Global Rice News

Pakistan’s Agricultural Sector: A Path to Sustainability and Growth

Pakistan’s agricultural sector plays a crucial role in the country’s economy, contributing approximately 23% directly and over 45% indirectly to the GDP. This significant contribution highlights the importance of recognizing and reinforcing the vital role that agriculture plays in Pakistan.

To achieve sustainable agricultural practices and promote nature positivity, Pakistan must strike a balance between economic needs and ecological limitations. The agriculture sector’s greenhouse gas emissions, which account for less than 2% of global emissions linked to agriculture, indicate great potential for sustainable practices.

Crops are the starting point for this journey towards sustainability. The success achieved in increasing maize yields can serve as a model for other major crops. Over the past decade, maize cultivation has witnessed a growth of 49%. Replicating this success with other crops will contribute to enhanced output and productivity.

In addition to focusing on crops, Pakistan has the opportunity to boost its economy through import indigenization and increased agricultural exports. Currently, the country spends $10 billion on agricultural imports while earning $5 billion from agricultural exports, with rice alone accounting for nearly half of the export revenue. By prioritizing and expanding crop production, Pakistan can benefit from a substantial increase in export earnings.

Furthermore, Pakistan can explore untapped potential in sectors such as aquaculture, meat exports, and fruit and vegetables. With a coastline of 1,046km, aquaculture exports currently stand at $500 million but have the potential to reach over $2 billion. Similarly, meat exports, which currently contribute $350 million, can grow to exceed $10 billion with concentrated and committed initial investments. Fruit and vegetable exports, currently below $500 million, have an upside potential of about $5 billion, and addressing supply-chain constraints and branding issues can help realize this potential.

However, challenges persist within the agriculture sector. Inflation affects the sector at multiple levels, including imported inflation, demand-pull inflation, greedflation, and shrinkflation. These factors create complexities for consumers, impacting livelihoods, nourishment, gender participation, and overall human development. Additionally, the National Nutritional Survey of 2018 revealed that 36.9% of households in Pakistan face food insecurity, with 18.3% experiencing severe food insecurity. The per capita consumption of nutritious food products is significantly lower compared to developed countries, leading to stunting in children under five years.

Pakistan’s rapidly growing population, estimated to reach 400 million by 2050, further compounds the challenges. Meeting the increased food requirements, projected to be two times higher than current levels, demands sustainable agricultural practices. Smallholder farmers, who make up a significant portion of the population, must be supported, considering resource constraints and vulnerability to climate change.

Addressing food waste is another crucial aspect of achieving sustainable agriculture. Globally, nearly 30% of agricultural land is used to produce food that ends up being lost or wasted. In Pakistan, consumer habits, fragile food storage logistics, and a lack of waste management technology contribute to significant food waste.

The government recognizes the importance of the agriculture sector and provides subsidies to support its growth. However, the impact of these subsidies is not visible in productivity results. Improved management and allocation of subsidies are essential to ensure their effectiveness in boosting the sector.

In conclusion, Pakistan’s agricultural sector holds immense potential for sustainable growth and economic development. By implementing sustainable practices, increasing crop production, exploring untapped sectors, addressing inflation and food waste, and optimizing government subsidies, Pakistan can realize this potential. Through these efforts, the agriculture sector can contribute significantly to the country’s GDP and improve the livelihoods of its people.

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