Agricultural economy

Over the last six months, Pakistan has imported $1.5bn worth of cotton and some food items. This import bill is quite hefty for an agrarian-based economy. Pakistan’s agriculture sector accounts for about 21 percent of the country’s GDP and employs about 44 percent of the labour force. Over the years, our economy has failed to move from being an agricultural economy to having become an industrial economy. The main reason for this decline is a lack of financial resources for farmers. They are deprived of the basic agricultural inputs and raw material needed to increase crop production.

In Pakistan, microfinancing is still unavailable in rural communities that are still struggling to absorb its complete benefits and utilise its potential. Some leading microfinance banks are making a huge social impact by uplifting farmers. They are offering a wide range of financial solutions and technical training to farmers. The role of microfinance institutions is crucial to help farmers gain access to required finances on easy terms to equip themselves with modern tools. These programmes have brought revolutionary results in reducing poverty and increasing agricultural productivity in developing countries across the world. There is a dire need to support microfinance institutes at the national level to increase their outreach and acceptability among farmers. This way we will not only bring down our food import but will also be able to increase our food exports in order to earn valuable foreign exchange.

Adnan Ali Mughal

Islamabad