An agrarian economy is an economic system primarily based on agriculture, where the majority of economic activity, employment, and income are derived from agricultural production. In an agrarian economy, agriculture plays a central role in shaping the overall economic structure and development of a country or region. Agriculture is the lifeblood of Pakistan’s economy, deeply rooted in its major crops. With fertile land and water, Pakistan’s primary resources fuel its agricultural sector. This vital industry contributes roughly 22.35 % to the country’s GDP and engages around 42.3% of its workforce.
Pakistan’s agricultural sector showcased robust production across various key crops. Sugarcane production amounted to an impressive 67.1 million tons, positioning Pakistan as the 5th largest global producer in this category. Wheat production stood at 25.0 million tons, securing Pakistan’s position as the 7th largest producer worldwide, while rice production reached 10.8 million tons, placing Pakistan at the 10th spot globally. Maize production amounted to 6.3 million tons, ranking Pakistan 20th globally. The cotton industry also thrived with a production of 4.8 million tons, securing Pakistan’s position as the 5th largest. Pakistan produced 4.6 million tonnes of potatoes, ranking 18th globally, and 2.3 million tonnes of mangoes, positioning the country as the 5th largest producer. Other notable productions include onions at 2.1 million tons (6th globally), oranges at 1.6 million tons (12th globally), tangerines at 593 thousand tons, tomatoes at 1,601 thousand tons, apples at 545 thousand tons, watermelons at 540 thousand tons, carrots at 501 thousand tons, and dates at 471 thousand tons, securing Pakistan’s position as the 6th largest global date producer. Additionally, Pakistan contributed to global agriculture with smaller quantities of various other agricultural products.
The assumption that ‘Pakistan is an agricultural economy’ is largely acknowledged because the agriculture sector of Pakistan still employs 39 percent of the entire labour force and contributes a substantial 22.35 percent share to the national GDP. Even though more than 60% of the population is dependent on agriculture, either directly or indirectly, agriculture productivity is low in comparison to other global economies.
Challenges faced by Pakistan’s agrarian economy are multifaceted and require a nuanced understanding of the factors impacting agricultural productivity, sustainability, and socio-economic development. Water scarcity stands as a significant challenge, with a drastic decrease in per capita water availability over the years, leading to widespread issues of water scarcity. Additionally, land degradation due to soil erosion, salinity, and waterlogging has severely affected agricultural productivity, with approximately 6.3 million hectares of land being affected by these factors. Moreover, despite being an agrarian economy, Pakistan struggles with low agricultural productivity compared to regional and global standards, exemplified by relatively low yields of staple crops such as wheat.
Climate change poses another formidable challenge to Pakistan’s agrarian economy, with erratic rainfall patterns, extreme temperatures, and natural disasters impacting agricultural production. The country ranks among the top countries most affected by climate change, exacerbating the existing vulnerabilities in the agricultural sector. Furthermore, outdated farming techniques and a lack of mechanization contribute to inefficiencies and low productivity levels. This is compounded by limited access to credit for small-scale farmers, market access challenges, and price volatility, which adversely affect farmers’ income and livelihoods.
Food insecurity remains a pressing issue despite Pakistan’s agricultural prominence, with millions of people suffering from malnutrition and food shortages. Pesticide misuse and environmental concerns also pose significant risks, with pesticide consumption in Pakistan surpassing the global average, leading to environmental degradation and health hazards. Rural-urban migration further exacerbates labor shortages in rural areas, impacting agricultural productivity and sustainability. Moreover, policy and governance issues, including inconsistent policies and inadequate agricultural research and extension services, hinder the development of Pakistan’s agrarian economy, necessitating comprehensive reforms and interventions.
To address these challenges, a comprehensive approach involving government policies, investments, and stakeholder engagement is imperative. Recommendations include improving water management and irrigation infrastructure, implementing soil conservation techniques, promoting technology adoption and mechanization, and enhancing climate resilience through crop diversification and value addition. Strengthening market access, financial inclusion, capacity building, policy reforms, research and innovation, rural development, and education and awareness initiatives are also crucial. Implementing these recommendations requires coordinated efforts from various stakeholders to ensure sustainable and inclusive agricultural development in Pakistan.
Comparing Pakistan’s agriculture sector with India’s reveals both similarities and differences shaped by factors such as geography, climate, government policies, and agricultural practices. Both countries have agrarian economies where agriculture plays a significant role in employment, GDP contribution, and food security. However, there are notable distinctions in terms of landholding patterns, cropping patterns, and agricultural productivity.
India has implemented several reforms aimed at boosting its agricultural sector, and Pakistan could consider similar measures to enhance its own agriculture industry. One significant reform in India is the introduction of the Minimum Support Price (MSP) system, which provides farmers with a guaranteed minimum price for their crops to ensure income security. Pakistan could explore implementing a similar system or strengthening existing price support mechanisms to provide farmers with more predictable and remunerative prices for their produce.
Another important reform in India is the promotion of agricultural diversification and value addition through initiatives such as the National Agricultural Market (eNAM) and the Operation Greens scheme. These programs aim to improve market access for farmers, reduce post-harvest losses, and enhance the value chain in agriculture. Pakistan could introduce similar schemes to promote market integration, improve infrastructure for storage and transportation, and encourage the development of agro-processing industries to add value to agricultural products.
Furthermore, India has taken steps to modernize its agricultural practices through the adoption of technology and innovation. Initiatives like the Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) focus on improving water use efficiency and promoting sustainable irrigation practices. Pakistan could invest in similar programs to address water scarcity issues, promote efficient water management practices, and enhance productivity in agriculture.
Additionally, India has introduced reforms to facilitate easier access to credit and insurance for farmers through initiatives like the Kisan Credit Card scheme and the Pradhan Mantri Fasal Bima Yojana (PMFBY). These measures help farmers mitigate risks and invest in their farming operations. Pakistan could consider implementing similar schemes to improve access to finance and risk management tools for its farmers, thereby supporting agricultural growth and resilience.
Pakistan could learn from India’s experiences and consider implementing reforms related to price support mechanisms, market integration, technology adoption, and access to finance to boost its agricultural sector and improve the livelihoods of its farmers.
