Pakistan Aims to Modernize Agriculture Sector with Sweeping Reforms

Strategic Insights -

Pakistan's Prime Minister Shehbaz Sharif has pledged to boost investment in agricultural technology and lower taxes on farm inputs as part of a comprehensive effort to modernize the country's struggling farm sector. Agriculture accounts for approximately 23% of Pakistan's GDP and employs nearly 38% of the labor force. The sector has long been hindered by water scarcity, outdated methods, poor storage, and rising costs for essential inputs. The reforms aim to improve rural incomes, stimulate agri-tech innovation, and enhance food security.

Key Takeaways:

  • The government plans to reduce duties on farm machinery and avoid new taxes on fertilizer and pesticides to ease the financial burden on farmers.
  • Officials are accelerating development schemes that improve storage capacity, modernize irrigation and harvesting practices, and support value-added exports to boost farmers' incomes.
  • The proposed National Agriculture Innovation and Growth Action Plan aims to increase yields, improve access to credit for smallholders, and support value-added exports.
  • A total of 129 agri-tech startups have been launched under the government-backed Ignite National Technology Fund, focused on smart farming, irrigation efficiency, and digital market tools.
  • Participants highlighted the need to support Pakistanis studying agriculture abroad, especially in China, to acquire modern farming techniques.
  • Cabinet members and MNAs from various constituencies called on Prime Minister Shehbaz Sharif, discussing the overall political situation, matters related to the ministries of communications and overseas Pakistanis, and the pro-people budget for fiscal 2025-26.
  • Minister for Public Affairs Rana Mubashir Iqbal, State Minister Abdur Rehman Kanju, and Special Assistant Talha Barki attended meetings with parliamentarians.

Statistics:

  • Agriculture accounts for approximately 23% of Pakistan's GDP.
  • The agricultural sector employs nearly 38% of the labor force.
  • China is mentioned as a destination for agricultural studies, aligning with Pakistan's goal of acquiring modern farming techniques.
  • 129 agri-tech startups have been launched under the government-backed Ignite National Technology Fund.
  • No specific timeline or budget allocation for the National Agriculture Innovation and Growth Action Plan is mentioned.

Sources:

  • A statement from Prime Minister Shehbaz Sharif's office.
  • Official data.