Abstract
Pakistan is the agrarian country and its last economic data shows the growth in the agriculture production. More than 60 percent population is living in rural areas of the country and is engaged with agriculture activities. While the agro based industry is linked with agriculture sector and use agriculture raw material for production of final goods. The agro based industry provides income and employment generation opportunities. Therefore, the agro based industry is beneficial for the economic development of the area. For this study the 384 sample has been selected from the district Matiari and statistical Chi square test result highlights that the agro-based industry is beneficial for the development of the rural area.