LAHORE: The Agriculture Republic, a think-tank that brainstorms agricultural issues and suggests remedies, says the performance of the agricultural sector in Pakistan can still be improved; shifting from being a food importer to a food exporter provided private sector investment is encouraged by amending some important laws relevant to seeds, expanding arable land and building stronger linkages between processors and growers.
Besides, the government should also encourage investing in equity capital in modern agri-technologies and upgrading the irrigation system in the country through digital and smart solutions.
Agriculture Republic Co-founder Aamer Hayat Bhandara while talking to the Business Recorder on Monday said that agriculture sector performance in 2023 was affected by various factors, such as floods, less availability of technology, water management, seed availability, less financing and livestock housing nutrition and disease control.
The sector contributed 22.9 per cent to the GDP and showed a slight growth of 1.55 per cent, against a target growth of 3.9 per cent. However, the sector also faced challenges in revenue mobilization, expenditure management, irrigation systems, and agriculture processing.
Aamer further said Pakistan’s agriculture sector, which accounts for about 20 per cent of the country’s GDP and employs nearly half of the labour force, faced multiple challenges and opportunities in the fiscal year 2023.
“According to the World Bank, Pakistan’s real GDP is estimated to have declined by 0.6 per cent in FY23, after growing by 6.1 per cent in FY22 and 5.8 per cent in FY21.
The agriculture sector grew by only 1.5 per cent, compared to 3.9 per cent in FY22 and 3.8 per cent in FY21. The floods caused heavy damage to crops and livestock, while difficulties securing critical inputs, including fertilizers, further slowed agriculture output growth”, he added.
Aamer claimed that his organization had identified five key factors that impact agricultural growth in the country: access to technology, water efficiency, availability of quality seed, financing in crops and housing, nutrition and disease control in livestock.
The previous elected government also took some steps to address the challenges faced by the agriculture sector in FY23.
The Economic Survey 2022-23, highlighted some of the initiatives taken by the government, such as providing subsidies on fertilizers and electricity, launching the Prime Minister’s Agriculture Emergency Program, enhancing the crop insurance scheme, promoting the use of solar tube wells and facilitating the export of surplus wheat and sugar.
Right after the budget, in June 2023, the government shared an Economic Revival Plan to curb the economic hardships by targeting the key sectors of agriculture, livestock, minerals, mining, information technology, energy and defence by inviting its friendly countries for investment. To expedite such projects, the Special Investment Facilitation Council (SIFC) was established, providing a one-window facility for potential investors and adopting a unified approach.
However, despite efforts by the outgoing political government, challenges, particularly in terms of inputs like fertilizers, i.e., urea and phosphate black marketing and higher prices, fuel price hikes and increases in energy prices put severe pressure on farmers during the Kakar Government in interim setup, he added.
Aamer claimed the agriculture sector also witnessed some opportunities and achievements in FY23. The sector diversified its export markets, especially for rice, sesame, fruits, and vegetables, and increased its share in the global trade of these commodities.
The sector also adopted some innovative technologies, such as precision agriculture, smart solutions, grain storage and controlled cold storage, and high-efficiency irrigation systems, to improve the quality and quantity of agriculture as well as livestock produce.
The sector also benefited from the increased demand for organic and halal food products from Pakistan in the international markets.
Concluding, Aamer said the agriculture sector of Pakistan was expected to recover and grow in the medium term, provided that the government and the private sector work together to implement the necessary reforms and investments.
Copyright Business Recorder, 2023
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