Agriculture forms the backbone of Pakistan’s economy as it provides livelihoods to almost two-thirds of the population and is directly or indirectly counts for about three-fourths of export earnings.
Agriculture contributes 23 percent to the GDP, employees 37.4 percent of the labor force and produces only 20 percent of national income as the rich potential of agricultural resources remains, untapped including a large contiguous irrigated area (43 million acres) and vast reservoirs of underground water.
Estimates show that around $200 billion of output could be generated from these resources compared to the $70 billion currently generated. Despite such a potential, country spends its scarce foreign exchange to import about $10 billion worth of cotton, wheat, sugar, edible oil, milk powder and pulses.
Currently, the productivity remains below par with a decreasing cultivation area, and a population-production gap. According to the World Food Programmed (WFP), 36.9 percent of Pakistanis are food insecure, with 18.3 percent facing severe food crises.
To address the challenges faced by Pakistan’s agriculture sector, the government established Special Investment Facilitation Council (SIFC) earlier this year to attract billions of dollars investments to Pakistan’s agriculture sector from the Gulf Cooperation Council (GCC) states and local investors to boost agriculture production, which can lead to job creation, increased exports, and the generation of additional tax revenues.
Following the establishment of SIFC, Pakistan’s agricultural sector has experienced notable achievements. In October, the sector witnessed an impressive growth rate of 73%, indicating a thriving agricultural industry.
This growth is evident in the significant exports increase of rice and sesame seeds. These positive developments demonstrate the country’s efforts to diversify its exports and the overall strength of the agricultural sector in Pakistan.
Furthermore, the Land Information and Management System, Center of Excellence (LIMS-CoE) was also established under the Director General Strategic Projects of Pakistan Army to enhance modern agro-farming by utilizing over 9 million hectares of uncultivated state land. Saudi Arabia provided an initial $500 million investment to set up the facility.
The government anticipated an average investment of 30 to 50 billion dollars in Pakistan over the next three to four years. As part of this initiative, the country has recently introduced its first corporate farm, with the aim of modernizing agricultural practices.
Efforts are focused to enhance productivity and transform barren land into fertile ground, which will significantly bolster our revenues. Another significant initiative undertaken by SIFC is the Green Pakistan Initiative (GPI), which focuses on crucial aspects such as water conservation, sustainable farming, and research and development.
One of the key beneficiaries of the Green Initiative will be small farmers, as the scope of the programme will eventually extend throughout Pakistan.
Furthermore, the Green Pakistan initiative aligns with Pakistan’s ongoing efforts to attract foreign investment, aims to create a conducive environment for sustainable growth and economic prosperity in the agricultural sector.
These initiatives have attracted praise from agriculture experts and farmers alike, who appreciate the SIFC’s focus on revolutionizing the agriculture sector through the promotion of modern technology and collaboration between the public and private sectors. By empowering local farmers and alleviating poverty, the Pakistan Army has played a crucial role in driving this landmark initiative.
Moreover, the government of Pakistan has taken a significant step towards addressing the increasing demand for local crops by providing comprehensive training to over 460,000 wheat growers in key crop-producing areas.
This training, conducted under the ‘Crop Enhancement Programme’, which aims to improve the per-acre yield of wheat and meet the growing domestic market requirements.
The importance of agriculture in Pakistan cannot be overstated. It significantly contributes to the country’s economy, employment, food security, and export earnings. Additionally, it supports various industries and provides sustainable livelihoods, particularly in rural areas.
Given its significance, the agriculture sector deserves due attention and investment from both the government and the private sector to overcome challenges and improve productivity and competitiveness.
Overall, the formation of SIFC has been a major stake in Pakistan’s agriculture growth, bringing in investments, promoting modern practices, and driving sustainable development in the sector.
Through its initiatives and projects, SIFC has contributed to enhance productivity, increasing crop yields, and improve the overall efficiency of agricultural operations.
This would result in higher incomes for farmers, improved food security, and a boost to the country’s agricultural exports.
Copyright Business Recorder, 2023
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