How to determine the contribution of the Forestry sector in GNP and in Social Welfare?

GNP is the total value of all goods a service produced within a country in a year, including net income from investments in other countries.

–                  GNP = GDP + net income from abroad

 To asses the true contribution of forestry sector in GNP and GDP is more realistic approach, described below:

–                  In this approach, the contribution of state control of forests in the form of timber, f/w, resin., mazri, and ephedra are taken into account in terms of revenue earned by forests department by the sale of these products in the case of GDP, but for GNP along with all these and the revenue from sale of forest products from farmlands are also added.

Contribution of state-controlled forest (GDP 2008-09)

–                  Now contribution of forests towards (GNP) i.e. including farmlands:

·                 Total revenue from timber, f/w, etc in a year Rs = 1833.04 million.

·                 Farmland timber Rs = 8061 million.

·                 Farmland fuelwood Rs = 3500 million

·                 Govt. fodder Rs = 700 million

Thus the sum total value is Rs = 14094 million.

–                  Total production of GNP = 5448037 million rupees

–                  So contribution of forestry sector = 14094/5448037 x 100 = 0.26%

The share of forestry sector towards GNP is very low because the Federal Government has imposed a ban on harvesting of forests. That’s why the contribution of forests towards GNP has decreased.

Contribution of forestry to social welfare

–                  Social welfare is the total satisfaction of the society as a whole.

–                  Social welfare has been defined as “an aggregate of the satisfaction of all individual in the society.” – LoF

–                  Forestry sector has also a tremendous contribution in this respect.

–                  Forestry sector provides employment at high rates. This helps the people living in rural area in their place.

–                  These forests allow the people to exercise main rights in order to cope with their livelihood.

–                  Farmlands a social forestry project has also raised the socio-economic aspect of the lives of rural people.