Daily Times

Pakistan’s raw food exports have risen by 37 percent in the last financial year, which is good news for the country’s struggling economy. This boost is crucial as Pakistan faces a severe shortage of foreign exchange to cover import costs.

According to the Trade Development Authority of Pakistan (TDAP), food exports increased from $5.8 billion to $8 billion in the first 11 months of the last fiscal year. The biggest surge was in rice exports, partly due to India banning its basmati rice exports to protect its domestic market. Other significant exports included raw meat, maize, spices, and fruit.

While the rise in food exports is beneficial for the economy and helps with the balance of payments, it also raises concerns about potential domestic shortages and increasing food prices in Pakistan. These worries are valid, as many consumers have been struggling with high living costs, particularly for food, over the past two years. Although inflation has slowed in recent months, food and essential items’ prices are still too high for many citizens.

To grow its economy and exports sustainably, Pakistan needs a significant boost in agricultural productivity.

To grow its economy and exports sustainably, Pakistan needs a significant boost in agricultural productivity and rural incomes. The agricultural sector, employing nearly 60 percent of the workforce and contributing significantly to GDP, is at a crucial juncture.

Despite its vast potential, the sector remains underdeveloped and vulnerable to climate change-induced weather extremes. There is a substantial productivity gap, indicating that agriculture could greatly enhance the national economy by increasing food and crop exports and reducing rural poverty. However, achieving these goals is nearly impossible without private sector involvement and investment in research, seed systems, and mechanization. Attracting corporate investments in agriculture requires decisive action from political leaders and policymakers, focusing on substantive policy changes and infrastructure development.

Corporate participation is crucial for managing challenges within the sector and unlocking its full potential, not only to boost farm exports but also to address domestic supply gaps and stabilize food prices over the long term.

The writer is a freelance columnist.