Currently in Pakistan, the agricultural sector contributes up to 18.9% of the gross domestic product. As a result of modern science and technology development, the source of income for rural households is changing, and nonfarm income has become the main source. This study investigates the effects of nonfarm income on agricultural productivity in rural Pakistan. The current research data has been collected from the Pakistan Social and Living Standards Measurement Survey (PSLM) 2017-2018, a sample of rural and urban areas designed by Pakistan's Federal Bureau of Statistics. In this study, Heckman's two-step procedure is used to tackle the problems of endogeneity and selection bias. The first phase, probit regression, indicates that the accessibility of banks, motorable roads, forest, telecommunication substructure, montane grasslands, and shrublands zone affects nonfarm income. On the other hand, the second stage, ordinary least squares regression, found a negative impact of nonfarm income on per capita farm income. Furthermore, results reveal that nonfarm household income has a significant positive effect on agricultural productivity.

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In May 2019, General Secretary Xi Jinping pointed out during the inspection in Jiangxi: "We must promote the modernization of agriculture and rural areas, consolidate the foundation of grain production, adhere to the quality of agriculture, green agriculture, and continuously improve the comprehensive benefits and competitiveness of agriculture. To build a new urban-rural relationship, Establish and improve the institutional mechanism and policy system for urban and rural integration development, and promote coordinated development and integration of urban and rural areas." This points the way for Jiangxi to promote agricultural modernization. In the new era, Jiangxi must take the road of modern agriculture with Jiangxi characteristics to take the lead in realizing agricultural modernization. This paper believes that we must adhere to openness to the outside world, cultivate diversified subjects, promote moderate scale, build service integration, and focus on subsidy precision. In the six aspects of achieving scientific and technological autonomy, we will vigorously promote the agricultural modernization of Jiangxi and consolidate the road of agricultural modernization in Jiangxi.

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