Halima Sadia

Imtisal Nasir
The Significance of CONTRIBUTION TO GDP
Agriculture
Agriculture
• Contributes to 24 percent of the 24%
GDP

• Wheat, cotton, rice, sugarcane

and maze are the most important
crops, making up 75 percent of
the total crop output.

• Pakistan is one of the key mango

and cotton exporters of the world

Other Sectors
76%
Current Trends
41% Decrease in cotton
Production 2.6% Decrease in barley
production

21.5% Decrease in rice ~Rs 10 Worth of losses incurred by

production
trillion the agricultural sector in FY
2023

23.4% Decrease in Jowar

Production
Key Challenges

01
Limited access 03
Limited technical 05 Water based
to finance knowledge issues
• Lack of collateral Smallholder farmers often lack • Inefficient irrigation
• Limited outreach of financial scientific and technical knowledge of practices
institutions their crops, which hinders their ability • Water scarcity
• High interest rates to improve their yields and crop • Groundwater depletion
• Lack of financial literacy quality.

02
Poor quality 04
Poor disease 05
Lack of Cold
seeds management Chain
The quality of seeds used by
Disease reporting and management
in the animal health sector is often
Infrastructure
farmers is often poor, which leads
weak, which can lead to outbreaks
to low yields and poor crop
and negative impacts on animal
quality.
health and productivity.
 Limited Access to Finance
Current Government Policies Suggestions

The Kissan Package Expand Access to Financial Services:

• Rs. 1,800 billion in agri loans • Set up more bank branches in rural areas.
• Rs. 50 billion in subsidized loans • Utilize mobile banking technology.
• reduction in fertilizer cost • Collaborate with farmers' organizations for financial services.
• Rs. 5 billion in interest-free loans to landless farmers
Simplify Loan Procedures:
The Punjab Fasal Bema scheme • Reduce paperwork for loans.
• Provides insurance to farmers
• Streamline the loan approval process.
The Prime Minister's Agriculture Emergency • Offer training to help farmers apply for loans.
Program Provide Credit Guarantees:
• Provision of subsidized fertilizers • Government support for farmers lacking collateral.
• Establishment of model farms • Reduces risk for banks, making loans more accessible.
• Promotion of high-value crops Introduce Crop Insurance:
• Provision of training and capacity building for farmers
• Protect farmers from crop losses (natural disasters, pests,
The Agriculture Credit Guarantee Scheme diseases).
State Bank of Pakistan to provide credit guarantees to banks and • Lowers risk for lenders, making credit more available.
financial institutions for lending to farmers and other stakeholders in
Promote Financial Education:
the agriculture sector.
• Develop programs to help farmers understand loan terms.
• Prevents farmers from taking on unaffordable loans and
predatory lenders
 Poor Quality Seed
The animal kingdom
Government Policy
Seed Act
The primary purpose of the Seed Act is to
regulate the seed industry to ensure the
availability of high-quality seeds for farmers
and to protect the interests of both farmers and
seed companies. It outlines the standards and
procedures that seed companies must follow
when producing and selling seeds.
Suggested Policy
Research and development of hybrid
seeds is needed along with the
domestic production of these seeds.
In China, the introduction of double-
cropping hybrid rice has led to record-
breaking yields of up to 15 tonnes per
hectare as compared to 6.7 tonnes per
hectare in conventional rice.
Source:
https://www.fao.org/3/w
8595t/w8595t02.htm
 Water-based Issues
The animal kingdom
Suggested Technology
Israel’s Drip Irrigation Technology

Technology such as Nefafim’s Drip Irrigation

Devices have increased water efficiency by 70
to 80%.

Drip irrigation delivers water directly to plant

roots through a network of tubes and emitters,
conserving water and ensuring precise
watering. It minimizes evaporation.

Implementing technology such as this can lead Source: Megersa, G., & Abdullahi, J. (2015). Irrigation System in
to cost reductions for farmers and better Israel: A Review (Vol. 7(3)). International Journal of Water
resource allocation. Resources and Environmental Engineering.
https://academicjournals.org/IJWREE
 Cold Chain Infrastructure
The animal kingdom
Suggested Technology
Integration of MCP (Methylcyclopropene)

MCP is a chemical with minimal capital cost

which extends the shelf life of fruits and
vegetables, enabling farmers to reach distant
markets and reduce post-harvest losses.

It is currently being used in India as well as

China
Source: Cold Chain and Postharvest Sector
in Pakistan by USAID
http://agribusiness.org.pk/wp-
content/uploads/2020/12/19.-Cold-Chain-
Interventions.pdf