Examining Pakistan's Agricultural Sector: Legacy, Progress, and Challenges

Since gaining independence in 1947, Pakistan's agricultural sector has been the backbone of its economy, consistently contributing significantly to the country’s GDP, employment, and rural livelihoods. This sector has been at the center of numerous policy interventions aimed at enhancing productivity, ensuring food security, and promoting equitable land distribution.

Three major land reforms, implemented in 1959, 1972, and 1977, were critical in reshaping land ownership patterns. However, the effectiveness of these reforms was often undermined by challenges in implementation. Subsequent policies, such as the National Agriculture Policy (2000), were introduced to modernize agriculture and address the evolving needs of the sector. More recently, the Seed Act of 2015 was enacted to improve seed quality, which is crucial for boosting crop yields. Despite these efforts, the agricultural sector remains under significant pressure, necessitating a renewed focus on comprehensive and sustainable reforms.

The Current Challenges

Despite decades of policy interventions, Pakistan's agricultural sector continues to struggle with several persistent challenges that hinder its growth and sustainability.

1. Low Productivity

Crop yields in Pakistan, while having improved over the years, remain below global averages. For instance, the Economic Survey of Pakistan 2022-23 reports that wheat yield stands at 2.9 tons per hectare, significantly lower than the global average of 3.5 tons per hectare. This yield gap highlights the need for continued innovation and support in agricultural practices.

2. Water Scarcity

Water scarcity is one of the most pressing challenges facing Pakistan's agricultural sector. The Pakistan Council of Research in Water Resources (PCRWR) reports that over 93% of the country's water is used in agriculture, yet only 39% of this water is utilized efficiently. Inefficient irrigation practices, such as flood irrigation, lead to significant water wastage, exacerbating the already acute water shortages in the country. Modernizing irrigation practices is crucial to improving water use efficiency and ensuring the sustainability of the agricultural sector.

3. Fragmented Land Ownership

Land fragmentation remains a critical issue, despite multiple land reform efforts. Smallholder farmers, who make up the majority of Pakistan's farming population, often lack the resources to invest in land improvements or modern farming techniques. According to the International Fund for Agricultural Development (IFAD), 90% of farms in Pakistan are small, with less than 5 hectares of land. This fragmentation exacerbates inefficiencies in the sector and limits the potential for productivity gains.

4. Climate Change

The agricultural sector in Pakistan is increasingly vulnerable to the impacts of climate change. The United Nations Food and Agricultural Organization (FAO) in 2023 reported that natural and man-made disasters have caused $3.8 trillion in crop and livestock losses over the past 30 years. These losses highlight the urgent need for climate resilience measures in agriculture to safeguard the livelihoods of millions of farmers and ensure food security.

5. Declining Labor Force Engagement

The agriculture sector’s share in employment has steadily declined from 60% in 1950 to 37.4% in 2024. This shift reflects both economic diversification and the challenges in sustaining agricultural livelihoods. The consistent decline, as documented in various Economic Surveys, indicates a pressing need for reforms that can revitalize the sector and make it more attractive to the labor force.

Historical Overview of Agricultural Reforms and Policies

1959 Land Reforms

Initiated under President Ayub Khan, the 1959 land reforms aimed to redistribute land from large landowners to tenants and small farmers. Although 2.5 million acres were redistributed, large landowners managed to retain significant holdings through legal loopholes, limiting the overall impact of these reforms.

1972 Land Reforms

Implemented by Prime Minister Zulfikar Ali Bhutto, the 1972 land reforms sought to further limit land ownership and distribute land to landless farmers. Despite the redistribution of 0.6 million acres, the impact was again limited due to strong resistance from the landed elite and the persistence of implementation challenges.

1977 Agricultural Reforms

Also introduced by Z. A. Bhutto, these reforms aimed to consolidate earlier efforts and improve agricultural productivity. However, political instability at the time adversely affected the growth of the sector, and the intended productivity gains were not fully realized.

National Agriculture Policy (2000)

The National Agriculture Policy of 2000 was designed to modernize agriculture through the promotion of high-yielding seed varieties, increased use of fertilizers, and the adoption of better farming practices. According to the Economic Survey of 2001-02, there was a 5% increase in crop yields following the implementation of this policy. However, the gains were not sustained due to subsequent challenges in policy continuity and resource allocation.

Seed Act (2015)

The Seed Act of 2015 updated the regulatory framework for seed certification and quality assurance, with the goal of enhancing crop yields by ensuring the availability of high-quality seeds. The Economic Survey of 2017 noted a 15% increase in certified seed usage, indicating a positive impact of the act. However, enforcement challenges persist, limiting the full realization of the benefits of this legislation.

Way Forward: Policy Recommendations

Reflecting on the past 77 years of agricultural policy and reform, the following recommendations are proposed to address the current challenges and ensure a prosperous future for Pakistan’s agriculture:

1. Modernization of Farming Techniques

The adoption of precision agriculture, mechanization, and digital tools can significantly boost productivity. For example, the Economic Survey of 2022-23 highlights a 7% increase in productivity in regions where modern techniques were adopted. Scaling up these practices across the country could lead to substantial improvements in overall agricultural output.

2. Water Management

Reforming irrigation practices is crucial for water conservation. The promotion of efficient irrigation systems, such as drip and sprinkler irrigation, could reduce water wastage significantly. For instance, India’s success in implementing micro-irrigation techniques offers a valuable lesson for Pakistan, where similar reforms could be adapted to local conditions.

3. Land Reforms

Revisiting land reforms to address ongoing issues of land fragmentation is necessary. Policies should encourage land consolidation, which could improve efficiency and productivity. Brazil's success in land consolidation through cooperative farming models provides a potential blueprint for similar initiatives in Pakistan.

4. Climate Resilience

Promoting climate-smart agriculture practices is vital for building resilience against climate change. This includes the development and distribution of drought-resistant crop varieties and the implementation of sustainable farming practices. The success of climate-resilient crops in Ethiopia, for example, underscores the importance of such measures in vulnerable regions.

5. Market Access and Infrastructure

Improving rural infrastructure, such as roads, storage facilities, and market access points, is essential for reducing post-harvest losses and enabling farmers to reach larger markets. The Punjab government’s initiative to establish rural roads under the "Khushal Punjab" program has demonstrated the positive impact of improved infrastructure on agricultural productivity.

6. Credit and Financial Support

Expanding access to tailored financial products will empower smallholder farmers and increase productivity. For example, the Agricultural Loans Scheme introduced in 1972 helped many farmers, but its reach and effectiveness need to be expanded. Innovative financial models, such as mobile banking and microcredit, could provide much-needed support to farmers.

7. Stakeholder Engagement

Successful reform requires the active participation of all stakeholders, including farmers, government agencies, and the private sector. Collaborative platforms, such as the "Kissan Board," which brings together farmers and policymakers, could ensure that policies are responsive to the needs of the farming community.

Case Studies/Examples

India’s Green Revolution

The Green Revolution in India, which introduced high-yielding seed varieties and modern farming practices, significantly increased agricultural productivity. Pakistan can learn from this experience, particularly in balancing productivity with sustainability to avoid long-term environmental degradation.

Brazil’s Agricultural Research and Innovation

Brazil’s focus on research and innovation in agriculture, particularly through its agricultural research corporation EMBRAPA, has transformed it into one of the world’s leading agricultural producers. Pakistan could benefit from a similar emphasis on research and development to boost its agricultural sector.

Local Success Story: Punjab’s Wheat Initiative

In Punjab, the introduction of improved wheat varieties and better farming practices has led to significant increases in wheat production. This local success story demonstrates the potential of targeted interventions and government support in enhancing agricultural productivity.

Potential Impact

Economic Impact

Implementing these reforms could significantly boost agricultural productivity, contributing to GDP growth, reducing the trade deficit, and enhancing food security. Increased productivity could also help stabilize food prices and reduce inflation, benefiting the entire economy.

Social Impact

Addressing land ownership inequities, improving market access, and providing financial support will uplift rural communities, reduce poverty, and improve livelihoods across Pakistan. Enhanced agricultural productivity will also contribute to rural development and reduce migration to urban areas.

Environmental Impact

The adoption of climate-smart practices and improved water management will mitigate the environmental impacts of agriculture, ensuring the sector's sustainability in the face of climate change. These measures will help preserve natural resources and protect biodiversity, which are essential for long-term agricultural viability.

Implementation Strategy

Action Plan

The proposed reforms should be implemented in phases, starting with pilot projects in key regions to test and refine approaches. A timeline of 5 to 10 years should be established, with clear milestones and performance indicators to track progress. Pilot projects in regions like Punjab and Sindh, where agricultural practices are well-developed, could serve as models for nationwide implementation.

Institutional Framework

A central coordinating body within the Ministry of National Food Security & Research should oversee the implementation of these reforms, working closely with provincial governments to ensure alignment with local needs and conditions. This body should have the authority to coordinate across ministries and secure the necessary resources for successful implementation.

Funding and Resources

Funding should come from a mix of government budgets, international development partners, and private sector investment. Public-private partnerships (PPPs) could be particularly effective in areas like infrastructure development and technology dissemination. For instance, partnerships with international organizations like the World Bank and FAO could provide technical expertise and financial support for key initiatives.

Conclusion

As Pakistan celebrates 77 years of independence, it is essential to reflect on the legacy of progress in the agricultural sector and address the unresolved challenges. By learning from the successes and shortcomings of past reforms and implementing the proposed strategic measures, Pakistan can build a more productive, sustainable, and resilient agriculture sector. This will not only support the country's economic and social development but also ensure food security and improved livelihoods for millions of Pakistanis.

Please note that the views expressed in this article are of the author and do not necessarily reflect the views or policies of any organization.

Wardah Naqvi and Sami Ullah are PhD Scholars at Institute of Agriculture and Resource Economics, University of Agriculture, Faisalabad, Pakistan.

Dr. Raza Ullah is an Associate Professor Scholars at Institute of Agriculture and Resource Economics, University of Agriculture, Faisalabad, Pakistan.

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