Pakistan currently has the eighth largest farm output in the world. Features such as an abundance of rich natural resources across a range of ecological and climatic zones contribute to Pakistan’s high agricultural output. However, the agricultural industry’s share in Pakistan’s total gross domestic product (GDP) has seen a sharp decline from 53 percent in 1950 to 19.8 percent in 2017. Pakistan was supplying raw materials to the subcontinent along with various other global markets between 1947 and 1950. During this time, farm production constituted of lower rates than other global markets, and cross-regional transport and export were not allowed. After the advent of the Green Revolution in the 1960s, strict agricultural policies eased up significantly. Perhaps the most noteworthy development can be seen after the introduction of the Ayub regime, which brought about land reforms and limited individual assets. Government subsidies were provided to import advanced agricultural machinery, tube wells were constructed to counter the lack of water supply, and the first agriculture-based university in Pakistan was established. In the following years, the growth rate of the agricultural industry fell to 2.3 percent due to the government’s nationalization program, which allowed it to keep farm production and distribution to itself.
Additionally, the agricultural sector did not benefit from the rupee’s devaluation as it was riddled with unfair government monopolies and export responsibilities. Likewise, the growth rate continued to fluctuate from 5.9 percent to 4.4 percent in the 1990s as extensive structural modifications were implemented. Following these changes, the livestock industry developed and became a vital subsector of the agricultural industry, providing approximately a quarter of the agricultural GDP.
The agricultural industry holds an indispensable role in the growth of Pakistan’s economy. Agriculture is a vital means of making a living or generating an income for a significant portion of the working class. Forty-eight percent of the labor force is directly engaged in the agricultural industry, and approximately 22 percent are connected indirectly. Additionally, Agriculture is producing food for a significant portion of Pakistan’s population, and it is also providing raw material for the industrial sector. Statistics state that the agricultural industry has the greatest contribution to Pakistan’s GDP, 25 percent, greater than all the other industries. As Pakistan’s economy is still developing, there is an undeniable need for ongoing employment opportunities. Fortunately, the agriculture sector plays a vital role in providing various direct and indirect employment sources to the general public. Additionally, Pakistan’s GSP of economy and per capita income can benefit from increased employment. Furthermore, an increase in the per capita income can lead to additional developments such as higher living standards, better health and medical facilities, and higher quality of education, which are all indicators of economic progress.
Apart from employment, the agricultural industry has also contributed to efforts to eradicate rural poverty. From 1975 to 2000, the agriculture GDP growth rate stood at 4.1 percent per year. However, farm production increased significantly due to the green revolution, which brought about technological advancements for irrigation systems and higher quality fertilizers. Such progressive changes benefited farmers in the form of more land that further increased their production and income. Moreover, exports are also a significant contribution made by the agricultural industry as the most prominent exports of Pakistan include cash crops like cotton, rice, and wheat. Such agricultural jewels are exported to global markets. They are a vital source of foreign exchange, which is further invested in imports of advanced industrial equipment or utilized in developing other sectors of the economy such as health and education.
Framers involved in Pakistan’s agricultural industry have faced many struggles, and the government’s involvement has not given them any solutions. Firstly, government policies have manipulated incentives allocated to the agriculture sector through the exchange rate and pricing policies. Additionally, government subsidies have disfigured input markets, and such distortions hinder framers from taking advantage of any agricultural policies. Public institutions have benefited from the agricultural policies and multiplied in number and profit; however, the sector has not progressed in production and quality.
In order to rectify these distortions, Pakistan’s government has taken some steps, including utilizing China Pakistan Economic Corridor (CPEC). Specialists from both China and Pakistan have analyzed the effects CPEC has had on small-scale farmers. Both parties have stated that the agriculture sector has not been given much attention in the first phase of CPEC, but things will be different in the second phase, initiated in 2018. The Country Director has said that Pakistan has the potential to generate a wide range of opportunities in the agriculture sector. Furthermore, it has been established that small-scale farmers are indispensable for the agricultural industry, and increased efforts, such as the facilitation of state-of-the-art machinery and advanced technology, from both countries, are needed to support them. The central focus of this project is to provide effective sources of knowledge and a common platform for assistance that is easily accessible for farmers to help the agriculture sector flourish in Pakistan.
The government’s attempts at revolutionizing the agriculture industry include exploring the organic agriculture ecosystem as it carries significant potential in countering climate change. Organic agricultural practices can assist in distributing water supplies, reducing the production of greenhouse gases, and bringing about a fresh and relevant take on the agricultural industry. Farmers and other stakeholders of the agriculture sector endorse the accessibility of organic framing materials such as seeds and bio-inputs to sustain the organic agriculture system. The government has ensured full support for developing the organic agriculture policy, and it is creating a group of qualified professionals from provincial, federal, and private sectors for efficient management. The organic agriculture policy will be implemented by minimizing chemical fertilizers and pesticides and implementing economically feasible agricultural practices.
The government of Pakistan needs to recognize the immense potential that the agricultural industry has that can bring about significant economic development. But, more importantly, struggles faced by farmers, mainly small-scale and rural-based, have to be identified and addressed to maximize the production and export of cash crops.
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