Pakistan's cultivable land area, as reported by the World Bank in 2020, stands at 40.12 per cent of its total land area, significantly higher than China's 10 per cent.
Pakistan's cultivable land area, as reported by the World Bank in 2020, stands at 40.12 per cent of its total land area, significantly higher than China's 10 per cent.
The total cultivable land in Pakistan is 30.5 million hectares for a population of 241.49 million, resulting in about 0.126 hectares per person. In comparison, China has 171.6 million hectares of cultivable land for a population of 1.4 billion, or about 0.123 hectares per person.
Despite Pakistan's slightly higher per capita cultivable land, it does not rank globally among the top ten agriculture-producing nations, while China tops the list. China exported agricultural products worth approximately $98.9 billion in 2023, while Pakistan imported 3.5 million tonnes of wheat between September 2023 and March 2024. This stark contrast can be attributed to China's adoption of new technologies, training initiatives for farmers, and providing on-the-spot assistance, which has revitalized its agricultural sector. Pakistan needs to do the same. ‘How’ is the question -- and the following areas of concern need to be addressed to answer this.
Chinese farmers have developed many farming practices such as crop rotations, intercropping, and multiple cropping. In core agricultural technologies and key projects of seeding and breeding, China introduced the nurturing of seeds as well as agricultural mechanization in the vast rural regions of the country.
A report by the Pakistan Business Council (PBC) highlights that the sector's growth has stagnated over time, emphasizing the need for innovative agricultural techniques. So, the challenge lies in providing funds to acquire modern technology and training to a vast number of small farmers on modern farming methods.
Innovative techniques such as ‘precision farming,’ ‘hydroponics,’ ‘aquaponics’ and ‘vertical farming’ enable year-round production, reduce water usage, minimize pesticide use, and allow for precise control of growing conditions. As a result, we achieve increased yields, improved crop quality, and sustainable farming in diverse settings.
This is especially beneficial for smallholders and those living in rural, impoverished areas, while ensuring enough resources for future generations. Countries like India, Russia, France, Mexico, Japan, and Germany have excelled in various aspects of agriculture by adopting such techniques, implementing long-term policies, and drawing inspiration from successful agricultural practices. For instance, in Germany, half of the land is dedicated to agriculture, and nearly 900,000 people produce goods worth more than 75 billion euros annually.
Increased yield is required for addressing sufficiency and exports, and for that, there is a need to understand the real problems being faced by our farmers which include water deficiency and drought conditions, loadshedding over extended periods, unavailability of certified varieties of seeds, high price of fertilizers, adulterated, non-recommended and expired insecticides, and lack of finances.
To exacerbate the challenge, most small farmers in Pakistan resort to obtaining essential agricultural inputs from middlemen, local dealers, or landowners due to limited resources. Unfortunately, these transactions often involve high-interest loans, perpetuating a cycle of exploitation. Middlemen exploit the vulnerability of poor peasants by offering loans at exorbitant rates and purchasing their produce at below-market prices, exacerbating the financial struggles of small farmers. So, all that our farmers need is financial support and other required facilities at their doorstep.
The State Bank of Pakistan (SBP) Act, 1956 recognized the need to promote access to finance for rural markets to help farmers in meeting their financial needs. Some of the major breakthroughs led by the SBP for agri-financing include introducing modern financing methodologies like warehouse receipt financing and value chain financing, concessional financing schemes for priority areas; credit guarantee schemes for small farmers; simplification of loan application processes; specialized guidelines and regulations for sub-sectors and loan insurance schemes.
Encouragingly, banks in Pakistan have begun to play a vital role in developing efficiency and export potential. Some banks have adopted new roles in training and consultancy, marketing, and financing infrastructure for farmers. For instance, HBL Zarai is providing advisory services directly to over hundreds of thousands of farmers through its ‘Dera’ initiative. Farmers can now access not just advisory but also input services, as well as offtake and warehousing, right at their doorstep through local Deras. In their recent initiatives; they have been able to successfully export sesame to China.
The agricultural sector holds undeniable significance globally as a potent tool in eradicating extreme poverty, transforming rural landscapes, and sustaining a projected global population of 9.7 billion by 2050. Moreover, agricultural growth is remarkably effective in lifting incomes among the poorest communities, surpassing other sectors by two to four times. With agriculture contributing 4.0 per cent to global GDP and exceeding 25 per cent in some least developed agrarian economies, its importance cannot be overstated.
Given Pakistan's population, currently estimated at 241.5 million and projected to surge to 403 million by 2050, urgent measures are required to fortify the agriculture sector to meet the nutritional needs of this expanding population, as well as make it to at least the top ten nations in terms of exports. It is a dream that stands to be realized with a comprehensive approach involving the government, private sector, banks, farmers, investors, and research institutions, proactively and collaboratively.
The writer is a freelance contributor. He can be reached at: mycolachi@gmail.com
