Pakistan stands at a pivotal moment in its economic history, with agriculture at the heart of its growth potential. Despite agriculture employing over 42 percent of the workforce and being a key component of the country’s exports, its share in GDP has gradually declined from 43.19 percent in 1960 to 22.35 percent in 2022. This sector, blessed by nature’s bounty, faces significant challenges that, if addressed, could unlock a prosperous future for Pakistan.
Pakistan stands at a pivotal moment in its economic history, with agriculture at the heart of its growth potential. Despite agriculture employing over 42 percent of the workforce and being a key component of the country’s exports, its share in GDP has gradually declined from 43.19 percent in 1960 to 22.35 percent in 2022. This sector, blessed by nature’s bounty, faces significant challenges that, if addressed, could unlock a prosperous future for Pakistan.
The comparison with India’s “Green Revolution” underscores a critical issue: the disparity in input costs due to heavy subsidies provided to Indian farmers, making Pakistani agricultural products less competitive in the global arena. Pakistani farmers face steep prices for essential fertilizers like Urea and DAP compared to their Indian counterparts, highlighting the need for policy reforms, direct subsidy to farmers instead to fertilizers sector, reduce input costs and bolster productivity. Indian growers buy Urea 40kgs bag at INR266.50 and DAP fertilizer at INR1,350 per bag compared to Pakistani growers buy at Rs4,850 – Rs5,500 and Rs11,500 – Rs13,500 respectively. Urea, DAP fertilizers are being sold at much higher prices in Pakistan, USA, Brazil, China, Indonesia, Bangladesh and Sri Lanka compared to fertilizers cost farmers pay in India. How farmers of countries with high inputs cost can compete with Indian agriculture produces and farmers heavily subsidized?
The crux of the matter lies in the outdated approach to agriculture in Pakistan, characterized by subsistence farming and a reliance on traditional crops and practices. There’s a pressing need to shift towards commercial farming, embracing high-value crops in demand globally, such as tropical fruits and spices, which can enhance export earnings significantly.
Highlighting potential high-value exportable minor crops such as Durian Avocados, Green Cardamom indicates the untapped potential within Pakistan’s agricultural sector. These crops can fetch high prices compared to potatoes, oranges and contribute significantly to the country’s export earnings.
WOEFUL ROLE
The role of Pakistan Agriculture Research Council (PARC) and other research institutions has been underwhelming, with insufficient focus on developing high-yield, low-cost seeds and an over-reliance on imported hybrid and GMO seeds. This has led to increased input costs for farmers, emphasizing the need for a more robust domestic agricultural research and development framework. PARC and other provincial Agriculture Research Institutes failed to develop high yielding, high value low-cost seeds of “Open Pollinated Varieties” of rice pulses chillies and entire agriculture is being pushed to imported hybrid seeds which ultimately increasing input cost of farmers and costly produces to consumers burning through inflaming food inflation.
The lack of coordination and integration among various governmental departments related to agriculture, suggesting a merger of the Ministry of National Food Security & Research, the Ministry of Industries & Production, and the Ministry of Commerce to streamline efforts and enhance export efficiency. This restructuring reforms could simplify regulatory processes and align national agriculture policy more closely with export goals.
Today every country is striving to attain food security for their people especially rich ASEAN members, agriculture is drying up due to El Nino. Hence it is crucial to increase our production of high value minor crops by switching MSP from wheat and sugarcane to ensure not only our food security, but also to reduce dependency on imported agriculture commodities and foods. Simultaneously this will increase income of our rural population and add value to our agriculture and food products exports.
India harmonized and integrated inter-ministerial task to increase exports. In 2013, India’s exports of agriculture and allied products were $13 billion and now agriculture exports have jumped up more than $50 Billion. Why can’t we? Potential is hidden beneath the soil need ploughing joint efforts to grow exports to $30 billion in next 5 years and $50 billion in next 10 years through agriculture & allied sectors.
Agriculture and allied food products potential to contribute to Pakistan’s economy is immense, particularly in the context of the global demand for Halal certified products. The current fragmentation of responsibilities among different ministries and departments, such as the Halal Authority being under the Ministry of Science & Technology, hampers the country’s ability to capitalize on this demand. A more integrated approach, alongside substantial policy reforms focusing on reducing input costs and promoting high-value crops, could pave the way for Pakistan to achieve its export targets in the next five years.
As the world dances to the symphony of progress, our nation stands poised to embrace the transformative power of unshackled markets, under the benevolent umbrella of the Strategic Trade Policy Framework (STPF) and SIFC through visionary Green Pakistan Initiative. Civil bureaucracy with typical DMG mindset is habitual to go slow, entwined in the tendrils of antiquity, resistant to the winds of change that whisper of prosperity. It is imperative that the SIFC breathe life into these ossified corridors, infusing them with the vitality of market-driven ethos and the alacrity of decisive action.
In conclusion, Pakistan’s agriculture sector harbors the seeds of economic revival. By resetting flawed policies, focusing on high-value crops, MEPs on essentials exports and fostering an environment that reduces input costs and promotes research and development, Pakistan can not only ensure food security but also become a leading exporter in the global agricultural market. The need for a unified and coherent policy framework, integrating various departments under a singular ministry focused on trade, industries, and food security, is more pressing than ever. With the right reforms, Pakistan’s agriculture can truly flourish, bringing prosperity to its people and contributing significantly to the global food market.
The writer is business leader
