Global Rice News

Food cooperation between Pakistan and GCC countries has immense potential

As geo-economics gains traction, it is important to highlight the factors that contribute to higher economic growth. One such factor is food security, which plays a crucial role in promoting public health by providing access to quality and nutritious food. A healthy population is more likely to excel in knowledge acquisition and skill development, which in turn enhances labor productivity and drives economic growth. This is particularly relevant in today’s era, where brain power and technical skills are replacing traditional muscle power. On the other hand, nations that suffer from undernutrition are likely to lag behind in the race for modernization and development.

It is essential to distinguish between food deficiency and food insecurity. While GCC countries import 85% of their food requirements, including cereals, meat, fruits, and vegetables, it does not necessarily mean they are food insecure. These countries have the financial capacity to afford food imports. On the contrary, Pakistan and Egypt, despite growing a significant portion of their food, continue to face food insecurity due to population growth, high food inflation, and poverty. The disruption of supply chains during emergencies, such as the Ukraine war, has highlighted the need for establishing sufficient buffer food stocks. However, it is worth noting that only certain edible items can be stored for extended periods.

In addition to Pakistan and Egypt, Iran has also started importing cereals and other food items. Countries such as Syria and Lebanon, which used to export fruits and vegetables to GCC countries, have faced economic challenges and political turmoil, leading to a negative impact on those supplies. Similarly, political instability has hindered the livestock export from Sudan and Somalia to the Gulf countries. These factors emphasize the role Pakistan can play in ensuring its own and regional food security.

Countries like Pakistan, Egypt, and Sudan can supply food items to GCC countries at lower prices due to reduced transportation costs. In 2020, 70% of Pakistan’s total meat exports, valued at $330 million, went to GCC countries. Additionally, the Gulf region imports significant quantities of Pakistani rice.

Pakistan has vast agricultural resources, including the Indus basin, an extensive canal network, and over nine million hectares of virgin land. However, the uneven flow of water in rivers poses a challenge. The solution lies in constructing more water reservoirs to store water during summer, as a large amount of water remains under-utilized during this period and is ultimately wasted in the Arabian Sea. The current water policy of Pakistan aims to make water availability and usage more sustainable.

GCC countries primarily import cereals, various kinds of meat, fruits, and vegetables. These items are sourced from around the world, and grocery stores in these countries offer a wide variety of fruits and vegetables throughout the year. Regional countries like Pakistan, Egypt, and Sudan can offer these food items at lower prices, thanks to shorter transportation distances. Furthermore, Pakistan’s water-intensive crops like sugarcane and rice could be replaced with less water-intensive crops like wheat, barley, millet, maize, and chickpeas to increase food production. This shift, along with the judicious use of irrigation water, could significantly enhance Pakistan’s food production. Additionally, investments are required for large-scale farming, the construction of small dams in Balochistan, and the establishment of large cattle farms to meet the growing food requirements of Pakistan and its Gulf partners. Regional countries should also collaborate and share the latest research findings related to seeds, crop patterns, and animal breeding to improve food production.

To attract foreign investments in agriculture and other promising sectors, Pakistan has established the Special Investment Facilitation Council (SIFC) this year. The SIFC, which operates from the Prime Minister’s office, aims to create a conducive environment for foreign investors by offering a streamlined approval process. The council has already engaged with delegations from Gulf countries and conducted a roadshow in the UAE to attract investments. It specifically focuses on agriculture and livestock corporate farming, with plans to allocate 60,000 acres of land in the Cholistan area for this purpose. Pakistan has proposed an investment of six billion dollars in corporate farming over the next three to five years to Saudi Arabia, the UAE, Qatar, and Bahrain.

Regional cooperation and linkages are essential for achieving food security and optimal economic growth. Collaboration between countries like Pakistan, Egypt, Sudan, and GCC countries can lead to lower food prices, increased prosperity, enhanced security, and overall development.

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