Agriculture Sector of Pakistan

Importance:
1. Economic Backbone/Contribution to GDP and Employment
Generation
 Economic Backbone: Agriculture contributes 22.9% of GDP and employs
37.4% of the workforce (Economic Survey of Pakistan 2023).
 Cotton and wheat are essential to Pakistan's rural economy, sustaining
millions of livelihoods.
 Dr. Ishrat Husain highlights that the "agriculture sector is crucial for
inclusive growth and export competitiveness."
 Amartya Sen: Advocates for improving worker welfare in agriculture, which
is often the backbone of low-income economies like Pakistan.
 Amartya Sen highlights, “Agriculture is not just about food production; it is
central to economic and human development.”
 Dr. Muhammad Yunus emphasizes, “Agriculture sustains livelihoods,
offering jobs to the most vulnerable populations.”

2. Food Security
 Domestic Needs: The sector ensures the availability of staple crops like
wheat, rice, and sugarcane for the country’s 250+ million population.
 Punjab province, known as the "breadbasket," produces 76% of Pakistan's
wheat.
 According to the World Food Program (WFP), agriculture must expand to
meet growing food demand, as 38% of Pakistan's population faces food
insecurity (2023).
 Norman Borlaug, the father of the Green Revolution, remarked, “Food is the
moral right of all who are born into this world.”

3. Raw Material for Industries/ Industrial Linkages

 Textiles Dependency: Provides raw materials for 60% of exports,
particularly cotton for the textile industry.
 Pakistan is the 5th largest cotton producer globally (FAO, 2023).
 The World Bank highlights the interdependence of agriculture and industry,
emphasizing the sector’s role in driving export competitiveness.
 John Stuart Mill asserted, “The prosperity of industry depends on the
success of agriculture.”
4. Foreign Exchange Earnings
 Export Revenues: Agricultural exports like rice, fruits (mangoes, citrus), and
vegetables contribute significantly to foreign reserves.
 Example: Pakistan is the 4th largest rice exporter globally, earning $2
billion annually.
 World Report: FAO's 2023 report underscores the need to diversify and
enhance export competitiveness.
 Dr. Israr-ul-Haq: Stresses the importance of value addition in agriculture to
enhance global competitiveness.

5. Poverty Alleviation and Rural Development

 Livelihood Source: Agriculture is the mainstay for 62% of the rural
population, helping reduce poverty and inequality.
 Livestock (milk, meat) supports rural incomes, contributing 11% of GDP.
 The International Fund for Agricultural Development (IFAD)
emphasizes that empowering rural farmers through agriculture can uplift
entire communities.
 World Report: UNDP states that agriculture-centric rural development can
accelerate poverty reduction in Pakistan.
 Gunnar Myrdal: Emphasizes that rural prosperity through agriculture is
critical for overall national development.

Causes of Agricultural Backwardness in Pakistan

1. Inefficient Water Management
 Over-reliance on outdated irrigation systems, particularly the Indus Basin
Irrigation System, leads to water wastage and insufficient supply.
 Water availability per capita has declined to about 1,000 m³, making
Pakistan one of the water-scarce countries.
 World Bank reports that inefficient irrigation and water scarcity are key
factors in limiting agricultural productivity.
 Amartya Sen emphasized that water scarcity severely hampers the
potential for sustainable agriculture.

2. Low Use of Modern Technology

 Pakistan’s agriculture remains labor-intensive with low mechanization and
limited adoption of high-yield seeds and fertilizers.
  The tractors per hectare ratio in Pakistan is low compared to regional
counterparts like India.
 The FAO highlights that agricultural growth in Pakistan is constrained by slow
adoption of modern farming techniques.
 Joseph Schumpeter argued that industrialization and technological
innovation are crucial for increasing agricultural productivity.

3. Land Fragmentation
 Land holdings are small, with 85% of farms being less than 5 hectares. This
limits economies of scale.
 A farmer's inability to mechanize due to small land holdings contributes to
inefficient farming practices.
 UNDP stresses that land consolidation and cooperative farming can enhance
productivity in Pakistan.
 Karl Marx suggested that land reforms and breaking up feudal control would
help in achieving better land use and agricultural productivity.

4. Climate Change and Natural Disasters

 Pakistan is prone to floods, droughts, and heatwaves, affecting crop yields,
especially in the cotton and rice sectors.
 The 2022 floods caused over $30 billion in damages to agricultural
infrastructure.
 IPCC (Intergovernmental Panel on Climate Change) states that climate
change will worsen the agricultural vulnerability of South Asia, including
Pakistan.
 Amartya Sen highlighted that environmental factors, such as climate
change, play a significant role in determining agricultural success or failure.

5. Inadequate Infrastructure
 Poor rural infrastructure, including roads, storage facilities, and
transportation, hinders market access and increases post-harvest losses.
 Fruit and vegetable wastage is significant due to lack of cold storage
facilities.
 Asian Development Bank (ADB) points out that inadequate rural
infrastructure is a major bottleneck for agricultural growth in Pakistan.
 Robert Solow emphasized that improving infrastructure is necessary for
industrial and agricultural development.

6. Lack of Access to Credit and Technology

  Limited access to affordable credit and technological knowledge for small
farmers prevents them from adopting modern farming techniques.
 Farmers in Sindh and Balochistan have limited access to bank loans, making
it harder for them to invest in technology or inputs.
 The World Bank recommends expanding access to agricultural credit and
technology to improve productivity.
 Paul Samuelson argued that financial inclusion and technological
advancement are essential for the transformation of agriculture.

7. Outdated Agricultural Policies

 Government policies often focus on subsidies rather than encouraging
innovation or sustainable practices.
 Pakistan’s reliance on wheat and rice subsidies has stifled crop diversification
and innovation.
 OECD notes that outdated agricultural policies, including input subsidies,
lead to inefficiencies and distorted markets.
 Milton Friedman advocated for market-driven agricultural policies rather
than subsidies, as they lead to inefficiency and underperformance.

Solutions to Tackle Agricultural Backwardness and

Accelerate Agricultural Growth in Pakistan
1. Improved Water Management and Irrigation Systems
 Modernize irrigation systems and reduce water wastage through efficient
practices like drip irrigation and water recycling.
 The Sindh Irrigation System can adopt newer, more water-efficient methods
to improve water distribution.
 World Bank reports that Pakistan’s agricultural productivity is severely
impacted by outdated irrigation infrastructure.
 Amartya Sen emphasized that sustainable water management is critical for
agricultural development in water-scarce regions like Pakistan.

2. Adoption of Modern Technology

 Introduce advanced agricultural technologies, such as drones, precision
farming, and biotechnology for better crop management and yields.
 The use of drone technology for monitoring crop health and improving
pesticide application could boost yields.
 FAO reports that the adoption of modern technology in farming could
significantly increase crop productivity in developing countries.
  Joseph Schumpeter argued that technological innovation is crucial for
improving agricultural productivity and driving economic growth.

3. Land Reform and Consolidation

 Implement land reforms to consolidate small and fragmented farms into
larger, more efficient units, and ensure secure land tenure.
 Land consolidation in Punjab could improve economies of scale and
encourage investment in modern farming practices.
 UNDP highlights that land reform is essential to improving agricultural
productivity in Pakistan by enhancing land use efficiency.
 Karl Marx believed that land reforms are key to improving agricultural
production and social equity in rural areas.

4. Access to Credit and Financial Support

 Expand access to affordable credit for farmers, particularly smallholders, to
invest in modern equipment, seeds, and fertilizers.
 The Zarai Taraqiati Bank can increase lending for farmers in Sindh to
purchase high-yielding seed varieties.
 The World Bank advocates for expanding access to financial services for
farmers to improve productivity and income.
 John Maynard Keynes stressed that access to credit is vital for agricultural
growth, enabling farmers to invest in capital and technology.

5. Skill Development and Extension Services

 Enhance extension services and provide vocational training to farmers,
equipping them with the knowledge and skills to adopt modern farming
practices.
 Pakistan Agricultural Research Council (PARC) can establish more training
centers to educate farmers on climate-resilient crops.
 International Labour Organization (ILO) recommends that improving
agricultural education and extension services will boost productivity.
 Amartya Sen emphasized the importance of human capital development in
agriculture to address challenges like climate change and market access.

6. Research and Development in Agriculture

 Increase investment in agricultural research to develop drought-resistant
crops, improve soil quality, and boost overall yields.
 The National Agricultural Research Centre (NARC) can focus on developing
climate-resilient rice varieties to address water shortages.
  FAO stresses that investing in agricultural R&D is crucial for increasing food
security and sustainability.
 Joseph Schumpeter believed that continuous innovation and research are
the foundation of agricultural progress.

7. Promotion of Crop Diversification

 Encourage farmers to diversify crops beyond staple crops like wheat and rice,
into high-value crops like fruits, vegetables, and oilseeds.
 Farmers in Balochistan can switch from traditional wheat farming to more
profitable crops like pomegranates or grapes.
 World Bank highlights that crop diversification improves farm income and
reduces vulnerability to price fluctuations and climatic changes.
 Adam Smith emphasized the importance of specialization and diversification
to increase agricultural efficiency and profitability.

8. Climate Resilience and Adaptation

 Develop climate-resilient agriculture by introducing drought-resistant seeds,
efficient water use, and adapting farming systems to changing climate
patterns.
 The introduction of saline-resistant rice varieties in Sindh could help mitigate
the impacts of saline water intrusion.
 IPCC reports that climate change poses a significant threat to agriculture,
especially in developing countries like Pakistan.
 Amartya Sen argued that addressing environmental challenges, including
climate change, is key to ensuring long-term agricultural productivity.

9. Improved Rural Infrastructure

 Improve rural roads, storage facilities, and market access to reduce post-
harvest losses and increase the efficiency of agricultural supply chains.
 The government can build better cold storage facilities in Khyber
Pakhtunkhwa to prevent spoilage of fruits and vegetables.
 ADB highlights that infrastructure development in rural areas is essential for
enhancing agricultural efficiency and market connectivity.
 Robert Solow argued that infrastructure development is necessary for
increasing productivity in both agricultural and industrial sectors.

10. Government Policy and Subsidy Reforms

 Reform agricultural policies, reducing reliance on input subsidies and focusing
on market-oriented policies that encourage private sector investment in
agriculture.
 Removing fertilizer subsidies and introducing price stabilization mechanisms
to ensure fair market prices for farmers.
 OECD reports that agricultural policy reforms in developing countries are
essential for creating sustainable and competitive agricultural sectors.
 Milton Friedman believed that market-driven agricultural policies are more
efficient and encourage sustainable practices compared to heavy-handed
subsidies.