LAHORE CSS ACADEMY

13-Sher Shah Block, New Garden Town, Barkat Market, Lahore

0331-0001110 / 0333-9800938

Agricultural Problems in Pakistan

Past Paper Questions:
• Having the largest irrigation system in the world, the land of the sub-continent
served as the main food supply basket for the British power for more than a
century, but now Pakistan has to import food commodities. Discuss in detail the
causes of this agricultural decline.
Outline:
1. Introduction
2. Contribution to the Economy
3. Share in Exports
4. Main Crops
5. Livestock and Dairy Sector
6. Challenges to agricultural sector in Pakistan
a. Water Scarcity
b. Urbanization of Agricultural land
c. Poor Crop Yield
d. Outdated Farming Techniques
e. Land Fragmentation
f. Lack of Agricultural Research and Development
g. Inadequate Access to Credit and Finance
h. Inadequate Agricultural Input Supply
i. Climate Change and Natural Disasters
j. Post-Harvest Losses and Value Chain Constraints
k. Inefficient Market Systems
l. Improper Crop Rotation
7. Solutions to improve Agricultural Sector in Pakistan
a. Water Management and Irrigation
b. Water logging and salinity control and construction of dams
c. Modernizing Farming Techniques
d. Permanent Raised Bed Cropping Systems in Pakistan
e. Land Consolidation and Land Reforms
f. Investment in Agricultural Research and Development
g. Access to Credit and Finance
h. Climate Change Adaptation and Mitigation
i. Post-Harvest Management and Value Addition
j. Market Reforms and Access
8. Conclusion
 LAHORE CSS ACADEMY
13-Sher Shah Block, New Garden Town, Barkat Market, Lahore
0331-0001110 / 0333-9800938

Introduction:
Agricultural problems in Pakistan pose significant challenges to the country's agricultural sector.
Water scarcity is a prominent issue, with Pakistan being one of the most water-stressed countries
globally. The per capita water availability has decreased from 5,600 cubic meters in 1951 to
approximately 1,000 cubic meters in recent years. Outdated farming techniques prevalent among
smallholder farmers hinder productivity and efficiency. Limited mechanization and access to
modern technologies impede progress. Land fragmentation is another concern, as farms are
divided into smaller plots due to population growth and inheritance laws, limiting economies of
scale. Inadequate investment in agricultural research and development restricts the introduction of
improved farming practices and crop varieties. Climate change impacts, including irregular rainfall
patterns, droughts, and floods, further affect crop productivity and sustainability. Post-harvest
losses due to insufficient storage facilities and weak market linkages contribute to food waste.
Addressing these challenges necessitates investment in water management, modernization of
farming practices, land reforms, research and development, climate change adaptation, and
improved market infrastructure. By improving infrastructure required to transport perishable
products, by investing more in dairy-related industries, by renovating irrigation system and by
increasing per acre yield, Pakistan can promote agricultural sustainability and enhance the
livelihoods of its farming communities.

Contribution to the Economy:

Agriculture is a significant sector in Pakistan's economy, employing a substantial portion of the
population. Approximately 38% of the country's labor force is engaged in agriculture. The
agricultural sector contributes around 19% to Pakistan's GDP, making it a crucial driver of
economic growth. The sector provides raw materials for various industries, including textiles, food
processing, and manufacturing.

Share in Exports:
Agriculture is a key source of export earnings for Pakistan. The country exports a range of
agricultural products to international markets. Major agricultural exports include rice, cotton, fruits
(such as citrus and mangoes), vegetables, meat, and fish. These agricultural exports contribute
significantly to Pakistan's foreign exchange reserves and help balance the trade deficit. Exports of
Agro products contributes US$ 4.4 billion to the economy of the country.

Main Crops:
Pakistan is known for its diverse range of crops due to its varied agro-climatic zones. Major crops
include:
 LAHORE CSS ACADEMY
13-Sher Shah Block, New Garden Town, Barkat Market, Lahore
0331-0001110 / 0333-9800938

• Wheat
• Rice
• Sugarcane
• Cotton
• Maize
• Pulses
• Tobacco
• Fruits and vegetables
• Oil seeds
• Spices
Wheat is the most significant staple crop, accounting for a substantial portion of domestic
consumption and serving as a crucial food security crop. Cotton is a major cash crop, contributing
to the textile industry and generating significant export revenue.

Livestock and Dairy Sector:

Livestock plays a crucial role in Pakistan's agriculture, contributing to both food security and
income generation. The livestock sector includes cattle, buffalo, sheep, goats, and poultry. Pakistan
is among the top milk-producing countries globally, and the dairy sector provides livelihood
opportunities for many rural households.

Challenges to agricultural sector in Pakistan:

The agricultural sector in Pakistan faces several challenges, including water scarcity, outdated
farming techniques, land fragmentation, climate change impacts, and post-harvest losses.
However, there are also opportunities for growth and development. These include modernizing
farming practices, adopting advanced technologies, improving water management, investing in
research and development, and enhancing market linkages. Following are some major problems
faced by the agricultural sector of the Pakistan:

1. Water Scarcity:
Pakistan faces a significant water scarcity issue due to an inadequate supply of water for
agricultural purposes. Inefficient irrigation practices, outdated infrastructure, and a lack of water
conservation measures contribute to the problem. The reliance on an erratic monsoon pattern and
the limited storage capacity of reservoirs further exacerbate the water scarcity challenge.
Agriculture in several parts of Pakistan is facing water shortages of up to 50%. Water scarcity and
 LAHORE CSS ACADEMY
13-Sher Shah Block, New Garden Town, Barkat Market, Lahore
0331-0001110 / 0333-9800938

delayed availability are influencing wheat and rice crop grain size, stem size, and number of grains
per panicle. Waterlogging and salinity is another major issue faced by the agricultural sector.

2. Urbanization of Agricultural land:

Pakistan has a total area of around 79.6 million hectares, of which only 23.7 million hectares
(28%) are utilized for agricultural purposes. Approximately 8 million hectares of land remain
idle and underutilized. Moreover, agricultural land is also being used for the housing and non-
commercial purposes. Green belt is over taking by the plots and houses.
3. Poor Crop Yield
The most serious issue in agriculture is the low yield per hectare of practically every major crop.
In Pakistan, 45.0% of the labor force is employed in this sector, compared to fewer than 5% in
wealthy countries. However, other countries in the world are achieving higher yield per acre due
to the utilization of sophisticated technology and trained manpower.
4. Outdated Farming Techniques:
Traditional and outdated farming techniques are prevalent in Pakistan, leading to low agricultural
productivity. Limited mechanization, improper land preparation, and a lack of access to modern
farming technologies hinder progress. Inadequate knowledge and training among farmers
regarding improved techniques and practices further hinder agricultural development.

5. Land Fragmentation:
Pakistan experiences land fragmentation, where farms are divided into smaller plots due to
inheritance laws and population growth. Smaller land holdings make it difficult for farmers to
achieve economies of scale and invest in modern agricultural practices. Fragmentation also limits
the adoption of advanced technologies and mechanization, impacting overall agricultural
productivity.

6. Lack of Agricultural Research and Development:

Insufficient investment in agricultural research and development limits the introduction of new
crop varieties, improved farming practices, and technological advancements. Limited research
funding, outdated research facilities, and a lack of collaboration between research institutions and
farmers impede progress in the sector.

7. Inadequate Access to Credit and Finance:

Farmers in Pakistan often face challenges in accessing credit and finance for agricultural
operations. Limited availability of agricultural loans, high interest rates, and strict collateral
 LAHORE CSS ACADEMY
13-Sher Shah Block, New Garden Town, Barkat Market, Lahore
0331-0001110 / 0333-9800938

requirements make it difficult for farmers, particularly smallholders, to invest in modern inputs
and equipment.

8. Inadequate Agricultural Input Supply

In Pakistan, the availability of modern inputs such as high yielding variety (HYV) seeds, chemical
fertilizers, pesticides, mechanized machinery, and so on is not only expensive, but also insufficient
and sporadic. In Pakistan, there are just ten fertilizer manufacturing plants.
9. Climate Change and Natural Disasters:
Pakistan is vulnerable to climate change impacts, including irregular rainfall patterns, increased
frequency of droughts and floods, and rising temperatures. These climatic variations affect crop
productivity, livestock health, and overall agricultural sustainability. Natural disasters such as
floods and earthquakes also pose significant threats to agriculture, leading to crop damage and
livestock losses.

10. Post-Harvest Losses and Value Chain Constraints:

Inadequate storage facilities, poor transportation infrastructure, and limited cold chain facilities
contribute to post-harvest losses. Weak linkages between farmers, markets, and agribusinesses
result in limited value addition and low profitability for farmers.

11. Inefficient Market Systems:

Limited market integration, information asymmetry, and the dominance of intermediaries in
agricultural markets affect farmers' income and bargaining power. Lack of access to transparent
price information, absence of fair market competition, and inadequate market infrastructure
impede the growth of the agricultural sector.

12. Improper Crop Rotation

Proper crop rotation is required to reestablish the land's fertility. Constant cultivation of one or two
crops depletes the soil's fertility. Proper crop rotation is required to restore fertility. Here in
Pakistan, the concept of crop rotation is not implemented.

Solutions to improve Agricultural Sector in Pakistan:

Following solutions can be adopted to improve agricultural sector in Pakistan:

1. Water Management and Irrigation:

Implement efficient irrigation techniques such as drip irrigation and sprinkler systems to optimize
water usage. Improve water storage infrastructure, including building dams and reservoirs, to
 LAHORE CSS ACADEMY
13-Sher Shah Block, New Garden Town, Barkat Market, Lahore
0331-0001110 / 0333-9800938

enhance water availability for agriculture. Promote water conservation practices among farmers
through awareness campaigns and training programs.

2. Water logging and salinity control and construction of dams:

Tube wells, canal bank maintenance, and proper water drainage, among other things, are required
for this purpose. The Ministry of Agriculture suggested an investment of Rs. 18.5 billion to convert
200,000 acres of irrigated land to drip and shower irrigation systems. According to the previous
government budget, agricultural tube wells will receive subsidized power. Dams on rivers are
essential for addressing this issue.
3. Modernizing Farming Techniques:
Introduce modern farming technologies and machinery to enhance productivity and efficiency.
Promote mechanization in agriculture, including the use of tractors, harvesters, and other
equipment. Provide training and extension services to farmers to educate them on improved
farming practices and techniques. Farmers are forced to rely on low-quality seeds, which diminish
overall production by 20%. In this case, the government should provide high yielding variety seed
at a discounted rate.

4. Permanent Raised Bed Cropping Systems in Pakistan:

A permanent raised bed cropping approach could boost yield while saving water during field
application. Permanent raised beds are widely used in many nations for both irrigated and dry land
areas. In irrigated and drylands, productivity increased by 20-100%.

5. Land Consolidation and Land Reforms:

Encourage land consolidation through policies that incentivize voluntary land pooling and
consolidation initiatives. Introduce land reform programs to address issues related to land
fragmentation and promote larger, more efficient farm sizes. Facilitate land leasing arrangements
to promote more productive and sustainable land use practices.

6. Investment in Agricultural Research and Development:

Increase public and private investment in agricultural research and development to develop
improved crop varieties, farming techniques, and technologies. Strengthen collaboration between
research institutions, universities, and farmers to ensure the transfer of knowledge and innovations
to the field. Establish research and development centers at regional levels to address specific
agricultural challenges and promote localized solutions.
 LAHORE CSS ACADEMY
13-Sher Shah Block, New Garden Town, Barkat Market, Lahore
0331-0001110 / 0333-9800938

7. Access to Credit and Finance:

Enhance access to affordable credit and finance for farmers, particularly smallholders, through the
expansion of agricultural loan programs and innovative financial products. Simplify loan
procedures and reduce collateral requirements to make credit more accessible to farmers. Develop
risk-sharing mechanisms and insurance products to protect farmers from losses due to natural
disasters and other unforeseen circumstances. Agriculture loan on favorable terms and conditions
is critical. Agricultural loans totaled Rs. 958 billion during fiscal year 2021-22.
8. Climate Change Adaptation and Mitigation:
Implement climate-smart agricultural practices that are resilient to climate change, such as
conservation agriculture, agroforestry, and precision farming. Promote the use of climate-resilient
crop varieties and livestock breeds. Strengthen early warning systems and disaster preparedness to
minimize the impact of natural disasters on agriculture.

9. Post-Harvest Management and Value Addition:

Improve storage and processing facilities to reduce post-harvest losses. Develop efficient supply
chains and market linkages to connect farmers directly with buyers, reducing the role of
intermediaries. Promote value addition through agro-processing and agribusiness development,
enabling farmers to capture a larger share of the value chain.

10. Market Reforms and Access:

Enhance market transparency and information dissemination to empower farmers with better
market insights. Develop market infrastructure, including cold storage, transportation networks,
and wholesale markets, to facilitate efficient and fair trade. Encourage the formation of farmers'
cooperatives and producer organizations to collectively negotiate better prices and access markets.

Conclusion:
Pakistan is an agrarian country, and problems in this crucial sector affect both the national
economy and the country's geopolitical position. The existing condition is risky in the years to
come due to a lack of interest from higher authorities in this critical business. Pakistan's economy
is still developing in the agricultural sector despite being an agrarian nation. To address the
difficulties confronting the agricultural industry, contemporary techniques, the provision of
financial facilities, basic infrastructure, and agricultural research centers are required.
 LAHORE CSS ACADEMY
13-Sher Shah Block, New Garden Town, Barkat Market, Lahore
0331-0001110 / 0333-9800938

Suggested Readings:
1. Major Agricultural Problems in Pakistan
https://lms.su.edu.pk/download?filename=1588507911-4-agricultural-
problems.pdf&lesson=2169
2. Agriculture https://www.finance.gov.pk/survey/chapter_22/PES02-AGRICULTURE.pdf
3. Agro & Food Division https://tdap.gov.pk/agro-food-division/
4. Issues and Strategies to Revitalize the Agriculture Sector of Pakistan
https://pide.org.pk/blog/issues-and-strategies-to-revitalize-the-agriculture-sector-of-
pakistan/
5. Agricultural Dynamics In Pakistan: Current Issues And Solutions
https://www.researchgate.net/publication/275892383_AGRICULTURAL_DYNAMICS_
IN_PAKISTAN_CURRENT_ISSUES_AND_SOLUTIONS
6. Pakistan’s Climate-induced Water Scarcity and its Impact on Agriculture
https://www.hilal.gov.pk/index.php/detail/pakistan%E2%80%99s-climate-induced-water-
scarcity-and-its-impact-on-agriculture