south, Indian-held Kashmir in the east and Chitral in the west. The newly independent state of Tajikistan lies very close. Administratively the area is divided into five districts namely Gilgit, Skardu, Diamer, Ghizer and Ghanche.
The following are the major economic sectors of the area.
Of the total area only 69,480 hectares (0.96 pc) are under cultivation whereas, about 60,000 hectares of cultivable land lies barren. Rest of the area comprises rangeland, mountains, forests, lakes/rivers etc. The cultivable waste can be brought under cultivation if sufficient financial resources are made available. Per capita land holding is 0.124 hectares, which is decreasing day by day with fragmentation in the families due to rapid urbanization. The major crops are wheat, maize, barley, millet, potato, vegetables and fodder. A number of fruit farms / nurseries have been established to provide improved species of fruit plants. The government has been trying its best to strengthen Agriculture Extension Services within the available resources.
The area is deficient in cereal and vegetable production. In cereal there is a wide gap (45 per cent) between demand and production. The government has spent an amount of Rs 106.794 million during the financial year 1997-98 on the supply of wheat at subsidised rates. There is a gap of about 20 per cent between vegetable requirement and production, which is covered through the supply of vegetables from other parts of the country by the private sector.
The area has a big scope (cultivable land and water resources) for expansion of agriculture, livestock and forestry. The only constraint is of required financial resources to develop the infrastructure in order to bring the virgin land under cultivation and the already irrigated land.
Most of the channels in the area were constructed long ago with the support of the government. These channels, however, have lost their water carrying capacity over the years due to silting up. The communities have also brought new lands under cultivation through extension of existing channels in order to meet the food demands of the increasing population.
The major source of energy for cooking and heating, and timber for construction is the natural forests of the area. About 80 per cent of the forest cover in Northern Areas is located in Diamer district. The rate of deforestation is quite alarming. It is feared that if the current rate of deforestation continues, there will be no forests left after 10 years. Deforestation causes soil erosion, loss of bio-diversity, loss of land fertility, depletion of pastures and climatic hazards, like increase in temperatures, which can have a devastating impact on the snowfall, the only source of water. The soil erosion not only affects the Northern Areas but also poses danger to the major dams in the country as 80 per cent of the catchment area of river Indus lies within NAs.
Another major sector is transport and communication. The government has invested huge amounts in the development of road and communication network in the area. Yet there are more than 600 villages scattered over a vast terrain, many of them are yet to be linked with the main road network.
The road link is vital not only for facilitating travel but also to develop the agriculture and livestock sectors, as it provides access to the local communities from farm to market to get inputs and sell their surplus production. Keeping in view the tourism potential of NA the road network can play an important role in its promotion which can be an alternate source of income for the locals.
Yet another important sector is power. There are 70 small hydel power stations and 11 thermal power stations in the country to cover the gap between the supply and demand of electricity. The Northern Areas have a tremendous potential for hydro-power generation but we have not been able to construct any major project due to resource constraints. Power generation could also be used to lift water to irrigate lands, reduce pressure on the thin forest cover, combat environmental degradation and above all, improve the living conditions of the people.
The UNDP involvement in the NAs is quite extensive. The UNDP has assisted two major projects namely, production of seed and planting material and livestock and poultry development,followed by participatory agriculture development project. Now the NADP has been initiated wherein the UNDP has a crucial role to play in community and women development which forms the basis for overall successful implementation of the project.