Global Rice News

Pakistan’s agricultural sector plays a vital role in the country’s economy, contributing approximately 23% directly and over 45% indirectly to the GDP. These estimations are based on the research conducted by the Bank of Punjab (BOP) in collaboration with PIDE and the Planning Commission, which determined the backward and forward links between agriculture and other sectors. However, in order to ensure sustainability and environmental conservation, Pakistan needs to strike a balance between economic growth and ecological limitations.

When it comes to greenhouse gas (GHG) emissions from agriculture, Pakistan’s contribution is less than 2% of the global emissions in this sector. Out of the total 10.5 billion tonnes of CO2 equivalent emitted globally from agriculture, Pakistan emits 0.2 billion tonnes. This highlights the immense potential for sustainable agriculture in the country.

To begin the journey towards sustainability, it is crucial to focus on improving crop yields. Maize cultivation has experienced a remarkable growth of 49% in the last decade, demonstrating the success of implementing effective strategies. By replicating this model for other major crops, Pakistan can further enhance its agricultural productivity.

Indigenization of imports and boosting exports present a significant opportunity for Pakistan. Currently, the country spends $10 billion on agricultural imports but earns only $5 billion from agricultural exports, with rice being a major contributor. By prioritizing crop production and increasing export efforts, Pakistan has the potential to reverse this equation and significantly boost its agricultural income.

In addition to traditional agriculture, aquaculture and meat exports hold tremendous potential for growth. Pakistan’s 1,046km coastline offers opportunities in aquaculture, with current exports close to $500 million but the potential estimated to be over $2 billion. Similarly, the meat export segment, currently valued at $350 million, has the potential to reach over $10 billion with concentrated investments over the next three to five years.

Fruit and vegetable exports, currently below $500 million, have the potential to increase to approximately $5 billion. However, challenges such as supply-chain constraints and a lack of branding need to be addressed to fully tap into this potential.

The agricultural sector also faces inflationary challenges, including imported inflation, demand-pull inflation, greedflation, and shrinkflation. These factors contribute to food insecurity and hinder the development of the sector. Alarmingly, 36.9% of households in Pakistan are labeled as food insecure, with 18.3% facing severe food insecurity. The per capita consumption of nutritious food items like beef, chicken, fish, milk, vegetables, and fruit is significantly lower compared to developed countries. Additionally, the prevalence of stunting in children under five years is higher in Pakistan compared to continental Africa, standing at 37%.

Given Pakistan’s rapidly growing population, which is estimated to reach over 400 million by 2050, there is an urgent need to meet the increasing food requirements. As dietary patterns change, food demand is expected to double, surpassing the global food requirement increase of 60% in the next 27 years.

Sustainable agriculture in Pakistan is closely tied to improving livelihoods, especially for smallholder farmers who constitute a significant portion of the population. These farmers face resource constraints and increased vulnerability to climate change. It is essential to implement strategies that enhance their resilience and ensure sustainable agricultural practices.

Food waste is another critical challenge that needs to be addressed. Globally, around 30% of agricultural land is used to produce food that is ultimately lost or wasted. In Pakistan, with its specific eating habits, fragile food storage logistics, and lack of waste management technology, this issue is likely even more significant.

The government provides subsidies to the agricultural sector, making it the second largest recipient of subsidies after the energy sector. However, the impact of these subsidies in improving productivity is not clearly visible. There is a need for better management and allocation of these subsidies to ensure they effectively support the sector.

In conclusion, Pakistan’s agricultural sector plays a significant role in the country’s economy and has immense potential for growth. By focusing on sustainability, indigenization of imports, and boosting exports, Pakistan can maximize its agricultural income. Addressing inflationary challenges, food insecurity, population growth, and food waste are crucial steps in achieving sustainable agriculture and ensuring food security in the country.

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