Strengthening Pakistan's Agriculture Through Local Governments

Local governments (LGs) play an indispensable role in transforming Pakistan’s agriculture by ensuring policies are responsive to local needs, delivering essential services, and directly engaging farmers. Decentralization reforms, such as the 2010 Local Government Ordinance in many provinces, aimed to transfer authority and resources from provincial capitals to district and tehsil administrations. In theory, this empowers LGs to tailor irrigation projects, extension services, and credit schemes to regional agronomic conditions. For example, in Punjab’s Faisalabad district, the local council coordinated canal maintenance schedules with crop calendars, reducing waterlogging and improving yields by an estimated 8% in three years (Punjab LG Department, 2021).

Yet persistent centralization undermines these gains. Key decisions on fertilizer subsidies, large-scale irrigation infrastructure, and crop insurance remain controlled by provincial bureaucracies, leaving LGs with limited autonomy. Political interference further distorts resource allocation: when influential groups lobby for projects in politically significant areas, water allocation and road maintenance often bypass high-need farming zones. In Khyber Pakhtunkhwa, districts with lower political clout experience 20% less spending on rural infrastructure compared to more influential districts (KP Finance Commission, 2022).

Fiscal constraints add another layer of complexity. Only 12% of LG budgets are earmarked for agricultural services, despite agriculture accounting for over one-third of employment. Extension officers are frequently understaffed; the recommended ratio of one officer per 1,000 farm households is often reversed, with one officer serving up to 5,000 households in remote areas. This staffing shortfall means timely advice on climate-resilient practices, such as crop rotation, drip irrigation, and drought-tolerant seed varieties, rarely reaches smallholders.

To address these gaps, LGs should receive increased fiscal transfers linked to performance metrics, such as improvements in per-hectare yield and irrigation efficiency. Establishing district-level agricultural boards that include farmer representatives can enhance accountability and ensure resource allocation aligns with local priorities. Leveraging digital platforms, mobile apps for weather forecasts and pest alerts, can overcome extension constraints by delivering real-time guidance. Finally, granting LGs authority over small-scale irrigation works and local seed distribution can expedite climate-resilient interventions, ensuring that Pakistan’s farmers receive the support they need to thrive.

Decentralization Reforms and Agricultural Governance

Pakistan’s journey toward decentralizing agricultural governance has been marked by ambitious reforms that often fell short of their goals. The 2001 Devolution Plan and subsequent 2013 Local Government Acts aimed to devolve authority from provincial capitals to district and tehsil administrations. In Punjab, for example, the 2013 Local Government Act formally delegated irrigation management and agricultural extension services to district councils. Despite these provisions, 70% of local government budgets remain reliant on provincial transfers, severely limiting true autonomy (World Bank, 2023). Without stable, locally generated revenues, districts struggle to prioritize timely maintenance of canal networks or staffing of extension officers. In Sindh and Khyber Pakhtunkhwa, experiences have been uneven: while some districts successfully expanded farmer training programs and community seed banks, others face chronic delays in fund disbursement that stall service delivery (ADB, 2023).

Several core challenges undermine decentralization’s promise. Politically, provincial interference and elite capture persist, as influential figures shape resource allocation in ways that often favor urban interests over rural agricultural needs. This dynamic means that irrigation projects and subsidy schemes rarely target smallholders in marginalized areas. Administratively, extension services are under-resourced and understaffed; many districts have only a fraction of the recommended number of agricultural officers, leading to delays in disseminating modern farming techniques like precision irrigation or integrated pest management. This bureaucratic inertia discourages farmers from adopting climate-smart practices. From a fiscal perspective, local governments generate only about 5% of their budgets through local taxes, leaving them dependent on unstable provincial transfers. As a result, critical investments in rural roads, water storage, and agricultural research remain underfunded.

To transform agricultural governance, Pakistan must strengthen revenue-generation mechanisms at the local level, such as nominal land-use fees or market levies, while ensuring that provincial transfers are predictable and tied to performance indicators. Building transparent accountability structures, such as district agricultural boards with farmer representation, can mitigate elite capture. Finally, investing in the recruitment and training of extension officers, coupled with streamlined administrative workflows, will enable LGs to deliver timely, context-specific support, ultimately boosting productivity and resilience across the agricultural landscape.

Local Government’s Role in Agricultural Service Delivery and Farmer Participation

Local governments (LGs) are pivotal in providing agricultural services, yet coverage remains limited. Only 15% of farmers receive regular extension support, leaving most smallholders without critical guidance on modern farming practices, pest management, or climate-resilient techniques (FAO, 2023). In Punjab, the “Kissan Card” scheme aimed to digitize input subsidies, but with only 28% rural internet penetration, many eligible farmers cannot fully benefit (PTA, 2023). Strengthening LG outreach, through mobile-based advisory units and incentivized village extension agents, could bridge this gap, ensuring tailored support reaches remote areas.

In irrigation and water management, LGs oversee minor canals and distribution networks. However, underfunded maintenance regimes allow up to 60% of irrigation water to be lost before it reaches fields, exacerbating scarcity and fueling inequitable distribution (PCRWR, 2023). Water theft and unauthorized diversions further disadvantage smallholders downstream. Empowering LGs with dedicated canal repair funds and community-led water user associations can improve accountability. Implementing transparent water-tracking systems, such as simple flow meters and local monitoring committees, would help ensure that scarce water resources are equitably shared.

Rural infrastructure and market access also depend heavily on LG investments. Only 40% of Pakistani villages have paved roads, making it difficult for farmers to transport produce to markets or access inputs (PSLM, 2023). In Khyber Pakhtunkhwa, the “Agro-Based Rural Development Program” upgraded 45% of targeted rural roads, resulting in significant increases in farm incomes by reducing transit times and spoilage (KP Govt., 2023). Scaling similar road rehabilitation projects nationwide would enable farmers to reach buyers more efficiently and secure better prices.

Despite these service provisions, farmer’s participation in LG decision-making remains minimal. Less than 10% of smallholders engage in local planning processes, and women, who comprise 70% of the rural agricultural labor force, are largely excluded from policy discussions (IFPRI, 2023; UN Women, 2023). The absence of formal feedback mechanisms leaves issues like seed quality or subsidy delays unaddressed; for instance, Punjab’s “e-Khidmat” complaint portal exists but has low farmer awareness and utilization (PARC, 2023; PITB, 2023). Establishing village-level farmer councils, ensuring gender-balanced representation, and promoting awareness of grievance platforms can provide farmers with real influence over LG policies. By strengthening extension outreach, improving water and road infrastructure, and incorporating farmer voices, LGs can more effectively support sustainable agricultural development.

Policy Gaps & Recommendations

Several policy gaps hinder local governments (LGs) from fully supporting agricultural development. First, weak fiscal decentralization limits LGs’ ability to generate and allocate resources for farming services. Allowing LGs to levy modest agricultural taxes, such as market fees, input levies, or land-use charges, would strengthen local budgets. India’s Panchayati Raj model demonstrates this approach: nearly 25% of panchayat revenues come from local taxes, enabling tailored investments in rural infrastructure and agro-services.

Second, poor extension services leave many farmers without timely advice on modern practices. To address this, LGs should deploy mobile-agriculture clinics staffed with agro-technicians who travel to remote villages. Complementing these clinics with AI-based advisory apps, offering personalized recommendations on crop varieties, pest control, and weather forecasts, can expand outreach. Kenya’s DigiFarm platform, with over one million registered users, exemplifies how digital tools can empower smallholders with real-time agronomic guidance.

Third, gender exclusion remains pervasive: women own less land and have limited access to LG decision-making. Reserving at least 30% of LG seats for women ensures their perspectives shape agricultural policies. Additionally, offering gender-sensitive subsidies, such as discounted inputs for female-headed households or grants for women-led cooperatives, can boost women’s productivity. In Bangladesh, Female Farmer Cooperatives have successfully increased women’s participation in value chains by providing shared equipment and market linkages.

Finally, LGs often lack capacity for climate resilience, leaving farmers vulnerable to droughts, floods, and erratic weather. Integrating LG-led early warning systems, combining local weather stations, community monitoring, and SMS alerts, can help farmers prepare. Ethiopia’s Climate-Smart Villages program showcases this model: local committees use climate data to adjust planting schedules and water management, reducing crop losses and stabilizing incomes.

By addressing these policy gaps, enhancing fiscal autonomy, modernizing extension services, promoting gender inclusion, and bolstering climate resilience, LGs can more effectively support sustainable agriculture and improve rural livelihoods.

Conclusion

Local governments are central to strengthening Pakistan’s agricultural sector, yet persistent challenges, such as limited fiscal autonomy, under-resourced extension services, and weak farmer engagement, undermine their impact. While decentralization reforms have theoretically delegated responsibilities for irrigation, extension, and credit, reliance on provincial transfers (over 70% of LG budgets) and political interference continue to constrain district-level decision-making. Understaffed extension offices and low digital connectivity mean that fewer than 15% of farmers receive regular advisory support, slowing adoption of modern, climate-resilient practices. Similarly, water management remains inefficient: minor canals overseen by LGs lose up to 60% of flow due to underfunding and theft, deepening scarcity for smallholders downstream.

Addressing these gaps requires targeted reforms: granting LGs authority to levy modest local taxes can bolster agricultural budgets, while performance-linked fiscal transfers, tied to metrics like yield improvements, would incentivize efficient service delivery. Mobile agri-clinics and AI-driven advisory apps can expand extension reach and mandating at least 30% women’s representation in LG bodies will ensure gender-responsive policies. Investing in rural road rehabilitation and transparent water-tracking systems will improve market access and equitable irrigation. Finally, integrating LG-led climate early-warning systems, drawing on local weather stations and community monitoring, can help farmers anticipate and adapt to droughts or floods.

By enhancing fiscal autonomy, modernizing extension services, promoting gender inclusion, and embedding climate resilience, local governments can more effectively support smallholders, boost productivity, and foster sustainable rural livelihoods across Pakistan.

References: Pakistan Economic Survey; World Bank; FAO; UN Women; Punjab LG Department; KP Finance Commission; ADB; PTA; PCRWR; PSLM; KP Govt; IFPRI; PARC; PITB

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.

The writer is affiliated with the Institute of Agricultural and Resource Economics, University of Agriculture, Faisalabad, Pakistan and can be reached at mamna5861@gmail.com 

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