Investment and Boosting Farming

Author: Iqtidar Gilani

The agriculture sector of Pakistan has always been defined as the backbone of its economy, contributing approximately 24 percent to the GDP and employing nearly 48 percent of the labor force. In the age of digitalization, connectivity, sustainability, and food security, Pakistan is blessed to have large plains and mountainous regions as arable cultivable land. Yet, the concerns in the geography books have remained consistent over the years. Whether it is the unsupported, unlearned farmer, lack of water, saline or waterlogged soil, or lack of mechanization, all have led to the continuity of obsolete practices of tilling and sowing, middleman politics, and no innovation in the sector.

Pakistan’s agricultural lands have been producing for a millennium if not more. These lands have catered to the tables of ancient civilizations of Indus Valley, Meher Garh, Gandhara, and so many more. Wheat and rice have been traded since time immemorial. And while our neighbors India and Bangladesh took a swifter route towards modernizing the realm and empowering the farmer, we have lagged, leading to slower economic growth.

Why bring the modernized approach when this has been somewhat working forever? If the predictive statistics of climate change and its impact on agriculture are not persuasive enough, a simple breakdown of facts can be looked at.

Pakistan’s major crops include wheat, rice, cotton, and sugarcane. The yields are often below global averages. The wheat yield in our country is about 3 tons per hectare, compared to the world average of 3.5 tons. Precision agriculture, utilizing GPS-guided machinery, can increase efficiency by 15-20 percent, while drought-resistant crops can improve yields by up to 30 percent in water-stressed areas.

Modernizing Pakistan’s agriculture sector could result in a 3-4 percent annual increase in agricultural GDP.

Efficient irrigation, such as drip irrigation, can save up to 60 percent of water compared to flood irrigation. As the 4th largest milk producer globally, Pakistan produces 60 billion liters annually, but per-animal productivity remains low. Modern breeding techniques can increase milk yield by 25-30 percent, improved nutrition with balanced feed can boost production by 15-20 percent, and mechanized milking can increase efficiency by 30 percent while improving milk quality.

The fisheries sector contributes about one percent to the GDP, with a coastline of over 1,000 km offering immense growth potential. Modern pond management can increase fish production by 40-50 percent, disease control can reduce losses by 20-30 percent, and sustainable fishing practices can ensure the sector’s long-term viability. Farm mechanization in Pakistan is around 40 percent, compared to 90 percent in developed countries. Increasing mechanization can significantly boost productivity, with tractors increasing land productivity by 30 percent, harvesters reducing post-harvest losses from 20-30 percent to 5-10 percent, and drones optimizing pesticide and fertilizer use by 20-30 percent.

Modernizing Pakistan’s agriculture sector could result in a 3-4 percent annual increase in agricultural GDP and a 15-20 percent reduction in rural poverty over five years. It could also boost agricultural exports from the current USD 4.8 billion to potentially USD 10 billion in the medium term, enabling the country to meet 30-40 percent of Afghanistan’s food imports. Additionally, there is an opportunity to expand exports to Central Asian countries by 25-30 percent and to increase agricultural exports to China under CPEC by 50 percent. Although not yet considered, mutual trade with India could also result in significant savings.

While the potential is immense, challenges remain, and there seems to be no straight path here. Research and Development (R&D) is the most crucial strategy for pushing the boundaries in any given field. An analysis of the problems is usually the first step that highlights the path forward for research. But here in Pakistan, while the problems are well known to all, the solutions have not come along. Pakistan’s investment in R&D is significantly lower than many developing countries. As of 2012, Pakistan spent only 0.18 percent of its agricultural GDP on R&D, compared to India’s 0.30 percent and China’s 0.50 percent.

Pakistan must increase R&D spending to at least 1 percent of agricultural GDP, which would amount to approximately USD 400 million annually based on current figures.

Currently, 20 percent of irrigated land suffers from waterlogging and salinity. An estimated USD 5-7 billion investment is needed over the next decade to modernize irrigation systems.

Develop cold storage facilities. Post-harvest losses in fruits and vegetables reach up to 40 percent due to inadequate storage. An investment of USD 1-2 billion could create a modern cold chain infrastructure.

Education levels among Pakistani farmers present a significant challenge to agricultural modernization. While official statistics report literacy rates in rural areas at around 51 percent, the ground reality is often starker. Even among those counted as literate, many possess only rudimentary skills, such as the ability to sign their name or read basic sentences.

The lack of functional literacy and numeracy skills makes it difficult for farmers to engage with modern farming literature, understand complex instructions for new technologies, or effectively manage farm finances. This educational deficit is a serious impediment to the sector’s growth, as it compromises farmers’ ability to learn about, understand, and implement modern agricultural practices.

Addressing this foundational issue is crucial for any meaningful agricultural reform in Pakistan. Efforts to modernize farming practices must be coupled with targeted adult education programs that go beyond basic literacy to include practical, agriculture-focused curricula. Such initiatives could include hands-on training in modern farming techniques, basic accounting for farm management, and digital literacy to leverage mobile-based agricultural information services. Without addressing this educational gap, other modernization efforts may struggle to gain traction among the farming community.

Pakistan must also look unto Agroecological farming, or ecological/ regenerative agriculture, for sustainability, resilience, and inclusivity. It reduces reliance on synthetic pesticides and utilizes biological nitrogen fixation, enhancing biodiversity with nutrient cycling.

Agroecological farming fosters soil fertility, water conservation, and habitat preservation. And most amazingly addresses multiple challenges by contributing towards 12 of the 17 UN Sustainable Development Goals, tackling issues from hunger to climate action.

Every problem has a solution, and it is the clarity of purpose that needs to be the guiding light. While many initiatives are fragmented and lack coordination, HBL Zarai Services has launched Dera, a one-window facilitation service designed to drive farmers’ progress. This comprehensive platform integrates mechanization, financing, warehousing, and knowledge sharing under one roof, ensuring that farmers receive holistic support to overcome challenges and enhance productivity.

Pakistan must realize its potential to become the food basket for the regional economies, through modernized farms, educated farmers, and agri-business development through easy Agri-financing, to truly reap the harvest.

The writer is a senior journalist and can be reached at @IqtidarGilani

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