Daily Times

The clock is ticking on the United Nations Sustainable Development Goals 2030 (UN-SDGs 2030) timeline and the global progress does not show a satisfying picture. According to the Global Sustainable Development Report 2023, the progress on the UN-SDGs 2030 agenda is a “stagnation in the face of multiple crises”. On a global level, only 12 percent of the SDGs are currently on track with the rest of the 88 percent falling behind.

The situation is not much different in Pakistan, as according to Pakistan’s ‘Spotlight Report on Sustainable Development Goals’, no significant progress has been made on 10 out of 17 SDGs. Pakistan adopted the UN-SDGs 2030 as its national development agenda, following a unanimous resolution passed by the National Assembly in 2016. However, currently, Pakistan is positioned 128th out of 166 countries, with an SDG index score of 59. The country’s performance in education, healthcare, access to electricity, and water and sanitation is below the average for Emerging Markets and Developing Economies.

Furthermore, in the context of countries with a GDP per capita below US$ 3,000, Pakistan’s performance in both education and water & sanitation is also below the average. The UN-SDGs are goals designed to address a wide range of challenges and to promote a more equitable, prosperous, and sustainable world by the year 2030. At this point, the statistics paint a bleak picture of our progress towards achieving that sustainable future.

The adoption of Sustainable and Climate-Smart Agriculture is crucial for addressing the agricultural and economic difficulties currently confronting Pakistan.

What we need to realize is that the UN-SDGs are a set of holistic and interconnected goals designed to create a synergistically positive impact even when one of the goals is achieved. The goals are the blueprint to transform our world, for people, planet and prosperity, in the present and the future. More than any other sector, agriculture is the common thread, which holds the 17 UN-SDGs together.

Investing in the agricultural sector can address not only food insecurity, hunger and malnutrition but also other challenges including poverty; water and energy use; climate change; and unsustainable production and consumption. Agriculture has its own goal ie, UN-SDG #2, which calls for “Zero Hunger”, achieve food security and improved nutrition and promote sustainable agriculture.” The attainment of other UN SDGs is contingent upon the existence of a climate-smart and productive agricultural sector. For instance, agriculture is directly connected to various other challenges targeted by UN-SDGs including clean water and sanitation (UN-SDG #6), affordable and clean energy (UN-SDG #7), decent work and economic growth (UN-SDG #8), responsible consumption and production (UN-SDG #12). Indirectly, agriculture also influences the community and income-based UN-SDGs addressing poverty (UN-SDG #1), education (UN-SDG #4), gender equality (UN-SDG #5), climate action (UN-SDG #13), and life on land (UN-SDG #15).

Agriculture plays a crucial role in Pakistan’s economy. It contributes 22.9 percent to the GDP and employs over 37.4 percent of the population. According to research, agriculture employs roughly 25 million people in Pakistan and is the main income source for 34 percent and 74 percent of economically active men and women respectively in the country. Pakistan is a natural resource-based economy, with almost half of its total land area dedicated to agriculture. The agricultural sector is at the forefront of the impacts of climate change. Farmers are currently facing challenges such as rising temperatures, variable rainfall patterns, and an increase in the frequency of droughts, storms, wildfires, and floods, which pose significant risks to crop and livestock production throughout Pakistan. For instance, the floods in 2022 resulted in the loss of 15 percent of the rice crop and 40 percent of the cotton crop.

However, Pakistan’s agriculture sector is not just being impacted by climate change, it is contributing to it as well. The Intergovernmental Panel on Climate Change (IPCC) reports that this sector is responsible for approximately 25 percent of the country’s total emissions.

The Pakistan Council of Research in Water Resources (PCRWR) reports that Pakistan possesses one of the largest interconnected irrigation systems globally, with over 90 percent of water utilized for agricultural purposes, where significant losses are prevalent. During the irrigation process, approximately 20-25 percent of water is lost because of uneven terrain and suboptimal farm design, which causes excessive water application in lower areas while leading to insufficient irrigation in elevated regions.

Achieving the UN-SDGs in the face of increasing climate change challenges necessitates that the agriculture sector simultaneously confronts numerous interconnected challenges, including the sustainable augmentation of agricultural productivity and income, the enhancement of resilience to climate change effects, and the contribution to climate change mitigation where possible. Climate-smart agriculture (CSA) practices can effectively address these critical challenges and assist in the achievement of the UN SDGs.

The adoption of Sustainable and Climate-Smart Agriculture is crucial for addressing the agricultural and economic difficulties currently confronting Pakistan. Climate-smart and Sustainable agricultural practices represent vital solutions for Pakistan in addressing the challenges of food shortages, rising food prices, and inadequate food security.

Financial institutions can play a pivotal role in steering the country towards economic recovery and resilience. Creating a climate-resilient agricultural system is a complex challenge involving numerous considerations, with financing being the most critical aspect. Pakistan’s banking industry is playing a crucial role in adopting CSA. The State Bank of Pakistan, in collaboration with the Pakistan Banks’ Association (PBA), is promoting the adoption of CSA financing products amongst banks and building awareness among the stakeholders.

The Bank of Punjab (BOP) is currently one of the leading banks in the area of Climate Smart Agriculture financing. Leading by example, BOP’s proactive ESG and sustainable financing strategy focuses on the creation of climate-smart agriculture products including BOP Shamsi Tawanai, BOP Agri Kissan Dost Production Loan, Farm Mechanization, BOP Electronic warehouse receipt financing, Punjab Rozgar Scheme, etc. It is time that all the stakeholders take advantage of the opportunities presented by climate action, and lay the foundations for a more prosperous, and secure future for all.

Arslan M. Iqbal is working as SEVP/Chief Risk Officer and Dr. Syed Asim Ali Bukhari is working as SVP/Unit Head – ESG in The Bank of Punjab.