Ahmed Najeeb
The author is a Research Assistant at the Center for Global & Strategic Studies (CGSS), a think tank based in Islamabad
The Agriculture Sector in Pakistan and PTI Government’s Agricultural Reforms For the Fiscal Year 2018-19
The agriculture sector of Pakistan has historically been the biggest contributor to the GDP, employs the largest number of workers and because of its contribution to the economy in one form or another has been termed “the backbone of the Pakistani economy.” As of 2019, the agriculture sector of Pakistan employs 38.5 percent of the workforce and has a contribution of 18.5 percent to the GDP of Pakistan. During recent years due to the inability to keep up with technological advancements, ineffective utilization of resources and the impending threat of water shortages that are already starting to be felt across the country the agriculture sector of Pakistan has not been able to keep up with the pace that is required of this critical part of the Pakistani economy. During the 2018-19 fiscal year the government introduced subsidies in fertilizers ranging from a uniform 2 percent tax rate for fertilizers, opened two operationalized fertilizer plants, provided per bag subsidies in the import and manufacture of fertilizers and other incentives. In order to combat Pakistan’s water crisis. “National Water Policy” was formulated and implemented in 2018. Financing options for “Diamer-Bhasha” and “Mohmand” dam were explored since both are mega projects. Initial work on “Mohmand” dam has begun. “Kachhi Canal” in Balochistan and “Rainee Canal” in Sindh have been operationalized. Work on “Nai Gaj Dam” in Sindh has almost been completed. In order to reduce water losses from the current irrigation system, Rs.2, 000 million were allotted for the lining of small and minor canals in Punjab as well as Sindh. A further Rs.1, 200 million were allotted for the improvement of current canals and Rs.17, 137 billion for the construction of small/medium/delay/action dams.
During the 2018-19 fiscal year, the agriculture sector grew by a meagre 0.85 percent, extremely short of the 3.8 percent target. The crop sector had a negative growth of -4.43 percent, due to a decline in the growth of important crops by -6.65 percent. Livestock, the biggest contributor to agriculture in Pakistan grew by 4.0 percent while the fishing sector grew by 0.79 percent. The forestry sector grew by 6.47 percent. Moreover, during the 2018-19 fiscal year the State Bank of Pakistan introduced various insurance schemes for the provision of adequate financial resources to livestock and crop farmers. Amongst their initiatives was a “Government of Punjab E-credit scheme”, “Implementation of Credit Guarantee Scheme for small and marginalized farmers” and “Adoption of Automation of Land Record for Agricultural Financing” and Training as well as workshops and awareness building. This was an attempt to insure a larger number of loans could be provided to deserving and needy farmers and assistance be given in other forms.
New Projects and the Way Forward
In order to revamp the agriculture sector in Pakistan, in 2019 the government launched “the Prime Minister’s Agriculture Emergency Program” is a 5 year program that covers various projects aimed at the rejuvenation of the agriculture sector of Pakistan. This covered various areas of focus including the “Productivity Enhancement of Wheat, Rice and Sugarcane.” This project aims to improve crop processing methods and develop high yielding hybrid varieties. “The National Oil Seeds Enhancement Program” aims to offer subsidies in machine purchase and production and growth of oilseeds amongst other key interventions. The project “Conserving water through lining of watercourses”, is aimed at lining 50 percent of a total length of 73, 078 watercourses including 13, 875 water storage tanks. The project “Enhancing Command Area of Small and Mini Dams in Barani Areas”, is expected to increase area under crops in areas that are dependent on rainwater for irrigation, improve land and water productivity and develop command areas of small and mini dams. “Water Conservation of Barani Areas of Khyber Pukhtunkhwa”, shall construct check dams and water ponds and aims to facilitate processes such as Terracing, Pipe lining and solarisation of water reservoirs as well as various other initiatives. The project “Shrimp farming” focuses on enhancing and promoting shrimp aquaculture in Pakistan as well as a value chain and legal framework. The project “Cage Fish Culture” aims to upscale cage culture technology, export earnings from cage aquaculture and increase per capita fish consumption amongst other objectives. “Trout Farming in Northern Areas in Pakistan” and “Save and Fattening of Calf “are other projects of The Agriculture Emergency Program. Each program has been allotted a certain amount of money, and each project is expected to complete its certain aims and objectives over the next five years.
Future Prospects
and Recommendations
Despite these efforts, much work is yet to be done. Fertilizers contribute 30 to 50 percent to crop yield, and being an agrarian economy, the government still needs to substantially increase production of fertilizers, provide more incentives to manufacturers and ensure the provision of fertilizers through a transparent, smooth and established supply chain hence improving crop yields and cheaper fertilizers to farmers but not too cheap so as to discourage manufacturers. In the case of crop farming seed hybridization is an important aspect in which Pakistan lags behind other competing nations. If worked upon sufficiently, Pakistan can compete in the international and local markets to export agricultural goods. In this, research is a pertinent factor and the government does not appropriately utilise or provide incentives to biotechnology graduates and applied bio-scientists to conduct research on regional species and possible hybrids that can not only increase yields per acre but also adopt more appropriately and easily to local climate and soil conditions. Furthermore, farming practices in Pakistan are still conventional when compared to those employed by primarily agrarian economies. Technological advancements though initially expensive, can bring substantially more profits to large scale farmers. The impending water shortages are becoming increasingly problematic, that when combined with inadequate future water projects and Indian violation of the Indus Water Treaty by consistent construction of dams along the rivers has collectively contributed to Pakistan suffering from an evident lack of irrigation sources. However, as discussed above the government is taking measures to deal with this water shortage and that to as soon as possible, with multiple initiatives covering a wide number of areas related to water conservation. To rejuvenate economic prosperity from the agricultural sector in Pakistan, there needs to be more regulation at not just the domestic level for better competition in local markets but also to improve production standards and ensure higher quality output that can be exported. For research as well as agricultural production the government needs to synergise with universities, local farmers, private companies and develop policies that cover farmers operating at all levels, even and especially small farmers who are much larger in number. For livestock farming, there need to be stricter health regulations and livestock needs to be tested for infectious diseases so that the produce is acceptable even in international markets. While focusing on the agricultural sector domestically, the government needs to ensure sufficient trader alliances with other countries so that there is greater potential for growth. Especially in trade associations, the government needs to voice the importance and quality of Pakistani produced goods which at times may be cheaper for trade partners without any compromise on their quality. All in all, the government has been endeavouring to bring the Pakistani economy if not back to its days as a primarily agrarian economy but to ensure maximum development in this sector with numerous projects and policies to facilitate farmers. Though a lot of work still needs to be done, it does seem that the direction established is one that shall bear fruit both literally and figuratively.
